AM BEST AFFIRMS RATINGS OF HISCOX DESPITE EXPECTED LOSSES

AM Best has affirmed the A (Excellent) financial strength rating of Hiscox, despite an anticipated underwriting loss in 2020. With a combined ratio of 107% in 2019, Hiscox’s performance was “weak” compared with historical trends, according to AM Best. This was driven by strengthening of 2018 catastrophe and run-off healthcare reserves, adverse experience in certain US casualty lines and catastrophe losses from Typhoons Faxai and Hagibis and Hurricane Dorian. AM Best also expects Hiscox to produce a loss in 2020, driven by Covid-19 related claims. Excluding Covid-19 losses, AM Best expects the group’s underlying performance to improve compared with 2019. The ratings affirmation applies to Hiscox’s subsidiaries in the US, Bermuda, UK and Lloyd’s. The outlook remains stable.