Lloyd’s of London has announced that it is working with the government of the United Kingdom for the implementation of sanctions against Russian firms due to the war in Ukraine, including cancelling their insurance policies.

Shortly after announcing the return to profit, the largest insurance market in the world sees a tough year ahead.

According to the market, the war in Ukraine will present a ‘major claim’ for the industry as it seeks to cancel insurance policies in order to comply with sanctions against the Russian companies they covered. That said, it still stated that this year would be ‘manageable’.

Lloyd’s stated that the lines of business that will be most heavily affected by the cancelled coverage due to the sanctions will be marine, aviation, political risk and trade credit.

The largest losses are likely to be driven by unrecoverable planes, according to Lloyd’s chair Bruce Carnegie-Brown.