Hiscox posts solid start to 2019

7th May 2019 07:10

(Sharecast News) - Hiscox said it made a solid start to the year as the specialist insurer's gross written premiums rose 3.3%. Gross written premiums for the three months to the end of March rose to $1.165bn (£890m) from $1.158bn a year earlier, Hiscox said in a trading update. Premiums rose 3.3% at constant currency or 0.6% without adjusting for currency fluctuations.Business was driven by Hiscox's retail business where gross written premiums rose 7.7% at constant currency to $593.3m. London premiums rose 5.3% to $228.6m and premiums fell 4.6% to $342.8m at the reinsurance and insurance-linked securities business.The FTSE 100 company said rates at its London business improved by about 4% after two years of heavy losses and a crackdown on underperforming businesses by Lloyd's of London pushed rates up in most cases. In the US, Hiscox reduced its exposure to insuring company directors and officers against rising claims amid weak rates.Bronek Masojada, Hiscox's chief executive, said: "We have done what we said we would do in the first quarter. In retail we continue to pull back in US private company D&O, where conditions are challenging, and the UK business is adapting to a new IT system which will help us capture the long-term opportunity."In the London market and in reinsurance, where conditions are improving, we are growing in the right areas and maintaining our focus on writing profitable business."Masojada predicted growth at Hiscox's retail businesses would edge up towards the middle of its 5-15% target range in the second half.