Hiscox has published its Q3 2021 Trading Statement.
It is available here in full on Hiscox's website
Extracts from the Trading Statement as follows:
- Gross premiums of US$3,462.9m - an increase of 6.1% compared to Q3 2020
- Hiscox London Market division premiums up 7.2%
- US$110m reserved for Hurricane Ida based upon a US$35bn industry estimated loss
- US$40m reserved for European floods based upon a US$9bn estimated industry loss
- Covid-19 net loss estimate unchanged at US$475m for 2020 plus US$17m for 2021
In Hiscox London Market which includes Syndicate 33 income, gross premiums increased by 7.2% to $900 million and "...achieved aggregate rate increases of 13% across the portfolio, with cyber growing at a significant double digit rate. In other lines, such as D&O, general liability and major property, rates remain double digit albeit momentum is slowing."
"Third quarter underwriting performance has been impacted by Hurricane Ida, particularly in our upstream energy account and property business. In contrast non-catastrophe experience in London Market has continued to be favourable, consequently the London Market result remains strong."
"The strong performance in the third quarter was driven predominantly by our casualty and crisis management lines."
"In Hiscox Re & ILS rates were up 8% on average. At mid-year we expected rate increases in the reinsurance business to moderate due to the abundance of capital and continued interest in the sector. However, European floods in July and Hurricane Ida's landfall in August are once again a useful reminder of loss costs borne by property catastrophe reinsurers."
Concerning the unchanged Covid-19 estimates, Hiscox comments "We have maintained continuous and transparent dialogue with our reinsurance panel throughout this period and the reinsurance recoveries are now being made."
"Hurricane Ida is the sixth costliest US landfalling Hurricane in history and the majority of our exposure is in big-ticket lines: $52 million net in London Market, $50 million net in Re & ILS, with Retail incurring a modest net loss of $8 million."
Please see the full Trading Statement for more information on the other Hiscox divisions' performance, and other areas such as investment performance.
Q3 updates of 2019 and 2020 Account estimates should be released by syndicates to Lloyd's in the next few days.