LONDON (Reuters) - The Lloyd's of London insurance market said on Wednesday the chances of it making a profit in 2005 were small after it raised its net loss estimate from Hurricane Katrina to 1.9 billion pounds.

Lloyd's (LOL.UL: Quote, Profile, Research), the world's largest insurance market, said there was a 1 billion pound impact from increasing the Katrina loss estimate from an original 1.4 billion pounds and from a later U.S. storm, Wilma, which Lloyd's estimates will cost it a net 483 million pounds in claims.

Lloyd's said that despite the impact of the three U.S. storms, it remained financially strong and expected to be able to meet all its liabilities.

"Lloyd's is financially robust. All businesses in the market expect to be able to meet their liabilities from the hurricanes," Finance Director Luke Savage said in a statement.

The market said it expected to increase its capacity to underwrite risks in 2006 by 7 percent to around 14.7 billion pounds as insurance prices rise in the wake of the hurricanes.

Katrina is set to be Lloyd's second-biggest single-event loss, after claims related to the September 2001 attacks on the World Trade Centre, estimated at up to $3.5 billion.

The hurricane, which struck the U.S. Gulf coast on August 28, caused massive damage and widespread flooding and displaced 1 million people. Analysts expect Katrina to be the global insurance industry's costliest ever disaster.

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