Hiscox optimistic ahead of 2019 half year results despite market ‘deterioration’
Specialist re/insurer Hiscox expects to deliver between $150 million and $170 million in profit before tax in its 2019 half year results, despite a “significant” and “continued deterioration” in the insurance market caused by 2018 catastrophe events such as Typhoon Jebi in Japan and Hurricane Michael in Florida.
The company's profit figures, for the six months ended 30 June 2019, include estimated investment returns of $150 million, which it said were due to market movements in Q2 2019.
The group has forecast that the combined ratio for Hiscox Retail will be within the normal range of 90 percent to 95 percent at the half year, and will show growth inline with Q1, then growth of between 5 percent and 15 percent second half of the year.
In its pre-results statement, the group emphasised the insurance market’s continued deterioration from 2018 catastrophe events, including Typhoon Jebi and Hurricane Michael, describing the scale of deterioration as significant, with industry loss estimates increasing materially since these cat events.
In response, the re/insurer has “strengthened reserves for prior year claims from Typhoon Jebi, Hurricane Michael and for the risk excess book” to the value of around $40 million net.
“The absence of prior year releases from Hurricanes Harvey, Irma and Maria, which totalled $25 million in the first six months of 2018, means that the group expects reserve releases in the first half to be materially lower than last year,” Hiscox said.
However, despite a challenging market, Hiscox said conditions were improving “with good rate momentum for most lines in Hiscox London Market”, while the company said Hiscox Re & ILS were “finding opportunities in the retrocession market, where reduced capacity has significantly improved rates”.
The group expects to make an additional tax provision of up to $60 million for the half year, which will be presented as a prior year adjustment and will not affect the current year results.
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
Lloyd’s six bold initiatives receive 'outstanding' support from market participants and stakeholders
Big data makes ‘Zero Questions Asked’ quotes reality for GI insurer powered by insurtech
'Amanda Blanc is a tough act to follow,' says new ABI chair Jon Dye
SCOR enters into new liquidity agreement with Exane
Universal Insurance unveils new chief executive officer
RenaissanceRe elevates Neuber to succeed Dutt as corporate treasurer
Save £600 with the Intelligent InsurTECH Europe Super Early-Bird rate: Book now
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze