Bermuda-based re/insurer Hiscox Ltd said the big freeze in the UK late last year will cost the company an estimated £16 million ($25.4 million).In a statement yesterday, the company also said that its operating platform on the Island, Hiscox Bermuda, has seen rates decline by 7.5 percent on January reinsurance renewal business.Hiscox added that its position on the floods in Queensland, Australia, was still developing, but “we believe we are underweight in this area”.The floods, which have killed at least 26 people and affected an area larger than Texas and California combined, may cost insurers and reinsurers $4 billion to $6 billion, according to catastrophe modeller AIR Worldwide.Claims from February's earthquake in Chile, European windstorm Xynthia and September's earthquake in New Zealand will total about £115 million ($182 million), Hiscox said.Despite the UK weather-related claims, Hiscox said its household business “remains on track to make a healthy profit”.The Hiscox London Market division, which underwrites a mix of reinsurance and insurance, saw an average rate reduction of 1.5 percent on renewal business, less sharp than the fall recorded by the Bermuda reinsurance business.The company said it would continue to manage the soft market “by actively managing the book: walking away from risks that are poorly rated and increasing capacity in areas where rates are more attractive”.Hiscox's investment return for 2010 is approximately 3.6 percent, calculated on the average value of the portfolio over the year.“Faced with signs of stronger US economic growth, investors generally sold government bonds and bought equities in the fourth quarter,” Hiscox stated.“Our bond portfolios were protected by their short duration and allocation to credit, whilst our equities provided a useful return for the period. The value of the portfolio at the end of the year was approximately £2.8 billion.”Hiscox will report its preliminary results for 2010 on 28 February 2011.Another Lloyd's insurer with operations in Bermuda, Amlin Plc, said yesterday it agreed to buy JR Clare Underwriting Agencies Ltd, a Lloyd's of London insurer with £3.2 million of assets. Amlin did not disclose a price for the acquisition.