Hiscox premiums grow but insurer predicts slower end to the year

Global insurer Hiscox increased written premiums in the third quarter but warned growth could slow towards the end of the year.

The figures

Gross written premiums, for the nine months to September was $3.04bn (£2.34bn), a 14 per cent increase on the same period in 2017.

The company's investment returns was $44m, down from $83m the previous year, which it said was due to ongoing economic and global political tensions.

Shares in the company dropped seven per cent on Monday morning after Hiscox said its premium growth would slow towards the end of the year.

Why it's interesting

A number of natural disasters in the US and the Far East in recent months, including Hurricanes Florence and Michael as well as typhoons hitting Asia has impacted the company, leading to an uptick in claims,

It also reported an increase in larger individual claims, including a marine loss of $13m and a rise in subsidence claims in the UK and Ireland as a result of the dry summer.

The company said it had reserved $125m to cover claims and reduced profit.

What they said

Chief executive Bronek Masojada said: “We have had strong growth, but as the market remains challenging, we will remain disciplined, and I expect our growth to moderate over the balance of the year.

“It has been an active third quarter for claims across the group, both from large losses and catastrophes, and I'm pleased with how we have responded.”

What the analysts said

Paul De'Ath, analyst at Shore Capital Markets, said: “The business continues to grow (excluding the impact of reinstatement premiums) and is fully prepared for a hard Brexit.

“The challenging claims environment in the third quarter and muted guidance on growth for the rest of the year, however, are not positive, in our view.”