Lloyd's of London made a loss of £3.11bn* (on an annual accounting basis) in 2001. This reflects the exceptional level of catastrophes during the year, including:
- The September 11 attacks on the US
- The attack on the Air Lanka fleet in Sri Lanka
- The loss of the Petrobas oil rig off the coast of Brazil
- The explosion at a chemical plant in Toulouse
- Tropical storm Allison which wrought havoc throughout parts of the US.
September 11 gave rise to the biggest insured loss that the Lloyd's market has ever experienced. The loss was spread across the whole market, affecting almost all the classes of business written at Lloyd's. The 13 other major catastrophes during the year accounted for another £371m* of net losses. Although premium rates were increasing throughout 2001 in response to these crises, the £1.98bn* lost as a direct result of September 11, combined with the other catastrophes, meant that an overall loss was inevitable.
Whilst the loss is large in absolute terms, the Lloyd's combined ratio of 140%* (losses + expenses as a percentage of net premiums) was comparable to the performance of other global insurance players.
*Source: Lloyd's Market Reporting, September 2002
*Source: Lloyd's Market Reporting, September 2002
