The insurer’s GWP took a hit in US Dollars, however, due to a sharp depreciation of the British Pound

Hiscox UK’s gross written premiums (GWP) reached £467.3m in the nine months to 30 September 2022 – up 4% from £448.4m achieved during the same period last year.

Its latest trading statement – published today (2 November 2022) – also revealed that the insurer’s growth in US Dollars reduced by 4.1% to $593.6m (£516.7m) due to a sharp depreciation of the British Pound against the American currency – this figure fell from $619m (£538m) in 2021.

Its commercial lines division, furthermore, saw a 9.1% growth in constant currency.

GWP in Hiscox London Market, however, decreased by 6.1% to $845.3m (£735m) from $900m (£782.6m) for the same period in 2021.

The insurer highlighted that the drop was due to an ongoing reduction in under-priced natural catastrophe exposed risk in household and commercial binders, despite these lines achieving a 10% rate growth in the period.

Hiscox’s estimated ultimate loss from all risks in Ukraine and Russia remained unchanged at $48m (£41.7m) net of reinsurance, of which $34m (£29.6m) is attributable to its London Market division – where the majority of the reserves currently comprise incurred but not reported (IBNR) losses.

Considering overall performance, Hiscox Group’s chief executive said: “The group has performed well in a complex underwriting environment.

“Our retail business is on track, with platform migration going well and we look forward to an acceleration of growth in 2023.

“The performance of our big-ticket businesses remains robust after the impact of Hurricane Ian and improving conditions are presenting new opportunities.”

Climate event loss

GWP for the group rose by 6.3% to $3,680.2m (£3,200.2m) – equating to a 9.3% growth in constant currency from 2021’s figure of $3,462.9m (£3,010.4m).

It’s retail business saw a slight financial growth of 0.7% to $1,768m (£1537.4m) GWP – up from $1,756.4m (£1,527.3m) in 2021 and amounting to an increase of 6.1% growth in constant currency.

Hurricane Ian hit the west coast of Florida on 28 September 2022 and South Carolina two days later. Hiscox reserved $135m (£117.4m) net of reinsurance including reinstatement premiums for Hurricane Ian, based on an insured market loss of $55bn (£47.8bn).

The group expects a $40m (£34.8m) net loss from Hurricane Ian, which the insurers states is a much lower cost than it would have been if it had not reduced its exposure to under-priced Florida business in the preceding two years.

  • Insurance Times has converted dollar amounts into pounds using an exchange rate of £1 = $1.15 USD, which was correct as of 1 November 2022.