Lloyd’s says losses related to the Ukraine war are likely to be concentrated in the aviation, marine, political risk, political violence and trade credit classes but the conflict won’t be a “solvency or capital event” for the corporation or individual syndicates.

“What is clear at this stage is the complexity of the aviation loss in particular is almost without precedent in terms of the potential outcomes and interpreting how coverage might respond,” Chief of Markets Patrick Tiernan said last week.

“The specific challenges around the class make it difficult to provide a helpful range due to a number of binary variables that will take some time to resolve.”

The market is “acutely aware” that there is public interest in, and customers relying on, the orderly resolution of the claims, he says.

Mr Tiernan says that while Lloyd’s has minimal direct impact from the invasion the “knock-on consequences in certain classes are nevertheless significant”.

The market will provide more information at its second quarter results, but says booked reserves to date are nearly all incurred but not reported (IBNR) and analysis reinforces its view that scenarios fall within manageable tolerances.

Market participants at the briefing were also advised to ensure the current changing environment and factors such as rising inflation are taken into account as business plans are finalised for next year.

“We are currently facing a once in a generation period of uncertainty and volatility,” Mr Tiernan said.

“These conditions require careful management but if we respond appropriately and prepare effectively our market can continue to grow in size and relevance by helping our customers with the products and solutions they need to navigate the current environment.”