4th Nov 2019 08:21
(Alliance News) - Hiscox Ltd said Monday that premiums growth was "good" over the first nine months of 2019, but its combined ratio was affected by an active period for claims amid a trio of natural disasters.
For the nine months ended September, gross written premiums grew 5.6% to USD3.21 billion from USD3.04 billion a year prior. On a constant currency basis, gross written premiums grew 7.3% on the year before.
"The third quarter has been an active period for claims, with the market experiencing significant catastrophe losses from storms in the US, the Caribbean and Japan," Chief Executive Officer Bronke Masojada said. "Paying claims is what we are here for, and we have reserved USD165 million for claims from Hurricane Dorian and Typhoons Faxai and Hagibis. We expect an additional impact from lower fees and profit commissions."
Hiscox came to the USD165 million claims reserve after assessing the insured market loss for Hurricane Dorian in August, Typhoon Faxai in late August and early September, and Typhoon Hagibis in October. Dorian struck Bermuda, Faxai affected Japan and Hagibis touched a number of countries including Japan and Russia.
"It is pleasing to see good growth across all of our segments, with Hiscox London Market leading the way as conditions continue to improve," Masojada added. "In Hiscox Retail, growth is accelerating following the decisive action we have taken in the US and UK, and Europe is delivering strong double-digit growth. We are on track to meet our full-year growth guidance for the retail segment."
"Pricing momentum in the London market and reinsurance continues to be positive," Masojada said. "In Hiscox Retail, rates in the UK and Europe remain broadly flat across the portfolio. In the US, there are early signs that the market is responding to adverse claims trends in casualty business, where we are taking an increasingly cautious approach to reserving."
Within its investments business, return over the first nine months of 2019 stood at 4.0% on an annualised basis at USD186 million. Assets under management stood at USD6.44 billion, marginally higher than a year before.
"Yet again the balance between our retail and big-ticket businesses has given Hiscox resilience in the face of challenging events," Masojada concluded. "From these challenges comes opportunity."
For the full year, Hiscox expects its combined ratio of between 97% and 99%. Any combined ratio below 100% means an insurer made a profit from its underwriting.
Over the medium term, the Hiscox is targeting a combined ratio of between 90% and 95%.
Shares in Hamilton, Bermuda-based Hiscox were 3.6% lower at 1,422.00 pence in London on Monday.
By Ahren Lester; [email protected]
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