Hiscox Managed Syndicates
HISCOX PLC
27 August 1999
1997 and 1998 Open Year Forecasts
for Syndicates managed by Hiscox Syndicates Ltd
The syndicate forecasts shown below are after standard personal expenses
but before Members' Agents' charges. Standard personal expenses
comprise managing agent fees and profit commission and all charges
levied directly on members by Lloyd's.
Syndicate Estimated profit Previous Year of Account
% of Capacity for Estimates Capacity
a Natural Name
1997 ACCOUNT ESTIMATES
Non-marine 33 0% to 5.0% 2.5% to 7.5% £201m
Marine 52 0% to 5.0% 0% to 5.0% £54m
Marine 625 0% to 5.0% 0% to 5.0% £115m
1998 ACCOUNT ESTIMATE
Composite 33 -2.5% to 2.5% N/A £360m
The 1997 and 1998 estimates have not been audited, nor have they been
subject to independent actuarial review. In each case the forecast is
given as a projected return on capacity. The final results of the 1997
account will not be determined until March 2000 and the 1998 account
until March 2001. The development of these accounts will continue to be
affected by unexpired risks and the final result will be influenced by
the future development of claims and expenses, the eventual year end
reserving exercise (including the reassessment of reserves required for
the prior years) and the final level of investment earnings. Any of
these features could vary these estimates substantially.
Robert Hiscox, Chairman of Hiscox plc, said:
'The 1997 account continues to show an underwriting profit on all three
syndicates, albeit reduced by claims arising during 1998. The initial
forecast for the 1998 account of the combined composite Syndicate 33
reflects not only the tough market conditions, but also the political
turmoil and economic upheaval of 1998. Syndicate 33 is a world leader
in political risks and has made full provision for all losses arising
from that portfolio. Traditionally, considerable savings are made in
the final settlement of contract frustration and similar claims as
clients trade out of their losses. Syndicate 33 has retained its
reinsurance capacity and political risk is now one area where there are
strong rate increases.'
For further information please contact:
Robert Hiscox/Bronek Masojada, Hiscox plc on 0171 448 6000
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