Hiscox eyes increased rates in 2012 to boost performance
Hiscox has reported a 3% fall in gross written premiums to £1.17bn (2010: £1.21bn) for the nine months to 30 September 2011.
Hiscox said the expected fall came as the group “maintained underwriting discipline and continues to walk away from poorly rated risks”.
Hiscox is one of a number of insurers to have been hit by natural catastrophe claims, including the US tornadoes and the Japan and New Zealand earthquakes, in 2011. The insurer said its total reserves of £210m for catastrophe claims, announced at the half year, had not materially changed.
Hiscox estimated net claims for Hurricane Irene, which made landfall in the US in the third quarter, to be less than £10m. “It is too early to report any estimates for the recent flooding in Thailand,” it added.
Hiscox praised the performance of the UK retail business which grew premium income by 13.4% to £280m (2010: £249.1m), driven mainly by its direct business and its underwriting partnership with Dual. “Rates in Hiscox UK are healthy,” the insurer said.
Elsewhere in the business, Hiscox London Market reduced premium income by 3.2% to £475.3m (2010: £495.8 million); gross premium income for Hiscox Bermuda reduced by 10% to US$265.9m (2010: US$295.5 million); Hiscox Guernsey grew premium income by 2.3% to US$95.3m (2010: US$93.2m); Hiscox USA reduced premium income by 14% to US$135.5m (2010: US$157.5m); and Hiscox Europe grew by 3.6% to €123.3m (2010: €119.1m).
Hiscox said reinsurance remains its largest line of business and that it was looking to take advantage of increased rates during the January renewals.
Bronek Masojada, chief executive, said: “Hiscox is in good shape. Our strategy of balance and diversity gives us options in challenging times and the strength of our UK business is proof of this.
“Although the wider market is slow to turn, the cumulative effect of international catastrophes is pushing reinsurance rates upwards. As nearly a third of our income comes from reinsurance, we are ready to benefit at the January renewal season.”
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