Moody's Investors Service said yesterday that it sees Lloyd's of London's losses in the 1998 to 2000 years of account totalling more than £3 billion sterling (€4.95 billion) after previously estimating losses of just over £2 billion.

The ratings agency sees a £1.1 billion loss for 1998, a loss of £1.2 billion for 1999, and a £700 million loss for 2000, reflecting extremely poor market conditions. In its previous forecast in March, Moody's estimated the insurance market's losses at £771 million for 1998, £775 million for 1999, and £496 million for 2000. Later in the same month, Lloyd's reported a loss of £209 million for its 1997 year, the latest year to close under its three-year accounting system.