Lloyd’s insurer Hardy has increased its loss estimates for the Q1 natural catastrophes after receiving new information from ceding companies. The company has also bought more reinsurance in preparation for the North Atlantic hurricane season.
The loss estimate has increased to a range of £28m to £33m from the previously announced range of £21m to £26m. Hardy attributed the rise to a deterioration in the level of market loss from both the Japan and New Zealand earthquakes.
The company added that the April and May US tornadoes have resulted in £3m of net claims for the firm.
Hardy also reported that it had achieved rate rises of 4.1% across its portfolio during the renewals that have taken place in 2011. The biggest rate increase of 7.8% was in the company’s property treaty book, and it also put through a 4.5% price hike in non-marine property.
However, the rises were partly offset by a 0.3% decline in marine and aviation rates and a 0.9% drop in specialty rates.
Hardy’s board decided in May to lower the company’s risk tolerance for the rest of the year, which prompted the purchase of further reinsurance prior to the Atlantic hurricane season. This is in addition to the proportional protections already in place.
Hardy will report its first-half results on 25 August.