Hiscox, the international specialist insurer, has released its trading statement for the first nine months ending September 30, 2024, reporting an increase in insurance contract written premiums across its business units.
In the retail sector, Hiscox saw premiums rise by $99 million, or 4.4% in constant currency, reaching $1,922.6 million compared to $1,823.6 million in the same period in 2023. Growth was observed across all three regional businesses, with the UK and Europe showing especially strong performance. Despite a temporary slowdown in Q3 due to high prior-year comparatives, Hiscox USA experienced steady growth in digital direct channels and an improving trend in its broker business.
Hiscox UK reported a 4.5% increase in insurance contract written premiums to $642.5 million, with growth driven by both direct and broker-intermediated business. The company also announced a new partnership with a European digital managing general agent (MGA) to expand its market reach among small and medium-sized enterprises (SMEs).
In the US, Hiscox saw a 2.6% increase in premiums, reaching $705.2 million compared to $687.3 million in Q3 2023. The company’s digital direct channel maintained double-digit growth, with high customer retention rates.
However, Hiscox London Market experienced a decline in premiums by 2.9% year-over-year, with growth areas in property and select crisis management classes. The company scaled back in directors and officers (D&O) and cyber lines due to pricing pressure.
On the other hand, Hiscox Re & ILS saw a net insurance contract written premiums increase by 12% to $491 million, with strong demand from cedants and a robust investor pipeline for its ILS assets under management.
Despite several natural catastrophes during the third quarter, including Hurricane Milton, Hiscox remains within its annual catastrophe loss expectations. The company expects a net loss of $75 million from Hurricane Milton, based on an estimated industry loss of $40 billion.
CEO Aki Hussain stated, “Our priorities of achieving high-quality growth in all markets in our Retail business, and selectively deploying capital into attractive big-ticket lines, are unchanged. We continue to make significant progress against the Group’s strategy to deliver sustainable, less volatile returns while growing the business.”
Overall, Hiscox’s performance in the third quarter showcases resilience and strategic growth initiatives in the face of challenges. The company’s focus on expanding market reach, improving digital channels, and managing catastrophe risks positions it well for future success.