Lloyd's of London expects losses from Superstorm Sandy up to $2.5B

Lloyd’s of London said Wednesday that its losses from Superstorm Sandy likely would be between $2 billion and $2.5 billion.

Lloyd’s said the range of its net, pretax claim estimate was consistent with expected industry losses of between $20 billion and $25 billion.

Lloyd’s said it expected claims from the storm would have minimal impact on the capital position of members of the market and would have no impact on the Central Fund — the fund of last resort into which all syndicates contribute to cover losses should any syndicate be unable to meet its liabilities.

“As always, our priority is to pay valid claims as quickly as possible and help the communities in North America and the Caribbean affected by Sandy get back on their feet,” Richard Ward, CEO of Lloyd’s, said in a statement.

“The Lloyd’s insurance market remains financially strong and, while claims from this storm could still evolve over time, the market’s total exposure is well within the worst case scenarios we model and prepare for,” he added.