Hiscox claims 6.3% Q3 GWP boost as reinsurance sets sail on rate gust

Hiscox laid claim to a 6.3% increase in 9M gross written premium, a 9.3% gain in constant currency, as rate momentum fuelled growth in reinsurance and the retail division pulled through a strategic shift.

The top line gains include a 33.4% constant currency gain for Hiscox Re & ILS to $1.07 billion, now 29% of the group total from 23% a year prior.

"The dislocated reinsurance market experienced in Florida at the June renewals meant the business achieved a 34% rate increase," management said.

The slower growth in premium came "as we strategically moved up on programme layers and reduced the number of cedants to focus on selected customers."

Hiscox Re & ILS ended with a $90 million net loss following accumulated cat event losses during the first 9M.

Net flows into Hiscox's ILS funds were called "stable" for Q3 after a bonus collection of $500 million in H1. Management feels future flows "are somewhat more uncertain" as Hurricane Ian losses are felt and investors enjoy high-yield options in the new interest rate environment.

Hiscox Re & ILS generated over $40 million of fee income from ILS and quota share partners year to date.

Elsewhere in the business, Hiscox retail enjoyed a 6.1% increase in gross written premium in constant currency. Growth hit a strong 15% pace in Europe, measured 4% in the UK and 2.6% in the US, where a repositioning of the book and narrowing of appetite was completed only in May. Counting out that portion of the book, the "go-forward" retail business grew 7.9% in constant currency.

The US business had a 7.1% rate of premium growth on its "go-forward" business. The impact of the repositioning was said to have reduced and the US broker channel returned to growth in Q3.

Hiscox London Market’s gross premiums written reduced by 6.1% to $845.3 million which management put to "planned re-underwriting actions to further reduce under-priced exposure" in the household and commercial binder books and the impact of Russian sanctions. London market property is being focused on policies where Hiscox retains overall control.

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