ILS still core to Hiscox plans, Hussain tells earnings call

Hiscox has vowed to boost third-party capital to fund its reinsurance business.

Earlier this week, the reinsurer reported profits at a  a five year high in its 2021 full-year results. In a Q4 earnings conference, however, chief executive officer Aki Hussain said that – for its ILS division – he had hoped for more recognition from investors of strong performance in the company’s flagship fund.

The “flight to quality” had not been as great as hoped, he said. However, a “bifurcation of the market” was beginning to be seen, and Hussain was optimistic.

“I expect the ILS business to continue to grow,” he told the conference. “We continue to see third party capital as part of our strategy.”

The reinsurer’s ILS division brought in $190m in gross inflows in 2021. And it added another $217m at the January reinsurance renewals, bringing Hiscox ILS assets under management to $1.6bn at the start of 2022.

The larger Hiscox Re & ILS unit, which includes reinsurance of primary carriers, had 8.7% growth in gross written premium in 2021 to $807.8m, and it reported an underwriting profit of $91.1m.