Bermuda-based Hiscox Ltd. has announced the sale of its US animal mortality business to Markel Service Inc.

The business, which operates under the American livestock name and provides both equine and livestock cover, will be handed over to Markel subject to receipt of required regulatory approvals and compliance with regulatory requirements.

The deal is due to be completed on October 1, 2010, subject to customary closing conditions. Hiscox will retain the insurance company acquired in 2007 and the admitted licences it has in 50 US states.

Hiscox will also be withdrawing from the inland marine market in response to tough market conditions, with the combined income of these two lines of business totalling less than $20 million in 2009.

Hiscox will focus its resources on its core Errors & Omissions, specialty and property lines and will continue to develop its US business through its offices in Armonk, Atlanta, Chicago, Kansas City, Los Angeles, New York, Miami and San Francisco.