Search teams made the tragic discovery while scouring the Bayesian, which sank off Sicily when it was hit by a freak waterspout on Monday. The Chief of Civil Protection confirmed Mr Lynch, 59, and Hannah had been found. Three other bodies had also been discovered but only two of those retrieved.
They were taken to shore and driven away in emergency vehicles, their identities not released. There were 10 crew members and 12 guests on the yacht when it went down.
Of the 22 on board, 15 were rescued. One person is still missing.
Still unaccounted for are Jonathan Bloomer and his wife Judy, and American citizens Chris Morvillo and his jewellery designer wife Neda.
Salvatore Cocina, the head of Sicily's Civil Protection Agency, said searches would resume this morning. The freak accident came as British businessman Mr Lynch was enjoying a victory trip to celebrate being cleared in a US fraud trial. The group was also celebrating the news that Hannah had just landed a place to study English at Oxford University.
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