Specialist insurer Hiscox has reported an increase in Group insurance contract written premiums (ICWP) of 2.4% to $1.6 billion for the first quarter of 2025, with growth in Retail and London Market slightly offset by a decrease in the Re & ILS business when compared with the prior year.
At Hiscox Re & ILS, the company’s reinsurance and insurance-linked securities (ILS) arm, net ICWP grew by 9.1% to $222.1 million compared with $203.6 million in Q1 2024, with the firm highlighting attractive deployment opportunities at the January renewals. However, ICWP fell by 1% to $492.2 million compared with $497.4 million in Q1 2024.
During the quarter, Hiscox notes that rates fell by 7% within the segment, but adds that the business remains well-rated, with cumulative rate increases of 80% since 2018.
“Furthermore, the terms and conditions as well as attachment points have broadly held as the market remains disciplined,” says the firm.
According to Hiscox, these conditions continued to hold into the April 1st renewals, although rates did see further downward pressure. Looking ahead to the mid-year renewals, Hiscox expects conditions to be “slightly more favourable than in January” as a result of the elevated catastrophe experience over the past 12 months.
“Given substantial net growth in recent years, including at the January 2025 renewals, at mid-year we expect to maintain the level of capital deployed and take rate on loss-affected business,” adds the firm.
The Hiscox Re & ILS segment continued to build quota share support from both traditional partners and alternative capital providers, with ILS AuM of $1.3 billion as at April 1st, 2025, which reflects the impact of the California wildfires on the funds.
Commenting on the wildfires, Hiscox states that its previously disclosed estimate remains unchanged, with the Group reserving of $170 million, of which $150 million is in Hiscox Re & ILS, and $10 million is in each of Hiscox London Market and Hiscox Retail.
Outside of the wildfires, Hiscox’s loss experience was within expectations for the first quarter of the year.
Turning to Hiscox London Market, and growth returned in Q1 2025 with ICWP up 4% to $329.7 million from $316.9 million in Q1 2024, driven by strong growth in property and marine, energy and specialty.
Hiscox says that the property unit is benefitting from the property binders written in H2’24, some new commercial deals in 2025 and improving rate in flood, while more generally, the firm is seeing rates beginning to soften in the US property market.
“Looking forward, we continue to see attractive opportunities in certain lines against the backdrop of increased rate softening across the portfolio. We continue to maintain underwriting discipline, as we manage these micro-cycles across the Hiscox London Market portfolio,” says the firm.
At Hiscox Retail, growth of 4% in Q1 2025 lifted ICWP to $736.1 million from $707.6 million in Q1 2024, and the business remains on track to deliver growth in excess of 6% for 2025.
Within Hiscox Retail, Hiscox UK grew by 3.6% to $209.4 million, Hiscox Europe grew by 3.9% to $273.5 million, and Hiscox USA grew by 4.6% to $253.2 million.
“Importantly, all three geographies are growing, and momentum is expected to continue to build through the year as new deals and partnerships come on line,” says Hiscox.
In terms of investments, Hiscox generated an investment result for Q1 2025 of $114.1 million, up on the prior year’s $66.9 million, with a year-to-date return of 1.4%, compared with 0.8% in Q1 2024.
Aki Hussain, Chief Executive Officer, Hiscox, commented on the results: “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. We look forward to providing greater insight into our business at our Capital Markets Day on 22 May 2025.”
