Lloyd’s of London are expecting to pay out up to £5bn on a gross basis, on insurance claims sparked by the pandemic.
This will help to push Lloyd’s into a loss for the first half of the financial year.
Four months ago, the insurance giant revealed that they will pay out between £2.3bn and £3.3bn to customers amid the impact of coronavirus.
Lloyd’s of London said they lost around £400m before tax in the first six months of 2020, as they were hit by £2.4bn from the pandemic.
Chief executive John Neal said, “The first half of 2020 has been an exceptionally challenging period for our people, our customers, and for economies around the world.
“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, which give the truest indication of our market’s profitability.”