Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Lloyd's of London's Hiscox to provide insurance for Ukraine grain corridor

Economy Aug 03, 2022 09:52AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Hiscox logo and stock graph seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration

By Carolyn Cohn

LONDON (Reuters) -Hiscox is committed to a planned insurance consortium providing cover for ships travelling through a safe passage from Ukraine, its chief executive said on Wednesday, as the Lloyd's of London insurer shares plunged on a first-half loss.

The first grain-carrying ship to leave Ukrainian ports in wartime, following a deal brokered by Ankara and the United Nations, safely anchored off Turkey's coast on Tuesday and is due to be inspected on Wednesday.

Trade body the Lloyd's Market Association last month said a consortium could be formed to provide cover for grain shipments.

The consortium had not yet been finalised, Aki Hussain told Reuters by phone.

"We have committed our support to the Lloyd's market-led initiative," he said.

"We are very supportive of it."

Lloyd's insurer Ascot and broker Marsh have already launched a separate facility to provide up to $50 million in cover for grain shipments from Ukraine.

Hiscox, one of the biggest players in the Lloyd's commercial insurance market, had insured some ships which are stuck in Ukrainian ports but has received no claims so far, Hussain said.

Hiscox said its losses from Ukraine and Russia were $48 million net of reinsurance, a slight increase from a $40 million estimate made in May.

The insurer's shares plunged 7.6%, making it the worst performer in the FTSE mid-cap index, after it reported a pretax loss of $107 million in the first half due to a steep decline in the value of its investment portfolio.

Hiscox posted a profit of $133 million in the first half of 2021.

Hiscox recorded an investment loss of $214 million, compared with a profit of $62 million a year earlier, it said in a trading statement.

However, the insurer's underwriting performance was strong. It reported a combined ratio - a key measure of underwriting profitability - of 91.3% compared with 93.1% a year earlier. A level below 100% indicates a profit.

Hiscox had raised premiums by around 8% in the London commercial insurance market, 13% in reinsurance and 6% to 7% in its retail business, Hussain said.

KBW analysts described the results as a "mixed bag", but reiterated their "market perform" rating on the stock.

Lloyd's of London's Hiscox to provide insurance for Ukraine grain corridor
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email