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http://www.investegate.co.uk/Article.aspx?id=201205080701347804C
Jefferies International upgrades Hiscox from hold to buy.
Nomura initiates buy on Hiscox, target price 393p
Krystalle Tobin, Chief Financial Officer, Hiscox Bermuda, said: "We are delighted the New York Department of Financial Services has granted Hiscox Bermuda with Certified Reinsurer status. Reducing collateral requirements improves the reinsurance market for local insurers looking for more capacity and choice. With the National Association of Insurance Commissioners (NAIC) recently passing the credit for reinsurance model law changes, we are optimistic that other states will move to implement similar reduced collateral requirements."
Hiscox secures lower collateral requirement from New York regulator Hamilton, Bermuda (22 November, 2011) - Hiscox Insurance Company (Bermuda) Limited ("Hiscox Bermuda"), a subsidiary of the international specialist insurer Hiscox Ltd (LSE:HSX), has announced it has been awarded Certified Reinsurer status by the New York Department of Financial Services. Hiscox Bermuda's secure financial strength rating means it is now permitted to post collateral of 20% of loss reserves rather than 100%, as was previously required. New York is one of a number of US states to follow Florida's lead by reducing collateral requirements for non-US reinsurers that are highly rated and financially sound, with the intention of increasing available reinsurance capacity for US cedants. Hiscox Bermuda was permitted by the Florida insurance regulator to reduce its collateral requirements in October 2010.
Hiscox - update on tornadoes Hamilton, Bermuda (28 June 2011): Hiscox Ltd (HSX:L), the international specialist insurer, estimates net claims arising from the April and May tornadoes in the US to be approximately £35 million based on insured market losses of US$15 -25 billion. Estimates for other 2011 catastrophes, announced in the May IMS, are unchanged. As there continues to be considerable uncertainty around the Japanese earthquake we have reserved at the upper end of our modelled range1. That range, as published in our May IMS, is between $60 million and $150 million. 2011 is proving to be another active year for catastrophes with reserves in excess of £200 million for the year to date (2010: approximately £100 million at the half year). As predicted, these recent catastrophes are having a positive effect on reinsurance rates. In US catastrophe business we have seen rate increases of around 10% due to the cumulative effect of recent events and the introduction of the RMS 11 risk model. In this environment Hiscox is maintaining underwriting discipline, shrinking in areas where rates are under pressure and maintaining a focus on profit over volume. As reported in the May IMS, written premium reduced by 8.0% in the first quarter and this trend in earned premium will continue at the half year. Our own reinsurance cover remains substantially in place for the upcoming US hurricane season. The Group's strategy is to reinsure catastrophe exposure predominately on a pro-rata basis. Pro-rata reinsurance shares with the reinsurer a proportion of the overall liability, premium and losses of risks underwritten, giving greater depth of cover than a conventional excess of loss or aggregate reinsurance policy. Hiscox will report its 2011 interim results on 1 August 2011.
http://www.investegate.co.uk/Article.aspx?id=201106280700152358J
Bronek Masojada, Chief Executive, commented: "We continue to underwrite for profit over volume in these tough market conditions. This discipline has allowed us to keep our powder dry and we are ready to take advantage of rising reinsurance rates. Our own reinsurance cover remains substantially in place for the upcoming US hurricane season."
Interim Management Statement Hamilton, Bermuda (9 May 2011) -- Hiscox Ltd (LSE:HSX), the international specialist insurer, today issues its Interim Management Statement for the first three months of the year to 31 March 2011. Hiscox's gross written premiums year on year reduced as expected by 8.0% to £453.5 million (2010: £504.1 million) as the Group maintained underwriting discipline and walked away from poorly rated risks.
http://www.investegate.co.uk/Article.aspx?id=201105090700071454G
latest episode today on iii: http://www.iii.co.uk/tv/episode/hiscox-hsx
Japan quake could cost Hiscox $150m Date: Wednesday 30 Mar 2011 LONDON (ShareCast) - The earthquake in New Zealand and the floods in Australia earlier this year should result in total claims of about $75m (£46.9m), while the Japan earthquake could result in losses of as much as $150m, the specialist insurer Hiscox has said. “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, Hiscox estimates net claims of approximately £60 million and £15 million respectively,” the firm said. Hiscox has also made an early comment on the Japanese earthquake and tsunami of earlier this month. “According to the latest published model, from an insured market loss of approximately US$24bn, Hiscox could incur net claims of between $60m and $150m with a mean loss of $100m,” the company said.
Bronek Masojada, Chief Executive, commented; "The tragic impact of the Japanese earthquake is ongoing. Insurance exists to help rebuild communities after the havoc caused by catastrophes - paying claims after such events is what we are here for." Robert Childs, Chief Underwriting Officer, commented; "These events will only minimally impair our own reinsurance programme. In the reinsurance we underwrite, we have seen significant increases in rates for the affected regions and expect this pressure to become widespread."
