The insurance giants are updating their likely claims related to COVID-19. Lloyd's expects it will get hit with bills totalling 5 billion pounds. Image Credit: AFP

Dubai: Lloyd’s of London expects to pay out nearly 5 billion pounds in COVID-19 related claims to its clients this year, as insurers provide more updated estimates on the losses they are expected to sustain. For the first-half of this year, the insurer had claims of 2.4 billion pounds (after reinsurance recoveries).

John Neal, Lloyd’s CEO, said: “The pandemic has inflicted catastrophic societal and economic damage calling for unparalleled measures to stifle the spread of the virus, and to get businesses and economies back on their feet. Our half-year results demonstrate that our robust approach to performance management and remediation has begun to take effect, evidenced by a significant turnaround in the underlying performance metrics.”

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The insurer reported losses of 400 million pounds for the first six months. Excluding COVID-19 losses, Lloyd’s delivered an underwriting profit of 1.0 billion.