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(Alliance News) - Hiscox Ltd on Wednesday reported a rise in premiums at the start of 2021 and an unchanged Covid-19 claims estimate, though the insurer said it has set aside USD47 million in relation to a recent US winter storm.
In addition, the company said paying a dividend for 2021 is a "priority" and it will evaluate its payout position in its first-half results.
Hiscox's gross premiums written rose by 6.3% to USD1.26 billion in the three months to March 31, from USD1.18 billion a year earlier.
"The year has got off to a good start as rates continue to strengthen in all areas. Our big-ticket businesses are benefiting from improved conditions and strong market positions. Our Retail businesses continue to benefit from the shift to digital trading," Chief Executive Officer Bronek Masojada said.
Hiscox said there was "no change" to its previous estimate for claims related to Covid-19, so this remains at USD475 million net of reinsurance.
The insurer added that it has reserved USD47 million net for winter storm Uri, which hit areas of the US, Canada and Mexico in February, with Texas particularly hard hit.
"The first quarter of the year has seen a number of natural catastrophes and large man-made events. Based on an industry loss pick of USD15 billion, Hiscox has reserved USD47 million net for winter storm Uri. The majority of the exposure is in Hiscox Re & ILS with much smaller expected losses in Hiscox London Market and Hiscox USA. The Australian floods and the Ever Given marine loss are not expected to be material events for the group," Hiscox added.
The company said that paying a dividend in 2021 "is a priority". It did not declare any payouts for 2020 and had cancelled its final dividend for 2019.
Hiscox shares were 0.5% lower at 807.40 pence each in London on Wednesday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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