Forecasts & Results
Hiscox Q3 2023 trading statement
Posted 08/11/2023 – Quick takes
Hiscox plc has released its Q3 2023 results for the period ending 30th September 2023.
Main highlights from the statement:
- Insurance written premiums have increased by 6.8% to $3,759m (Q3 2022 $3,563m)
- Aggregate natural catastrophe losses year to date are within budget despite an active third quarter
- Investment return of $202m or +2.8% (Q3 2022 loss of $294m or -4.2%)
Aki Hussain, Chief Executive Officer said “I am pleased we have continued to deliver disciplined profitable growth across the Group. Through a combination of management actions to improve the quality of our portfolios, increased capital deployment in big-ticket and a focus on the quality of growth in Retail, we are in the best position for many years to grow and deliver strong risk-adjusted returns in each of our segments. As we look forward, market conditions remain positive across the Group and we see plenty of attractive opportunities ahead”.
The group’s performance for Q3 2023 by business division are as follows:
Source: Hiscox
Despite an increase in natural catastrophes in the third quarter, major losses remain within budget.
Alpha comment
Similar to Beazley, whose results were reported yesterday, at a group level, Hiscox’s growth across the portfolio has slowed as compared to the start of the year. However, when considering the divisions of Hiscox (Hiscox London Market and Hiscox Re & ILS), which are supported by our members in both syndicates 33 and 6104, the premium growth has accelerated through the year. Rates within London Market (syndicate 33) have exceeded expectations at +8% year to date, with cumulative rate increases since 2018 of +72%. Hiscox Re & ILS division (within syndicate 33 and 6104) have benefited from a +32% rate increase year to date. These rate increases are very positive with Hiscox underwriters seizing the market opportunities particularly, within the property and terrorism classes. The frequency of natural catastrophe worldwide has increased to some extent, but claims experience is still within the group’s catastrophe budget. With this in mind, we believe that supporters of syndicate 33 and SPA 6104 should expect to see some good profits coming through on the open years.
