12th November 2023

Hiscox issues nine months Trading Statement

Highlights are:

"Group insurance contract written premiums(ICWP) increased by 6.8% in constant currency to $3,759.4m as the Group continues to deploy capital in London Market and Re & ILS and build scale in Retail to drive profitable growth across the Group.
Net Group ICWP increased by 11%, driven by the acceleration of net growth in Re & ILS to 23.6% and in London Market to 18.1%, reflecting our cycle management and capital deployment strategy to maximise potential earnings.
Hiscox Retail ICWP of $1,836.4m grew 4.7% in constant currency, driven by continued excellent growth in Europe and continued positive momentum in US DPD. This was partly offset by adopting a disciplined approach to growth in the face of continued rate softening in US cyber in the broker business, and ongoing action to exit non-core underwriting partnerships in the UK. Excluding these factors, the underlying Retail growth is within the 5% to 15% target range. We expect the impact of US cyber to start to moderate in the fourth quarter and result in a pick-up in the overall growth rate as the US broker initiatives start to take effect.
US DPD ICWP growth continues to accelerate, up 9.2% in the third quarter from 8.9% and 6.8% in the previous two quarters; on track to deliver the full year 2023 US DPD guidance of growth towards the middle of the 5% to 15% range.
Hiscox Retail remains on track to deliver the full year 2023 growth guidance to be in line with the half year trend.
Hiscox London Market net ICWP increased by 18.1% to $676.7m, a further acceleration from 14.2% at half year, underpinned by strong double-digit growth in marine, energy and specialty and property.
Hiscox Re & ILS deployed capital in the hard market, delivering net ICWP growth of 23.6%, up from 17.9% at half year, to $438.3m. Hiscox ILS funds have delivered record performance, generating an increasing amount of fee income for the Group.
Aggregate natural catastrophe losses year to date are within budget despite an active third quarter.
Investment result gain of $201.7m(Q3 2022: loss of $293.9m), representing a positive return of 2.8% year to date(Q3 2022: negative return of 4.2%).
The Group remains well capitalised and we continue to invest in our business to support profitable growth."
Aki Hussain, Group ceo, Hiscox Ltd, comments: "I am pleased we have continued to deliver disciplined profitable growth across the Group. Through a combination of management actions to improve the quality of our portfolios, increased capital deployment in big-ticket and a focus on the quality of growth in Retail, we are in the best position for many years to grow and deliver strong risk-adjusted returns in each of our segments.
As we look forward, market conditions remain positive across the Group and we see plenty of attractive opportunities ahead."

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