Flight MH370 and a wet British weather hit Hiscox’s premiums

 
Kate McCann
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SPECIALIST insurer Hiscox has reported an overall fall in gross written premiums in the first three months of the year.

The group also revealed a small exposure to the missing Malaysian Airlines MH370 flight, which is thought to have crashed into the ocean after taking off from Kuala Lumpur earlier this year.

Additionally, Hiscox was exposed to the ferry which sank off the South Korean coast in April.

Written premiums fell to £501.6m for the quarter to 31 March, from £506.1m in 2013 – a fall of 0.9 per cent. The group reported a planned pull-back from the reinsurance market, which has been declining, as the reason for the loss. The insurer also increased its reserve for flood-related claims after bad winter weather in the UK from £5m to £10m.

In a statement the group said: “We expect rates in many lines to remain under pressure, particularly in the absence of any catastrophes. However, our diverse business mix gives us options and we are restless and hungry for new opportunity.” Chief executive Bronek Masojada said conditions for the group were good.

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