Hiscox details Hurricane Harvey bill

● Bermuda-based insurer expecting claims bill to reach equivalent of £110m

Meanwhile, shares in UK insurer Esure closed up by 6.1 per cent after a weekend report that Sir Peter Wood, who owns a 30.7 per cent holding, has been in talks with would-be buyers in a move that could trigger a full-blown sale of the business.

The group has a market capitalisation of £1.2bn and owns brands such as Sheilas’ Wheels. Wood is reported to have held “informal” talks over a possible sale, with an eye to having a deal in place next month.

A US insurer is seen as the most likely buyer for his stake, despite interest from private equity firms. Esure last year saw price comparison site Gocompare demerge from the company and list on the stock market.

Shore Capital insurance analyst Eamonn Flanagan said: “The idea that… Wood might be considering an exit too does not surprise us.

“The forthcoming reversal of the Ogden discount rate moves is likely to lead to a rate war, as previously impacted companies seek to regain the market share they lost these past six months to the likes of Esure and Hastings.”

Esure said in August that first-half profits had surged off the back of rising prices and higher demand for its products.