Hiscox reports rise in premiums – but warns of ‘moderate’ loss from fallout of Baltimore Bridge crash

Hiscox reported a rise in written premiums in the first quarter but warned of a ‘moderate’ loss from the fallout of the Baltimore Bridge crash.

In the first three months of the year, total insurance contract written premiums (ICWP) increased 8.3 per cent to $1.5billion.

It was bolstered by Hiscox’s retail division which saw written premiums grow 5.8 per cent, as well as strong performances in the UK – up 8.3 per cent – and Europe.

The insurer said that ‘for the first time in a number of years all parts of the UK business are in growth mode’.

This was partially offset by ‘continued headwinds’ within its US broker business, which saw ICWP grow 3.1 per cent in the first three months of the year.

‘These challenges are not new and we are confident they will be overcome as the year progresses and our initiatives bear fruit – with profitable growth remaining the key priority,’ the insurer said.

It said there had been ‘challenging market conditions’ in cyber and it had taken longer than expected to pivot to growth after the back was re-underwritten.

Shares in Hiscox fell 3.53 per cent, or 43p, to 1,174p in early trading on Thursday.

Re & ILS posted a 19 per cent increase in written premiums to $497.4million while Hiscox London Market reported a 4.9 per cent fall to $316.9million.

Hiscox said this was mostly due to the non-renewal of certain large binder deals to focus on its open market business.

Hiscox’s claims experience in the first quarter were ‘well within expectations of natural catastrophe losses.’

However it warned that it could face a ‘moderate’ net loss due to the fallout from the Baltimore Bridge crash.

Hiscox has ‘no direct exposure to the business interruption policy of the port or the property policy covering the bridge’.

However Hiscox London Market participates on the reinsurance for the International Group of Protection and Indemnity Clubs, which could rise. 

‘No associated reserves were booked in the first quarter, as it remains an emerging event, however we expect the net loss to be moderate for the Group due to the reinsurance arrangements in place.’

CEO Aki Hussain said it had been a ‘good start to 2024, with our focus on profitable growth continuing to deliver… The outlook for the year remains positive.’