HISCOX EXITS CASUALTY REINSURANCE

Hiscox is to exit the casualty reinsurance market. The Bermuda-based carrier said “challenging market conditions” meant it was no longer “sustainable” to write the class. Hiscox, which currently writes casualty reinsurance through its Hiscox Re and ILS unit, will cease writing the business from January 1. Its existing casualty reinsurance portfolio will be run off. The company’s departure from the market comes amid widespread concerns about pricing and reserving in casualty business. Underwriters have warned that rates have fallen to a point where the market is now “underwater” and while they are rising in some lines and geographies, the picture is mixed.