Hiscox grows GWP as rates rises emerge
Specialty insurer Hiscox grew gross written premium (GWP) by 12.4% in the first nine months, amid signs of rate tightening driven by the catastrophe-packed third quarter.
It says rate rises are unsurprising given reductions seen over the past decade and the $US100 billion ($131 billion) industry-wide hit from recent hurricanes in the US and Caribbean.
“Price corrections are occurring in loss-affected and loss-exposed US property lines business, where we are seeing increases of 10-50% and sometimes more,” the Bermuda-based insurer says. “In other London market insurance lines, momentum is building ahead of the busy renewal season and reductions are coming to an end.”
In reinsurance, double-digit rate rises are expected on US catastrophe-exposed business at the important January renewals.
Hiscox GWP for the nine months to September 30 grew to £2.09 billion ($3.57 billion), up from £1.86 billion ($3.18 billion) in the corresponding period last year.
Hiscox Retail GWP increased 23.1% to £1.07 billion ($1.83 billion). Hiscox Re grew GWP by 18.5% to £553.3 million ($945.6 million), and Hiscox London Market declined 11% to £463 million ($791.2 million).
Combined net claims from hurricanes Harvey, Irma and Maria are about $US225 million ($293 million).