Hiscox has joined a growing band of insurers who are looking to raise capital, by launching a one-for-two share rights issue.
Over 95m shares will be sold in a bid to raise £110m , net of expenses. The rights issue has been underwritten by ING Barings and is conditional on shareholder approval at an EGM on 26 September.
Chairman Robert Hiscox said: "I have never known conditions as good as this. Hiscox has taken full advantage with every penny of its existing capital and needs more as good profitable business is there for the taking."
Hiscox said that at the time of its fundraising activity in November 2001, it believed there was a shortage of insurance. Combined with low interest rates this would increase insurance premium rates, it said.
Since then however, there has been a hardening of insurance premium rates. Hiscox announced that it is therefore launching the rights issue to ensure increased capacity.
For the first six months of 2002, Hiscox's Lloyd's business saw GWP of £338.6m. Hiscox Insurance, the retail side of the business, saw GWP rise from £73.8m to £81.5m.
