Hiscox publishes results for first nine months of 2021

	GWP to 30 September 2021	GWP to 30 September 2020*	Growth in USD
	US$ million	US$ million	%
Hiscox Retail	1,756.40	1,659.20	5.9
Hiscox London Market	900	839.6	7.2
Hiscox Re & ILS	806.5	763.6	5.6
Total	3,462.90	3,262.40	6.1

*2020 gross premiums written have been represented to reflect reclassification of the Special Risks division.

The group highlighted that the growth seen in its London Market arm shows that this business continues to benefit from aggregate rate increases across the portfolio. Meanwhile, Hiscox’s retail go-forward portfolio grew by 5.7% on a constant currency basis, after planned reductions in sections of the US broker channel. Also within Hiscox Retail there was continued strong growth in digital partnerships and direct (DPD) business with GWP up 19.3%. The group noted that the combined ratio of the retail business is progressing in line with expectations.

For the Hiscox Re & ILS business, the group noted an improved rate outlook for January renewals following elevated natural catastrophe losses in Q3 2021. Net premiums written grew 46.0%.

Hiscox Asia

The group’s operations in Asia, DirectAsia, saw gross premiums written decline 2.6% in constant currency to $35.1 million, down from $35.8 million in 2020. This was accredited as being due to a highly competitive trading environment and the ongoing impact of COVID-19 related restrictions.

However, Hiscox stated that disciplined underwriting and pricing as well as lower claims frequency during COVID-19 lockdowns are driving an improved underwriting result, with a new brand-building campaign planned for the fourth quarter.

Reserves

Hiscox revealed it has US$110 million net reserved for Hurricane Ida based on an insured market loss of US$35 billion and US$40 million net for European floods based on an insured market loss of US$9 billion. Meanwhile, non-catastrophe loss experience across the group remains favourable and the group’s net COVID-19 loss estimate remains unchanged at US$475 million for 2020 and US$17 million for lockdowns announced in 2021.

Commenting on the results achieved, Bronek Masojada, group CEO of Hiscox said: “Hiscox London Market and Re & ILS are performing strongly and we continue to benefit from excellent growth in our retail digital business. Our capital position is robust. As I make my last quarterly trading statement as CEO of Hiscox it is pleasing to see the business in such good shape.”