Hiscox Limited has released an interim management statement for the three month period that ended on 31 March 2018. The group increased premium volumes at like for like exchange rates by 20% and in converted US dollars by 24% over the same period in 2017.

 

 

Gross written premiums to 31.3.18

Gross written premiums to 31.3.17

Growth at constant rate of exchange

Growth at converted US rates of exchange

Hiscox Retail

US$572.9m

US$465.1m

14.0%

23.2%

Hiscox London Market

US$219.8m

US$195.4m

8.7%

12.5%

Hiscox Re & ILS

US$363.1m

US$269.3m

42.0%

34.8%

Total

US$1,155.8m

US$929.8m

20.3%

24.3%

Rating environment

There was continuation of the rate increases experienced for big ticket property risks in the final quarter of 2017 following last year’s catastrophe losses, but competition is now returning and growth in the rest of the year will be more measured. Rates for US household business and for smaller limit commercial business written under binding authorities have increased by up to 10% while there have also been improvements in casualty lines.

Pricing decline was halted in the reinsurance market, with the group reporting an average improvement on the US portfolio of 9%. The international renewals at 1 April were largely at rating levels close to expiring. The prospects are for limited improvement in the rest of the year’s renewals, largely at 1 June and 1 July, as capacity remains plentiful from both traditional and alternative sources.

Rate in the retail business are largely flat.

As previously announced, the group has changed its reporting currency to US dollars from sterling with effect 1 January 2018.

The full interim management statement can be found here

Syndicate Forecasts

The group has also released updated forecasts for the 2016 and 2017 accounts of its managed third party syndicates. These are as follows:

Syndicate 33

 

Year

Capacity

Forecast as at 31 March 2018

Forecast as at 31 Dec 2017

Change at midpoint

2016

£999m

5% loss to 5% profit

7.5% loss to 2.5% profit

2.5 points better

2017

£1,147m

15% loss to 5% loss

15% loss to 5% loss

Unchanged

Syndicate 6104

 

Year

Capacity

Forecast as at 31 March 2018

Forecast as at 31 Dec 2017

Change at midpoint

2016

£56m

20% to 30% profit

20% to 30% profit

Unchanged

2017

£54m

45% loss to 35% loss

55% loss to 45% loss

10 points better