Bermuda-based Hiscox says growth may ease this quarter after its gross written premium increased 14.3% to $US3.04 billion ($4.2 billion) in the first nine months.

“We have had strong growth, but as the market remains challenging we will remain disciplined, and I expect our growth to moderate over the balance of the year,” the specialty insurer’s CEO Bronek Masojada said.

Hiscox London market rates increased 5% across the portfolio, with double-digit rises in major property, while Lloyd’s “decile 10” turnaround directive has forced the whole market to take action in unprofitable areas.

“Cargo business, for example, has seen much-needed rate improvement of more than 20% since August,” Hiscox said.

Overcapacity continues to drive pricing pressure in cyber and terrorism classes.

Hiscox Re and insurance-linked securities rates in US catastrophe-exposed businesses have recorded mid-single-digit gains, while rates in the international book are slightly down.

“Looking ahead to January and further into [next year’s] renewals we expect the market to recognise material adverse development from the hurricanes of [last year] and the recent events in the US and Japan,” it says.

Hiscox has reserved $US125 million ($173 million) to cover claims and reduced profit commissions from hurricanes Florence and Michael, plus typhoons Jebi and Trami.

The group also recorded a large marine loss of $US13 million ($18 million). Hiscox USA has experienced a higher frequency of directors’ and officers’ claims, and there has been an uptick in subsidence in the UK and Ireland after a particularly dry summer.

Hiscox Retail has gained its millionth retail customer, while a new European subsidiary will start writing business from January 1.