Hiscox Ltd (LSE:HSX) announced a 6.1% increase in its premiums for the first nine months of 2021 as rate momentum remained strong across its business.
Gross premiums written totalled US$3.46bn in the nine months to 30 September compared with US$3.26bn in the same period of 2020.
The specialist insurer reserved US$110mln for Hurricane Ida in the period, based on an insured market loss of US$35bn, while net reserves for European floods totalled US$40mln, based on an insured market loss of US$9bn.
The Hiscox Retail unit saw gross premiums written rise 5.9%, including a 19.3% rise from the subsidiary’s Digital Partnerships and Direct (DPD) business.
Hiscox London Market and Hiscox Re & ILS also performed strongly, with gross premiums up 7.2% and 5.6% respectively.
Hiscox London Market achieved aggregate rate increases of 13% across the portfolio in the first nine months, while in Hiscox Re & ILS rates were up 8% on average. Hiscox Retail saw increased rates across all regions, including an above-expectations 7.5% rise in the UK.
The group said the rate outlook for January renewals has improved for Hiscox Re & ILS following elevated natural catastrophe losses in the third quarter.
The specialist insurer said its net COVID-19 loss estimate remains unchanged at US$475mln for 2020 and US$17mln for lockdowns announced in 2021.
The group remains well capitalised and able to invest in long-term growth opportunities, as well as shorter-term favourable market conditions.
Retiring chief executive officer Bronek Masojada described Hiscox’s capital position as “robust”.
“As I make my last quarterly trading statement as CEO of Hiscox it is pleasing to see the business in such good shape," he said.
Masojada will be replaced at the end of the year by chief financial officer Aki Hussain.
Hiscox shares were 0.78% lower at 842p in late morning trade.