Lloyd’s of London will pay employees earning less than £75,000 (€86,302) an extra £2,500 (€2,877) to help cover the rising cost of living as UK inflation hits multi-decade highs.
Insurance exchange chief executive officer John Neal said he wrote to employees on Wednesday to announce the additional pay.
“We’re trying to think about our cost base and we’re thinking about our employees, who will be the hardest hit,” he said in an interview.
Businesses across Europe are grappling with rising costs as the war in Ukraine has sent energy prices skyrocketing. Lloyd’s own energy bill for its 33,000-square-foot City of London headquarters jumps 250 percent to a seven-digit number, Neal said.
A consistent hike in interest rates to fight inflation contributed to a £1.8 billion loss at Lloyd’s in the first six months of the year, Neal said. The fall in profit was attributed to a £3.1 billion net investment loss from unrealized mark-to-market losses, after income of £600 million a year earlier, the company said in a statement on Thursday.
Neal said the loss was mainly due to the value of fixed income holdings depreciating as interest rates were raised. Lloyd’s reported a profit of £1.4 billion in the same period last year.
The insurance market is facing a variety of challenges with the war in Ukraine, the ongoing consequences of the pandemic and rising inflation. The exchange said it had set aside £1.1bn for claims related to the war in Ukraine.
This number is an estimate of possible claims and may not be needed, Neal said in the interview. Claims of only 4 percent of that amount have been filed so far, he said.
“The situation is still ongoing, so it is too early for individuals to assess the loss suffered and make a claim,” Neal added.
https://www.independent.ie/business/world/lloyds-of-london-to-pay-some-staff-2500-cost-of-living-bonus-41971020.html Lloyd’s of London pays some employees £2,500 cost-of-living bonus