Hiscox in the London Market: property comes before casualty

Bermuda-based global specialist insurer Hiscox feels well placed to capitalise on big-ticket deals from its London Market operations, but will put hardened property well ahead of softening casualty as it works to manage an uneven outlook among segments, top officials have indicated.

CEO Aki Hussain claims to see “attractive opportunities” in both property and energy, he said after bragging of gains in 2023 including from new business in renewables and energy construction. 

Hiscox's London Market unit managed 7% risk-adjusted rate increase in 2023, driven by “significant rate strengthening” for property binders and major property rates up 26% and 21% respectively.

The casualty market, in turn, is “in transition” and rates are now “starting to soften,” chief underwriting officer Joanne Musselle told the company's year-end earnings call. 

Hiscox shrunk its big ticket casualty portfolio by 12% in 2023 “and we will do that similarly if the trends continue tin 2024,” she said. The lingering portfolio looks “well rated and well management,” she contended. 

Property will be the preferred direction of growth. 

“We still believe it to be an attractive market,” Musselle said of conditions after the 2023 reinsurance market reset and the kick-on impact for primary coverage. “We're getting paid to take that risk.”

“We are deploying our own capital in both insurance and reinsurance,” she said.  

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