Catastrophes send Hiscox’s profit reeling

first_img KCS-content Show Comments ▼ whatsapp Monday 28 February 2011 7:56 pm Read This NextNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe Wrap’Black Widow’ First Reactions: ‘This Is Like the MCU’s Bond Movie’The Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap whatsapp Catastrophes send Hiscox’s profit reeling Share LLOYD’S insurer Hiscox yesterday attributed a 34 per cent fall in its 2010 pre-tax profit to devastating earthquakes in Chile and New Zealand.Full-year profit slid to £211.4m from £320.6m in 2009 as disaster claims rose to £165m in the year. “Mother Nature has well and truly tested us this year,” chairman Robert Hiscox said. But profits almost doubled in its UK and European businesses, which focus on small commercial enterprises and retail products, to £39.6m from £20.6m in 2009.Chief executive Bronek Masojada told City A.M.: “Despite paying out £165m I think the catastrophe loss is fine as long as the business is written at the right price. I’m not complaining,” he said.Gross premiums stayed static at £1.43bn as the firm reduced premium income in areas such as US property and the London market. Masojada said he expects five to 15 per cent growth in the UK and Europe this year, while catastrophe and reinsurance rates also remain healthy.Hiscox expects its losses from the earthquake that hit Christchurch in New Zealand last week to be “of similar or greater magnitude” to the £37m loss it took from the quake last September. The Chilean earthquake in February, which had a magnitude of 8.8, also hit the business hard. Its combined ratio stayed under 90 per cent, though it rose to 89.3 per cent from 86 per cent in 2009. Tags: NULLlast_img read more