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Member, Beacon International Group, Ltd.
HAMILTON, Bermuda—Hiscox Ltd. said overall rates for U.S. catastrophe reinsurance business likely will increase about 10% during June and July renewals.
In an interim management statement Monday, Hamilton, Bermuda-based Hiscox said reinsurance rates had been decreasing at the start of the year but now are back to last year's levels. Some areas, particularly the Asia Pacific region, are seeing rate increases.
Rate increases are expected to be “widespread” during June and July renewals, Hiscox said, and U.S. catastrophe business could see a 10% increase in part because of the impact of Risk Management Solutions Inc.'s Version 11.0 U.S. windstorm and storm surge model.
Hiscox, which underwrites at Lloyd's of London and has units in the United States, Bermuda and Guernsey, among others, said its gross written premiums for the first quarter of 2011 were £453.3 million ($743.3 million), an 8% decrease compared with the first quarter of 2010. Hiscox said the reduction was caused by the company's rejection of poorly rated risks.
“We continue to underwrite for profit over volume in these tough market conditions. This discipline has allowed us to keep our powder dry and we are ready to take advantage of rising reinsurance rates,” Hiscox CEO Bronek Masajoda said in the statement.
Hiscox said its loss estimates from the recent spate of natural catastrophes remain unchanged.
Hiscox estimates its losses from the February earthquake in Christchurch, New Zealand, would be about £60 million ($98.4 million).
Its losses from the March earthquake and tsunami in Japan will be between $60 million and $100 million, Hiscox said.
HAMILTON, BermudaHiscox Ltd. posted a pretax profit of £211.4 million ($340.7 million) for 2010, about two-thirds of its £320.6 million ($516.7 million) profit for 2009, the company said Monday.