Hiscox Limited has today released both the group’s results for the year ended 31 December 2017 and results and forecasts for the two syndicates supported by private capital. The results and forecasts are as follows.

Syndicate 33

 

year of account

Capacity
£000s

Result/
Revised forecast Range

Previous Forecast
Range

Change at
Midpoint

2015

999,359

17.8% profit

5.0% to 15.0%

7.8 points better

2016

998,840

-7.5% to 2.5%

-7.5% to 2.5%

Unchanged

2017

1,150,000

-15.0% to -5.0%

n/a

 Syndicate 6104

 

year of account

Capacity
£000s

Result/
Revised forecast Range

Previous Forecast
Range

Change at
Midpoint

2015

64,927

36.1% profit

30.0% to 40.0%

1.1 points better

2016

55,534

20.0% to 30.0%

20.0% to 30.0%

Unchanged

2017

56,000

-55.0% to -45.0%

n/a

 The group’s results are described as “good in an historic year for catastrophes”. The group managed to deliver a combined ratio marginally better than 100%, despite an aggregate cost of natural catastrophes of $225m. Hiscox’s strategy has been to grow the less volatile retail business while shrinking the London market business in the soft market. It now expects the London market element to grow as rates increase in the aftermath of 2017’s catastrophe losses. Summary results are as follows:

 

 

Year to 31.12.17

Year to 31.12.16

Change

Gross Premiums written

£2,549.3m

£2,402.6m

+6%

Net Premiums earned

£1,874.5m

£1,675.0m

+12%

Group combined ratio

99.9%

84.2%

14.7 points worse

Profit before tax

£30.8m

£354.5m

-91%

Bronek Masojada, Group CEO, said “Our long-held strategy of balance has served us well this year. The strong growth and profits in retail countered the volatility felt in our big-ticket businesses which were impacted by an historic year for natural catastrophes. We have made significant investments in infrastructure and brand both of which will continue. Market pricing has improved and as a consequence we have growth ambitions for every part of our business”.

The full Hiscox result statement can be found here and the latest summary of Syndicate results and forecasts received to date is here.