Lloyd's of London, one of the world's largest insurance markets, has admitted that the chances of making a profit following hurricanes Katrina, Rita and Wilma, were slim.

Lloyds said that the net loss from Katrina is now estimated at GBP1.9 billion, up from an original figure of GBP1.4 billion. The net loss from Rita is expected to be around GBP535 million with Wilma costing around GBP483 million.

Lloyd’s added that it expects to underwrite close to GBP15 billion of business in 2006, an increase of 7%. However, the insurance provider was keen to point out that despite its losses it remains in a strong financial position and should have no difficulties meeting its liabilities.