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Hiscox reveals results for first nine months of 2021

Hiscox reveals results for first nine months of 2021 | Insurance Business UK

Hiscox reveals results for first nine months of 2021

The international specialist insurer Hiscox has become the latest insurance firm to issue its trading statement for the first nine months of the year to 30 September 2021. And the news is good for the group’s gross written premiums (GWP) which saw an increase of 6.1%, up to $2,462.9 million (approx. £1805.22 million).

Hiscox noted this increase is indicative of strong rate momentum across all business segments, as outlined in the table below.

 

GWP to 30 September 2021

GWP to 30 September 2020*

Growth in USD

 

US$ million

US$ million

%

Hiscox Retail

1,756.40

1,659.20

5.9

Hiscox London Market

900

839.6

7.2

Hiscox Re & ILS

806.5

763.6

5.6

Total

3,462.90

3,262.40

6.1

*2020 gross premiums written have been represented to reflect reclassification of the Special Risks division.

The group highlighted that the growth seen in its London Market arm shows that this business continues to benefit from aggregate rate increases across the portfolio. Meanwhile, Hiscox’s retail go-forward portfolio grew by 5.7% on a constant currency basis, after planned reductions in sections of the US broker channel. Also within Hiscox Retail there was continued strong growth in digital partnerships and direct (DPD) business with GWP up 19.3%. The group noted that the combined ratio of the retail business is progressing in line with expectations.

For the Hiscox Re & ILS business, the group noted an improved rate outlook for January renewals following elevated natural catastrophe losses in Q3 2021. Net premiums written grew 46.0%.

Hiscox UK

The group highlighted that Hiscox UK delivered a “resilient performance” in the first nine months of the year with GWP growing 1.3% in constant currency to $619.0 million (2020: $565.2 million). The business added 34,000 customers this year, mainly through new schemes business and solid customer retention rates.

“This is despite the fact that the fine art and specialty lines continued to be impacted by the effects of COVID-19 in the earlier part of the year and have not yet returned to pre-pandemic levels,” Hiscox stated. “Hiscox UK has benefitted from good growth in core commercial lines driven by premium persistency and rate increases.”

For the UK business, the group noted that rates were up 7.5% across the book, with material rate increases in five consecutive quarters and that this positive momentum is being maintained. Rate impact is moderated in premium growth as the business continues to take underwriting actions to further improve the quality of the book and increasingly focus on well-rated smaller average premium business.

Hiscox added: “As the UK has started to open up, we resumed a UK brand campaign, including both outdoor advertising and a fully refreshed digital marketing strategy.”

Reserves

Hiscox revealed it has $110 million net reserved for Hurricane Ida based on an insured market loss of $35 billion and $40 million net for European floods based on an insured market loss of $9 billion. Meanwhile, non-catastrophe loss experience across the group remains favourable and the group’s net COVID-19 loss estimate remains unchanged at $475 million for 2020 and $17 million for lockdowns announced in 2021.

Commenting on the results achieved, Bronek Masojada, group CEO of Hiscox 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.”