Hiscox unveils rise in gross written premiums

Business and home insurer Hiscox posted a 12.3 per cent rise in gross written premiums to 506.1m pounds in the first quarter driven by local errors and omissions and internationally traded property insurance and reinsurance.

Business and home insurer Hiscox posted a 12.3 per cent rise in gross written premiums to 506.1m pounds in the first quarter driven by local errors and omissions and internationally traded property insurance and reinsurance.

Its US division experienced the biggest growth in gross written premiums, which rose by 34.5% to $64.3m driven by an expanding sales force and improving market conditions. The group also achieved an increase in gross written premiums across all its other regions including the UK, Europe, Guernsey and Bermuda.

The company said rates in reinsurances remain healthy on the back of businesses hit by Superstorm Sandy and Japan earthquakes.

However, the group expects a decline in rates during June and July renewal due to a rise in competition from capital markets and a continued benign claims environment.

During the quarter the investment results was 0.9% on a non-annualised basis following a strong performance from risk assets accounts, which mae up 7.0% of the portfolio. Income from cash and the bond portfolios was in line with expectations reflecting the low yields available.

Invested assets totalled about £3.3bn at the end of March.

"Fortune has favoured the industry this quarter," said Chief Executive Bronek Masojada.

"For Hiscox, the absence of any catastrophes and growth in profitable lines has delivered a very good start to the year. We are in a good position to benefit from rate rises in the US casualty market and it is pleasing to see substantial growth here."

Shares rose 2.33% to 571p at 10:35 Tuesday.

RD

Recommended

Too embarrassed to ask: what is short selling?
Too embarrassed to ask

Too embarrassed to ask: what is short selling?

Short sellers are often accused of unfairly driving share prices down to make a quick buck. But short selling is a perfectly legitimate – if risky – t…
26 Jan 2021
Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin does consume a lot of energy – but here’s why it’s worth it
Bitcoin

Bitcoin does consume a lot of energy – but here’s why it’s worth it

Some people question bitcoin’s legitimacy because it uses huge amounts of electricity to maintain its network. But that’s not a failing, says Dominic …
27 Jan 2021
Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail
US stockmarkets

Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail

New US president Joe Biden is planning to throw trillions of dollars in stimulus at his country’s economy. Markets will love that. But it comes with a…
25 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021