Hiscox Ltd · LSE:HSX
Hiscox — H1 2014 Earnings Presentation
46 slides from Hiscox's earnings presentation, Jul 28, 2014
Slide 1: Hiscox Ltd Interim results for the six months ended 30 June 2014
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Slide 2: A strong six months
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Slide 3: Financial performance
d HISCOX Financial performance
Slide 4: A strong six months
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Slide 5: New segmental analysis
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Slide 6: Solid investment performance
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Slide 7: High quality, conservative portfolio
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Slide 8: Portfolios - USD bond portfolios
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Slide 9: Portfolios - GBP, EUR and CAD bond portfolios
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Slide 10: Fascinating financial facts
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Slide 11: Underwriting
d HISCOX Underwriting
Slide 12: Total Group controlled premium 2014: £1,120m
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Slide 13: Rates under pressure
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Slide 14: Boxplot and whisker diagram of modelled mean loss
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Slide 15: Change from June 2013
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Slide 16: Business performance
d HISCOX Business performance
Slide 17: Managing the business
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Slide 18: Hiscox UK and Europe
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Slide 19: Hiscox UK and Ireland
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Slide 20: Hiscox Europe
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Slide 21: Hiscox International
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Slide 22: Hiscox International
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Slide 23: Hiscox USA - good development continues
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Slide 24: Investment in the brand is delivering growth
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Slide 25: Hiscox London Market
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Slide 26: Hiscox Re
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Slide 27: Summary and outlook
d HISCOX Summary and outlook
Slide 28: Strategy working
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Slide 29: Outlook - stronger headwinds
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Slide 30: Appendices
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Slide 31: Geographic reach
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Slide 32: Strategic focus
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Slide 33: A symbiotic relationship
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Slide 34: Old segmental analysis
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Slide 35: Full year segmental comparison
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Slide 36: Long-term growth
