Hiscox enjoys growth amid mixed picture on rates

Hiscox enjoyed solid growth in the first nine months of the year to September 30, 2015, driven mainly by its London market and US operations. Hiscox Re’s gross written premiums (GWP) remained stable.

The company’s GWP grew by 12.9 percent to £1.53 billion compared with £1.36 billion in the same period a year earlier. The company said it has also benefitted from good risk selection and a lack of storms, floods and hurricanes.

Hiscox Re’s GWP, which are accounted for in US dollars, were more or less flat at $541.4 million compared with $543 million a year earlier. The company said that income to support Kiskadee, its ILS business, offset reductions elsewhere. It added that Hiscox Re has also seen good growth in the healthcare and specialty areas, however.

But some of its units enjoyed solid growth. Hiscox London Market’s GWP increased by 16.9 percent to £453.4 million compared with £364.2 million a year earlier; Hiscox Europe grew its GWP by 7.3 percent to €164.3 million; and Hiscox USA increased its GWP by 17.1 percent to $321.4 million.

Commenting on rates, the company said it was a mixed picture. In the retail businesses in the UK and US, rates are broadly flat. In Europe it said it is seeing single-digit increases in both personal and commercial lines.

In the London Market, Hiscox said it is growing in areas where rates are healthy including casualty, small property and specialty auto business. Rates in upstream energy and US large property continue to decline.

Excess capital and the on-going benign claims environment continue to put pressure on property reinsurance. Casualty and specialty reinsurance are experiencing nominal reductions, the company said.

Bronek Masojada, chief executive of Hiscox, said: “Our strategy is working. A long-term investment in the brand has helped us attract new business and talent and we see plenty of opportunities for growth.”