Hiscox Ltd has reported a 2.4% increase in group insurance contract written premiums (ICWP) for the first quarter of 2025, reaching $1.56 billion, up from $1.52 billion in Q1 2024.
The growth was led by Hiscox Retail, which expanded by 6.1% on a constant currency basis, and a return to growth in the Hiscox London Market segment, which rose by 4.0%.
The company confirmed that its previously disclosed estimate for losses from the California wildfires remains unchanged. The total net loss is reserved at $170 million, including $150 million attributed to Hiscox Re & ILS, and $10 million each to Hiscox London Market and Hiscox Retail.
Hiscox noted that this figure does not reflect any potential subrogation, though the company noted an increasing likelihood of recoveries related to the Eaton fire. Apart from the wildfire event, the company said that its overall loss experience for the quarter was within expectations.
Hiscox Retail posted ICWP of $736.1 million, compared to $707.6 million in the prior-year period, and remains on track to achieve full-year growth above 6%. The company reported that rate increases in the segment averaged 2%, though those are moderating.
Chief executive officer Aki Hussain (pictured above) highlighted continued growth, particularly in Europe and US digital direct, as well as progress in London Market and Hiscox Re & ILS.
In comparison, for the full-year 2024, Hiscox reported a profit before tax of $685.4 million. The company’s insurance contract written premium rose to $4.77 billion, up from $4.6 billion the previous year, while net insurance contract written premium increased to $3.68 billion from $3.56 billion.
Hiscox UK grew by 4.4% to $209.4 million, driven by policy count growth in the commercial segment, especially in mid-market and schemes. Two broker distribution agreements went live in the quarter, with nine more scheduled to follow later in the year. Art and private client insurance continued its double-digit growth trend.
In Europe, Hiscox recorded 8.8% ICWP growth on a constant currency basis, totaling $273.5 million. Growth was reported across geographies and product lines, supported by new distribution deals. New offerings included an e-reputation product in France and a start-up-focused product in Belgium.
In the US, ICWP rose by 4.6% to $253.2 million. The digital direct channel, US DPD, grew by 6.6% to $156.0 million, driven by new business volume and retention. The US broker channel posted 1.5% growth with ICWP of $97.2 million.
Hiscox London Market reported ICWP of $329.7 million, a 4.0% increase from $316.9 million last year. Growth came from property, marine, energy, and specialty classes. Rates across the segment declined by 3% for the first time since 2017 but remained 69% higher than 2018 levels. The property division benefited from previously written binders and new deals, while marine, energy, and specialty gained new construction business.
In casualty, the company cited rate declines of 9% in directors and officers liability due to low IPO activity. Cyber rates fell by 5%. General liability showed strengthening rates, where Hiscox reported writing new business with line size controls. The company expects further softening across its London Market portfolio but said it continues to manage underwriting accordingly.
Hiscox Re & ILS posted net ICWP growth of 9.1% to $222.1 million. However, overall ICWP in the segment declined by 1.0% to $492.2 million. Rates fell 7% in the quarter but remain up 80% cumulatively since 2018. Terms, conditions, and attachment points have largely held steady, and expectations are for slightly improved market conditions at mid-year renewals following recent catastrophe activity.
The ILS segment continued to gain quota share support from traditional and alternative capital sources. Assets under management stood at $1.3 billion as of 1 April 2025, reflecting the impact of the wildfire losses.
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