Syndicate estimates

RNS Number : 3838O

Hiscox Ltd

29 June 2010

 



Hiscox Syndicate 33, 2011 Business Forecast

Hamilton, Bermuda (29 June 2010) -- Hiscox Ltd (HSX:L), the international specialist insurer, announces that it has published today on its company website a summary of its initial 2011 business forecast for Syndicate 33. The summary business forecast is available at www.hiscox.com in the Investors section under Lloyd's Reporting. 

A full 2011 business forecast for Syndicate 33 will be submitted to Lloyd's by 9th July.  Hiscox is required to make this public at this early stage of the year due to the participation on its Syndicates by third party capital. 

At this early stage Hiscox envisages a Syndicate capacity of £900 million for 2011, a reduction of £100 million from 2010.  This reduction is driven by anticipated market conditions; however these could change depending on loss activity over the next three months.  A final plan will be submitted to Lloyd's in late September which may involve a change to Syndicate 33's capacity.

Hiscox manages Special Purpose Syndicate 6104 solely on behalf of third party capital providers.  Capacity for Syndicate 6104 will remain at £45 million for 2011.  Hiscox also manages and provides all of the capital for Hiscox Syndicate 3624.

Losses surrounding the Chilean Earthquake are still unfolding however our estimates remain unchanged from our announcement on March 16.  Based on an insured market loss of $8 billion for the Chilean earthquake, and $3 billion for windstorm Xynthia, Hiscox has estimated combined net claims of approximately £100 million.  

Hiscox's exposure to the Deepwater Horizon event is also unchanged from our announcement on May 12.  For an industry insured loss of up to $2 billion we anticipate net claims of less than £10 million. 

Rates remain attractive for most reinsurance lines and are broadly stable in specialty areas. However we are seeing continued pressure in US property lines.  As predicted, the Deepwater Horizon event has turned the offshore energy market where we are achieving average rate increases of 10-15% with improved terms and conditions.  In offshore energy, liability rates have increased by well over 25%.  Many of our clients are also considering higher insurance limits especially for 'control of well' and energy liability cover.   

ENDS

For further information:

Hiscox Ltd

Charles Dupplin, Company Secretary                               [phone]

Kylie O'Connor, Head of Communications                        [phone]

Maitland                                                                      [phone]

Anthony Silverman

Notes to editors

About Hiscox

Hiscox, the international specialist insurer, is headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). There are three main underwriting parts of the Group - Hiscox London Market, Hiscox UK and Europe and Hiscox International. Hiscox London Market underwrites internationally traded business in the London Market - generally large or complex business which needs to be shared with other insurers or needs the international licences of Lloyd's. Hiscox UK and Hiscox Europe offer a range of specialist insurance for professionals and business customers, as well as high net worth individuals. Hiscox International includes operations in Bermuda, Guernsey and USA. Hiscox Insurance Company Limited, Hiscox Underwriting Limited, Hiscox Europe Underwriting Limited and Hiscox Syndicates Limited are authorised and regulated by the Financial Services Authority.

For further information, visit www.hiscox.com.

 

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