Hiscox says sales down 8%

9th May 2011 16:11

Specialist insurer Hiscox said on Monday that sales fell 8% in the first three months of 2011, compared with a year earlier.Gross written premiums were £453.5m in the three months until the end of March amid a "tough" market, the firm said."We continue to underwrite for profit over volume in these tough market conditions," said chief executive Bronek Masojada.Hiscox has been hit hard by catastrophes in Japan, New Zealand and Australia.The company said claims estimates for the 2011 New Zealand earthquake and Queensland floods remained unchanged at £60 million and £15 million respectively.This estimate is based on an insured market loss of US$10 billion for the New Zealand Earthquake and US$2.4 billion for the floods in Queensland.Hicox remains uncertain over costs resulting from the Japanese earthquake but estimates that based on an insured market loss of approximately US$24 billion, it could incur net claims of between $60 million and $150 million."The first quarter began with rate reductions in reinsurance lines but the recent catastrophes have changed the market," the company said in a statement. "Reinsurance rates are now back to 2010 levels with increases in some areas, especially in the Asia Pacific," Hiscox added."We expect increases to become widespread during the June/July renewal period."---mm