Lloyd's of London said today its net loss related to Hurricane Katrina is likely to be about £1.4 billion (€2.07 billion), but said it would be strong enough to withstand the impact.
Lloyd's said it had developed models to ensure it can withstand major catastrophes, and the financial impact of Hurricane Katrina was consistent with the model.
The insurance market said the loss was comparable with the impact of the four US storms in 2004, which resulted in a net loss to the market of £1.3 billion.
"Based on current information, Lloyd's believes any impact on the Central Fund would be immaterial, and there is nothing to suggest that any syndicate would not be able to trade forwards as a direct result of Hurricane Katrina," it said in a statement.