Lloyd’s insurers won’t have full-view to war-related losses yet in 2022

London insurers will have only vague guesses to mid-year about their losses from the Ukrainian war, top officials of  Lloyd’s said Thursday (March 24).

"It will be a major event, there is no doubt there will be losses that will materialize," Lloyd's CEO John Neal (pictured) said.

But loss recognition "will take quite a long time" in a loss evaluation process which will likely prove "a lot harder" than that posed by Covid, he said.

"At the half year, you will start to see some estimates emerging in the P&Ls, but it will still be very immature," Neal said. "They won't genuinely know what losses might arise."

Reserve creation in the 2022 full-year reports "might be better, but it might take longer than that."

Internal top-down scenario studies done by Lloyds suggest "nothing that suggests [losses] are outside the tolerance range."

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