Specialist insurer Hiscox Ltd. Tuesday said it estimates net claims arising from the April and May tornadoes in the US to be around 35 million pounds ($55.9 million) based on insured market losses of $15 to 25 billion.
In an update on tornadoes, the Hamilton, Bermuda-based insurer and reinsurer said that 2011 is proving to be another active year for catastrophes with reserves in excess of 200 million pounds for the year to date compared to about 100 million pounds at the half year.
The company added that these recent catastrophes are having a positive effect on reinsurance rates. In addition, Hiscox maintained underwriting discipline, shrinking in areas where rates are under pressure and maintaining a focus on profit over volume.
In US catastrophe business the comapny has seen rate increases of around 10% due to the cumulative effect of recent events and the introduction of the RMS 11 risk model. Hiscox expects to report 2011 interim results on August 1.