Hiscox bullish after first-quarter premiums jump

Specialist insurer Hiscox sounded a bullish note on Thursday, after seeing a jump in written premiums during the first quarter.

The Bermuda-based, London-listed firm said insurance contract written premiums increased 4.1% in the three months to March end to $1.42bn, or by 7.4% on a constant currency basis. The growth was underpinned by an attractive rate environment all its business segments, Hiscox noted.

Within that, and also on a constant currency basis, Hiscox Retail reported a 6.5% rise in written premiums to $681.3m, driven predominantly by strong growth in Europe, while its Lloyd’s of London syndicate Hiscox London Market saw written premiums increase 9.9% to $320.8m. Hiscox said there had been notable growth in major property, marine and terrorism.

Reinsurance arm Hiscox Re & ILS reported a 6.9% increase in written premiums to $418.1m.

Claims performance, meanwhile, was in line with management expectations during the quarter.

Aki Hussain, chief executive, said there had been "positive momentum" across the business. He continued: "This, combined with a much improved investment result, means the outlook for the half year is positive."

Andreas van Embden, analyst at Peel Hunt, said: "Strong rate rises are coming through and Hiscox is deploying more capital in property catastrophe lines by retaining more risk and soaking up rate rises.

"Our outlook remains positive, as rate adequacy across nearly all classes should deliver an estimated average 23% three-year RTNAV, with an average 91% combined operating ratio."