Insurer Hiscox is in danger of relegation in the quarterly reshuffle of the FTSE 100.
The company’s financial performance is set for a big hit after a spate of devastating storms. Hiscox is setting aside $165m (£105m, €122m) to cover claims from Hurricane Dorian in the Bahamas and two typhoons in Japan.
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As a result, JPMorgan has downgraded Hiscox shares to “neutral” and its share price has fallen 12 per cent since the beginning of September.
The fall has left Hiscox with a market capitalisation of £3.93bn, leaving it 113th on the London Stock Exchange. A company is automatically booted out of the index if it falls outside the top 110.
Silver and gold mining company Fresnillo and Kingfisher, which owns do-it-yourself chains B&Q and Screwfix, are also at risk of relegation.
EasyJet is on target to take their place, after reporting reduced costs and increased capacity. The budget airline was promoted to the FTSE 100 in 2013, but fell out this year.
Other challengers for promotion nclude Just Eat and GVC.
In the FTSE 250, Card Factory and Riverstone Energy are in the danger zone, while C&C Group and Helios Towers are predicted to join the mid-market index.
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