The insurer could raise £400m based on its share price at close
Insurer Hiscox announced that it is looking to capital raise through share placement to take advantage of a rise in premium rates.
The placing could raise around £400m based on its share price at close.
This is according to its trading update for the first three months of 2020.
Hiscox’s chief executive Bronek Masojada, said: “We are announcing an equity placing today in order to respond to growth opportunities and rate improvement in the US wholesale and reinsurance markets. We have managed our investments prudently and our capital position is robust, with an estimated group regulatory solvency ratio at the end of March of 195%.”
The insurer launched an equity placing of 19.99% of its share capital to position the group to respond to future growth opportunities and rate improvement in the US wholesale and reinsurance markets.
Meanwhile rate increases have been particularly strong in the London commercial insurance market, Hiscox had an aggregate rate increase across its portfolio of 12% this year.
Hiscox is currently facing claims from small business policyholders in Britain over disputed business interruption claims due to the coronavirus crisis.
But it said that it welcomed “positive steps” made last week by the Financial Conduct Authority last week to get a resolution in such disputes.