Hiscox Q3 premiums grow; sets aside $165m for hurricanes
Insurer Hiscox reported a rise in third quarter premiums, adding it had set aside $165m for claims related to hurricane Dorian and typhoons Hagibis and Faxai.
The Bermuda-base company added that it was exposed to the recent California wildfires but said the size of any potential loss was unclear.
Gross written premiums grew by 7.3% to $3.2bn on a constant currency basis led by growth in the Hiscox London Market, while premiums climbed 7.3% to $3.21bn for the nine months to September 30.
However, Hiscox warned the general market was experiencing “significant” catastrophe losses from storms in the US, the Caribbean and Japan.
“Like many others in the market, Hiscox is experiencing increased claims activity in some US casualty business. While the vast majority of lines are performing in line with expectations, the group is taking an increasingly cautious approach, both to prior year reserve development and current year loss picks in anticipation of higher claims,” the company said.
“Due to the combined impact of increased claims activity and a cautious approach to reserve development, the group expects the full year combined ratio for Hiscox Retail to be between 97% - 99%.”
“The group continues to target a combined ratio range for Hiscox Retail between 90% - 95% over the medium term.”