Rate fall but claims still low. Investments making 7.2%
Hiscox has said January reinsurance renewal rates fell 5-7% from the historically high rating levels of 2009, with local variation depending upon loss experience.
It claimed the falls were expected given the very light level of insured catastrophe loss borne by the industry in 2009.
Reinsurance accounts for around a third of the Group's gross written premium, and rates at these levels continue to offer attractive margins.
Investment return
Hiscox said its investment return for 2009 was approximately 7.2% calculated on the average value of the portfolio over the year.
“Our allocation to non government bonds and equities enhanced the yield achieved for the quarter and year as a whole. The value of the portfolio at the end of the year was approximately £2.6bn,” it said.
On claims Hiscox said its US business had no significant losses and Hiscox Europe's claims experience improved greatly in the second half of the year. Hiscox UK has seen a small amount of activity arising from the recent cold weather, it said.
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