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Specialist insurer Hiscox said premium income is down by ten per cent to £321.3 million as its international arm recorded declines.

Hiscox Bermuda, where the firm is based, posted a 38 per cent income decline to £30.9 million while global markets saw a 16 per cent drop to £177.7 million.

The insurer said rates were down in a softer market, and the fall in premium income was because the company declined to renew a number of large European accounts following rate reductions.

Business was up in the US however, with a 43 per cent increase in premium income to £5.7 million, while Hiscox Europe increased by 29 per cent to £34.8 million and UK business rose 13 per cent to £60.7 million.

Chairman Robert Hiscox said: "We have had a good start to the year with relatively small involvement in the many large individual losses which have occurred around the world.

"Despite those losses, market conditions in international and larger business are becoming challenging so we are reducing our exposure to these areas through disciplined underwriting."

The insurer said it had limited exposure to large losses such as Cyclone Emma and the Australian mine floods over the period.

Cash and investments have remained steady since the year end at £2 billion, while return on investments was 0.5 per cent in the quarter.

Hiscox said it would focus on the more profitable specialist regional lines in the US, UK and Europe, where rates are at favourable levels and loss activity is currently low.