U.K. insurer Hiscox PLC, which writes coverage both in the Lloyd’s market and independently, said that based on an initial review of its losses from the recent four hurricanes, which caused extensive damage in the Caribbean and the USA, it estimates that its operating profits will be reduced by £25 million ($45 million) for the year ending December 31, 2004.
The company cautioned that the estimates were made “on the basis of currently available information and assuming an average level of catastrophe losses for the remainder of the year.”
Hiscox also indicated that “these hurricane losses and other recent events in the global insurance business should have a positive effect on the rating environment.”
The company noted that it had previously announced plans to increase its proposed capacity for Syndicate 33 for the 2005 year of account from the £725 million [$1.3 billion] to £775 million [$1.4 billion]. In addition Hiscox said it has “been given permission by Lloyd’s to underwrite an additional £25 million [$45 million] for the 2004 year of account to take advantage of the improved rates.”
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