GWP falls 3% as Hiscox walks away
Hiscox saw gross written premium fall 3% year-on-year, to £1.96 billion, in the nine months to the end of September, as the group continued to “walk away” from poorly rated risks.
At its London Market business premium income declined 3.2%, to £475.3 million, and the re/insurer says it plans to increase Syndicate 33 2012 capacity to only £950 million, down from £1 billion announced at the half year, stating:
“With the wider insurance market still under pressure, this area will continue to underwrite for profit over volume.”
The group’s retail business in the UK saw premium income rise by 13.4% compared with a year earlier, to £280 million, with “good steady growth” driven by direct business and a new underwriting partnership with Dual.
Rates in Hiscox UK are described as “healthy”.
As at 30th September 2011, the group’s reserves for catastrophe claims were unchanged from June, at £210 million, and return on investment since the beginning of the year stood at +0.5% (half year +1%), with the decline since June largely reflecting the impact of turbulent markets.
Invested assets at the end of September totalled approximately £2.8 billion.
The re/insurer has confirmed that its ownership of subordinated bank debt is minimal and that it has no exposure to the sovereign debt of Greece, Ireland, Italy, Portugal or Spain.
Commenting on the update, chief executive, Bronek Masojada, says: “Our strategy of balance and diversity gives us options in challenging times and the strength of our UK business is proof of this.
“Although the wider market is slow to turn, the cumulative effect of international catastrophes is pushing reinsurance rates upwards.
“As nearly a third of our income comes from reinsurance, we are ready to benefit at the January renewal season.”
Category: Companies News, Financials, Insurance News
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