Hiscox premium income up

Growth in all regions and business despite lower price rises

Hiscox Q3 figures showed year to date premium income was up 31.7% to £1,212.2m from £920.1m for the same period in 2008. At constant exchange rates year on year growth was 10.5%.

Q3 premium income (2008 in brackets)

Hiscox Bermuda £163.7m (£106.7m)
Hiscox Guernsey £60.5m (£41.1m)
Hiscox USA £87.2m (£48.4m)
Hiscox UK £228.7m (£196.3m)
Hiscox Europe £96.4m (£75.5m)
Total £1,212.2m (£920.1m)

Robert Hiscox, Chairman, said: "Hiscox is in good health. We have continued to benefit from solid investment decisions and have maintained growth in our most profitable underwriting lines.

“Rates are stable and still very healthy in most areas, particularly reinsurance which accounts for over a third of our business. Our mix of business is designed for these market conditions."

Rates not risen as expected

The company said: “Despite the insurance industry's 2008 capital losses, we have not seen across the board increases in rates as some expected. Regardless, our mix of catastrophe and specialty business is designed for this environment and rates across the Group are healthy.

“Throughout the year the rates on our key reinsurance lines have increased by over 10%. Over the same period energy rates have increased by between 5 - 10% with increases in excess of 50% for Gulf of Mexico risks, all at better terms and conditions. Our specialty lines are holding up well.

London Market

Hiscox London Market has seen a 27.3% rise in gross written premiums to £575.7m (£452.1m), assisted by favourable exchange rates.

It has been a benign quarter for claims with no major catastrophes or individual losses.

The newly branded London Market business is focused on developing accounts that come to the London Market and our increased 2010 capacity for Syndicate 33 of £1bn (2009: £750m) reflects a stronger US Dollar and our belief in the Market.

Hiscox Bermuda

Over the year Hiscox Bermuda has taken advantage of hardening reinsurance rates and grown by 21.5% to $252.7m (2008: $207.9m).

As previously announced Hiscox Bermuda plans to build a portfolio of healthcare liability business. The two new senior healthcare underwriters are now in place and are focused on writing tailored business for larger, well-run health institutions.

Hiscox Guernsey

Gross written premiums increased by 16.5% to $93.4m ($80.2m). This growth is being driven by our kidnap and ransom, and piracy lines of business.

Hiscox USA

The company said: “We successfully recruited more than 100 staff and opened five new offices in the first half of the year, and this expansion has helped deliver good growth of 60.6% to $133.9m ($83.4m).

“US management is now focused on developing these teams, products and licences. We will maintain steady growth in the existing rating environment and be in a good position to accelerate when rates improve.

“Part of the USA business is underwritten by Syndicate 3624 (supported 100% by Hiscox capital) and we are increasing this Syndicate's capacity to $150m in 2010 (2009: $80m).

Hiscox UK

Gross written premiums grew by 16.5% to £228.7m (£196.3m). This growth is driven mainly by our commercial lines business where we have established products and a respected brand.

Hiscox Europe

Hiscox Europe grew by 19.1% to gross written premiums €117.0m (€98.2m).

After a series of losses in the first half of the year, Hiscox Europe has returned to profitability. Management is focused on growing the most profitable lines, sharing resources and best practices across Europe, and building on a strong unified management team.