Hiscox Ltd. is considering raising additional capital as it expects U.S. surplus lines rates and reinsurance rates to increase, the Bermuda-based insurer and reinsurer said Wednesday.

Hiscox, whose operations include Lloyd’s of London Syndicate 33 and a specialty insurer in the United States, said it believes it has sufficient capital to meet expected liabilities from the coronavirus pandemic, but uncertainty and insurance capital contraction resulting from the crisis will lead to hardening rates.

“Hiscox is evaluating possible sources of capital to respond in an appropriate way to these market dynamics, which could include raising new equity,” the statement said.

The insurer has come under fire in the United Kingdom recently with small-business groups saying it is refusing to pay business interruption claims related to COVID-19 closures. Hiscox says most of its small-business policies do not cover such losses.

Analysts commenting on the announcement say Hiscox could benefit from rising insurance prices, but it could still face pressures in the United Kingdom.

In a research note Wednesday, London-based analysts at investment bank Jefferies LLC said, “although the company does not require additional capital, the current market backdrop makes such an opportunistic raise potentially advantageous. In both Hiscox USA and Hiscox Re, demand and prices were already rising materially, and we expect that these trends will now accelerate.”

In the United Kingdom, though, small-business customers may not renew policies with Hiscox due to the “negative commentary” the insurer is facing, the note said.

London-based investment firm Peel Hunt LLP said in a research note Wednesday that Hiscox likely will not need to raise additional capital unless the 2020 hurricane season is active.

“If we see a combination of our worst-case COVID-19 scenario, and an active hurricane season, it would be more likely that (Hiscox) would wish to raise capital in order to benefit from the rate hardening that would follow, particularly in the reinsurance market,” the note said.

More insurance and risk management news on the coronavirus crisis here.