Lloyd’s is facing a combined ratio of at least 105% this year, but the figure could blow out further if there are more disasters during the year, according to ratings agency Standard & Poor’s (S&P).
 
The result translates into a full-year loss for Lloyd’s which last week recorded a £697 ($1.54 billion) loss for the first six months of 2011 thanks to a string of natural catastrophes.
 
S&P says the catastrophes “are expected to add around 20% to Lloyd’s 2011 combined ratio”, but the 105% figure could be undermined further by a heavy hurricane season.
 
“More likely it will be higher given that the third quarter is the most active quarter for hurricane formation and loss,” the agency said.
 
Lloyd’s first-half loss was the “costliest six months on record” after earthquakes in Christchurch and Japan and extensive flooding in Australia and the US.
 
But it was a better result than expected, with some pundits tipping a loss double that amount.
 
Lloyd’s combined ratio for the first-half was 113% compared with 98.7% in the corresponding period last year.