Lloyd’s now expects to pay customers £6.2 billion ($11.22 billion) for pandemic-triggered claims.

The market, which suffered an £887 million ($1.6 billion) loss last year, substantially increased its COVID-19 payout estimate in its latest annual result update. Reinsurance covers £2.6 billion ($4.7 billion) of the gross forecast.

Last year, coronavirus claims added 13.3% to the market’s 2020 combined ratio of 110.3% while a “busy” natural catastrophe season added £2.5 billion ($4.53 billion) to major claims.

“Against this unprecedented backdrop we have made good progress across our performance, digitalisation and culture transformation plans,” CEO John Neal said. “Continued positive rate momentum will see the market supporting growth for the first time in four years.”

The market achieved average renewal rate increases of 10.8% in 2020, though gross written premium slipped 1.2% to £35.5 billion ($64.23 billion), dented by a 12% reduction in business volumes.

Excluding COVID, Lloyd’s – which paid £21.4 billion ($38.72 billion) in gross claims last year – achieved a combined ratio of 97%, versus 102.1% in 2019 and 104.5% in 2018.

Lloyd’s says its gross COVID claims forecast comprises £2.6 billion ($4.7 billion) in the US and £1.3 billion ($2.35 billion) in the UK. By category, Accident & Health contingencies made up £2.9 billion ($5.25 billion), property (Direct & Faculty) £900 million ($1.63 billion) and property treaty £700 million ($1.27 billion). Casualty, credit lines and other categories were each half a billion pounds or lower.