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Hiscox premiums nudge up, sets aside $75m for Q3 catastrophe claims
2nd Nov 2020 07:42
(Sharecast News) - Hiscox said on Monday that gross written premiums nudged up in the nine months to the end of September as customer numbers grew, and the insurer has put aside $75m for third-quarter catastrophe claims.
Gross written premiums ticked up 2% at constant currency to $3.26bn, driven by rate improvement and growth in customer numbers across the business. In the third quarter, premiums were up 15% at constant currency.
Hiscox Retail saw growth in each of its five business units, driven by the digital platforms, the company said, while Hiscox London Market continued to benefit from accelerating rate improvement, with rates up 18% across the portfolio.
Hiscox Re & ILS saw "good" growth at the July renewals, with rates up 12% for the year.
Hiscox said it has set aside $75m for catastrophe claims in the third quarter. This includes claims from Hurricane Laura, as well as claims under aggregate reinsurance policies, provisions for wildfire claims and some large individual risk losses.
"While the severity of individual catastrophe events has not reached the levels of the preceding three years, the third quarter has seen a high frequency of natural catastrophes, with the most active North American wind season on record and another significant wildfire season in California," it said.
There was no change to the company's previously-disclosed estimates for claims related to the Covid-19 pandemic, which total $387m net of reinsurance.
Chief executive officer Bronek Masojada said: "Our year-to-date performance demonstrates the resilience of the group, as we delivered good growth in every target area, including in all of our retail businesses.
"We are benefiting from the inexorable shift towards digital in our retail businesses thanks to our ongoing investment in technology, as well as the strongest pricing we have seen in the London Market and in reinsurance for more than five years. We have the financial strength, operational resilience and underwriting expertise to take advantage of these favourable market trends."
Hiscox said it remains committed to return to paying a dividend and will re-evaluate the position at the year-end.
Gross written premiums ticked up 2% at constant currency to $3.26bn, driven by rate improvement and growth in customer numbers across the business. In the third quarter, premiums were up 15% at constant currency.
Hiscox Retail saw growth in each of its five business units, driven by the digital platforms, the company said, while Hiscox London Market continued to benefit from accelerating rate improvement, with rates up 18% across the portfolio.
Hiscox Re & ILS saw "good" growth at the July renewals, with rates up 12% for the year.
Hiscox said it has set aside $75m for catastrophe claims in the third quarter. This includes claims from Hurricane Laura, as well as claims under aggregate reinsurance policies, provisions for wildfire claims and some large individual risk losses.
"While the severity of individual catastrophe events has not reached the levels of the preceding three years, the third quarter has seen a high frequency of natural catastrophes, with the most active North American wind season on record and another significant wildfire season in California," it said.
There was no change to the company's previously-disclosed estimates for claims related to the Covid-19 pandemic, which total $387m net of reinsurance.
Chief executive officer Bronek Masojada said: "Our year-to-date performance demonstrates the resilience of the group, as we delivered good growth in every target area, including in all of our retail businesses.
"We are benefiting from the inexorable shift towards digital in our retail businesses thanks to our ongoing investment in technology, as well as the strongest pricing we have seen in the London Market and in reinsurance for more than five years. We have the financial strength, operational resilience and underwriting expertise to take advantage of these favourable market trends."
Hiscox said it remains committed to return to paying a dividend and will re-evaluate the position at the year-end.