= Business with large floats.
Consider, Hiscox historically made half of its profits from investing insurance float. In 2012 this figure was 43%, including a very strong investment result given the low rates environment. Rising short-end rates will benefit companies such as Hiscox who are required to hold highly liquid securities as part of their business operations. Other insurers that will benefit include Lancashire, Beazley, Amlin, Catlin, Admiral, ESure and Direct Line. The brokers who hold client money in their accounts, such as ICAP, Tullet Prebon, Hargreaves Lansdown and IG Group should be able to keep at least a portion of the rise in rates to their benefit, as are the banks so long as the competition for deposits does not increase markedly – Royal Bank of Scotland, Lloyds, Santander, etc.
If you get higher rates you can expect these business types to continue to re-rate.