The U.K.’s Hiscox plc, a leading specialist insurer, operating in the Lloyd’s market, Bermuda and the U.S. said it “will give the following update at its Annual General Meeting,” scheduled to be held today, June 21.
The Group’s gross written premium as of the end of May had increased by 30 percent compared to 2005 to over £500 million ($923 million). Over all exposures remained “static” with “no material new claims during the period.”
In its Global Markets Hiscox noted rate increases “over the whole account of 9 percent, with the reinsurance account achieving a 17 percent increase overall (including both new business and renewals) to the end of May.” It expects further increases, especially in reinsurance. Hiscox notes that “there have been more claims from the 2005 hurricanes but the net increase after reinsurance was mitigated by other releases and reductions.”
In the U.K., Hiscox said its “business continues to grow satisfactorily. We have experienced a boost to new business from the strengthened advertising campaign. The TV advertisements run in May had a measurable impact over all retail areas and also helped broker sales. They will continue later in the year.” However the bulletin notes that “revenue in Europe was flat as the impact of the re-focussing of the account continues.”
Hiscox Bermuda, which the Group established last year, “has had a strong start and has written $150 million new reinsurance business out of a target of $165 million for the year,” said the bulletin. “Internal quota shares will add to that business to give balance. Our strong commitment to this market in terms of underwriting expertise and leadership has paid off with a good flow of business from brokers.”
Hiscox USA, which began business in March, is “already beating expectations. We are hiring some very good people and they are writing good quality, non-catastrophe, middle market commercial business with excellent support from brokers.”
Chairman Robert Hiscox commented: “A good start to the year. We are, of course, waiting for the effects of the wind season, but we have more income this year per pound of exposure. The two new businesses in Bermuda and the USA have both started well and, together with our growing retail book, give an even better balance to the Group.”
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