Hiscox increased its gross written premiums by 10.1 percent year-on-year to £1,370 million, driven by the strength of its insurance business.
Hiscox said that the group has benefitted “from a low level of catastrophe and attritional losses”, but said that competition—much of it alternative in form—and a “benign claims environment” had served to place downward pressure on its reinsurance business.
Hiscox said that the re/insurer had reduced its exposures in response to market conditions, although Hiscox has been active in the convergence space, most recently through its sidecar, Kiskadee Re.
Commenting on its 2013 results, Bronek Masojada, chief executive of Hiscox said: “I am very pleased with the Group’s performance. Our insurance business has seen good growth at both the top and bottom line, and we continue to underwrite reinsurance at the right price. We have diversity by product and geography and see good opportunities for 2014 and beyond.”
The newly-created Hiscox Re, which draws together capabilities in Bermuda and London, has faced tough market conditions. Its Bermuda operations has kept gross written premiums constant during the period, but its London operations saw premiums decline by 4.9 percent during the period.
Hiscox Re benefitted from low exposure to the European floods and the Calgary storms, but considerable headwinds remain in the form of excess capital and a benign loss environment.
The reinsurer announced that it will be launching a number of collateralised reinsurance funds next year, with the intention being to deploy $250 million of Hiscox and third party capital at the January renewals.
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