Hiscox quake and storm costs

Hiscox said this morning that based on an insured market loss of $8bn for the Chilean earthquake, and $3bn for windstorm Xynthia, Hiscox estimates a combined net loss of approximately £100m ($150m).

It said the estimate is within budgeted losses for such events and Hiscox has reinsurance cover remaining for other catastrophes. Hiscox believes these losses will result in the firming of some reinsurance rates.

Hiscox underwrites no specific Chilean reinsurance programmes, but has exposure through its underwriting of global and regional reinsurance and retrocessional programmes. Hiscox has no material direct insurance exposure to this event, the company said.

The breadth of industry estimates reflect market uncertainties, Hiscox said, and this could lead to a later revision of its estimate.