Insurer braced for new US claims

LLOYD'S of London insurer Hiscox bumped up reserves for claims after the terror attacks on the US. That will push the Lloyds syndicate it half-owns into a £72m loss for 2001.

The total cost of the Twin Towers attacks in New York has been estimated at between £19bn and £25bn - with the cost of rebuilding the first tower as much as £5bn. Many claims are still outstanding.

There has been a fierce battle between Twin Towers owner Larry Silverstein and a syndicate of insurers, including Royal & SunAlliance.

Silverstein argues that the insurers should pay twice for the attacks - once for each tower. A US court ruled against him, but he is appealing.

Hiscox rose 7p to 158p. It expects £25m operating profits in the half to June.