Hiscox is reporting ‘strong growth’ in its group gross written premiums for Q1 2022, saying that they rose by 10.3% to reach $1,386.3m.
Citing its latest release, the firm said that it had seen ‘excellent growth’ in its reinsurance and ILS business, with gross premiums written up 45.8% to $421m. However, the firm also reported an investment return loss of $119.4m (2021: profit of $20.7m), or a negative return of 1.7% year to date (2021: positive return of 0.3%), is the result of unrealised losses in our bond portfolio due to higher interest rates, which are non-economic and non-cash in nature. However, it did say that reinvestment yield has improved significantly to 2.4%.
Aki Hussain, CEO of Hiscox, said: “The Group delivered a solid performance in the first quarter. The rate environment remains favourable and both our big-ticket and Retail businesses delivered good underlying growth in areas where we see attractive opportunities. In big-ticket, we continue to position our businesses for strong and sustainable returns by growing where we see opportunity and reducing exposures where we believe risks are under-priced. In Retail, our US and European operations are making good progress in rolling out new technology platforms to support our growth ambitions.”
He added: “Beyond the quarterly performance, we remain deeply saddened by the conflict in Ukraine. We are supporting affected customers and have contributed to the global humanitarian aid effort through donations to the Red Cross and the Disasters Emergency Committee.”
The firm said that rates continue to strengthen across all its businesses. Hiscox London Market achieved an average rate increase across the portfolio of 8% year-on-year, this is in addition to a 60% cumulative rate increase since 2017 that it reported at the year end.
Hiscox Re & ILS saw an average rate increase of 10% across the portfolio year-on-year, driven by capacity constraints in retrocession and North American catastrophe. This is in addition to a cumulative rate increase of 35% since 2017, as at the full year 2021. Given the current levels of political and economic uncertainty and inflationary pressures, Hiscox said it expected rate momentum to continue as the year progresses.
