Moody’s: Losses Loom for Lloyd’s

March 21, 2001

Moody’s Investors Service Ltd. is forecasting that Lloyd’s of London will report losses of $5.23 billion for the four years of 1998 and 2001.

Under Lloyd’s three-year accounting system, the next results due to be published are for 1998. Moody’s forecast of a loss for that year remains unchanged from earlier predictions at around $1.64 billion.

Moody’s said the insurer’s loss forecast for 1999, however, has increased to an estimated $2.24 billion, worse than previously expected and representing the bottom of the current down cycle. Lloyd’s 2000 loss will be about $1.07 billion, according to Moody’s, and the 2001 loss will be around $246.4 million.

Moody’s expects the results of Lloyd’s syndicates to vary widely, though it forecasts losses in 1998, 1999 and 2000 in each of the main Lloyd’s sectors, including marine, non-marine, motor and aviation.

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