Improved rates drives Hiscox growth in Q1

No comments

London market and retail business drive increased revenues, although UK business growth described as “subdued”

Hiscox saw overall growth in Q1 2019 but needed the help of its retail and London Market business to achieve that.

Hiscox Re and ILS fell short of last year’s gross written premium (GWP) of $363.1m, dropping to $342.8m.

But the London Market and retail business came up trumps with 5.3% and 7.7% growth upon last year, respectively.

	Gross Written Premiums to 31 March 2019	Gross Written Premiums to 31 March 2018	Growth in constant currency
	US$m	US$m	%
Hiscox Retail	$593.3	$574.8	7.7%
Hiscox London Market	$228.6	$219.8	5.3%
Hiscox Re & ILS	$342.8	$363.1	(4.6%)
Total	$1,164.7	$1,157.7	3.3%

Lloyd’s struggles pushing rates

In the London Market, Hiscox says the struggles facing Lloyd’s, which has posted losses of over £1bn for each of the past two years, is pushing up rates which in turn is increasing growth.

Its says that prices in Cargo, marine hull and D&O saw the most significant rate rises, while property lines, cyber and terrorism remains firm and competitive.

UK growth “subdued”

Hiscox UK*

Hiscox Europe*

Hiscox Special Risks

Hiscox USA

Hiscox Asia**

£137.3

€136.3

$178.9

$154.9

$38.1

$212.6

$8.8

£133.0

€116.7

$184.9

$143.5

$39.7

$200.3

$6.4

3.2%

16.8%

(1.8%)

6.1%

39.0%

Hiscox Retail total

$593.3

$574.8

7.7%

While the UK business did see growth of 3.2% in constant currency, Hiscox says the growth has been “subdued” as it continues to adapt to a new IT system.

The new system has been rolled out across the UK business, and the high net worth (HNW) business is on track to be transitioned in during the second half of the year.

Bronek Masojada, chief executive, said: “We have done what we said we would do in the first quarter. The UK business is adapting to a new IT system which will help us capture the long-term opportunity. We expect growth for our retail businesses to trend towards the mid-point of our 5-15% target range in the second half.

“In the London Market and in reinsurance, where conditions are improving, we are growing in the right areas and maintaining our focus on writing profitable business.”