Greenwich Group - Syndicate News

Hiscox Syndicates Ltd

	11 September 2002	Hiscox propose a Ł110M Rights Issue The Hiscox Group has proposed a one-for-two rights issue to raise Ł110.5M to take advantage of current trading conditions. Robert Hiscox, the Chairman of Hiscox commented that the Group wanted to use the capital to increase its stamp to Ł700M for 2003. The rights issue is conditioned on the approval of shareholders who will be meeting on 25th September. It proposes a rights issue of up to 96,350,684 new ordinary shares at 120 pence per share on the basis of one ordinary new share for every two existing shares. The issue is underwritten by ING Baring. The company has published its unaudited interim results for the six months to the end of June. Gross written premium income was up 41% compared to the first six months of 2001 to Ł442.3M, while at the same time the combined ratio fell to 101.5% (102.2% in 2001). This led to an operating profit Ł10.8M (Ł4.8M in the same period of 2001). Syndicate 33's gross written income for the first six months in 2002 was Ł549.4M compared to Ł380M in 2001 Hiscox says there is still uncertainty over WTC losses with Syndicate 33 involved in litigation against the owners of WTC. As of August 30, the Syndicate had received notifications of some $576M of claims from insurance and reinsurance accounts. The current estimated gross loss remains unchanged from 31st December at $440M, which equates to a net loss of about Ł30M after taking into account reinsurance recoveries and associated costs.
	25 April 2002	Hiscox sells first Lloyd's Syndicate Catastrophe Bond The Hiscox Group has announced that it has issued a $33M bond designed to insure it against losses caused by earthquakes in the US, the first time such a transaction has been completed by a Lloyd's syndicate. These insurance-like bonds are called catastrophe bonds and see investors paid a high interest rate to compensate for the potential loss of principal lent should a specified catastrophe occur. Aon, the World's second largest insurance broker, managed the deal for Hiscox. The bond insures Hiscox's Syndicate 33 against losses caused by earthquake in the California and New Madrid region of the US, and has the advantage of removing the credit risk associated with traditional reinsurance policies. In addition, the bond provides loss payments which are received quickly and easily following a catastrophe
	17 March 1999	Hiscox goes Dutch Hiscox proposes to set up a wholly owned service company in Holland to underwrite personal lines and professional indemnity business. This company will be run in parallel with Hiscox's other European service companies in Paris and Munich.