Insights
Hiscox 1Q25 trading statement
Posted 01/05/2025 – Insights
Hiscox plc has released its trading statement for 1Q25 ending 31st March 2025
Group headline figures
- Group insurance contract written premiums (ICWP) increased by 2.4% to $1,558.0m (Q1 2024: $1,521.9m) driven by continued momentum in Hiscox Retail and a return to growth in Hiscox London Market, which both grew by 4.0%
- No change in estimates for the LA Wildfires loss of $170m
- Investment result of $114.1m or a return of 1.4% year-to-date (Q1 2024: $66.9m or 0.8%)
- Hiscox Re & ILS and London Market have both written an increased volume of business at the beginning of the year to take advantage of favourable market conditions
Aki Hussain, Chief Executive Officer, said:
“The Group is capturing high quality growth. The multi-year improving growth trajectory continues in Retail, driven by growth in all parts of our Retail business and in particular excellent momentum in Europe, double-digit growth in US digital direct and US broker returning to growth. London Market growth benefitted from new commercial deals and Re & ILS has found attractive opportunities to grow net premiums at the January renewals.”
Divisional headline figures
|
|
Insurance written premiums 1Q25 ($m) | Insurance written premiums 1Q25 ($m) | Percentage premium change |
|
Hiscox Retail |
736.1 | 707.6 |
4.0% |
|
Hiscox London Market |
329.7 | 316.9 |
4.0% |
|
Hiscox Re & ILS |
492.2 |
497.4 |
-1.0% |
| Total | 1,558.0 | 1,521.9 |
2.4% |
Claims
- The group’s net reserve of $170m for the LA Wildfires comprises of $150m within Hiscox Re & ILS and $10m each for Hiscox London Market and Hiscox Retail
- Outside of the wildfires, Hiscox’s major loss experience was within expectations for the first quarter
Alpha comment
Alpha members support Hiscox syndicate 33 and SPA 6104 which are part of the Hiscox London Market and Hiscox Re & ILS divisions. Despite rate reductions of -3% for Hiscox London Market and -7% for Hiscox Re & ILS in the first quarter, growth is still targeted in both divisions while pricing remains attractive, with the expectation that conditions may be less attractive later in 2025. The rate reductions seen in the first quarter follow substantial cumulative increases since 2018 of +69% for London Market and +80% for Hiscox Re & ILS with underwriting terms and conditions remaining robust. As a reminder, Hiscox syndicate 33 and SPA 6104 issued capital providers early forecasts for the 2024 year of account being a midpoint profit of +8.0% for 33 and +10.0% for 6104. These forecasts include the LA Wildfires, which mostly impact the 2024 year of account. Updated syndicate forecasts as at 1Q25 should be released next week.
