Insights
Hiscox 1H25 trading statement
Posted 07/08/2025 – Insights
Hiscox plc has released its trading statement for the first half of 2025 (1H25) ending 30th June 2025
Main highlights
- Group insurance contract written premium (ICWP) grew by 5.7% to $2,941.6m (H1 2024: $2,781.9m). All three business segments are growing with Retail contributing the majority of the growth.
- Undiscounted combined ratio of 92.6% (H1 2024: 90.4%)
- Investment result of $234.9 million (H1 2024: $152.4 million)
- Adjusted operating profit before tax of $262.0 million (H1 2024: $288.1 million), and operating ROE of 12.8% (H1 2024: 16.5%).
- Positive prior year development of $132.1m (H1 2024: $50.8m)
Aki Hussain, Group Chief Executive Officer, Hiscox Ltd, commented:
“We have delivered a strong performance in the first half with profitable growth in each of our businesses. In Retail, growth momentum has continued in line with our expectations and we are expanding margins. The benefits of our diversified business model and the quality of our underwriting ecosystem are reflected in our Group results.”
Hiscox London Market highlights
- Insurance contract written premium increased by 3.0% to $667.7m (H1 2024: $439.1m)
- Average rate decrease of -4% during H1 with cumulative rate increases of +67% since 2018
- Profit before tax of $106.9m (H1 2024: $108.1m)
- Undiscounted combined ratio of 87.9% (H1 2024: 86.9%)
Hiscox Re & ILS highlights
- Insurance contract written premium increased by 7.9% to $411.4m (H1 2024: $381.2m)
- Average rate decrease of -6% with cumulative rate increases of +81% since 2018
- Profit before tax of $54.0m (H1 2024: $86.5m)
- Undiscounted combined ratio of 99.5% (H1 2024: 77.3%)
Claims
- Hiscox loss estimate is $170m for LA Wildfires and is developing favourably
- Other than LA Wildfire, loss experience within expectations
Alpha comment
2025 has started positively for Hiscox with these interim results. Alpha members provide capital to syndicate 33 and SPA 6104, part of Hiscox London Market and Hiscox Re and ILS respectively. Despite the LA Wildfires, which are estimated to be the largest wildfire insurance loss in history at c$40bn, Hiscox reports favourable development and it is encouraging that both the London Market and Re and ILS divisions have posted sub 100% combined ratios. Rates have decreased by -4% and -6% for the respective divisions, following cumulative rate increases since 2018 of +67% and +81%, shows the strength of rate adequacy across the Hiscox portfolio. With the active part of the US windstorm season still to come, the remaining months will have a crucial impact on the final 2025 calendar year result.
