2nd Nov 2021 10:35
(Alliance News) - Hiscox Ltd said Tuesday its gross written premiums grew in the first nine months of 2021 but pointed to some trouble for reinsurance underwriting from elevated natural catastrophe losses.
Total gross written premiums in the first nine months of 2021 increased 6.1% to USD3.46 billion from USD3.26 billion. Hiscox attributed the growth to "strong rate momentum".
Retail premiums rose 6.0% to USD1.76 billion from USD1.66 billion, while London Market premiums increased 7.2% to USD900.0 million from USD839.6 million, and Re & ILS premiums were 5.6% higher at USD806.5 million from USD763.6 million.
Outgoing Chief Executive Bronek Masojada said: "Hiscox London Market and Re & ILS are performing strongly and we continue to benefit from excellent growth in our Retail digital business. 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."
Chief Financial Officer Aki Hussain is stepping into the CEO role on January 1.
Masojada will continue in his current position until the end of the year to allow a smooth transition while the insurer seeks another chief financial officer.
Turning back to its trading, Hiscox noted its combined ratio within in Retail book is progressing in line with its expectations.
"In Hiscox Retail, rates are rising across all regions. In Hiscox UK rates were up 7.5%, which is ahead of our claims inflation expectations and with the strongest momentum in contingency, cyber and traditional professional indemnity lines. In Hiscox Europe rates were up 4%, largely driven by cyber and traditional professional indemnity business. In Hiscox USA rates increased 6% on average, predominantly driven by the broker channel. This is broadly in line with our claims inflation expectations in the market," Hiscox added.
Its London Market business saw premiums rise but has put aside USD110 million for Hurricane Ida based on an insured market loss of USD35 billion and USD40 million net for European floods based on an insured market loss of USD9 billion.
Hiscox said its net Covid-19 loss estimate remains unchanged at USD475 million for 2020 and USD17 million for lockdowns announced in 2021.
It also noted its Re & ILS business saw its underwriting take a hit from elevated natural catastrophe losses in 2021, including the previously reported USD33 million net loss from Winter Storm Uri, USD50 million net loss from Hurricane Ida and USD20 million net loss from European floods.
Hiscox added: "With the reinsurance account now largely written for 2021, attention turns to the upcoming January renewals and we expect a necessary further rate hardening as the market responds to its fifth year of elevated natural catastrophe losses."
Shares in Hiscox were 0.7% lower in London on Tuesday morning at 842.40 pence each.
By Paul McGowan; [email protected]
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