25th Jun 2007 07:03
Hiscox Ltd25 June 2007 HISCOX LTD Trading update Hiscox Ltd ('Hiscox'), the international specialist insurer, has today issued atrading update for the five months to 31 May 2007. Group RevenueThe Group has had a good start to the year with gross written premium to May2007 increasing by 15% on 2006, to £590 million (2006: £515 million) despiteadverse exchange rates. The main driver of growth has been catastrophereinsurance with the specialist regional business showing steady progress. Hiscox Global MarketsGross written premium income is up 5% year on year to £352 million (2006: £335million). (This would have been 12.5% at constant exchange rates.) Rates are generally softening, but are still at a healthy level. The exceptionis in areas of business exposed to natural catastrophes in the US where ratesremain strong. We have taken advantage of this and are pleased at the continuedgrowth of our catastrophe reinsurance business which has benefited from theextra capacity from Panther Re, the sidecar reinsurer we set up at the end oflast year. In line with our strategy of a disciplined reduction when rates soften, weanticipate reducing the capacity of Syndicate 33 in 2008 to £700 million from£875 million in 2007. Hiscox UK and EuropeThe UK business continues to grow steadily with a 5% increase in gross writtenpremium to £92 million (2006: £87 million). The TV advertising was a success andwe will be launching a new campaign later in the year. Europe has benefited from the strengthened management team. A new focus onspecialty commercial business in addition to our high value household accounthas led to a 20% increase in gross written premium to £36 million (2006: £30million). New offices across France, Germany and Sweden have contributed to thisexcellent growth. Hiscox InternationalOur Bermudian business has again met the tough targets we set with a 100% grosswritten premium increase on 2006, writing £82 million (2006:£41 million) ofexternal reinsurance business. Hiscox USA is performing well, generating £8 million (2006:£1 million) of grosswritten premium. The acquisition of American Live Stock Insurance Company bringsvaluable licences to our US business. Having our own admitted carrier will allowus to access new business and eventually roll out our products across the US. Debt financingWe are currently evaluating means of refinancing our existing facilities inorder to extend facility duration and to increase our financial flexibility. Robert Hiscox said:"The year has started well. We are taking full advantage of the continuingstrong catastrophe rates, and business is still very healthy in our regionalspecialist areas. Our long term focus on those specialist risks where we havegreat expertise and a dominant position will really bear fruit if the ratescontinue to soften. We are a balanced business with a wide geographical spreadand plenty of opportunity for profit. Our reduction in Syndicate 33 capacityshows our determination to be disciplined, and our acquisition of American LiveStock Insurance Company shows our commitment to regional expansion in ourspecialist areas." -ends- For further information: Hiscox Ltd Robin Mehta, Company Secretary +1 44 1278 8300 Kylie O'Connor, Head of Communications, London +44 (0) 20 7448 6656 Maitland Philip Gawith +44 (0) 20 7379 5151 Richard Farnsworth +44 (0) 20 7379 5151 Notes to editors About Hiscox Hiscox, headquartered in Bermuda, is a specialist insurance group listed on theLondon Stock Exchange. There are three main underwriting parts of the Group -Hiscox Global Markets, Hiscox UK and Europe, and Hiscox International. HiscoxGlobal Markets underwrites mainly internationally traded business in the LondonMarket - generally large or complex business which needs to be shared with otherinsurers or needs the international licences of Lloyd's. Hiscox UK and HiscoxEurope offer a range of specialist insurance for professionals and businesscustomers, as well as high net worth individuals. Hiscox International includesoperations in Bermuda, Guernsey and the USA. Hiscox Insurance Company Ltd,Hiscox Underwriting Ltd and Hiscox Syndicates Ltd are authorised and regulatedby the Financial Services Authority. For further information, visit www.hiscox.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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