Lloyd's Estimates Net Claims from BP Incident

Lloyd's announced its current estimates for the net claims from the Deepwater Horizon explosion in the Gulf of Mexico. The estimate stands at between US $300 million and US $600 million.

As additional information emerges, Lloyd's actual ultimate net claims from the event may vary from this preliminary estimate.

Lloyd's preliminary estimate of claims from the event is consistent with the upper range of industry insured loss estimates and draws on market share analysis, the application of modeling techniques, and a review of contracts in force as well as early estimates from each syndicate. It is difficult at this time to provide an accurate estimate of the financial impact of these events on the overall market given that both are still evolving.

There will be a negligible impact on Lloyd's capital and no Central Fund exposure from the event, either individually or collectively.

Lloyd's Chief Executive Richard Ward said, "Clearly the event has had a significant impact on the US-coastal communities, as well as a severe environmental cost in the case of the oil spill off Louisiana. Our priority remains to assess and settle valid claims as quickly as possible in the region and helping to rebuild.

"These figures are our estimates of the market's total exposure. The claims relating to the event in the Gulf of Mexico is still developing."