Hiscox cuts 2011 syndicate capacity by 10%

29th Jun 2010 08:22

Lloyd's underwriter Hiscox plans to cut the capacity for Syndicate 33 by £100m in 2011 to £900m due to "anticipated market conditions".The company, which has to submit a full 2011 business forecast for the syndicate to Lloyd's by 9 July, said the numbers could change depending on loss activity over the next three months. It doesn't have to provide Lloyd's with a final plan until late September.Meanwhile, capacity for Syndicate 6104 will stay at £45m for 2011. The company repeated estimates for a combined net loss from the Chilean earthquake and the windstorm Xynthia which struck France of about £100m.There's also no change in Hiscox's exposure to the Deepwater Horizon oil disaster in the Gulf of Mexico, which is seen resulting in net claims of less than £10m."Rates remain attractive for most reinsurance lines and are broadly stable in specialty areas. However, we are seeing continued pressure in US property lines," Hiscox confirmed Tuesday.