Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 17th of July 2018
January 26, 2011

Hiscox expects “healthy” household profit despite winter freeze

by Gill Montia

Story link: Hiscox expects “healthy” household profit despite winter freeze

Hiscox has reported that most of the “significant and expensive” catastrophes of 2010 occurred in areas where the insurer had deliberately reduced exposure, due to weak rates.

The firm estimates net claims arising from the UK winter freeze during November and December at £16 million, but says its UK household business remains on track to make a healthy profit.

The net estimate for Chile, Xynthia and the New Zealand earthquake combined is around £115 million, including estimated net claims for the New Zealand earthquake of approximately £37 million.

Meanwhile, the insurer’s position on the Australian floods is still evolving, but looks to be “underweight”.

During the January renewal period, the group’s London Market division saw an average rate reduction of -1.5% on renewal business, while its Bermuda open market reinsurance business saw an average rate reduction of -7.5%.

However, the group says it will continue to mitigate falling rates by “walking away” from risks that are poorly rated.

Investment return for 2010 was approximately 3.6%, with the value of the Hiscox portfolio approximately £2.8 billion at the end of 2010.

The insurer will report its preliminary results for the financial year ending December 2010 on 28th February.

 

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