Insurer Hiscox grows premiums as London market rates improve
Insurer Hiscox grew gross written premiums in the first three months of the year as rates improved in the London market.
The Lloyd's of London insurer said gross written premiums grew 3.3. per cent in constant currency to $1.164bn (£890m) in the first quarter.
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It said rates in the London market had increased four per cent in the year to date, which it ascribed to two consecutive years of heavy market losses and a crackdown by Lloyd’s on unprofitable syndicates.
Cargo, marine hull and US public company directors and officers’ (D&O) insurance rates are all up by double digits, Hiscox said.
Rate improvement in reinsurance has been more gradual which Hiscox said was a result of abundant capacity in the market.
Chief executive Bronek Masojada said: “We have done what we said we would do in the first quarter. In retail we continue to pull back in US private company D&O, where conditions are challenging, and 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 five to 15 per cent target range in the second half.
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“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.”
The company said in the first quarter it had seen a “more normal claims experience” compared to a benign start to 2018.
It said its reinsurance arm had taken a hit from Typhoon Jebi in Japan while its London market business has been affected by higher losses in its property book.