Loss forecasts

Moody’s Investors Service’ latest forecast for Lloyd’s is that the market will suffer a loss of £2.4bn for the 2000 year of account and £2.6bn for the 2001 year of account. The rating agency points out that these figures are respectively £430mn and £875mn higher than Lloyd’s most recent loss estimations for those underwriting years. Dominic Simpson of Moody’s says that the 2001 account is likely to deteriorate further as a result of under pricing and writing risks on a multi-year basis.