Hiscox Share Discussion Threads

[bluedaycoming] 18/6/2020 19:55

Specifically it's a £52m question, but with many more millions waiting to leap fwd with claims. Is the £250m an estimated liability on everything danno, or is that you making a wild guess? I'm guessing it will be for much, much more, only because hsx insures almost everyone I know in business. Also they've got business in the US; did they have the same clauses there on infectious disease business interruption? If they did, this will become Hiscox's Gulf of Mexico moment; you all remember how the yanks screwed BP to the ocean floor and made them finance the rebuilding of the south's entire economy, don't you? And the septics love a court case, especially a long one with armies of expensive lawyers and a massive queue of claimants, against a British company.

[danielinnes74] 12/6/2020 14:29

Well that’s the £250m + question !

[danielinnes74] 12/6/2020 14:22

Well that’s the £250m + question !

[spakko] 12/6/2020 08:15

Is HSX gonna lose the court case on covid insurance?

[our haven] 01/6/2020 11:36

FCA announcement seems to be taken in its stride by the market. IMO this is good news for Hiscox.

[2toptrader] 26/5/2020 13:24

HSX has been trying to show us the bottom of late, it should hold.

[2toptrader] 15/5/2020 08:25

Bought again this morning. if 660p holds, then the bottom should be in.

[goliard] 14/5/2020 14:38

Plootocrat - thanks, I missed that they were placing shares, so the amounts do not really matter.

[plootocrat] 14/5/2020 14:33

The RNS this afternoon is confirmation of the directors' subscriptions for new shares at £6.50 each as part of the capital raising exercise.
"In conjunction with the Placing, certain directors and members of senior management of the Company have agreed to subscribe for an aggregate of 92,302 new ordinary shares in the capital of the Company (the "Subscription Shares"), at the Placing Price, pursuant to the terms and conditions of the subscription letters entered into with the Company (the "Subscription"). The Placing and the Subscription are together being referred to as the "Capital Raise"."
Whether you think the amounts are "tiny" is a subjective judgement, the average outlay per director was around £50k which is a lot more than I would invest in this company at the present time.

[goliard] 14/5/2020 14:12

I see all the board getting together to buy shares to show their support. Shame it was such tiny amounts. Looks like we are going to test the placing price and who knows where from there.

[2toptrader] 10/5/2020 09:55

I took a small position in HSX on Thursday, reckon the fundraise put the bottom in.

[our haven] 06/5/2020 08:13

The capital raising seems to have been well received by the market. See where we go from here.

[goliard] 01/5/2020 07:39

Hard to imagine that the FCA action won't go all the way to the Supreme Court. Too much at stake here on all sides. Except some volatility in the share price with each stage but I think it's negative overall for insurers. Uncertainty equals drop in share price.

[effortless cool] 01/5/2020 07:25

FCA statement on business interruption insurance

[goliard] 29/4/2020 11:45

Elsa - they sort of hint at that, but yet again are deliberately being obscure. Are they really saying that they see a great opportunity and need new capital to take advantage... Of course not. They mix in the global uncertainty stuff too. These guys had such a good name but it really feels like they are destroying it with their position and announcements.

[rndm355] 29/4/2020 11:16

some thoughts on it here:

[elsa7878] 29/4/2020 10:29

As I read it they are saying they want to raise capital to take advantage of a harder rate market (ie rising premiums), not to pay losses. Not a holder but watching.

[its the oxman] 29/4/2020 09:54

Hopefully soon as well , else drift down will likely continue. Not sure this has found a floor yet.

[goliard] 29/4/2020 08:50

Question: How does an insurer do a capital raise to cover liabilities that it says publically it does not have and refuses to estimate if it did?

Answer: At a big discount.

[our haven] 29/4/2020 07:42

They say that they are looking at the possibility of a capital raise with no decision made. The market will interpret that as they are going to capital raise. Expect this one to plunge on opening imo.

[edmondj] 27/4/2020 08:34

Hiscox, the insurance company that will doubtless have been used by many agents to insure their businesses, is facing legal action over its handling of ‘Business Interruption’ claims.
Some 200 policyholders, are planning to take Hiscox Insurance to Court over rejected claims made due to coronavirus.
Top legal firm, Mishcon de Reya has been appointed to take up the case.
The group wants Hiscox to pay out on ‘Business Interruption’ claims for a policy that says it includes interruptions to business caused by infectious diseases.
One of the Group members is reported as saying:
“Hiscox thought it could get away without paying but that is not going to happen. We have appointed top legal counsel, we will be fully funded and we are going to force Hiscox to do the right thing and honour its obligations.”
Simon Ager, managing director of the Pinnacle Climbing Centre and steering group member, described Hiscox’s behaviour as “disgraceful”.
“The policy wording is clear and unambiguous, and the insurance has clearly been triggered,” he said. “In refusing to pay out in a shoddy attempt to preserve its own balance sheet, Hiscox is putting the future of hundreds of British businesses at risk.”
EYE carried a story last week warning that insurers are not only removing cover associated with infectious diseases going forward, but also retrospectively.

[2toptrader] 24/4/2020 11:25

Best to avoid Hiscox for now, why fight it ?! there will come a time to buy, but not yet.

"On Thursday, the Hiscox Action Group, a 200-strong group pursuing claims against the insurer, said that it had appointed law firm Mishcon de Reya to handle its claims, and was in talks with a litigation funder to finance legal action."

[porsche1945] 24/4/2020 10:12

Surprised these havnt sold off more, who is going to touch these as insurers after this, big operators like Aviva and Axa on the whole dont offer business interruption unless its on a defined list, they actually list the diseases. I think this company is toast and will likely be made to pay even if they are forced into bankruptcy, they wrote policies that were not specific so are on the hook, plus the reputational fall out will be devastating.