Trading Statement

RNS Number : 0437G

Hiscox Ltd

25 January 2010

 



Hiscox Ltd

Press release

Hiscox trading update

Hamilton, Bermuda (25 January 2010): Hiscox Ltd (HSX:L), the international specialist insurer issues the following trading update.

Renewal rates

During the January reinsurance renewal season the Group saw average reductions in reinsurance rates of between 5-7% from the historically high rating levels of 2009, with local variation depending upon loss experience.  This was as expected given the very light level of insured catastrophe loss borne by the industry in 2009. Reinsurance accounts for around a third of the Group's gross written premium, and rates at these levels continue to offer attractive margins. 

Investment return

The investment return for 2009 is approximately 7.2% calculated on the average value of the portfolio over the year.  The markets continued to reward the taking of risk in the fourth quarter.  Whilst our core holdings of cash and short dated government bonds provided modest returns, our allocation to non government bonds and equities enhanced the yield achieved for the quarter and year as a whole.  The value of the portfolio at the end of the year was approximately £2.6bn.

Claims

Since our last update in November it has continued to be a particularly benign period for catastrophe losses. The US business has benefited from no significant losses and Hiscox Europe's claims experience improved greatly in the second half of the year.  Hiscox UK has seen a small amount of activity arising from the recent cold weather.

Dividend

It is the board's intention to recommend the payment of a second interim dividend to be paid in March 2010 in place of a final dividend.  This will be paid on 29 March 2010 to shareholders on the register at the close of business on 5 March 2010. 

Hiscox will announce the quantum of the dividend when the Group reports its preliminary results for 2009 on 1 March 2010.

ENDS

For further information:

Hiscox Ltd
Charles Dupplin, Company Secretary, Bermuda	[phone]
Kylie O'Connor, Head of Communications, London	[phone]
Maitland	[phone]
Anthony Silverman
Rebecca Mitchell

About Hiscox

Hiscox, the international specialist insurer, is headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). There are three main underwriting parts of the Group - Hiscox London Market, Hiscox UK and Europe and Hiscox International. Hiscox London Market underwrites internationally traded business in the London Market - generally large or complex business which needs to be shared with other insurers or needs the international licences of Lloyd's. Hiscox UK and Hiscox Europe offer a range of specialist insurance for professionals and business customers, as well as high net worth individuals. Hiscox International includes operations in Bermuda, Guernsey and USA. Hiscox Insurance Company Limited, Hiscox Underwriting Ltd, Hiscox Europe Underwriting Ltd and Hiscox Syndicates Limited are authorised and regulated by the Financial Services Authority. 

For further information, visit www.hiscox.com.

 

END

 

 

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