Last checked at 18 Sep 2017 07:00
Impact of Hurricane Harvey
Hamilton, Bermuda (Monday 18 September 2017) - Hiscox Ltd (LSE:HSX), the international specialist insurer, has undertaken a first estimate of the impact of Hurricane Harvey.
Based on an insured market loss of US$25 billion (excluding the government backed National Flood Insurance Program), Hiscox estimates net claims of approximately US$150 million. This is within the Group's modelled range of claims for an event of this nature, and reinsurance protections for the Group remain substantially intact.
The first major Hurricane to hit landfall in the US in over 12 years, Harvey unusually stalled over Houston creating a prolonged period of flooding for the region. Hiscox has two principal areas of exposure: through reinsurance business and through insurance lines, including flood cover for homeowners and businesses.
Hiscox Group CEO, Bronek Masojada, said: "Insurance exists to help individuals and companies recover from the devastation caused by events like this, and our priority is to pay claims quickly so that they can do that. At the same time, Harvey has also highlighted the lack of flood cover for large parts of the US market."
Bronek added: "2017 will be an expensive year for natural catastrophes but the industry can cope. Insurance remains a cyclical business and after a long period of price reductions, insurance rates in the affected areas and in specific sectors such as large property are likely to increase. In the wider global insurance market for large risks, we expect rates to stabilise and begin to increase."
Hiscox will announce an estimate of net claims arising from Hurricane Irma, once the impact of that storm has become clearer.
Ends
For further information please contact:
Hiscox Ltd
Kylie O'Connor +44 (0) 20 7448 6656 Kylie.O'Connor@HISCOX.com
Lucy Hensher +44 (0) 20 7448 6619 Lucy.Hensher@HISCOX.com
Brunswick
Tom Burns +44 (0)20 7404 5959 TBurns@BrunswickGroup.com
Simone Selzer +44 (0)20 7404 5959 sselzer@brunswickgroup.com
Notes to editors
About The Hiscox Group
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It's a long-standing strategy which in 2016 helped generate gross premiums written of £2,402.6 million and a record profit before tax of £354.5 million.
The Hiscox Group employs over 2,300 people in 13 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re and ILS.
Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.