HISCOX PROFITS DOWN AS ITS REINSURANCE LOSS WIDENS

Hiscox plc saw its pre-tax profits dive to $53.1m in 2019 from $135.6m in the previous year as group digested large catastrophe losses, including $165m for Hurricane Dorian and Typhoons Faxai and Hagibis, and an adverse development of 2018 Typhoon Jebi claims. Profits at Hiscox London Market unit decreased to $30.4m in 2019 from $75.8m in 2018 while the combined ratio deteriorated 15.1 points to 104.4%. The group’s reinsurance unit loss increased to $93.8m in 2019 while the combined ratio deteriorated 47 points to 163.9%. Gross premiums for the group grew 8.1% to $4bn in 2019 with average rate increases of 11% at Hiscox London Market and 13% at Hiscox US. The group combined ratio deteriorated 10.8 points to 105.7% in 2019. The insurer says it is too early to estimate the impact of the Coronavirus, although it has exposure through event cancellation, travel and personal accident cover, and we has received notifications of small claims to date.