CEO comments on ‘positive outlook’
by Mia Wallace
International specialist insurer Hiscox Ltd has today revealed its business statement for the first quarter of 2023, ending 31 March 2023.
Among the company’s highlights, Hiscox noted that written premiums on its insurance contracts rose 7.4% year-on-year to $1,420.2 million (approximately £1,130.61 million), compared to to $1,363.7 million in 2022. This was largely attributed to an attractive rate environment across all business segments.
Meanwhile, Hiscox Retail insurance contract written premiums increased 6.5% to $681.3 million, up from $670.2 million in 2022, driven by strong growth in Europe and a strong UK and US performance Headline US DPD growth “temporarily moderated” to 6.8%, which Hiscox noted is in line with previous guidance as its partnership business incorporates new technology. The insurer signaled expected growth in momentum over the year towards the mid-range of 5% to 15%.
The results were positive for the Hiscox London Market, which returned to good growth, particularly in major property, maritime and terrorism, with written premiums from insurance contracts rising 8.6% to $320.8 million from $295, 3 million in 2022. Hiscox added that given the context of an improving market environment, it has retained more risk, which has resulted in a net growth of premiums issued from insurance contracts of 21.6%.
Hiscox Re & ILS experienced strong growth with net written premiums on insurance contracts increasing by 37.6%. This was credited to the deployment of additional organically generated capital by Hiscox to take advantage of how the market tightened materially in the run-up to the January 2023 renewal season. Insurance contract written premiums grew 5% to $418 .1 million (compared to $398.2 million in 2022). This was lower than net growth, primarily due to subdued ILS capital appetite across the market.
Hiscox revealed that its group’s claims performance is in line with its expectations, while the insurer remains well capitalized, allowing it to continue to invest capital in the ‘highly attractive (re)insurance markets’.
Commenting on the “positive momentum” seen across the group, Hiscox CEO Aki Hussain said: “For our retail businesses, growth momentum in the UK and US is accelerating in line with the expectations, and Europe continues to deliver strong double-digit increases. Hiscox London Market and Hiscox Re & ILS continue to thrive in very favorable market conditions, increasing the top line and significantly increasing net retained premium, as we deploy our own capital to make the most of the opportunity.
“This, combined with a much improved investment result, means that the outlook for the half is positive.”
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