20th Jun 2006 10:30
Hiscox PLC20 June 2006 HISCOX PLC AGM STATEMENT Hiscox plc ('Hiscox'), the specialist insurer, will give the following update atits Annual General Meeting. Group RevenueA good start to the year. The Group's gross written premium to end May 2006increased 30% against 2005 to over £500 million with overall exposure remainingstatic. There have been no material new claims during the period. Global MarketsWe have achieved rate increases over the whole account of 9%, with thereinsurance account achieving a 17% increase overall (including both newbusiness and renewals) to the end of May. We expect rates in some areas of ourbusiness, especially reinsurance, to rise further in the coming months. Therehave been more claims from the 2005 hurricanes but the net increase afterreinsurance was mitigated by other releases and reductions. UK & Europe RetailThe UK business continues to grow satisfactorily. We have experienced a boost tonew business from the strengthened advertising campaign. The TV advertisementsrun in May had a measurable impact over all retail areas and also helped brokersales. They will continue later in the year.Revenue in Europe was flat as the impact of the re-focussing of the accountcontinues. Hiscox BermudaOur Bermudan business has had a strong start and has written $150 million newreinsurance business out of a target of $165 million for the year. Internalquota shares will add to that business to give balance. Our strong commitment tothis market in terms of underwriting expertise and leadership has paid off witha good flow of business from brokers. Hiscox USAWe opened for business in March and are already beating expectations. We arehiring some very good people and they are writing good quality, non-catastrophe,middle market commercial business with excellent support from brokers. InvestmentsAt the time of our rights issue and the construction of Hiscox Bermuda, wehedged our investment in this operation by borrowing a proportion of the suminvested in US dollars and entering into a forward foreign exchange contract.This has effectively preserved the capital in this business against theweakening in the US dollar since December 2005.We have 92% of overall Group funds in short bonds or cash so we are wellprotected against the recent market volatility. DomicileAs announced at the time of the rights issue in 2005 we are considering movingthe domicile of Hiscox to Bermuda. Work has progressed on the move and we willmake a more detailed statement on this at the time of the half-year results. Robert Hiscox said:"A good start to the year. We are, of course, waiting for the effects of thewind season, but we have more income this year per pound of exposure. The twonew businesses in Bermuda and the USA have both started well and, together withour growing retail book, give an even better balance to the Group." For further information: Hiscox plc Robert Hiscox Chairman 020 7448 6011Bronek Masojada Chief Executive 020 7448 6012Stuart Bridges Finance Director 020 7448 6013 Maitland Philip Gawith 020 7379 5151 Notes to editors Hiscox plc is a specialist insurance group listed on the London Stock Exchange.There are three main underwriting parts of the Group - Hiscox Global Markets,Hiscox UK and Europe, and Hiscox International. Hiscox Global Marketsunderwrites mainly internationally traded business in the London Market -generally large or complex business which needs to be shared with other insurersor needs the international licences of Lloyd's. Hiscox UK and Hiscox Europeoffer a range of specialist insurance for professionals and business customers,as well as high net worth individuals. Hiscox International includes offshoreoperations in Bermuda and Guernsey and Hiscox USA. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Hiscox