Ratings reflect conservative investment portfolio and adequate reserving levels
Fitch Ratings has today assigned Hiscox Group's subordinated securities an expected 'BBB-' (BBB minus) rating.
At the same time, Fitch has assigned all core entities of Hiscox Group Insurer Financial Strength 'A' ratings.
Fitch has also assigned holding companies of Hiscox Group Issuer Default 'BBB+' ratings.
The rating agency said that the securities will be issued by Hiscox Plc and guaranteed by Hiscox Ltd. The proceeds will be used for the repayment of existing facilities, including lines of credit used to fund the Lloyd's operations, the purchase of an entity incorporated and operating in the US and other general corporate purposes.
Fitch views Hiscox's reinsurance program in respect of its European risks as very comprehensive, although the group retains some volatility in its catastrophe and reinsurance books. Fitch believes Hiscox's investment portfolio is conservative and its reserving levels adequate.
Added Fitch: “Hiscox has expanded its business significantly in recent years through the opening of new offices and the re-domicile to Bermuda. Although this strategy may generate additional benefits for the group, some execution risk remains.”
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