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BI exposure......will be very difficult to quantify. They don’t yet have an answer but know they will have to seek a compromise to limit reputational damage.
'A number of UK policyholders have disputed the application of their policy in relation to business interruption' So is this a small number or a large number or is it that you just don't want to tell us?
What they are not telling us is the expected drop in investment income due to Covid-19 and the impact of the crash in the stock markets on realised and unrealised gains. This could be massive and of course is not covered by reinsurance.
Link was removed... they're refunding lots of motor insurance customers due to lockdown.
All this fear over a bumbling celebrity chef, where right is right, they're quick to act, don't let a momentary blip in reputation put you off: https://twitter.com/DanielCDuckett/status/1252509149625225217?s=19
In the last RNS, Hiscox said they expected to update the market within a week. Really not sure which way this is going so I've sold out from buying at recent lows for a good profit but I'll be keeping an eye out for the RNS as Hiscox should be a good recovery play.
Surprising that the price has continued to rise given their reputation is getting shot daily in the press
Oh dear as I posted this is frightening news!!!
It’s not looking good for Hiscox- 16060 people dead in UK alone. There are also credible reports about 7500 deaths in care home. These are horrible numbers so 23000 odd deaths. 40,000 deaths in USA. 0ver 100,000 dead in Europe. This is going to add huge claims sending this share to new lows. Too risky for me.
Any ideas on how low this is going to drop!!!
Agree Claims Cost will now be rising with additional event cancellations etc. What we don’t want now is another major disaster somewhere, but thats the risk insurers carry.
COVID-19 - government has extended curfew to at least another three weeks. This is going to add more claims as more firms out of business for longer. Unfortunately Hiscox is going to face a higher bill than previously assessed!!! Strong sell as this is going to re-test lows!!!
If investors want to be cautious. This might re-test low of 6.54 before resuming to recover to at least towards £11-12 because trading volume is very high.
Jatw......thats a worrying volume of claims they are handling if it is taking 2/3 weeks merely to log a claim on their system, but of course Insurers do work on the ‘Lobster Pot’ model !
Here is my experience as a customer.......
Tried to get advice from HSX prior to cancelling a holiday due to a state of emergency at the destination declared the day before travel....4 day response was inconclusive.
Rang up and told to file a claim.
Filed the claim....rang up a week later....told there was a two week backlog in recording claims...please call back
Three weeks on from lodging the claim it is still not on their system......
If they reject my claim I will complain....if they reject it again I will go to the ombudsman
In the meantime the renewal quote was up 60% and any claim attributable to the pandemic was excluded....including any continuity of expected cover from the current policy.
Having only one small trip planned which cannot be insured and is unlikely to happen I will be taking my chances with refunds and have not taken the renewal.
They will spend a lot more money denying and defending claims and lose customer good will.
I pay about 3k for household insurance and have been highly satisfied with the service and two claims....hence I was a customer happy to purchase additional cover from hiscox who are lets face it far from the cheapest in the market...
This company will find it hard to escape the drag of covid19 on its business. SELL
On approximately 2-01-2020 price was 13.69 on trading volume of approximately 912,000 plus. We already have trading volume that’s going to go way above 912,000. It’s actually about 850,000 right now.
Due to COVID-19 it’s nearly halved. It’s high was around £18.
Week ago share price was just under £11. Bad publicity justified or unjustified dropped it to under £7. News release has proved quite a lot of bad publicity was in fact unjustified. News release was not a lie and shows Hiscox’s resolve to continue to pay only liable claims.
Let’s see if get a bounce from these lows on USA opening. I expect we have a bounce to re-test today’s high of 7.75. I like to think we have intelligent investors who can assess improving COVID 19 situation, lockdown loosening, market sentiment along with Hiscox stating very clear position on limited exposure to only valid claims.
Reassuring in terms they have put an estimate on their Cancellation exposure, which was always my worry. Would expect their Net Retail exposure to be capped by RI but disappointing they don’t expect to get this COR below 95% till 2022. Their new’ish CUO needs to get a grip on that if she can...not holding my breath. Peel Hunts target of 800p looks realistic for now.
News release was very transparent setting out exactly what’s covered and minimal impact on business. Where liable they are paying valid claims. Hiscox made it clear will supply further details to back up their news release in a week. There is no need for investors to be unduly frighten and over react. Price is already lower this week on over reaction. My only criticism is News release should have come earlier. This will go back up with the same speed it came down particularly next week. Lockdown is being relaxed because situated is now very well controlled.
I wouldn't say it was that reassuring. They insure many clients for liability under the PCA94 wording - that would include cover for CV19, equally the business interruption wordings they use positively include infectious disease cover and have been widely sold to British small and medium enterprises. No, they are on the hook for a lot of losses.
Treating policy holders with valid claims poorly will lead to reputational issues and bad faith positions, no wonder the share price is falling.
Whilst not entirely excluding BI liability for C19 within their wordings they do at least provide some financial guidance which is helpful. Their main exposure was always going to be via their Entertainment / Contingency book and clearly this has been limited by their RI programme. Overall reassuring but they should now try and limit any reputational damage by dealing with any o/s claims fairly, not that this will effect their Lloyds operation one iota !
Totally agree with you "Nickel_Investor"... with the RNS in place and if the lawsuit is withdrawn, this can have a considerable rise. The fall for today could have been restricted to much lower position, if the management acted fast
That's a good update RNS to the share holders...
This should have been done in the morning, so that everyone would not have be gone done 15%...
Sometimes the MM's rush for the Bonus and not for the RNS Updates
and look at that move - motoring 10% off the lows and now in auction lol. This should be easily back in the £8s.
Well done if you picked up today's bargain
Massive buy prints going in!