Hiscox

At Hiscox Group, as the mix of third-party capital adjusts with new inflows into insurance-linked securities (ILS) structures and continued planned outflows as money gets returned to investors, Hiscox CEO Aki Hussain said today that this won’t affect the firm’s underwriting risk appetite.

Hiscox ILS, the dedicated insurance-linked securities (ILS) management arm of the global re/insurer, has successfully raised gross inflows amounting to $300 million in the first-half of 2024, with capital from new and existing investors flowing to its collateralized reinsurance sidecar and ILS funds.

Assets under management at Hiscox ILS, the dedicated insurance-linked securities (ILS) unit of the Hiscox Group, slipped to $1.5 billion at April 1st 2024, as planned outflows continued to facilitate investor liquidity, but this was offset by capital raised into the firm’s new reinsurance sidecar and other ILS funds.

Aki Hussain, Chief Executive Officer (CEO) of insurer Hiscox, expects continued outflows from the firm’s insurance-linked securities (ILS) business in 2024, but with new money starting to come in and with Hiscox set to supplement the business with its own capital, the expectation is for net portfolio growth this year.

Hiscox Group had a particularly busy end to the year in the insurance-linked securities (ILS) space, with a new collateralised reinsurance sidecar and its first catastrophe bond fund launched, while its Hiscox ILS fund management unit also raised an additional $140 million of new capital for the January renewals and doubled its fee income.

According to Hiscox Group’s interim statement this morning, the firm’s insurance-linked securities (ILS) fund management unit, Hiscox ILS, has delivered record fund performance so far in 2023, while maintaining stable assets under management (AUM) in the third-quarter.

Hiscox Group disclosed this morning that its Hiscox ILS insurance-linked securities (ILS) fund management unit experienced some further outflows in the last quarter, ending the half-year with total ILS assets of $1.7 billion.

Insurance-linked securities (ILS) capital providers need to see “proof-points” of the market delivering on its promises and ultimately returns, before any meaningful inflows return to the collateralised reinsurance side of the ILS market, Hiscox Group CEO Aki Hussain explained today.

In reporting its results this morning, Hiscox Group disclosed that its Hiscox ILS business experienced $148.4 million in net outflows of capital during the first-quarter of 2023, which the company said was “consistent with our expectations of a general trend in the sector.”

Hiscox Group reported this morning that its insurance-linked securities (ILS) assets under management of the Hiscox ILS unit are stable at $1.9 billion as of the end of 2022, despite some outflows experienced in the second-half of the year.