Hiscox

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.

Hiscox Group reported its results this morning, saying that net flows to its insurance-linked securities (ILS) funds were broadly stable for the third-quarter, but noting that after hurricane Ian investment sentiment has been impacted to a degree.

Kathleen Reardon, Chief Executive Officer of Hiscox Re & ILS, the international reinsurance and insurance-linked securities (ILS) arm of the Hiscox Group, recently explained to Artemis that the firm has ambitions to continue growing its ILS operation.

The relative performance of Hiscox’s insurance-linked securities (ILS) funds drove investor interest in deploying more capital to them, leading to the significant fundraising success reported recently, Hiscox Group CEO Aki Hussain explained.

Hiscox ILS, the insurance-linked securities (ILS) and collateralised reinsurance underwriting and investment management unit of the Hiscox Group, had significant fund-raising success through the second-quarter of the year, lifting its ILS assets under management to $1.9 billion.

Hiscox ILS, the insurance-linked securities (ILS) and collateralised reinsurance underwriting and investment management unit of the Hiscox Group, raised investor funds to deploy into specific opportunities around the mid-year reinsurance renewals.

Hiscox Re & ILS, the reinsurance and third-party capital focused unit of the global insurer, has been taking underwriting actions following the losses of the last two years, but isn’t convinced anticipated rate rises in Florida will be sufficient.

Hiscox said that it has continued to see sustained demand for its Hiscox Re ILS funds, despite the impacts of major losses over the last year and the firm has launched a new ILS strategy in January with a focus on accessing primary insurance returns.

The Hiscox Re ILS funds grew their assets under management again in the third-quarter of 2018, a period when parent Hiscox continued to find opportunities for premium growth, although at a slower rate than the start of the year.