10th Dec 2007 07:00
Hiscox Ltd10 December 2007 HISCOX Ltd Trading update Hamilton, Bermuda - Hiscox Ltd ("Hiscox"), the international specialist insurer,has today issued a trading statement for the 11 months to 30 November 2007. Overview Gross premium income to the end of November has increased 10% to £1,142.1million (2006: £1,038.0 million). Trading has been good with favourable rating, albeit becoming more competitive.After Hurricane Kyrill in January and UK floods in the summer, Mother Nature hassince been kind to us and the hurricanes and typhoons have avoided the heavilyinsured areas of the world. The full year result should be better than last year's record. Capital Management The board has agreed to a £100 million capital management programme. InSeptember we commenced a £50 million share buy-back. To date £11.3 million hasbeen spent to acquire 4,365,305 shares at an average price of 259.4p per share.A further £50 million will be spent repaying debt. The Sub-prime Crisis We have negligible exposure in our investments to sub-prime bonds. In ourunderwriting, we have a very modest and well reserved exposure to some smallfinancial services companies in the US. We do not insure major financialinstitutions for such risks. The investment return this year is on track to exceed last year's total of £78.5million. The Future The world insurance market is highly competitive with continued downwardpressure on rates, particularly on larger risks. Smaller risks, the core of ourretail strategy, are seeing slightly less competition and we have gentlyincreased rates in the UK household account. Robert Hiscox said:"This downward part of the insurance cycle is what our strategy is designed tocombat. We will continue to build the profitable stable retail accountsworldwide to counteract the necessary reduction in the catastrophe andbig-ticket accounts." -ends- For further information: Hiscox Ltd Robin Mehta, Company Secretary +1 44 1278 8300Kylie O'Connor, Head of Communications, London +44 (0) 20 7448 6656 Maitland Philip Gawith +44 (0) 20 7379 5151Richard Farnsworth +44 (0) 20 7379 5151 Notes to editors About Hiscox Hiscox, headquartered in Bermuda, is a specialist insurance group listed on theLondon Stock Exchange. There are three main underwriting parts of the Group -Hiscox Global Markets, Hiscox UK and Europe, and Hiscox International. HiscoxGlobal Markets underwrites mainly internationally traded business in the LondonMarket - generally large or complex business which needs to be shared with otherinsurers or needs the international licences of Lloyd's. Hiscox UK and HiscoxEurope offer a range of specialist insurance for professionals and businesscustomers, as well as high net worth individuals. Hiscox International includesoperations in Bermuda, Guernsey and the USA. Hiscox Insurance Company Ltd,Hiscox Underwriting Ltd and Hiscox Syndicates Ltd are authorised and regulatedby the Financial Services Authority. For further information, visit www.hiscox.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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