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Hiscox Ltd said Wednesday its gross premiums written grew in the first nine months of 2022, citing well-performing platform migration amid Hurricane Ian-related losses affecting investor sentiment and a fall in London Market premiums.
The Hamilton, Bermuda-based insurer said total gross premiums written rose 6.3% to $3.68 billion from $3.46 billion a year ago. Under constant currency, the growth would have been 9.3%, Hiscox noted.
Retail premiums rose 0.7% to $1.77 billion from $1.76 billion, while London Market premiums fell 6.1% to $845.3 million from $900.0 million.
Hiscox explained the fall in London Market premiums mainly with "a deliberate and ongoing reduction in under-priced natural catastrophe exposed risk in household and commercial binders."
Re & ILS premiums surged 32% to $1.07 billion from $806.5 million, with the firm adding that the rating outlook for January 2023 renewals is "excellent".
"Net flows into the ILS funds have been broadly stable in the quarter, following over $500 million of net inflows during the first half. Future ILS flows are somewhat more uncertain as the attractions of materially increased rates are counterbalanced by investor sentiment impacted by Hurricane Ian losses and investors rebalancing portfolios. Hiscox Re & ILS generated over $40 million of fee income from ILS and quota share partners year to date," the firm said.
The company's investment swung to a loss of $293.9 million from a profit of $62.7 million a year prior, which results in a negative return of 4.2% versus a positive return of 0.9%. Hiscox cited an unrealised mark to market losses in its bond portfolio, which it expects to unwind as the bonds mature.
"The group has performed well in a complex underwriting environment. Our Retail business is on track, with platform migration going well and we look forward to an acceleration of growth in 2023. The performance of our big-ticket businesses remains robust after the impact of Hurricane Ian, and improving conditions are presenting new opportunities," said Chief Executive Officer Aki Hussain.
Hiscox shares were 5.4% higher at 947.00 pence each in London on Wednesday morning.
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