Hiscox UK posts £630m ICWP for 2023

Hiscox UK’s insurance contract written premium (ICWP) grew by 2.4% year-on-year on a constant currency basis, reaching £630m ($793.8m) for the full year period. 

In its full year results for the year ended 31 December 2023, released today (5 March 2024), Hiscox explained that this premium growth was “impacted by the planned exit from non-core delegated authority business”, which it has now completed. 

ICWP is a performance indicator similar to gross written premium (GWP) that is adjusted to account for insurance revenue, which new accounting requirement IFRS 17 requires. Adjustments primarily relate to reinstaement and non-claim dependent commissions.

Hiscox Retail – of which Hiscox UK makes up just over a third (34%) by ICWP – achieved a combined operating ratio (COR) of 91.6%, which rose slightly from 2022’s figure of 91.%.

Across the whole of the international Hiscox Group, the business achieved ICWP of £3,649.4 ($4,598.2m) – rising from £3,456.7m ($4,355.4m) in 2022, which was restated under IFRS 17. 

The group also achieved an undiscounted COR  of 89.8% for 2023, which was an improvement on 2022’s figure of 91.1%. Discounted COR was 85.5% for the group, which also improved from 2022’s figure of 88.7%. 

UK performance

In his report on the results, Hiscox chief executive Aki Hussain said: ”The UK broker commercial business continued to enjoy excellent retention, illustrating the underlying quality of the business and loyalty of our customers.

“However, new business growth was below management expectation, particularly in the fourth quarter – this was primarily due to a delay in the activation of several broker distribution deals signed in the latter part of the year.”

Hussain also welcomed the appointment of Hiscox UK’s new chief distribution officer Gareth Hemming, who he said was “bringing a new and higher intensity to the distribution teams’ operating rythm”. 

London market

In the London market across 2023, Hiscox achieved a discounted COR of 79.1%, which fell from 2022’s result of 84.5%. Undiscounted COR also fell from 86.7% in 2022 to 83.8%. 

In terms of ICWP, Hiscox’s London market operations hit £986.8m ($1,243.4m) for 2023, growing by 11.5% from the previous period’s figure of £884.7m ($1,114.7m).

The insurer said that its London market division had benefitted from an average rate increase of 7%, but explined that it would continue to operate with its “strict underwriting discipline”.