Rising cost of reinsurance is affecting energy rates
The rise in the cost of reinsurance renewals is having a knock-on effect on rates in the primary market, says Hiscox.
The company said rates for upstream energy – the extraction, production and distribution of oil and gas – had increased in the “double-digits” during 2009. The increases could also be attributed to the cost of claims for hurricanes Gustav and Ike.
Simon Williams, head of marine and energy, said increases would depend on the client and where the assets were based.
Elsewhere, Beazley may raise capital by selling shares to take advantage of improving market conditions.
The Lloyd’s insurer, which will deliver its preliminary results for the full year on Friday, said the board was considering a potential equity fundraising to develop opportunities.