Hiscox makes 'solid progress'

Bermuda-based Hiscox Group said it “continues to make solid progress” through the first nine months of the year, with insurance contract written premiums rising 3% compared to the same period in 2024. 

The company, which does not release full financial statements for third quarter or nine-month reporting periods, said ICWP rose $113 million to $3.87 billion, which it attributed to growth in its Bermuda operating subsidiary, Hiscox Re &ILS, and to solid retail growth. 

It also said natural catastrophe losses in the period were within expectations while it expects to reserve a net loss of $75 million for Hurricane Milton in the fourth quarter. 

It said the natural catastrophes were likely to bolster the positive outlook for January renewal rates. 

In common with many other re/insurers, the company said it will return surplus capital to shareholders at year end, 

“The Group continues to deliver a solid performance, with our combined focus on building growth and earnings momentum,” said Aki Hussain, chief executive officer.” Our priorities of achieving high quality growth in all markets in our retail business, and selectively deploying capital into attractive big-ticket lines, are unchanged and we continue to make significant progress against the Group’s strategy to deliver sustainable, less volatile returns while growing the business.” 

Within the company’s three operating segments, Hiscox Retail showed the fastest growth, with ICWP rising 5.4% in US dollar terms to $1.92 billion while Hiscox Re & ILS, headed by Kathleen Reardon, grew 4.3% to $1.07 billion. Hiscox London Market recorded a 2.9% drop to $932 million. 

Hiscox Re & ILS ‘s growth was attributed to the deployment of additional capital into attractive underwriting conditions. 

“Net premiums have more than doubled since 2020, as retained premium growth followed improving market conditions. ICWP grew by 4.3% to $1,017.6 million, with the majority of growth achieved during the January renewals when market conditions were most attractive,” the company said. 

“The market has remained disciplined throughout the year, with rates flat on average across our portfolio for the first nine months of the year. The market remains attractive following cumulative rate increases of 90% since 2018. Attachment points and terms and conditions have broadly held firm during the year. 

“We continue to see strong and growing demand from cedants, which has been met by supply, but at an appropriate price. As anticipated, at the mid-year renewals there were some rate reductions in the upper layers of structures and on higher quality business, however these were from generationally high levels. The positive outlook for the January 2025 renewal rates is likely to be reinforced following the impacts of Hurricanes Helene and Milton.

“Hiscox ILS assets under management were $1.5 billion as at 30 September 2024 (1 July 2024: $1.4 billion). The pipeline of potential investors ahead of the January renewals is robust.” 

The company was also boosted by strong investment returns, which rose to $346.6 million from $201.7 million, driven by strong interest rates and mark to market movements on bonds, but the company noted likely interest rate cuts were likely to reduce returns on bonds in the future. 

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