Lloyd's of London is facing the biggest single loss in its 300-year history following the terrorist attacks in the US.

Lloyd's said yesterday the attacks would cost it £1.9 billion sterling (€3.1 billion) or £600 million more than it had first forecast. Lloyd's, which accounts on a three-year basis, also expects losses for 2000 to double from an estimated £700 million to £1.49 billion.

Mr Sax Riley, chairman of the insurance market, stressed yesterday that Lloyd's remained able to meet its claims although the revised figure was higher than analysts had expected.

"We've stated very clearly that Lloyd's can manage its losses from September 11th. These new projections don't change that position," he said.