In Full: Hiscox requests Lloyd’s pre-emption of £450mn - 'Anticipated improvement in market conditions'
"The increase in capacity is driven by an anticipated improvement in market conditions and a desire to have sufficient capacity available to participate in a widespread market turn," ...
...Hiscox has said in a statement. Hiscox Syndicate 33 plans to increase its 2018 stamp capacity by £450mn ($594mn) to £1.62bn to take advantage of an expected "widespread market turn" following recent major catastrophe events.
The move follows a period of significant catastrophe activity in which more than $100bn of industry capital is estimated to have been wiped out, it added.
The pre-emption is subject to Lloyd's approval.
Based on the 2017 forecast published at this time last year, the syndicate expects to write 57 percent more direct gross written premium (GWP) for 2018 at £1.06bn.
The main driver behind the direct premium growth is binding authorities, for which GWP is forecast to increase by 64 percent to £575.9mn. GWP from service companies is expected to grow by 54 percent to £85.4mn, and lineslips by 8 percent to £85.6mn.
"Other" direct business will increase by 64 percent to £31.5mn.
Meanwhile, total reinsurance GWP for Syndicate 33 is forecast to increase by 41 percent to £558.4mn for 2018.
The uplift is driven by an additional £101.6mn of excess-of-loss business, a 37 percent year-on-year increase.
Facultative business was another driver of the growth, with GWP for this line expected to rise by 64 percent to £78.8mn.
Stop-loss GWP is also forecast to grow by 65 percent to £60.0mn.
By region, Hiscox expects 43.1 percent of GWP to stem from North America, with 44.3 percent falling into the "worldwide" category.
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