Hiscox Syndicate Sees Syndicate Capacity Of GBP900M For 2011

29th Jun 2010 08:11

LONDON (Dow Jones)--Hiscox Ltd (HSX.LN), an international specialist insurer, said Tuesday that envisages a Syndicate capacity of GBP900 million for 2011, a reduction of GBP100 million from 2010, driven by anticipated market conditions; however these could change depending on loss activity over the next three months. MAIN FACTS: -A final plan will be submitted to Lloyd's in late September which may involve a change to Syndicate 33's capacity. -Hiscox manages Special Purpose Syndicate 6104 solely on behalf of third party capital providers. -Capacity for Syndicate 6104 will remain at GBP45 million for 2011. -Hiscox also manages and provides all of the capital for Hiscox Syndicate 3624. -Losses surrounding the Chilean Earthquake are still unfolding however Hiscox's estimates remain unchanged from March 16. -Based on an insured market loss of $8 billion for the Chilean earthquake, and $3 billion for windstorm Xynthia, Hiscox has estimated combined net claims of GBP100 million. -Hiscox's exposure to the Deepwater Horizon event is also unchanged from May 12. -For an industry insured loss of up to $2 billion anticipates net claims of less than GBP10 million. -Rates remain attractive for most reinsurance lines and are broadly stable in specialty areas. -Seeing continued pressure in U.S. property lines. -The Deepwater Horizon event has turned the offshore energy market where the company is currently achieving average rate increases of 10% to 15% with improved terms and conditions. -In offshore energy, liability rates have increased by well over 25%. -Many clients are also considering higher insurance limits especially for 'control of well' and energy liability cover. -Shares at 0709 GMT down 4.5 pence, or 1.3%, at 336.6 pence. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires June 29, 2010 03:11 ET (07:11 GMT)