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Member, Beacon International Group, Ltd.
HAMILTON, BermudaHiscox Ltd. has reduced its underwriting of U.S. property and large professional indemnity lines because of challenging market conditions, the insurer said in its interim management statement.
Hamilton, Bermuda-based Hiscox added that, in the absence of any large hurricane losses, there will be pressure on rates for U.S. reinsurance business at the January renewal.
Hiscox announced Monday gross written premiums of £1.21 billion ($1.96 billion) for the first nine months of 2010, which is almost flat compared with the same period last year.
Although property and professional indemnity lines remain soft, Hiscox said it will expand its offshore energy business. Offshore energy rates are expected to increase in the wake of the April Deepwater Horizon rig loss.
For the first nine months of 2010 Hiscox said its Bermuda unit had increased its premium volume to $295.5 million, up 16.9% compared with the same period in 2009, “as it continues to take advantage of attractive reinsurance rates.”
Hiscox said that its Armonk, N.Y.-based U.S. operations continue to “grow cautiously.” Premium volume for Hiscox USA increased by 17.6% to $157.5 million for the first nine months of the year, it said.
Later this year, Hiscox USA will launch a direct online “quote and buy” service for commercial insurance buyers. The service will target professional services companies with 10 or fewer employees, it said.