7th Oct 2005 07:00
Hiscox PLC07 October 2005 7 October 2005For immediate release HISCOX PLC ANNOUNCEMENT Impact of 2005 hurricane season Hiscox plc ('Hiscox') has updated its estimate of losses arising from HurricaneKatrina and undertaken an initial review of the estimate of losses arising fromHurricane Rita. We continue to work at quantifying more accurately the losses from HurricanesKatrina and Rita. Very few loss advices have been received to date, so currentestimates remain uncertain. Using information available today, Hiscox plc'sshare of the net loss from Katrina is estimated to have increased to $110million from the $100 million previously advised. This is based on case by casereserves where possible, or otherwise on an industry loss of $45 billion. The loss from Rita is currently estimated to be $70 million. The size of thisloss reflects retentions which Syndicate 33 has before the reinsurance programmeis effective. The loss should not materially impact the programmes so there is agood measure of reinsurance left for the rest of the year. Based on these estimates we currently anticipate Hiscox plc's pre-tax profit forthe year ending 31 December 2005 will be reduced by £25 million. This update isbeing given before the end of the Hurricane season and our full year result willdepend on further hurricane activity and other potential claims in the remainderof the year. Following Hurricanes Katrina and Rita, Hiscox Global Markets, the internationalbusiness trading through Lloyd's, is seeing good rate rises in many of its coreclasses of business. In particular the energy and reinsurance accounts have thepotential for substantial increases. As a result Hiscox has decided to increasethe 2006 premium limit for Syndicate 33 from £775 million to £833 million (2005:£775 million) subject to Lloyd's approval. Prior to the hurricane season Hiscoxhad announced it intended to reduce the 2006 premium limit for Syndicate 33 to£650 million. Hiscox UK continues to trade well and the progress of Hiscox Europe seen in thefirst half of the year continues. Robert Hiscox, Chairman of Hiscox plc, said: "The strong first half of the year has been followed by a second half of welldocumented hurricane losses. Feast generally follows famine in the insuranceworld and we believe that rates will increase substantially in the reinsurance,marine and energy areas, and will remain firm in other areas. Our experiencedteams intend to take full advantage." - ends -For further information:Hiscox plcRobert Hiscox Chairman 020 7448 6001Bronek Masojada Chief Executive 020 7448 6012Stuart Bridges Finance Director 020 7448 6013 The Maitland ConsultancySuzanne Bartch 020 7379 5151 Notes to editorsHiscox plc is a specialist insurance group listed on the London Stock Exchangewhere it has a market capitalisation of circa £600 million. There are three mainunderwriting parts of the Group - Global Markets, UK Retail and InternationalRetail. Global Markets underwrites, via Syndicate 33, mainly internationallytraded business in the London Market - generally large or complex business whichneeds to be shared with other insurers or needs the international licences ofLloyd's. The UK Retail business offers a wide range of specialist insurance forprofessionals and business customers, as well as high net worth individuals. Ithas regional offices in Birmingham, Colchester, Glasgow, Leeds and Maidenhead.The International Retail business has offices in Amsterdam, Brussels, Guernsey,Munich and Paris. The European offices write mainly fine art, high valuehousehold business and some specialist professional indemnity business. TheGuernsey office underwrites fine art business and kidnap and ransom. Hiscox isthe largest specialist fine art and high net worth insurer in Europe. Forfurther information, go to www.hiscox.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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