Hiscox expects rates to remain under pressure

6th May 2014 07:47

- Gross written premiums little changed as markets soften- Small losses on Malaysia Airline flight and Korean ferry loss- Expects rates in many lines to remain under pressureLloyd's of London insurer Hiscox said first quarter gross written premiums rose by 2.3 per cent in local currency as it took small losses on Malaysia Airline flight MH370 and the Korean ferry loss last month.Hiscox's gross written premiums stood at £501.6m for the first three months of the year to March 31st 2014 as it winds down its reinsurance market where rates continued to decline. Gross written premiums in sterling fell 0.9%.Chief Executive Bronek Masojada commented: "The market is softening, but conditions in many of our insurance lines are good. Our retail businesses continue to benefit from long-term investment in the brand and our acquisition of DirectAsia represents another important milestone."Rates in reinsurance continued to decline with Japanese earthquake rates down by around 15% while the US catastrophe market was benign during the period.The first quarter saw losses including marine liability, upstream energy and movie production claims, Hiscox explained as well as a small exposure to the Malaysian Airline flight 370 and Korean ferry loss.Claims for the UK floods and storms in 2014 have been reserved at net £10m, up from the £5m incurred by mid-February when the rain was still falling. Hiscox concluded: "We expect rates in many lines to remain under pressure, particularly in the absence of any catastrophes. However, our diverse business mix gives us options and we are restless and hungry for new opportunity." CJ