Two bodies recovered from the wreckage of the sunken Bayesian yacht have been identified as Mike Lynch and his daughter Hannah.

The yacht encountered severe weather conditions off the coast of Palermo, Italy, resulting in the tragic loss of life.

Mike Lynch, 59, was on board with his family, including his wife and 18-year-old daughter.

The trip was seen as a celebration following his recent acquittal in a US federal trial related to the acquisition of his company, Autonomy Corp.

Several guests, including his US lawyer Christopher Morvillo and his wife, were also on board.

The incident is a tragic event that has resulted in the loss of two lives.