Hiscox Ltd, the Bermudian-based international specialist insurer, has reported that group insurance contract written premiums increased by $113.1 million or 3 per cent over the first nine months of the year, compared with the prior year period.

The company said ICWP increased to $3.87 billion (Q3 2023: $3.76 billion) due to continued capital deployment in its Bermudian-based operating subsidiary, Hiscox Re & ILS, and solid retail growth.

The news came as the company issued a trading statement for the year to September 30.

It said large natural catastrophe losses and overall claims experience were within expectations for the first nine months of the year, despite an active loss environment.

On October 9, Hurricane Milton made landfall in Florida as a category 3 hurricane.

The group said it expects to reserve a net loss of $75 million for the event, based on an industry insured loss of $40 billion, which is split broadly equally between Hiscox’s London Market and Re & ILS businesses.

Investment income was $346.6 million, a year-to-date return of 4.3 per cent.

Hiscox said any surplus capital will be returned to shareholders following the board’s decision at year-end.

Aki Hussain, chief executive of Hiscox Ltd, said: “The group continues to deliver a solid performance, with our combined focus on building growth and earnings momentum.

“Our priorities of achieving high quality growth in all markets in our retail business, and selectively deploying capital into attractive big-ticket lines, are unchanged and we continue to make significant progress against the group’s strategy to deliver sustainable, less volatile returns while growing the business.”

Hiscox Re & ILS grew net ICWP by 12 per cent to $491 million (Q3 2023: $438.3 million) as the business said it deployed additional capital into the attractive underwriting conditions.

Hiscox said net premiums have more than doubled since 2020, as retained premium growth followed improving market conditions.

ICWP grew by 4.3 per cent to $1.01 billion (Q3 2023: $975.5 million), with the majority of growth achieved during the January renewals when market conditions were most attractive.

Hiscox said of the ILS business: “The market has remained disciplined throughout the year, with rates flat on average across our portfolio for the first nine months of the year.

“The market remains attractive following cumulative rate increases of 90 per cent since 2018. Attachment points and terms and conditions have broadly held firm during the year.

“We continue to see strong and growing demand from cedants, which has been met by supply, but at an appropriate price.

“As anticipated, at the midyear renewals there were some rate reductions in the upper layers of structures and on higher quality business, however these were from generationally high levels.

“The positive outlook for the January 2025 renewal rates is likely to be reinforced following the impacts of Hurricanes Helene and Milton.”

Hiscox ILS assets under management were $1.5 billion at September 30 (July 1: $1.4 billion).

The company said the pipeline of potential investors ahead of the January renewals is robust.