The Bermuda-based insurer Hiscox has warned of widespread increases in rates in the coming June renewals period, with potential average rises of 10% in the US market and increases in the Asia-Pacific region in particular.

It says few classes of business will see reductions.

“The first quarter began with rate reductions in reinsurance lines, but the recent catastrophes have changed the market,” it says.

Hiscox reported gross written premium of £453.5 million ($694.5 million) in the quarter to March 31, down 10% on the same quarter last year.

CEO Bronek Masojada says this was a result of the company walking away from poorly rated risks.

“We continue to underwrite for profit over volume in these tough market conditions,” he said. “This discipline has allowed us to keep our powder dry and we are ready to take advantage of rising reinsurance rates.”

Hiscox estimates it will incur £60 million ($91.8 million) in claims from the February 22 Christchurch earthquake, £15 million (($22.9 million) from the Queensland floods and net claims of $US60-$150 million ($91.8 million-$229.7 million) with a mean loss of $US100 million ($153.1 million) from the Japan earthquake.