Forecasts & Results

Hiscox Syndicates 33 & 6104 2021 Year of Account Result & Updated 2020 & 2022 Forecast

Posted 07/03/2024 – Quick takes

Hiscox Syndicates has announced its results for the 2021 year its syndicates 33 & 6104. It has also released an update for the 2020 open year for 6104, an update for the forecasts for the 2022 year and initial forecasts for the 2023 year of account

Syndicate 33

The 2021 profit of 8.2% of capacity is above the midpoint of the previous forecast range, which was set between +1.1% and +11.1% of capacity.

The 2022 forecast range has improved to a range between +4.8% and +14.8% of capacity, midpoint +9.8% of capacity. The previous forecast range was between +4.4% and +14.4% (midpoint +9.4%) of capacity.

An early forecast for the 2023 year of account after just 12 months is a result in the range +6.9% to +16.9%, (midpoint +11.9%) of capacity.

Syndicate 6104

The 2020 year of account remains open. The forecast improved to a range between +22.4% and +32.4% of capacity, midpoint +27.4% of capacity. The previous forecast range was between +0.4% and +10.4% (midpoint +5.4%) of capacity.

The 2021 profit of 4.1% of capacity is above the midpoint of the previous forecast range, which was set between -5.9% and +9.1% of capacity.

The 2022 forecast range has improved to a range between +11.3% and +21.3% (midpoint +16.3%) of capacity. The previous forecast range was between +9.9% and +19.9% (midpoint +14.9%) of capacity.

An early forecast for the 2023 year of account after just 12 months is a result in the range +19.7% to +29.7%, midpoint +24.7%.

Alpha Comment

The 2021 profit for syndicate 33 is a good result, and 2022 should continue to improve. Recently, when Hiscox plc declared its 2023 annualised results, it reported the strong trading conditions during 2023 and the early forecast for the 2023 year of account is in line with the plc results.

The open 2020 year of 6104 has seen a huge uplift in the forecast this quarter, potentially reflecting the improvement in the significant reserves held in respect of COVID-19. The intention remains for the year to close as at 31st December 2024.

The small profit for the 2021 year for 6104 is also a good result in a year heavily impacted by hurricane Ida. The open years are suggesting attractive profits due to the strong improvements in reinsurance rates and a reduction in major catastrophe losses.

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