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Hiscox in 'robust' position after third quarter
2nd Nov 2021 08:47
(Sharecast News) - Hiscox reported a 6.1% improvement in group gross written premiums for the first nine months of the year on Tuesday, to $3.46bn (£2.53bn), as strong rate momentum continued across all of its business segments.
The FTSE 250 specialist insurer said gross written premiums in Hiscox Retail were ahead 5.9% for the nine months ended 30 September, or 1.4% at constant currency.
It said the 'retail go-forward' portfolio grew by 5.7% on a constant currency basis, after planned reductions in sections of the United States broker channel.
Within Hiscox Retail, the company said there was continued strong growth in the digital partnerships and direct (DPD) business, with gross written premiums up 19.3%, or 15.8% at constant exchange rates.
US DPD performed "particularly strongly", growing 26.6% to $326.9m, while Hiscox said its
retail combined ratio was progressing in line with expectations.
Hiscox London Market, meanwhile, was continuing to benefit from aggregate rate increases across the portfolio, with gross written premiums up 7.2%.
The company reported an improved rate outlook for January renewals in Hiscox Re and ILS, following elevated natural catastrophe losses in the third quarter.
Net written premiums there grew by 46%.
Hiscox reported an investment result of $62.7m, or a 1.2% annualised return, for the period, as mark-to-market losses on its bond portfolio from rising interest rate expectations largely offset interest income received during the quarter.
A net sum of $110m was reserved for Hurricane Ida, based on an insured market loss of $35bn, while $40m net was set aside for the European summer floods, based on an insured market loss of $9bn.
Non-catastrophe losses experienced across the group remained "favourable", the board said.
The group's net Covid-19 loss estimate remained unchanged at $475m for 2020 and $17m for lockdowns announced in 2021.
"Hiscox London Market, and Re and ILS are performing strongly and we continue to benefit from excellent growth in our retail digital business," said outgoing group chief executive Bronek Masojada.
"Our capital position is robust.
"As I make my last quarterly trading statement as CEO of Hiscox, it is pleasing to see the business in such good shape."
At 0826 GMT, shares in Hiscox were up 1.08% at 857.8p.
The FTSE 250 specialist insurer said gross written premiums in Hiscox Retail were ahead 5.9% for the nine months ended 30 September, or 1.4% at constant currency.
It said the 'retail go-forward' portfolio grew by 5.7% on a constant currency basis, after planned reductions in sections of the United States broker channel.
Within Hiscox Retail, the company said there was continued strong growth in the digital partnerships and direct (DPD) business, with gross written premiums up 19.3%, or 15.8% at constant exchange rates.
US DPD performed "particularly strongly", growing 26.6% to $326.9m, while Hiscox said its
retail combined ratio was progressing in line with expectations.
Hiscox London Market, meanwhile, was continuing to benefit from aggregate rate increases across the portfolio, with gross written premiums up 7.2%.
The company reported an improved rate outlook for January renewals in Hiscox Re and ILS, following elevated natural catastrophe losses in the third quarter.
Net written premiums there grew by 46%.
Hiscox reported an investment result of $62.7m, or a 1.2% annualised return, for the period, as mark-to-market losses on its bond portfolio from rising interest rate expectations largely offset interest income received during the quarter.
A net sum of $110m was reserved for Hurricane Ida, based on an insured market loss of $35bn, while $40m net was set aside for the European summer floods, based on an insured market loss of $9bn.
Non-catastrophe losses experienced across the group remained "favourable", the board said.
The group's net Covid-19 loss estimate remained unchanged at $475m for 2020 and $17m for lockdowns announced in 2021.
"Hiscox London Market, and Re and ILS are performing strongly and we continue to benefit from excellent growth in our retail digital business," said outgoing group chief executive Bronek Masojada.
"Our capital position is robust.
"As I make my last quarterly trading statement as CEO of Hiscox, it is pleasing to see the business in such good shape."
At 0826 GMT, shares in Hiscox were up 1.08% at 857.8p.