Informa Insurance News 24
SUPREME COURT RULING 'POSITIVE' FOR HISCOX: BERENBERG
The ruling of the UK Supreme Court on the FCA's business interruption case last week is "overall positive" for Hiscox, removing the uncertainty over the ultimate loss from the pandemic, analysts said. The insurer had estimated a loss of £100m ($135.5m) net of reinsurance, which remained intact, as a result of the Supreme Court ruling which did not overturn the High Court's initial ruling. The judgment means that fewer than one third of Hiscox's 34,000 UK business interruption policies may respond. “The final ruling has finally put to bed the uncertainty looming over the ultimate loss affecting both Hiscox’s UK policyholders as well as shareholders and thus helped to alleviate a big overhang from the group’s shares,” Berenberg analysts said. The insurer disclosed an additional $48m in losses owing to further lockdowns and the government restrictions imposed in the fourth quarter of last year. But these losses, although double what the Berenberg analysts had forecast, do not constitute a material loss for Hiscox. Hiscox shares were trading at 997p on Monday afternoon, up 10% on Friday morning.