Hiscox has said it expects its full-year pre-tax profits to be reduced by £35m as a result of losses from hurricanes Wilma and Katrina.
Chairman Robert Hiscox said: "The market has turned. Reinsurance, which we write as well as insurance, will be much more expensive. This affects almost all insurance writers, who will be forced to increase their rates. Next year promises to be extremely interesting."
Hiscox currently estimates the net impact of Hurricane Wilma at $45m.
Based on the latest information to evaluate the impact of hurricanes Katrina and Rita, Hiscox's loss from Katrina is estimated to have increased by $15m to $125m, while estimated losses from Rita remain unchanged at $70m.
