Hiscox reports good rate increases
Lloyd’s insurer, Hiscox, has reported good rate increases in key areas during 2008.
The firm, which specialises in complex personal and commercial risks, including art and kidnap insurance, has reported that rates on US reinsurance business rose on average by between 15% and 25% during the year.
Meanwhile, regional business saw premiums increase by a minimum of 5% and a maximum of 30%.
In the US, which accounts for 70% of the firm’s business, Hiscox expects rates to have increased further by the June and July renewal period of 2009.
The company expects sterling’s weakness against the dollar to boost the balance sheet of Hiscox International by £150 million, although this will be partially offset by a loss of £42 million on attributable currency hedging contracts.
The insurer also expects a negative return of 1.3% on investment for 2008, taking into account losses on its US mortgage-backed assets; the value of its portfolio at the end of last year was approximately £2.5 billion.
With regard to hurricanes Ike and Gustav, the insurer is maintaining its estimates of losses at $150 million and $25 million respectively.
Category: Companies News, Financials, Insurance News
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