Insurer Hiscox turns to investors to raise £400m as it fights small firms over coronavirus payouts
Hiscox said it would sell up to 58m shares, which at last night’s price of 692.4p would be worth £400m
Insurance giant Hiscox has turned to investors to raise up to £400million as it fights small firms over coronavirus payouts.
It said it would sell up to 58m shares, which at last night’s price of 692.4p would be worth £400million, collecting the money so it could ‘respond to future growth opportunities’. But the Bermuda firm said it was withdrawing all financial guidance ‘until there is more clarity’ on the crisis.
Chief executive Bronek Masojada, who will buy £150,000 worth of the shares, said: ‘We are paying claims for event cancellation and abandonment, media, entertainment and travel which are covered by policies.’
But the firm is facing a legal challenge from a group of small businesses which took out business interruption insurance.
They say they should be able to claim for lost earnings, while Hiscox claims its policies were not designed to cover a lockdown.
If it does pay out, it could cost between £10million and £250million.