LONDON (AP) — Lloyd’s of London on Wednesday reported a big
loss for 2011, which proved to be the second-costliest year ever in
terms of natural catastrophe claims for the global insurance industry.
Lloyd’s,
a society of corporate underwriters and wealthy individuals that make
insurance transactions through 88 syndicates, said it lost 516 million
pounds ($822 million) on net claims of 12.9 billion pounds.
The
claims included 4.6 billion pounds for catastrophes, the largest amount
in that category in Lloyd’s 324-year history. Total claims from natural
catastrophes for the global insurance industry in 2011 were $107
billion, second only to $120 billion in 2005, the year of Hurricane
Katrina in the United States, Lloyd’s said.
Major catastrophe
claims followed flooding in Australia in January, the second earthquake
in New Zealand in February, the Japanese earthquake and tsunami in
March, a deadly series of tornadoes in the United States in April and
May, and the floods in Thailand from July.
John Nelson, chairman
of Lloyd’s, said the market’s capital position was unchanged and it
recorded a profit in the second half of the year.
"We know that market conditions are likely to remain tough in 2012," Nelson
said.
Lloyd’s
said fears of a double-dip recession had made investors very cautious,
particularly in Europe, and the eurozone crisis has slowed insurance
growth in the region. However, Lloyd’s said demand for insurance was
growing in Asia and Latin America.
Lloyd’s said it was confident
of meeting the European Union’s Solvency II regulations on the insurance
industry in 2013. Uncertainty about the cost of the new regulations has
led one major British insurer, Prudential, to say it was examining the
possibility of moving its headquarters out of London.
Copyright 2012 The Associated Press.