Winds not too ill for Lloyd's insurers

LLOYD's of London insurers, Catlin and Hiscox, said that claims from the current hurricane season in the Caribbean would be manageable, as they posted big rises in first-half profit.

Robert Hiscox, chairman of Hiscox, said he expected claims from hurricanes Charley and Frances to be 'large but not catastrophic. Hurricane Ivan is well south (of Florida), but some losses are inevitable'.

'Whilst the impact of Hurricane Ivan is still uncertain, we expect that the second half of 2004 will continue to deliver strong profitability,' said Stephen Catlin, chief executive of Catlin Group.

Catlin, which floated on the London stock market in April, said its net income jumped 89% to $95.8m (£53.2m) in the six months to end-June.

Specialist insurer Hiscox, which targets the affluent with policies covering racehorses, fine art and even the threat of kidnap, said its pretax profit rose 61% to £50.8m in the same period.

Robert Hiscox said the volatility of hurricanes showed the virtue of having a retail business to counterbalance riskier international markets.

'We like the excitements of the (Lloyd's of) London market but also a quiet life in the country,' he said, adding he expected several good years ahead as some insurance rates settle down but others stay firm or even increase.

Hiscox's interim dividend was raised 15% to 1.5p. Catlin announced an interim dividend of 7.8 cents. Shares in Hiscox were down 5 1/4p at 169 3/4p, while Catlin's were up 17 1/2p at 383 3/4p.