Hiscox Reports 31.7% Rise in Nine-Month Premium Income

Specialist Bermuda-based Lloyd's insurer Hiscox Ltd. reported a 31.7% rise in premium income, to 1.21 billion pounds (1.35 billion euros), for the first nine months of 2009.

Year-on-year growth was 10.5% when calculated at constant rates of exchange, Hiscox said.

"Hiscox is in good health," said Chairman Robert Hiscox in a statement. "We have continued to benefit from solid investment decisions and have maintained growth in our most profitable underwriting lines."

Rates are good in most of the group's markets, "particularly reinsurance, which accounts for over a third of our business," Hiscox said.

Buoyed by currency movements, Hiscox London Market reported a 27.3% increase in gross written premiums to 575.7 million pounds, calculated in pounds. In original currency, the segment's premiums fell 0.1%. Hiscox Bermuda saw its premiums increase by 21.5% to $252.7 million (169 million euros) in original currency.

Hiscox USA reported premiums of $133.9 million, up from $83.4 million. Growth in the United States was supported by the opening of five offices and the hiring of more than 100 new employees during the first half of 2009, Hiscox said.

Hiscox UK, which serves a commercial lines-oriented retail customer base, had a 16.5% increase in gross written premiums, to 228.7 million pounds. Hiscox Europe had gross written premiums of 117 million euros, up 19.1%.

At the end of the third quarter, Hiscox had about 2.5 billion pounds in invested assets.

During the third quarter, Hiscox said it "modestly increased" its holdings in corporate bonds. It also disposed of some stocks, maintaining an equity level of about 5% in its investment portfolio. The immediate future is likely to be a "period of lower investment returns," Hiscox said.

The capital losses that hit insurers in 2008 did not produce widespread premium increases, Hiscox said. But the group did report premium rises of more than 10% in its main reinsurance markets, with energy rates up by 5% to 10%. Gulf of Mexico energy business saw rate increases of more than 50%, Hiscox added.

Units of Hiscox have current Best's Financial Strength Ratings of A (Excellent). Lloyd's has a rating of A.