Hiscox estimates U.S. storm losses, sees reinsurance rates rising

HAMILTON, Bermuda—Hiscox Ltd. said Tuesday that its losses from U.S. tornadoes and storms during April and May are expected to be about £35 million ($55.9 million).

The Hamilton, Bermuda-based insurer and reinsurer said that number is based on an estimated industrywide loss of $15 billion to $25 billion in the spring U.S. storms.

Hiscox—which operates at Lloyd’s of London and has units in the United States, Bermuda and Guernsey, among others—said its loss estimates for other catastrophes this year remain unchanged.

The company said it has set reserves for its estimated loss from the Japanese earthquake and tsunami in March at the “upper end” of its $60 million to $150 million range because of continuing uncertainty about the event.

Hiscox said in a statement that the recent catastrophes are pushing up reinsurance rates.

For U.S. catastrophe business, the cumulative effect of recent catastrophes and the introduction of Risk Management Solutions Inc.’s version 11 windstorm model has been prompting rate increase of about 10% for U.S. catastrophe business.