Hiscox Ltd 2020 Q3 Trading Statement
Posted 02/11/2020 – Insights
Hiscox Ltd., the owner of Hiscox Syndicates Ltd (managing agent of syndicate 33 & SPA 6104), has announced its Q3 2020 (annualised) trading statement.
- Hiscox Retail reported growth in each of its five business units driven by its digital platforms.
- Hiscox London Market continued to benefit from accelerating rate improvement, with rates up 18% across the portfolio.
- Hiscox Re & ILS achieved good growth at the July renewals, with rates up 12% for the year.
- $75 million reserved for catastrophe claims in the third quarter.
- No change to previously-disclosed estimates for claims related to COVID-19.
The Hiscox Group has reserved $75 million net for catastrophe claims in the third quarter. This includes claims from Hurricane Laura based on an insured market loss of $8 billion, as well as claims under aggregate reinsurance policies, provisions for wildfire claims and some large individual risk losses. The overall claims experience for Hiscox London Market has been in line with expectations, despite the active wind season and some large market losses earlier in the year.
Bronek Masojada, Chief Executive Officer, commented: “I am proud of the way Hiscox employees have continued to support our customers in very challenging circumstances. Our year-to-date performance demonstrates the resilience of the Group, as we delivered good growth in every target area, including in all of our Retail businesses.
“We are benefiting from the inexorable shift towards digital in our Retail businesses thanks to our on-going investment in technology, as well as the strongest pricing we have seen in the London Market and in reinsurance for more than five years. We have the financial strength, operational resilience and underwriting expertise to take advantage of these favourable market trends.”
this up-beat announcement included an update on the Group’s COVID-19 claims, which remains at the previously disclosed level of $387 million net of reinsurance. This includes $232 million reserved in the first six months of the year, including $150 million for event cancellation and abandonment, with the balance across a variety of other lines. It also includes $130 million (£100 million) for COVID-19 claims arising from business interruption across all divisions, with the majority coming from Hiscox UK (part of Hiscox Retail rather than Hiscox London Market, which houses Hiscox Syndicate 33), and $25 million for event cancellation and abandonment, on the basis that current restrictions on travel and mass gatherings continue until the end of the year.
Encouragingly, the London Market division reported an acceleration of rate rises in the third quarter, contributing to aggregate rises of 18% for year-to-date. Rates are up in almost every line, most notably in US public company directors and officers’ (D&O), US general liability, cargo, hull and major property.