Hiscox needs reserve strengthening amid catastrophe claims
Hiscox shares fell 5% today amid a profit warning.
Hiscox has taken a big hit from last year’s typhoon Jebi in Japan and hurricane Michael in Florida which would hurt first-half underwriting profit.
Reserves for natural disasters had been beefed up $40 million (£32 million).
“The scale of deterioration has been significant, with industry loss estimates having increased materially since these (Typhoon Jebi in Japan and Hurricane Michael in Florida) events,” Hiscox said.
First half profits would be between $150 million and $170 million, with most coming from investment income.
Hiscox had enjoyed a solid first quarter, but the profit warning today sparked the biggest share price drop in seven years.
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