Lloyd’s in Canada notes ‘frown lines’ after 2005

Lloyd’s of London in Canada paid out more for claims in 2005 than it collected in premium, Lloyd’s chairman, Lord Levene, indicated in a July speech to the Vancouver Board of Trade.

“What we’ve seen in Canada has caused a few frown lines,” Levene said in the text of his speech. “In 2005, Lloyd’s underwriters paid some significant claims arising out of a variety of risks – a fire at an Alberta oil sand facility, a U.S. securities action against a major Canadian financial institution and the August rainstorm in Ontario – that province’s worst ever natural disaster in terms of insured losses.

“This year – and closer to home – Lloyd’s has shared in the almost CD$70 million in insured damages arising out of the Queen of the North ferry sinking [in B.C.].

“Lloyd’s pays out almost CD$6 million a day, on average, to Canadian policyholders. In fact, last year in Canada we paid out more than we took in – something we can afford, but we don’t want to make a habit of it.”