(Bloomberg) — Hiscox Ltd. Chairman Robert Childs said the Lloyd's of London insurer is writing less “big ticket” reinsurance as excess capital pushes rates lower.
The second-largest Lloyd's insurer by market value reported a 22% drop in gross written premiums at its reinsurance unit to 271.5 million pounds ($461 million) for the six months to June 30, according to a statement today.
“Big ticket business will grow and contract according to market conditions,” Childs said in a telephone interview. “We have seen rate reduction in reinsurance at year end and again at the half year and we are trimming our sales.”
Hiscox joins others insurers including Beazley Plc to focus on smaller and specialty lines of business as increased competition drives prices lower for larger risks and catastrophes. Lancashire Holdings Ltd. said last week that it's prepared to avoid coverage that it considers under-priced for the degree of risk.
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