Reinsurance drives positive Q1 for Hiscox
Hiscox enjoyed positive growth momentum across most parts of the business in the first quarter, it revealed in a trading update, with its reinsurance and ILS unit and London Market business both enjoying favourable market conditions.
Its insurance contract written premiums increased by 7.4% in constant currency to $1.4 billion (2022: $1.3 billion), which it said was underpinned by an attractive rate environment across all business segments.
Hiscox Retail insurance contract written premiums increased 6.5% in constant currency to $681.3 million (2022: $670.2 million). It said this was driven by continued strong growth in Europe and solid performance in the UK and US.
Hiscox London Market returned to good growth, notably in major property, marine and terrorism, with insurance contract written premiums up 8.6% to $320.8 million (2022: $295.3 million). “Given the attractive and improving market environment we have retained more risk resulting in net insurance contract written premiums,” the company stated.
Hiscox Re & ILS, which is largely driven by Bermuda, achieved what it described as excellent growth with net insurance contract written premiums up 37.6%. It said it had deployed “additional organically generated capital to take advantage of the market, which hardened materially in the lead up to the January 2023 renewal season”. Insurance contract written premiums grew 5.0% to $418.1 million (2022: $398.2 million), lower than net growth, which it said was mainly due to the market-wide subdued ILS capital appetite, as it saw net outflows of $148.4 million in the quarter.
Aki Hussain, CEO, Hiscox, commented: “We are seeing positive momentum across the Group. For our Retail businesses, growth momentum in the UK and US is accelerating in line with expectations, and Europe continues to deliver strong double-digit increases. Hiscox London Market and Hiscox Re & ILS continue to thrive in very favourable market conditions, growing top line and materially increasing net retained premium, as we deploy our own capital to make the most of the opportunity. This combined with a much-improved investment result, means the outlook for the half year is positive.”