“No decision has been made on whether to proceed with a capital raise or with regards to the timing or size of any such capital raise.”
That was the clarification made by Hiscox Ltd on Wednesday when it cited “recent press speculation” surrounding a possible capital raise amid the coronavirus crisis.
In a release this morning, the global specialist insurer stated: “The COVID-19 pandemic has resulted in unprecedented global economic uncertainty. The Hiscox board believes the group has sufficient capital to meet expected liabilities arising as a result of exposures to the pandemic.
“Hiscox expects the resultant uncertainty arising from the pandemic and consequent capital contraction to result in rates hardening across US wholesale and reinsurance markets. While Hiscox’s capital, liquidity, and funding positions remain robust, Hiscox is evaluating possible sources of capital to respond in an appropriate way to these market dynamics, which could include raising new equity.”
The Bermuda-headquartered group, which has been making headlines of late because of coronavirus-related business interruption insurance claims, stressed that nothing has been decided yet as far as a capital raise is concerned.
Hiscox said it will be making a further announcement if and when appropriate.
