You’d think that when a company reports a surge in gross written premiums of more than 17.3% to £751.2 million, compared to £640.5 million one year earlier, it would be those figures that would grab all the headlines from a set of first quarter results.
However, that is not the case for specialist insurer
Hiscox – as instead the spotlight has fallen on its decision to set up a new EU subsidiary.
Following a spate of insurance firms who have made similar moves, Hiscox has this morning announced that it too will set up a European subsidiary on the back of the Brexit vote, issuing the following statement:
“Today we announce that we will establish a new European subsidiary in Luxembourg in response to Brexit,” it said. “All Hiscox retail business in Europe will be written through this new EU subsidiary. Our existing European business, which comprises over 350 people across seven of the EU 27 countries, will continue to operate without interruption. In Luxembourg a team covering core functions such as compliance, risk and internal audit will be recruited to complement our existing structure.”
The news that jobs appear to be safe will be of massive relief to Hiscox employees, who also have cause to celebrate on the back of an eye-catching first quarter – although its London market performance is down.
Hiscox UK and Ireland saw gross written premiums rise by 13.4% to stand at £125.8 million in constant currency, up from £110.5 million one year earlier. The firm said the growth was driven by all regions and distribution channels with its broker channel in the professions and specialty commercial business markets performing “particularly well”.
However, the firm also reported “no improvement” in the rating environment in big-ticket business, noting a continuation of a lack of major loss events and excess capital putting strong pressure on rates. It noted this is most severe in the London Market with “double digit declines in the marine, energy and US large property accounts.” Hiscox Re and ILS meanwhile, experienced single-digit rate decreases across the board.
“We have had a strong start to the year thanks to our long-term investment in Hiscox Retail, particularly in the small business sector,” said Bronek Masojada, group CEO. “Hiscox London Market continues to face challenging conditions. Hiscox Re and ILS are finding opportunities. We remain disciplined and are carefully navigating our way forward.”
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