Hiscox weathers Storm Katie and additional insurance tax while premiums rise 10%

First quarter of 2016 proves insurer’s resiliency despite encountering challenges
INSURANCE NEWS
By Gabriel Olano
11 May 2016

Lloyd’s underwriter Hiscox has weathered Storm Katie, as well as a new insurance tax, leading to a 10% increase in premiums in the first quarter of 2016.
 
From £562m in January-March last year, premiums have risen to £641m, despite the effects of the storm and higher insurance bills for customers.
 
In the UK and Ireland, written premiums increased by 6% to £111m, marking a reversal of a downward trend, as profits suffered from weather-related claims and intense competition from the market. Hiscox London Market, a specialty insurer covering risks from kidnappings to international businesses, increased premiums by 8% to total £157m.
 
Hiscox said its UK clients had “minimal exposure” to Storm Katie, and its businesses had been mostly sheltered from the terrorist attacks in Paris and Brussels.
 
Meanwhile, the company’s North American division has performed well throughout the year, increasing premiums by around 30% to US$123m. It launched a cyber security product, as well. The company said that the wildfires in Alberta are a “manageable loss” for the group.
 
The insurer will also welcome its new finance chief, Akbar Hussain, who was poached from Prudential’s senior management last month.
 
Chief executive Bronek Masojada said that the company is currently tackling difficult markets and facing tough competition. The company plans to retreat where margins are eroded and growing where opportunity is present.
 
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