The tragic collapse of the Baltimore bridge, which disrupted operations at one of the busiest ports in the United States, is projected to lead to a substantial £500 million loss for the Lloyd’s of London insurance market.

In March, the disaster struck when a cargo ship collided with the Francis Scott Key Bridge, and it is now expected to be recorded as the largest marine-related loss in the history of the global insurance sector.

According to Bruce Carnegie-Brown, chairman of Lloyd’s, the total financial impact on insurers globally from this incident could exceed $5 billion; however, the specific loss for the London market is forecasted to be around £500 million after accounting for reinsurance.

Lloyd’s has been somewhat shielded from the broader impact of the disaster since both the bridge and the port of Baltimore had domestic insurance coverage in the United States. Carnegie-Brown commented, “For Lloyd’s, the exposure lies in the cargo onboard the ship and the cargo that was stranded in the harbor due to the incident.”

Six lives were lost when the Dali cargo vessel crashed into a support column of the bridge, leading to its collapse and blocking the Fort McHenry Federal Channel, which took until June to fully reopen.

Lloyd’s, recognized as the world’s largest and oldest insurance market, is fundamentally anchored in maritime insurance. The origins trace back to the late 17th century when Edward Lloyd established a coffee house by the Thames, fostering a venue for merchants to share shipping information. By the 18th century, Lloyd’s published the Lloyd’s List, a widely used source of shipping news, establishing its reputation in maritime insurance.

Today, the modern Lloyd’s market encompasses coverage for a wide array of sectors, including satellite launches, fine art, shipping cargoes, and cyber incidents, featuring specialist underwriting syndicates and brokers responsible for pricing and placements. Their policies have famously insured unique items such as Bruce Springsteen’s voice and David Beckham’s legs.

As for its financial performance, Lloyd’s reported an increase in pre-tax profits to £4.9 billion for the six months ending in June, up from £3.9 billion the previous year. The market achieved a combined ratio of 83.7 percent, indicating improved underwriting profitability compared to 85.2 percent in 2023, marking its best first-half performance since 2007. A ratio below 100 percent signals profitability.

The firm benefited from a quieter period concerning natural disasters during the first half of the year, alongside rising insurance prices.

Carnegie-Brown noted that the earthquake in Taiwan in April had not significantly affected the market, and the global computer system failure in July was not anticipated to cause major losses. The outage, which stemmed from a faulty software update by the cybersecurity firm Crowdstrike, lasted under 48 hours, meaning it did not impact most cyber-risk policies, which usually activate after such incidents.

Overall, gross written premiums in the market rose by 6.5 percent to £30.6 billion, not considering currency fluctuations. Lloyd’s chief executive, John Neal, described the figures as “a superb set of results.”