Business
Q1 2023 Trading Statement
Q1 2023 Trading Statement.
About this update from Hiscox Ltd
[{"type":"text","content":"\n\n Hiscox Ltd trading statement\nHamilton, Bermuda (4 May 2023) - Hiscox Ltd (LSE:HSX), the international specialist insurer, today issues its trading statement for the first three months of the year to 31 March 2023.\nHighlights:\n· Insurance contract written premiums[1] increased by 7.4% in constant currency to $1,420.2 million (2022: $1,363.7 million), underpinned by an attractive rate environment across all business segments.\n \n· Hiscox Retail insurance contract written premiums increased 6.5% in constant currency to $681.3 million (2022: $670.2 million), driven by continued strong growth in Europe and solid performance in the UK and US. \n \n· US DPD, as expected, showed accelerating momentum in the direct business, while overall growth temporarily moderated, in line with previous guidance, to 6.8%, as our partnership business embeds on the new technology. Momentum is expected to build through the year towards the middle of the 5% to 15% range, as previously communicated.\n \n· Hiscox London Market returned to good growth, notably in major property, marine and terrorism, with insurance contract written premiums up 8.6% to $320.8 million (2022: $295.3 million). Given the attractive and improving market environment we have retained more risk resulting in net insurance contract written premiums[2] growth of 21.6%.\n \n· Hiscox Re & ILS achieved excellent growth with net insurance contract written premiums up 37.6%, as we deployed additional organically generated capital to take advantage of the market hardened materially in the lead up to the January 2023 renewal season. Insurance contract written premiums grew 5.0% to $418.1 million (2022: $398.2 million), lower than net growth, mainly due to the market-wide subdued ILS capital appetite, as we saw net outflows of $148.4 million in the quarter.\n \n· Investment result was $98.1 million (2022: loss of $119.4 million), as we start to see improved investment returns on our bond portfolio with the bond reinvestment yield at 5.1% on 31 March 2023.\n \n· Group claims performance is in line with our expectations.\n \n· The Group remains well capitalised, enabling us to continue to deploy capita...