Natural Disasters Cost Insurance Giant

Posted September 21st, 2011 at 4:50 am (UTC-5)
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Insurance giant Lloyd's of London has suffered its largest ever first half loss due to claims from recent earthquakes, floods and tornadoes.

Lloyd's says the earthquakes in Japan and New Zealand, the Australian floods and U.S. tornadoes cost the company more in the first half of 2011 than it paid in claims for all of 2010.

Lloyds chairman Peter Levene added, ” We have not yet reached the end of the Atlantic hurricane season.”

The first six months of 2011 saw Lloyd's post a pre-tax loss of $1.1 billion. The same period of 2010 saw the insurance giant earn nearly $1 billion in profits.

Levene called 2011 “one of the most challenging years on record for the insurance industry.”