Hiscox reports better rates, but higher number of large losses

Hiscox London Market, part of Bermuda-based Hiscox Group, has reported 9mo gross written premiums of $722.3m, up from $664.1m in same period last year.

The company said that 2020 was poised to be the third consecutive year of rate improvement in the London Market, with the performance management initiatives enacted by Lloyd’s continuing to drive market discipline. For the nine months to September, Hiscox said that rates were up approximately 9% across the Hiscox London Market portfolio, with the most significant increases being in US public company D&O, cargo, general liability, marine hull and major property.

Hiscox said that growth had been most pronounced in the areas of greatest rate improvement, noting that the business had achieved good growth in many core lines including marine hull.

However, the insurer said that Hiscox London Market had also experienced a higher number of large losses, with claims totalling approximately $30m in the US public company D&O, property, marine and energy and space portfolios.

The company made no change to its estimates for Syndicate 33 years of account 2017 and 2018, with the former continuing to be in the range of minus 7.5% to plus 2.5%, and the latter continuing to be from minus 10% to 0%. Halifax has a 73% share in the syndicate for both years of account.