Lloyds Faces £1.3 Billion In Costs From Gustav And Ike Exposures - Guardian

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Lloyd's of London faces a £1.3bn bill to cover some of the damage caused by hurricanes Gustav and Ike this summer. Lloyd's said the total damage caused by the two hurricanes, which struck the US in quick succession last month in one of the most damaging hurricane seasons in history, is likely to reach $25bn (£14.6bn).

It said its bill was in line with expectations. It will be spread across many of the insurers that make up the Lloyd's market. Some have already admitted their profits will be badly hit, but Lloyd's is confident that none will be forced to turn to its central fund for help. "While industry losses from hurricanes Gustav and Ike are likely to exceed initial forecasts, the claims to Lloyd's will be manageable and in the normal course of business," said chief executive Richard Ward.

"Clearly these hurricanes have had a significant impact on the coastal and inland communities of the southern US states and our priority remains assessing and settling claims as quickly as possible to help rebuild the area," he said.

Gustav caused extensive damage across the Caribbean in late August as it travelled towards the US. Almost 140 fatalities have been reported in Haiti, Jamaica and the Dominican Republic, as well as in several of America's southern states after Gustav reached land on September 1. In Louisiana, New Orleans was damaged just three years after Hurricane Katrina flooded much of the city.

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http://www.guardian.co.uk/business/2008/oct/21/lloydsoflondon-naturaldisasters