No decision has been made about potential capital raise: Hiscox

Hiscox has responded to speculation that it is considering a capital raise by admitting it could look to raise new equity.

Hiscox stressed it “has sufficient capital to meet expected liabilities arising as a result of exposures to the pandemic.” It said no decision has been made about whether to proceed with a capital raise, and if it did, when that would be or how much it would look to raise.

The re/insurer said: “Whilst 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."

Hiscox noted the COVID-19 pandemic has resulted in unprecedented global economic uncertainty, which it said would likely lead to a hardening of rates across US wholesale and reinsurance markets.