The Daily Mail reported this week that terrorism losses at the Lloyd's of London insurance market have spiralled dramatically to ? 1.9 billion, a figure far higher than initially forecast.

The bill, which was originally estimated, for the September 11 attacks, to be around ? 1.3 billion, is a further blow for the historic market.

Forecasts have the market returning to profit next year, after facing near bankruptcy in the early 90s. The World Trade Centre outrage has forced Lloyd's to more than double its predicted losses for 2000 to ?1.49 billion.

The 2000 figures include ?650 million of World Trade Centre losses, with the remainder falling into 2000.

Chair Sax Riley claimed that the increased losses would be offset by a 40 percent increase in premium income this year.

Rates for covering businesses, airlines and shipping have risen by 40 percent or more in the wake of the attacks. "

Anyone searching these figures for signs of Lloyd's demise will be disappointed," Mr. Riley said. He added that the increased loss estimates were in line with the rest of the insurance industry. They include provisions for failures among reinsurers.

The ballooning losses may lead to a fresh cash call on individual investors, known as "Names."