Insights
Hiscox plc has released its group result for the 2024 financial year
Posted 27/02/2025 – Insights
Group headline figures
| 2024 | 2023 | |
| Insurance contract written premium | $4,766.9m | $4,598.2m |
| Net insurance contract written premium | $3,675.6m | $3,555.8m |
| Insurance service result | $553.5m | $492.3m |
| Investment result | $383.9m | $384.4m |
| Positive prior year development | $145.5m | $122.8m |
| Profit before tax | $685.4m | $625.9m |
| Group combined ratio (undiscounted) | 89.2% | 89.8% |
| Return on equity (ROE) | 19.8% | 21.8% |
Group highlights
- Insurance contract written premium increased by 3.7% to $4,766.9m (2023: $4,598.2m)
- Record profit before tax of $685.4m (2023: $625.9m) and return on equity of 19.8% (2023: 21.8%)
- Group undiscounted combined ratio improvement of 0.6% to 89.2% (2023: 89.8%)
Aki Hussain, Group Chief Executive Officer, Hiscox Ltd, commented:
“The Group has delivered another set of excellent results and a second consecutive year of record profits. Our Retail business continues to build broad-based growth and earnings momentum, and our big-ticket portfolio has again delivered an outstanding performance, leading to a strong return on equity in an active loss year. This earnings momentum underpins substantial capital generation, creating the flexibility to pursue multiple growth opportunities and return 10% of equity to shareholders through a combination of a 20% step-up in the final dividend per share and a $175 million share buyback. This demonstrates both the power of – and confidence in – the outlook for our diversified business. I would like to thank all of my Hiscox colleagues for their dedication in delivering another strong year.”
Hiscox London Market figures
| 2024 | 2023 | |
| Insurance contract written premium | $1,229.5m | $1,254.6m |
| Net insurance contract written premium | $879.7m | £918.3m |
| Insurance service result | $141.3m | $178.8m |
| Profit before tax | $215.0m | $262.7m |
| Undiscounted combined ratio | 88.6% | 83.7% |
Hiscox London Market highlights
- Insurance contract written premium reduced by 2.0% to $1,229.5m (2023: $1,254.6m), due to a premium reduction for casualty business and exiting the space market.
- Rates increased by +2%, with cumulative rate increases of +74% since 2018. Property growth was mainly driven by commercial lines where rate increases were +8%, but partially offset by the decision not to renew a flood binder. Significant growth was achieved in terrorism following Hiscox’s rollout of its AI-enhanced underwriting solution. Rate reductions of -8% in cyber and -9% in D&O – Hiscox is managing the market cycle.
- Undiscounted combined ratio increase of 4.9% to 88.6% (2023: 83.7%) due to an active loss year including Hurricanes Milton and Helene.
Hiscox Re & ILS figures
| 2024 | 2023 | |
| Insurance contract written premium | $1,032.8m | $986.3m |
| Net insurance contract written premium | $499.3m | £449.6m |
| Insurance service result | $165.7m | $136.1m |
| Profit before tax | $257.5m | $221.4m |
| Undiscounted combined ratio | 69.0% | 69.8% |
Hiscox Re & ILS highlights
- Insurance contract written premium grew by 4.7% to $1,032.8m (2023: $986.3m)
- Rates were broadly flat with cumulative rate increases of +90% since 2018. Attachment points and terms & conditions were stable for the year
- Undiscounted combined ratio reduction of 0.8% to 69.0% (2023: 69.8%)
Reserves
- Positive prior year releases of $145.5m (2023: $122.8m)
- The confidence level of the group’s net reserves remained constant at 83% (2023: 83%)
- Hiscox continues to benefit from legacy portfolio transfers (LPTs) for casualty reserves from 2019 and prior and will pursue similar transactions where appropriate in the future
Alpha comment
Despite a year marked by significant major losses, Hiscox has reported a higher profit before tax than in 2023, when major losses were very low. Alpha members support Hiscox through Syndicate 33 (Hiscox London Market) and SPA 6104 (Hiscox Re & ILS). The London Market combined ratio for 2024 increased and overall profit is lower than for 2023, but we would expect that Syndicate 33’s first forecast for the 2024 year of account will be encouraging. Rates increased by 2% in 2024, and although some softening was observed in January 2025, rates have remained relatively stable and at a very high base. Hiscox Re & ILS delivered a particularly strong performance in 2024, with increased profits and an improved combined ratio. The Group’s reserve releases of $145.5m further reinforces Hiscox’s prudent reserving approach, with a maintained confidence reserve level at 83%. The Los Angeles wildfire losses are not included in the 2024 group accounts, but Hiscox estimates a loss of $170m, based on an industry loss of $40bn, which is in line with its initial loss estimates for Hurricane Ian ($135m on a $55bn industry loss). This suggests that the impact should be manageable given the premium growth achieved by Hiscox in recent years. $150m of this loss is expected to be a reinsurance loss (within Hiscox Re & ILS) and just $10m sits within London Market. This is another strong set of results for Hiscox.
