Hiscox reports solid first-quarter written premium growth

(Sharecast News) - Hiscox reported a 2.4% year-on-year increase in group insurance contract written premiums (ICWP) on Thursday, to $1.56bn in the first quarter of 2025, supported by strong growth in its Retail division and a return to growth in the London market. The FTSE 100 insurance group maintained its previously-disclosed California wildfires loss estimate, and posted an investment return of $114.1m for the period, equivalent to 1.4% year-to-date.

Hiscox Retail grew by 6.1% in constant currency to $736.1m, with all regions contributing to the performance.

In the UK, premiums rose 4.4% to $209.4m, driven by policy count growth in commercial lines and momentum from new broker distribution deals.

Art and private client lines also posted double-digit growth.

Europe saw ICWP increase by 8.8% to $273.5m, reflecting strength across channels and new product launches.

In the US, retail premiums grew 4.6% to $253.2m, led by a 6.6% increase in the digital direct platform and renewed growth in broker channels.

The London market division saw ICWP rise 4.0% to $329.7m, buoyed by strong performance in property, marine, energy and specialty lines.

Rates declined for the first time since 2017, falling 3% in aggregate, but remained 69% higher than in 2018.

Hiscox noted ongoing rate softening in casualty and cyber, while maintaining a disciplined underwriting approach across all classes.

Hiscox Re and ILS posted a 9.1% increase in net ICWP to $222.1m, capitalising on opportunities at the January renewals despite a 7% rate decline.

Total ICWP for the unit fell slightly to $492.2m.

Terms and conditions remained strong, with the company expecting slightly more favourable conditions at the mid-year renewals.

Assets under management in its ILS business stood at $1.3bn, impacted by California wildfire-related losses.

The group said its previously-announced net loss estimate for the California wildfires remained unchanged at $170m.

That included $150m allocated to Hiscox Re and ILS and $10m each to the London market and retail divisions.

The estimate excluded potential subrogation recoveries.

Hiscox said its investment performance was supported by coupon and cash income from a conservatively positioned fixed income portfolio with an average credit rating of 'A'.

The group's $8.5bn in invested assets yielded 4.5% on reinvestment, and maintained a duration of 1.8 years.

Hiscox said the portfolio showed resilience amid rising market volatility triggered by recent US tariff announcements.

As part of the $175m share buyback programme announced in February, Hiscox said it had repurchased 2.2 million shares for around $33m by the end of April.

The group said it remained well capitalised, with flexibility to deploy capital selectively across business lines while maintaining financial discipline.

"The group is capturing high quality growth," said chief executive officer Aki Hussain.

"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."

Hussain said London market growth benefitted from new commercial deals, and Re and ILS had found attractive opportunities to grow net premiums at the January renewals.

"We look forward to providing greater insight into our business at our Capital Markets Day on 22 May 2025."

At 1043 BST, shares in Hiscox were down 0.41% at 1,094.53p.

Reporting by Josh White for Sharecast.com.