International specialist insurer Hiscox has released its trading statement for the first nine months ending September 30, 2024, reporting insurance contract written premiums across its business units.
For Hiscox Retail, premiums increased by $99 million, or 4.4% in constant currency, to $1,922.6 million, compared with $1,823.6 million during the same period in 2023. Retail premiums rose by 2% across markets, with growth observed in all three regional businesses.
Growth was especially strong in the UK and Europe, although there was a temporary slowdown in Q3 due to high prior-year comparatives. Hiscox USA saw steady growth in digital direct channels and an improving trend in its broker business.
Excluding the US broker business, Hiscox Retail’s growth was 6% in constant currency. Hiscox expects this momentum to continue into Q4, supported by new distribution initiatives.
In Hiscox UK, insurance contract written premiums rose by 4.5% in constant currency to $642.5 million, up from $600.3 million in Q3 2023. Growth was driven by both direct and broker-intermediated business, the latter of which benefitted from new distribution deals. Hiscox reported that customer numbers in the UK surpassed half a million by the end of the quarter.
Hiscox Europe recorded a 6.7% increase in premiums, reaching $528.3 million in constant currency, with growth across both accident, health, and casualty (APC) and commercial lines.
A new partnership with a European digital managing general agent (MGA) was launched in October to provide small business insurance through a digital platform, aimed at expanding market reach among SMEs. This partnership is expected to contribute to future growth.
The single-core policy administration system rollout is advancing, with Germany now live, and similar systems in progress in France, Benelux, Iberia, and Ireland.
Hiscox USA posted a 2.6% increase in premiums, reaching $705.2 million compared with $687.3 million in Q3 2023. The US digital direct channel maintained double-digit growth, with high customer retention. Digital partnerships grew, albeit at a slower pace, with 55 new partners added over the past 21 months.
Hiscox London Market premiums declined by 2.9% year-over-year to $932.3 million, consistent with trends in the first half of the year. The company reported a 3% rate increase year-to-date, marking a cumulative increase of 75% since 2018.
Growth areas included property and select crisis management classes, while Hiscox scaled back in directors and officers (D&O) and cyber lines, where pricing remains under pressure. The crisis management division saw an 18% rise in premiums in Q3, driven by demand for kidnap, ransom, and terrorism coverage, and the launch of a new product, Personal Security Plus.
Hiscox Re & ILS saw net insurance contract written premiums grow by 12% to $491 million, up from $438.3 million in Q3 2023, while overall premiums increased by 4.3% to $1,017.6 million. The company deployed additional capital in response to favourable market conditions, with cumulative rate increases of 90% since 2018.
Hiscox noted strong demand from cedants and a robust investor pipeline for its ILS assets under management, which reached $1.5 billion as of September 30.
The third quarter saw several natural catastrophes, including Hurricanes Beryl, Debby, Francine, and Helene in the US, along with flooding in Europe and events in Canada. Hiscox stated that while the period was active, overall claims experience for the first nine months remained within expectations.
Hurricane Milton, which made landfall in Florida in October as a Category 3 storm, is projected to result in a net loss of $75 million for Hiscox, based on an estimated industry loss of $40 billion. This impact is expected to be evenly distributed between Hiscox’s London Market and Re & ILS businesses, keeping the company within its annual catastrophe loss expectations.
“Our priorities of achieving high quality growth in all markets in our Retail business, and selectively deploying capital into attractive big-ticket lines, are unchanged and we continue to make significant progress against the Group’s strategy to deliver sustainable, less volatile returns while growing the business,” CEO Aki Hussain (pictured above) said.
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