Hiscox to make £54m cash call

INSURER Hiscox has sought to cash in on the surge in premiums following the terror attacks of 11 September by raising £54m through an open offer.

Chairman Robert Hiscox said about £20m would be invested in the operations of Hiscox insurance and its half-owned Lloyd's group, Syndicate 33. The rest would be retained in its war chest.

Hiscox said the insurance operations, which specialise in providing property cover for wealthy clients, had enjoyed a 34% rise in premium income this year, with about 6% of this coming from rate rises.

Rates within Syndicate 33 rocketed 38% between January and October, thanks mainly to the jump in the cost of property insurance in the wake of the US attacks. He said there was still a global shortage of insurance and reinsurance capacity despite the recent surge of funds into the industry.

The three-for-10 issue will be pitched at 126p against a current price of 140p, up 1p. US insurer Chubb Corp is expected to at least maintain its 27% stake with a commitment to take 12m new shares. Hiscox also said it would not pay a dividend this year as a result of the £30m loss it suffered from 11 September.