Hiscox Group Increase 2020 Estimate By $48M
As a result of the UK court judgment as well as further government restrictions in the UK during 2020, Hiscox Group said their total 2020 Covid-19 estimate for business interruption “increased by $48 million net of reinsurance.”
This follows after small businesses won the right to insurance payouts after Britain’s highest court ruled many policies should cover losses caused by coronavirus lockdowns, with the UK Court dismissing appeals by the insurers, some of which have operations in Bermuda.
Hiscox Ltd responded to the UK court judgment, saying their key points are:
- “Hiscox welcomes the clarity of final Judgment; claims settlement process has begun
- The outcome of the Supreme Court’s Judgment confirms that fewer than one third of Hiscox’s 34,000 UK Business Interruption policies may respond
- Hiscox Group 2020 COVID-19 estimate for business interruption increased by $48 million net of reinsurance
- Hiscox’s capital position remains strong and the Group maintains an “A” rating for financial strength from S&P.
“The Judgment represents the final outcome of the Industry Test Case, and there can be no further appeals. Hiscox welcomes the clarity that the Judgment provides and the processing of claims has begun,” the company said.
“As a result of the Judgment as well as further government restrictions announced during 2020, the total Hiscox Group 2020 Covid-19 estimate for business interruption increased by $48 million net of reinsurance.
“In addition the previously disclosed additional loss estimate of up to $40 million for event cancellation if government restrictions continued into 2021, will now be recognised in our 2020 financial result due to the expectation that covered events will be cancelled.
