Lloyd's of London sees 'large loss' on Suez drama

The almost weeklong blockage in the Suez Canal looks set to land insurers with a big bill.

Lloyd's of London says it faces a 'large loss' as a result of the drama.

Chairman Bruce Carnegie-Brown says the exact cost is impossible to predict.

But he says Lloyd's could be on the hook for $100 million or more.

The 400-meter long Ever Given has now been refloated.

But the megaship held up hundreds of other vessels while it was wedged in the canal.

Now insurance claims could cover all those affected.

The initial bills will go to the Ever Given's liability insurer, UK P&I Club.

But it in turn will have reinsurance, some of it on the Lloyd's insurance market.

Fitch Ratings said this week that total claims were likely to run into the hundreds of millions.

For Lloyd's it's just the latest blow in a bad year.

It expects to pay out about $4.7 billion in net claims related to the global health crisis.

Some of that covers the cancellation of major events, such as the Wimbledon tennis tournament.

On Wednesday Lloyd's reported a pretax loss of $1.2 billion for 2020.