Specialist insurer Hiscox has lowered its forecast for the performance of its specialist risks syndicate for the 2001 year of account.
The high net worth insurer reduced its estimate by several percentage points. It is now forecasting between 5% and 10% profit on £360m of capacity - which means it expects to generate between £18m and £36m profit for the 2001 year of account.
It is understood that the downward revision has been made as a result of an increase in the insurer's reserves for political risks and professional indemnity.
A market analyst told Insurance Times that the move was not "unexpected" and that the cut in forecast was to be expected at "this stage of the market cycle".
