Hiscox lifts 2024 profit forecasts for Syndicate 33 and 6104

Hiscox has increased its 2024 profit forecasts for its Lloyd’s of London Syndicate 33 and Syndicate 6104, citing stronger underwriting performance and reduced claims activity.

The specialty insurer now expects a combined underwriting profit of £110 million ($140 million) for the two syndicates, up from a prior estimate of £90 million. The upward revision reflects improved pricing across key lines of business and lower-than-anticipated claims, particularly in property and casualty segments.

Syndicate 33, Hiscox’s flagship operation, accounts for the majority of the revised profit outlook, with underwriting margins benefiting from disciplined risk selection and favorable market conditions. Syndicate 6104, a newer unit focused on specialty risks, has also contributed to the improved outlook through targeted growth in niche markets.

Hiscox did not provide a breakdown of the profit estimates by syndicate but confirmed that the revisions are underpinned by consistent pricing strength in the Lloyd’s market. The insurer’s management noted that while global economic uncertainty persists, the current pricing environment remains supportive for underwriters.

The company’s announcement follows a period of robust premium growth, with Hiscox reporting a 12% increase in gross written premiums for the first half of 2024. The insurer has maintained its focus on high-margin, specialty lines, which have outperformed broader market trends.

Hiscox’s updated guidance aligns with broader industry trends in the Lloyd’s market, where insurers have capitalized on hardening rates and reduced loss activity. The company’s shares were down 0.5% in early London trading on Tuesday, reflecting investor caution despite the positive outlook.