Lloyd's of London sees £1.3 billion Thai flood loss

February 14, 2012 4:42 AM EST

Severe flooding in Thailand last year looks set to cost the Lloyd's of London insurance market $2.2 billion (1.3 billion pounds), it said on Tuesday, with claims for the industry as a whole likely to reach $15 - 20 billion.

The final bill from the Thai floods may vary, but Lloyd's is financially strong enough to cope, Chief Executive Richard Ward said.

"The Lloyd's market is as well capitalised as it has ever been," he said in a statement.

"Paying these claims is within the normal course of business for Lloyd's."

Insurers have said the impact of the floods, which disabled manufacturing facilities operated by multinational firms, has been hard to gauge because it took a long time for floodwaters to recede.

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There is uncertainty also over the volume of claims for business interruption, with companies worldwide hit by a shortage of components after the floods knocked out many foreign-owned makers of hi-tech gear.

The Thai floods contributed to total estimated catastrophe claims of $108 billion (68 billion pounds) in 2011, making it the insurance industry's second-costliest natural disaster year on record, according to reinsurer Swiss Re.

Last week, Lloyd's of London insurer Amlin said it expected claims of up to $111 million (70 million pounds) from the floods.

(Reporting by Myles Neligan; Editing by Sudip Kar-Gupta)

Copyright 2012 Thomson Reuters UK. All rights reserved.
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