Hiscox banks on future expansion

Specialist insurer Hiscox has replaced an expiring £350m credit facility with a £495.2m arrangement that it could use for expansion.

Hiscox finance director Stuart Bridges said the new three-year facility, provided by the same five banks as the previous two-year deal, would be used to supply some of Hiscox’s funds at Lloyd’s and for general corporate purposes.

Bridges said: “The group is much larger than it was two years ago when we last put the facility in place, so it is sensible to increase it. It will give us flexibility if we wish to expand later in the year.”

The five banks on the new facility – a revolving credit and letter of credit arrangement – are Lloyds TSB Corporate Markets, Barclays, Commerzbank, Crédit Agricole and ING. Lloyds TSB, the lead arranger, put up $150m of the total.