(Reuters) – The British insurance company Hiscox Ltd. said on Thursday that it has set aside $ 40 million for expected losses due to possible claims stemming from Russia’s invasion of Ukraine, and joins comrades to quantify the hit from the conflict.
The insurance company Lloyd’s of London said that the provisions were for expected losses mainly through its portfolio of political violence, war and terror, and added that the sanctions against Moscow had minimal impact on the London-listed group.
Rising premium rates have helped the UK insurance industry gradually recover from real claims during the pandemic, but Russia’s sanctions and devastation in Ukraine could accelerate as companies file claims to cover losses from the crisis.
Hiscox in its first-quarter trading update said on Thursday that losses during the period were minimal, while reporting a 10.3% increase in total gross premiums to $ 1.39 billion for the three months ended March 31.
CEO Aki Hussain said the company supported customers affected by the crisis.
Hiscox, which guarantees a range of risks from natural disasters to cyberattacks to kidnappings and art theft, also said that its direct investment exposure to Russia and Ukraine is now down to about $ 3 million in Ukrainian bonds.
The rating agency S&P Global said at the end of March that they expected losses in the special insurance market of 16 to 35 billion dollars from the geopolitical conflict, including from claims in aviation, cyber, political risk and naval insurance.