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Daily Insurance Industry News
Monday 23rd of April 2018
June 28, 2011

Hiscox estimates US tornado claims at £35m

by Gill Montia

Story link: Hiscox estimates US tornado claims at £35m

In a trading update, Hiscox has announced that net claims arising from April and May tornadoes in the US will be in the region £35 million.

In addition, the international specialist insurer has responded to “considerable uncertainty” around the Japanese earthquake by reserving $150 million, in accordance with the upper-end of its modelling range.

With 2011 proving to be such an active year for catastrophes, the firm now has reserves in excess of £200 million for the year to date (2010: approximately £100 million at the half year).

Hiscox notes that in US catastrophe business, rates have increased by around 10% due to the cumulative effect of recent events, and the introduction of the RMS 11 risk model.

The insurer is therefore maintaining underwriting discipline, shrinking in areas where rates are under pressure and maintaining a focus on profit over volume.

Hiscox will report its 2011 interim results on 1st August.

 

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