Bermuda-based specialist insurer and reinsurer Hiscox has registered a significant increase in premiums written across all of its sectors in the first nine months of 2023.
The group’s gross insurance contract written premiums (ICWP) rose 6.8% to $3.75bn in constant currency from $3.56bn a year ago.
The insurer attributed the rise to strong demand in its retail segment, and its capital deployment in London Market and reinsurance and insurance-linked securities (Re & ILS) sectors, along with the retail operations expansion.
For the nine-month period ended 30 September 2023, Hiscox posted an 11% increase in net group ICWP.
ICWP climbed by 4.7% to $1.83bn at Hiscox Retail, supported by ongoing strong growth in Europe and positive momentum in US digital partnerships and direct (DPD).
At Hiscox London Market ICWP increased by 13.6% to $947.5m from $844.2m a year earlier.
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Hiscox Re & ILS ICWP totalled $975.5m, a marginal rise of 4.7% from $949.8m a year earlier.
Hiscox Re & ILS deployed money in the hard market, resulting in net ICWP growth of 23.6% to $438.3m, up from 17.9% at the half year.
Hiscox Group CEO Aki Hussain said: “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 [Hiscox] 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.”
Despite challenges in the cyber market in the US, Hiscox Retail’s underlying growth remained within the target range of 5% to 15%.
In its press statement, Hiscox said: “We expect the impact of US cyber to start to moderate in the fourth quarter and result in a pick-up in the overall growth rate as the US broker initiatives start to take effect.”
Hiscox noted that ILS funds delivered an all-time high performance, resulting in a growing stream of fee revenue for the company.
Hiscox ILS assets stood at $1.7bn as of 30 September 2023, remaining at the same level as at the mid-year position.
The company added that it managed to maintain its aggregate losses within budget despite an active third quarter in terms of natural catastrophe events.