Gross written premiums in Hiscox Re, the reinsurance unit of Hiscox, were flat in the first nine months of 2015 though the unit was buoyed by growth in Kiskadee, its ILS unit, which offset reductions elsewhere.
Hiscox Re’s GWP, which is accounted for in US dollars, were more or less flat at $541.4 million compared with $543 million a year earlier. The company said that income to support Kiskadee, its ILS business, offset reductions elsewhere. It added that Hiscox Re has also seen good growth in the healthcare and specialty areas, however.
During the quarter, the company also launched Cardinal Re, a Bermuda domiciled Special Purpose Insurer designed to transform collateralised insurance and reinsurance risk into a security more suited for capital market investors. This takes Kiskadee Investment Managers’ assets under management to over $600 million.
Hiscox as a whole enjoyed solid growth in the first nine months of the year to September 30, 2015, driven mainly by its London market and US operations.
The company’s GWP grew by 12.9 percent to £1.53 billion compared with £1.36 billion in the same period a year earlier. The company said it has also benefitted from good risk selection and a lack of storms, floods and hurricanes.
Some of its units enjoyed solid growth. Hiscox London Market’s GWP increased by 16.9 percent to £453.4 million compared with £364.2 million a year earlier; Hiscox Europe grew its GWP by 7.3 percent to €164.3 million; and Hiscox USA increased its GWP by 17.1 percent to $321.4 million.
Commenting on rates, the company said it was a mixed picture. In the retail businesses in the UK and US, rates are broadly flat. In Europe it said it is seeing single-digit increases in both personal and commercial lines.
In the London Market, Hiscox said it is growing in areas where rates are healthy including casualty, small property and specialty auto business. Rates in upstream energy and US large property continue to decline.
Excess capital and the on-going benign claims environment continue to put pressure on property reinsurance. Casualty and specialty reinsurance are experiencing nominal reductions, the company said.
Bronek Masojada, chief executive of Hiscox, said: “Our strategy is working. A long-term investment in the brand has helped us attract new business and talent and we see plenty of opportunities for growth.”
ILS, Kiskadee, GWP, Cardinal Re, Hiscox Re,