A.M. Best Affirms Ratings of Hiscox Ltd and Its Subsidiaries

LONDON--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of “a+” of Hiscox Insurance Company (Bermuda) Limited (Hiscox Bermuda), Hiscox Insurance Company Limited (Hisco) (United Kingdom), Hiscox Insurance Company (Guernsey) Limited (Hiscox Guernsey) and Hiscox Insurance Company, Inc. (HICI) (Chicago, Illinois, USA). Concurrently, A.M. Best has affirmed the ICR of “bbb+” of Hiscox Ltd (Hiscox) (Bermuda), the ultimate parent holding company of the Hiscox group of companies. The outlook for the above ratings is stable.

A.M. Best has also affirmed the FSR of A (Excellent) and the ICR of “a+” of Lloyd’s Syndicate 33 (United Kingdom), which is managed by Hiscox Syndicates Limited (HSL). The outlook for both ratings remains positive.

The ratings of Hiscox, Hiscox Bermuda and Hisco reflect the Hiscox group’s strong consolidated risk-adjusted capitalisation and robust performance record, as demonstrated by an average five-year combined ratio of 88%. Hiscox pursues a successful strategy of balancing volatile international catastrophe and large loss-exposed insurance and reinsurance business with more stable local retail business, which has supported its profitable performance in each of the past five years.

Prospective performance is expected to remain good, although a return to average catastrophe experience and continued weaker pricing in the reinsurance sector are likely to lead to lower earnings, compared with the strong years of 2012-2014.

The ratings of Hiscox Bermuda and Hisco factor in the strategic importance of both companies to the Hiscox group. Each company has established a track record of good operating performance and has made a positive contribution to overall earnings during the past five years. Hiscox Guernsey and HICI receive explicit support from Hiscox Bermuda in the form of reinsurance protection.

The affirmation of the ratings of Lloyd’s Syndicate 33 reflects the underlying strength of the Lloyd’s market, as well as the syndicate’s strong performance record and enhanced financial flexibility from the support of Hiscox, which provides 72.5% of the syndicate’s capacity through its corporate member.

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151210006183/en/

A.M. Best
Konstantin Langowski, +(44) 20 7397 0318
Financial Analyst
[email protected]
or
Susan Molineux, +1-908-439-2200, ext. 5829
Senior Financial Analyst
[email protected]
or
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
[email protected]
or
Jim Peavy, +1-908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best

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