Hiscox in ‘good shape’; expects ‘necessary further rate hardening’ at renewals

Specialist global insurer  Hiscox is in “good shape”, supported by its “robust” capital position and strong top line growth in its London market, reinsurance and ILS businesses, according to its outgoing chief executive Bronek Masojada (pictured), who has led the company for 21 years.

Masojada is set to retire at the end of this year, to be replaced by the insurer’s chief financial officer Aki Hussain.

Hiscox reported a 6.1 percent improvement in group gross written premiums for the first nine months of 2021 to $3.5 billion, with 7.2 percent growth in the London market, 5.9 percent in retail and 5.2 percent to $806.5 million for Hiscox Re and ILS.

The group’s net Covid-19 loss estimate remained unchanged at $475 million for 2020 and $17 million for lockdowns announced in 2021. Overall, non-catastrophe loss experience across the group remains favourable “with claims frequency in many lines lower than expected”, according to its trading update.

However, the third quarter did see “an active wind season”, it said.

The underwriting results for Hiscox Re & ILS business were affected by $110 million net reserve made for Hurricane Ida based on an insured market loss of $35 billion, and $40 million net for European floods based on an insured market loss of $9 billion.

The company said it is seeing good growth in its digital retail insurance, with combined ratio “progressing in line with expectations”.

On the reinsurance side, Hiscox expects a “necessary further rate hardening” at the upcoming January renewals as the market responds to its fifth year of elevated natural catastrophe losses.

Commenting on the trading update, Masojada said: “ Hiscox London Market and Re & ILS are performing strongly and we continue to benefit from excellent growth in our Retail digital business.

“Our capital position is robust.

“As I make my last quarterly trading statement as CEO of Hiscox it is pleasing to see the business in such good shape.”

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