Hiscox raises premiums 50%

Hiscox has announced Q1 premium income has risen more than 50% with some lines seeing price rises or 50% on tighter underwriting terms.

Financial highlights

• Hiscox Global Markets £254.7m (£177.7m)
• Hiscox Bermuda £84.5m (£30.9m)
• Hiscox Guernsey £19.8m (£11.5m)
• Hiscox USA £11.9m (£5.7m)
• Hiscox UK £69.0m (£60.7m)
• Hiscox Europe £46.6m (£34.8m)
• Total £486.5m (£321.3m)

Hiscox said: “Catastrophe exposed reinsurance is the largest line of business for Hiscox and rates for US hurricane exposed areas are very firm, having seen increases ranging from 10 - 50% over the last year. Our energy business is also seeing rate rises in excess of 50% for Gulf of Mexico windstorm exposed business. Other energy rates have increased at an average of 10%. In both reinsurance and energy we are achieving tighter terms and conditions at higher thresholds which makes the overall premium versus exposure very attractive. In other product lines, rates are broadly stable. However with a continued tightening of capacity in the market, increasing reinsurance costs, and lower yields on investments, we expect to see gradual rate increases throughout the year.”