Year 2011 was a really bad year if we look at the list of catastrophic events that affected the insurance industry. The year started off quite poorly with heavy flooding in Australia, Cyclone Yasi and a destructive earthquake in New Zealand. On March 11, 2011 we had a watershed catastrophe which changed how the world perceives nuclear power as a viable source of energy - the Japanese earthquake and the ensuing Tsunami.
If that wasn't enough, we had a series of Tornadoes in the USA in April/May time, and wildfires in Texas which all led to heavy losses for insurance. There were two more earthquakes in New Zealand later in the year, and England added its bit to the woes of an already terrified insurance industry with the unprecedented riots that spread throughout the country.
One might have hoped for a quieter end for the year, but as it was not to be! Thailand was lashed with heavy rains and devastating flooding hitting Lloyd's of London with over more than £1bn from a single event which is in the same range what it cost it for the Japanese Tsunami. If you haven't guessed it already then last year was the second most expensive year on record for the insurance industry in terms of losses arising out of natural disasters.
So the news that Lloyd's is now back in profit makes it a news really worth celebrating! It made a profit of £1.5 billion compared to a loss of £697 million in the same period for 2011. It might be a celebration bit too early when Chairman John Nelson was quoted as saying he was 'highly conscious' that the Atlantic windstorm season was currently underway.
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