Bronek Masojada, CEO, Hiscox
Hiscox has made a $110 million net reserve for Hurricane Ida and $40m for European floods but is in “good shape”, according to group chief executive officer Bronek Masojada. The third quarter has seen a positive performance from its London market, reinsurance and ILS business, as well as good growth in its digital retail insurance.
“Hiscox London Market and Re & ILS are performing strongly, and we continue to benefit from excellent growth in our retail digital business,” said Masojada. “Our capital position is robust. As I make my last quarterly trading statement as CEO of Hiscox it is pleasing to see the business in such good shape.”
Both gross written premium to the end of September and rates are up on the same period last year. Across the group, GWP increased 6.1% to $3.5 billion, with 7.2% growth in the London market, 5.9% in retail and 5.2% to $806.5m for Hiscox Re and ILS. Rates were up 13% for London and 8% for Hiscox Re & ILS. Retail rates also increased across regions, led by 7.5% in the UK.
The group’s net Covid-19 loss estimate remains unchanged at $475 million for 2020 and $17 million for lockdowns announced in 2021. Overall, non-catastrophe loss experience across the group remains favourable “with claims frequency in many lines lower than expected”, according to the trading update.
However, the third quarter did see “an active wind season”, it states.
“Hurricane Ida is the sixth costliest US landfalling Hurricane in history, and the majority of our exposure is in big-ticket lines; $52 million net in London Market, $50 million net in Re & ILS, with retail incurring a modest net loss of $8 million. In addition, the group has reserved $40 million net including reinstatement premiums for European floods based on an insured market loss of $9 billion.”
Bronek Masojada, who has run Hiscox for 21 years, retires at the end of 2021 to be replaced by the insurer’s chief financial officer Aki Hussain.
Hiscox Re , Hurricane Ida, floods, Bronek Masojada, ILS, UK, Covid-19, loss, lockdowns