Update on first quarter catastrophes Hamilton, Bermuda (30 March 2011) -- Hiscox Ltd (LSE:HSX), the international specialist insurer, has undertaken a first estimate of the impact of the 2011 New Zealand earthquake and the 2011 Queensland floods. The Group also makes an early comment on the Japanese earthquake and tsunami of 11 March. 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, Hiscox estimates net claims of approximately £60 million and £15 million respectively. Any estimate of the insured loss from the very tragic and severe earthquake in Japan is still at an early stage so considerable uncertainties exist. Hiscox's exposure to this event is primarily through its underwriting of global and regional reinsurance and retrocessional programmes. Twice a year Hiscox publishes its expected losses for modelled catastrophes, including exposure to a Japanese earthquake. According to the latest published model1, from an insured market loss of approximately US$24 billion, Hiscox could incur net claims of between $60 million and $150 million with a mean loss of $100 million. Initial investigations suggest that this range remains valid.
http://www.investegate.co.uk/Article.aspx?id=201103300700078544D
Hiscox weathering the storms Date: Monday 28 Feb 2011 LONDON (ShareCast) - Bermuda-based specialist insurer Hiscox paid out £165m in claims relating to catastrophes last year, but signalled its confidence in the future with a 10% hike in the dividend. Gross written premiums were little changed at £1,433m in 2010 from £1,435m in 2009, while profit before tax fell to £211.4m from £320.6m the year before. “Mother Nature has well and truly tested us this year and a pre-tax profit of £211.4m is further strong evidence of the resilience of our business," claimed company chairman, Robert Hiscox. “It seems an immutable rule of insurance that a big loss will hit the area of weakest rates, and this year has proved the rule. We were underweight in Chile, New Zealand and Australia, had declined a significant insured in the oil-spill and had pruned our UK household book, as our view was that each area was under-rated for just the catastrophes which have occurred,” Hiscox added. The London Market business was the powerhouse of the group, claimed chief executive officer Bronek Masojada. “It delivered a pre-tax profit of £121.4m (2009: £179.9m). This result, though lower than 2010, was helped by some canny underwriting decisions, particularly around Deepwater Horizon and the Chilean earthquake. In each case disciplined underwriting, with a focus on margin over volume, led us to incur claims that were substantially below the market average,” Masojada said. A by-product of the decision not to chase volume was reduced premium income of £572.7m, down from £663.0m in 2009, and the company said this trend will continue in 2011. “We will allow our big-ticket businesses in Bermuda and London to shrink as they focus on margin over volume, while at the same time we expect our specialist retail businesses to grow their revenue and profits,” Masojada said. The investment portfolio, excluding derivatives, returned £98.8m, giving a yield of 3.6% on an average portfolio value over 2010 of £2,717.5m. The combined operating ratio - the total of claim costs, commission and expenses as a percentage of premiums – deteriorated to 89.3% from 86.0% in 2009. Net asset value per share improved to 332.7p from 299.2p at the end of 2009. The full year dividend has been increased to 16.5p from 15.0p.
Robert Hiscox, Chairman of Hiscox Ltd, commented: "Mother Nature has well and truly tested us this year and a pre-tax profit of £211.4 million is further strong evidence of the resilience of our business."
Financial highlights · A strong pre-tax profit of £211.4 million (2009: £320.6 million) despite specific catastrophe claims of £165 million · Profit after tax £178.8 million (2009: £280.5 million);15.4% effective tax rate · Gross written premiums remain flat at £1,432.7 million (2009: £1,435.4 million) · Investment return of 3.6% (2009: 7.2%) · Earnings per share 47.2p (2009: 75.2p) · Total dividend for the year increased by 10% to 16.5p (2009: 15.0p) · Net assets per share increased by 11.2% to 332.7p (2009: 299.2p) · Combined ratio 89.3% (2009: 86.0%) · Return on equity 16.5% (2009: 30.1%) Operational highlights · Hiscox London Market focused on margin over growth reducing income by 13.6%, delivering profits of £121.4 million despite catastrophes. · Specialist retail businesses in the UK and Europe delivered good growth and doubled profits, again despite catastrophes. · Rates still attractive in reinsurance and stable in other specialty lines. · The first 'direct from insurer' small business offering in the US launched with promising early results.
http://www.investegate.co.uk/Article.aspx?id=201102280701079282B
ubs rates buy target price 387 goldman sach rates buy target price 370
25% thereafter.
shore capital reiterates its 'buy' stance
excellent results as expected
rbs raises its price target for hsx -rates as a buy..... directors buying .......results soon