Hiscox Anticipates ‘Healthy’ UK Profit
Bermuda-based specialist insurer Hiscox estimates net claims linked to Britain’s coldest winter on record will hit £16 million.
Despite this, the firm’s UK household business is on track to make a “healthy profit” and claims for the Chilean earthquake and China’s windstorm Xynthia have actually been revised down.
The two “expensive catastrophes” had been expected to cost the company about £100 million, but the bill, which now includes a £37 million hit from the New Zealand earthquake, is put at £115 million.
“Although 2010 was marked by many significant and expensive catastrophes, most of these occurred in areas where Hiscox had deliberately reduced exposure due to weak rates,” the company said today [Jan. 26].
Hiscox’s position on the Australian floods is “still evolving”, although it believes it is “underweight” in this area.
With its head office in Wessex House on Reid Street, Hiscox opened its Bermuda operation in 2005. The firm specialises in catastrophe reinsurance, risk excess of loss
and healthcare reinsurance.
During the January renewal period,Hiscox London Market division, which underwrites a mix of reinsurance and insurance, saw an average rate reduction of -1.5% on renewal business in January. And its Bermuda open market reinsurance business saw an average rate reduction of -7.5%.
“Hiscox will continue to mitigate falling rates by actively managing the book: walking away from risks that are poorly rated and increasing capacity in areas where rates are more attractive,” it says.
The investment return for 2010 is about 3.6% calculated on the average value of the portfolio over the year.
The insurer will report its preliminary results for the financial year ending December 2010 on February 28.
