Financial

• The Group’s gross written premiums increased by 14.3% to $3,043.1m, with good growth reported across all segments.
• Hiscox London Market business gross written premiums grew by 10% in constant currency to $664.1m (2017: $590.3m)
• Hiscox London Market rates have increased across the portfolio by 5% year to date, with double-digit increases in major Property and 5% in Casualty lines.
• The Lloyd’s ‘Decile 10’ directive has challenged the whole market to take tough action in unprofitable lines – Hiscox have noted positive movement in rates and signs of a re-balance of influence with brokers.
• Business plan for 2019 has been approved by Lloyd’s with capacity of $1.4bn for Syndicate 33 (2017: $1.6bn). The expectation is to maintain the level of Premiums written into the Syndicate year-on-year.
• Overcapacity in Cyber & Terrorism continues to drive pricing pressure in those classes.
• Investment return for first nine months of 2018 was $44m (2017: $83m), Hiscox expect full year investment return to be subdued.

Claims

• The Group has seen a more active environment for both natural catastrophes and large claims in Q3 (and extended to include October).
• The Group has reserves of $125m net to cover claims and reduced profit commissions resulting from the US Hurricanes and Typhoons in Japan. The losses are within modelled assumptions for these events.
• Hiscox has also experienced a number of larger individual claims in both their big-ticket and retail businesses.

Brexit

• Preparations are well advanced – with plans assuming a worst-case scenario ‘hard Brexit’.
• New European Subsidiary, Hiscox S.A., is fully operational and expected to write business from 1^st January 2019.

Commenting on the Trading Statement, Bronek Masojada, Chief Executive Officer, Hiscox Ltd, said:-

“We have had strong growth, but as the market remains challenging, we will remain disciplined, and I expect our growth to moderate over the balance of the year. It has been an active third quarter for claims across the Group, both from large losses and catastrophes, and I am pleased with how we have responded.”

The full Hiscox Trading Statement can be viewed here