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Member, Beacon International Group, Ltd.
LONDON—Hiscox Ltd. said it will cut the capacity of its Lloyd’s of London syndicate 33 by £100 million to £900 million ($150.6 million to $1.36 billion) for 2011.
Bermuda-based Hiscox said the move was driven by market conditions.
If market conditions change during the coming months, Hiscox said it may revise its business plan for the syndicate. Syndicate business plans must be submitted to Lloyd’s by late September.
Multiline syndicate 33 is among the largest at Lloyd’s.
Hiscox said rates for most reinsurance lines remain attractive for reinsurers and are broadly stable in specialty lines. But it said there was continued downward pressure on rates for U.S. property business.
In the offshore energy market, rate increases of about 10% to 15% are being seen after the Deepwater Horizon oil spill in April, Hiscox said. Offshore energy liability rates are increasing by more than 25%, it said.
Hiscox expects net claims of £10 million ($15.1 million) from the Deepwater Horizon loss.
Hiscox said it expected net claims of about £100 million ($150.6 million) from the Chilean earthquake and European windstorm Xynthia this year.
LONDON (Bloomberg)—Hiscox Ltd. and Beazley P.L.C., two Lloyd's of London insurers, said first quarter sales rose on increasing demand for reinsurance.