Catastrophes, model changes boost insurance rates: Hardy

HAMITLON, Bermuda—Insurance and reinsurance business that renewed during the first quarter of the year saw average rate increases of 1.5%, Hardy Underwriting Bermuda Ltd. said Wednesday.

In an interim management statement, Hamilton, Bermuda-based Hardy, which underwrites at Lloyd’s of London, said that its rates for property treaty business rose an average of 2.1% during the first quarter.

Hardy also said it expects a series of natural catastrophes and recent U.S. windstorm model changes by Risk Management Solutions Inc. to result in more rate increases as the year progresses.

In its statement, Hardy said average first-quarter rates for marine and aviation business rose 0.2% and nonmarine property business rose 2.6%. In contrast, specialty lines business saw average rate decreases of 2.2% during the first quarter of 2011, Hardy said.

Hardy’s gross written premiums during the period were £156.4 million ($253.3 million), a 6.8% increase compared with the first quarter of 2010.