Hiscox outlines Coronavirus claims situation

The price of shares in FTSE 250 insurer Hiscox (LON:HSX) climbed 3.34% to 824p (as of 11:30 BST) after the firm outlined the current claims positions linked to COVID-19. The company said that it was actively settling claims for event cancellations and expects to pay a net total of $150 million, which may rise by $25 million if travel and mass gathering restrictions are extended. The firm also has around 10,000 clients insured against business interruptions, but the majority of these are small businesses with low revenues.

Hiscox said that it remains well capitalised with strong liquidity and funding positions, but the uncertainty and capital contraction connected to COVID-19 was likely to impact wholesale and reinsurance rates.