As the insurance industry prepares for an economic slowdown due to the ongoing Ukraine crisis, Russian insurers warn of potential losses if the situation worsens.

Lloyd's of London, one of the world's largest insurers, has warned of a "challenging year" of natural disasters, Russian invasions, and rising prices as the world's oldest insurer prepares to take a £1.1 billion hit from unrecoverable aircrafts and cargo related to the war in eastern Ukraine.

The group has already earmarked funds to help people who were caught up in the fighting and now face economic hardship due to the coronavirus outbreak. It says it expects most of these payments to be made within two weeks.

Lloyd's has worked closely with the British government to implement sanctions against Russia for its role in the conflict in eastern Ukraine. It has also insured ships carrying grain from Ukrainian ports.

"These grains are being exported to developing nations where they're used for food shortages caused by drought."

"The company has made an extra £1,500 payment to about 100 employees who earn between £25,001 and £50,000 per annum." The company has made an additional £1,500 payment for some of its lowest paid workers.

Despite the $1.1 billion hit from the Ukrainian invasion as well as floods in Australia and Europe, Lloyds has improved its underwritting profits to $1.2 billion in the first 6 month of the yr from $960 million a yr earlier. Nevertheless, a $3.1 billion investement loss triggered by higher rates drove Lloyds into an overall pre- tax loss of $1.8 billion in the first half, versus a profit of $1.4 billion a yr ago.

It stated that financial markets had a rough start to the year as global stocks plummeted, and bonds were selling off as their yield increased due to expectations for higher inflation. Most of this decline was caused by stock market valuations falling, but Lloyd's said these declines would be reversed as the bonds mature over the next two years (as they did).

With political and economic uncertainty looming over the world, it’s more important than ever that insurance companies are prepared to help.

"The rising cost of borrowing, which prompted a real estate collapse in 2008, will be good news to insurance companies in the long run because they will see their asset returns improve." According to Lloyd's third annual culture report, there has been some progress towards achieving its goal of having 35 percent of leadership positions filled by female executives by the year 2023; it is now at 30 percent, up from 29 percent last year. One in three new hires comes from an ethnic minority background at the company, while the remainder of the industry has yet to reach this goal.

After the Covid lockdown was lifted, insurance companies started returning to their offices in the Lloyd's of London-designed Richard Rogers-designed buildings. Around 3,000 people visit these offices each Tuesday, Wednesday and Thursday, whereas "the market is relatively quiet on Monday and Friday."

Russia's invasion of Crimea has suddenly turned the whole region upside down. Millions of people have been forced to flee. A new Iron Curfence is being erected. An economic war is intensifying, as the military battle escalades, civilian deaths mount and evidence of war crimes grows.