The specialist international insurer Hiscox Ltd has today revealed its trading statement for Q1 2023, ended March 31, 2023.
Among the highlights pinpointed by the company, Hiscox noted that its insurance contract written premiums increased by 7.4% year-on-year to $1,420.2 million (approx. £1,130.61 million) – compared to $1,363.7 million in 2022. This was largely attributed to an attractive rate environment across all business segments.
Meanwhile, Hiscox Retail insurance contract written premiums rose 6.5% to $681.3 million – up from $670.2 million in 2022, propelled by strong growth in Europe and solid performance in the UK and US. Overall growth in US DPD ‘temporarily moderated’ to 6.8%, which Hiscox highlighted is in line with previous guidance as its partnership business embeds new technology. The insurer pointed to expected growth in momentum through the year towards the middle of the 5% to 15% range.
The results were positive for Hiscox London Market, which returned to good growth, particularly in major property, marine and terrorism - with insurance contract written premiums up 8.6% to $320.8 million from $295.3 million in 2022. Hiscox added that given the context of the improving market environment, it has retained more risk, resulting in net insurance contract written premiums growth of 21.6%.
Hiscox Re & ILS saw strong growth with net insurance contract written premiums up 37.6%. This was accredited to Hiscox’s deployment of additional organically generated capital to take advantage of how the market hardened materially in the lead up to the January 2023 renewal season. Insurance contract written premiums grew 5% to $418.1 million (compared to $398.2 million in 2022). This was lower than net growth, mainly due to the market-wide subdued ILS capital appetite.
Hiscox revealed that its group claims performance is in line with its expectations while the insurer remains well capitalised, allowing it to continue to deploy capital into the ‘highly attractive (re)insurance market(s)’.
Commenting on the “positive momentum” seen across the group, Hiscox CEO Aki Hussain said: “For our Retail businesses, growth momentum in the UK and US is accelerating in line with expectations, and Europe continues to deliver strong double digit increases. Hiscox London Market and Hiscox Re & ILS continue to thrive in very favourable market conditions, growing top line and materially increasing net retained premium, as we deploy our own capital to make the most of the opportunity.
“This combined with a much improved investment result, means the outlook for the half year is positive.”
