Hiscox Ltd has today released their Trading Statement for the first nine months of 2018, please see below highlights:
- 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.
- 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.
- 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 1st 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