LONDON - Lloyds of London on Wednesday estimated its net loss from Hurricane Katrina at 1.4 billion pounds ($2.55 billion).
"It should be stressed that it will not be possible, for some time, to have a precise view of the ultimate insured loss because this is a complex catastrophe, the full extent of the damage is unknown and the loss is still ongoing," the insurer said in a statement.
Lloyd's said there was no indication that any of its 44 syndicates would be unable to continue trading.
"The financial position of the Lloyds market is strong. The impact of major catastrophes is modeled to ensure that the market is able to absorb losses, and in the normal course of business managing agents assume a certain level of major catastrophe loss in their financial planning," the statement said.
On Tuesday, U.S. ratings agency Standard & Poor's said losses from Hurricane Katrina were causing concerns for Lloyd's. It said some syndicates were more exposed to the losses than others and their ability to continue trading "may be adversely affected."
Standard & Poor's said it was placing Lloyd's and nine other insurance groups on CreditWatch with negative implications. However, it said that if it decided to lower the rating on Lloyd's, it didn't expect to do so by more than one notch.