içåÖJíÉêã=ÖêçïíÜ Hiscox London Market - retail Hiscox Reinsurance Hiscox UK Hiscox Europe Hiscox London Market - volatile Hiscox Guernsey Hiscox USA OMMM NUMM NSMM fåíÉêå~íáçå~ääó= íê~ÇÉÇ=äáåÉë NQMM dêçëë=ïêáííÉå=éêÉãáìãë=E¡ãF NOMM NMMM UMM içÅ~ä= SMM ëéÉÅá~äíó= äáåÉë QMM OMM M PR
Slide 37: Hiscox Ltd results
eáëÅçñ=iíÇ=êÉëìäíë ¡MMM OMNP OMNOGG OMNN OMNM OMMV OMMU dêçëë=éêÉãáìãë=ïêáííÉå NISVVIQTU NIRSRIUNV NIQQVIONV NIQPOISTQ NIQPRIQMN NINQTIPSQ kÉí=éêÉãáìãë=ïêáííÉå NIPTNINNQ NIOSUINQM NINTQIMNN NINPNISOT NINRTIMOP UVUIPVQ kÉí=éêÉãáìãë=É~êåÉÇ NIOUPIPNN NINVUISON NINQRIMMT NINPNINRU NIMVUINMO VOUIMVR fåîÉ
Slide 38: Boxplot and whisker diagram of modelled mean loss
_çñéäçí=~åÇ=ïÜáëâÉê=Çá~Öê~ã=çÑ=ãçÇÉäÉÇ eáëÅçñ=iíÇ=åÉí=äçëë=EAãF=N=gìåÉ=OMNQ içã~=mêáÉí~ nì~âÉ=ASÄå=ã~êâÉí=äçëë= kçêíÜêáÇÖÉ=nì~âÉ=AOQÄå=ã~êâÉí=äçëë= eìêêáÅ~åÉ=h~íêáå~=ARMÄå=ã~êâÉí=äçëë= eìêêáÅ~åÉ=^åÇêÉï=ARSÄå=ã~êâÉí=äçëë içïÉê=RBJ ìééÉê= pìéÉêëíçêã=p~åÇó=J AOMÄå=ã~êâÉí= OMNN=qçÜçâì=nì~âÉ=AORÄå=ã~êâÉí
Slide 39: Change from June 2013
`Ü~åÖÉ=áå=Å~í~ëíêçéÜÉ=ÉñéçëìêÉ=Ñêçã=gìåÉ=OMNP `Ü~åÖÉ=áå= ãÉ~å=äçëë 70% `Ü~åÖÉ=Ñêçã=gìåÉ=OMNP 50% 30% 10% (10%) gm=bn=Ó g~é~åÉëÉ=É~êíÜèì~âÉ (30%) rp=bn=Ó råáíÉÇ=pí~íÉë=É~êíÜèì~âÉ br=tp=Ó bìêçéÉ~å=ïáåÇëíçêã (50%) rp=tp=Ó råáíÉÇ=pí~íÉë=ïáåÇëíçêã (70%) JP EQ US EQ EU WS US WS JP EQ US EQ EU WS US WS JP
Slide 40: Realistic disaster scenarios
oÉ~äáëíáÅ=Çáë~ëíÉê=ëÅÉå~êáçë eáëÅçñ=dêçìé=Ó äçëëÉë=Ä~ëÉÇ=çå=gìåÉ=OMNQ=ÉñéçëìêÉ ëÜçïå=~ë=éÉêÅÉåí~ÖÉ=çÑ=OMNP=Ñìää=óÉ~ê=Öêçëë=~åÇ=åÉí=ïêáííÉå=éêÉãáìã= fåÇìëíêó=äçëë= êÉíìêå=éÉêáçÇ Japanese QB earthquake ARMÄå=N=áå=OQM=óÉ~ê NTB Gulf of Mexico QB windstorm ANMTÄå=N=áå=UM=óÉ~ê OVB RB Florida ANORÄå=N=áå=N
Slide 41: GWP geographical and currency split
dtm=ÖÉçÖê~éÜáÅ~ä=~åÇ=ÅìêêÉåÅó=ëéäáí OMNQ=ÖÉçÖê~éÜáÅ~ä=ëéäáí OMNQ=ÅìêêÉåÅó=ëéäáí CAD and other UK 4.6% EUR 17.5% 13.2% 40.0% North America Worldwide 15.9% USD 57.5% 24.7 GBP 12.6% 14.0% Western Europe Other (excl. UK) QM
Slide 42: Group reinsurance security
dêçìé=êÉáåëìê~åÅÉ=ëÉÅìêáíó oÉÅÉáî~ÄäÉë=~í=PMLMSLNQ=çÑ=¡RNQKMã== OMNP=êÉáåëìê~åÅÉ=éêçíÉÅíáçåëG cáêëí=äçëë=ÉñéçëìêÉ=Äó=ê~íáåÖ ^^^ `çää~íÉê~äáëÉÇ líÜÉê OB SB VB ^^ PQB RUB ^ RPB ^ PUB ^^ GoÉáåëìê~åÅÉ=éä~ÅÉãÉåíë=áå=ÑçêÅÉ=~í=ON=j~ó=OMNQK QN
Slide 43: Reinsurance
M NM OM PM NPKT OMKV NPKQ NUKT ONKT `ÉÇÉÇ=~ë=~=B=çÑ=dtm NVKQ ONKM NVKM NVKM NVKP oÉáåëìê~åÅÉ OQKP ORKO M NM OM PM NMKU NTKM NMKM çÑ=íçí~ä=~ëëÉíë TKT NPKQ NNKM NNKS NNKT oÉáåëìê~åÅÉ=êÉÅÉáî~ÄäÉë=~ë=~=B= NOKP NMKP NPKP NNKQ QO
Slide 44: 2014 capital requirements
OMNQ=Å~éáí~ä=êÉèìáêÉãÉåíë= ¡NKQÄå=~î~áä~ÄäÉ=Å~éáí~ä ¡NKOÄå=~î~áä~ÄäÉ=Å~éáí~ä=Eéçëí=êÉíìêåF mêçàÉÅíÉÇ=Å~éáí~ä=êÉèìáêÉãÉåí A.M. Best A.M. Best Standard & Poor's Group capital Group capital Bermuda solvency GSSA (Hiscox's Hiscox internal (standard model) (catastrophe model (economic) model (regulatory)
Slide 45: Glossary of terms
däçëë~êó=çÑ=íÉêãë Annual venture The system used for running a Lloyd’s syndicate under which each ‘year of account’ is treated separately. Members own capacity on a syndicate for a ‘year of account’ and the results are declared when the year is closed by the RITC mechanism, usually after three years
Slide 46: Glossary of terms
däçëë~êó=çÑ=íÉêãë Member or Name The companies or individuals who own the capacity of a syndicate and who belong to the membership of the Society of Lloyd’s. Net premiums earned Premiums received after the cost of reinsurance and adjustment for unearned premium. Unearned premium covers the future pe