The ratings of Hiscox reflect the group’s consolidated balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings of Hiscox Bermuda, Hisco, Hiscox Guernsey and HICI reflect their strategic importance to Hiscox, as well as their strong integration within the group. The ratings of Syndicate 33 reflect the balance sheet strength of the Lloyd’s market, which AM Best categorises as very strong, as well as the market’s strong operating performance, favourable business profile and appropriate ERM. The Lloyd’s market rating is the floor for all syndicate ratings, reflecting the Lloyd’s chain of security and, in particular, the role of the
Hiscox group is an international (re)insurer with a good brand and a diversified book of business. The group has a strong presence in the Lloyd’s market, primarily through Syndicate 33, which is one of the largest Lloyd’s syndicates based on 2018 gross written premiums (GWP). For the 2019 year of account, the syndicate’s capacity decreased to
Hiscox’s balance sheet strength is underpinned by consolidated risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The balance sheet strength assessment also considers the group’s good financial flexibility, strong liquidity profile and prudent reserving strategy.
The group has a track record of strong earnings, demonstrated by a five-year weighted average combined ratio of 93% and a return on equity of 11%, over the period 2014-2018. AM Best expects prospective underwriting performance to remain strong, with volatility due to exposure to catastrophe events partly mitigated by earnings from its more stable retail business. In 2018, the group reported strong GWP growth of 15% and a robust combined ratio of 96%, with the
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Source: AM Best