- Hiscox reports rise in written premiums for Q1
- US broker division faces “continued headwinds,” impacting growth
- “Moderate” loss anticipated from Baltimore Bridge collapse fallout
Although written premiums increased in the first quarter, Hiscox warned of a “moderate” loss due to the aftermath of the Baltimore Bridge disaster.
For the initial quarter of the year, there was an 8.3 per cent surge in total insurance contract written premiums (ICWP), which reached $1.5 billion.
It was bolstered by Hiscox’s retail division which saw written premiums grow 5.8 per cent, as well as robust performances in the UK – up 8.3 per cent – and Europe.
For the first time in a number of years, all sectors of the UK business are in growth mode,” stated the insurer.
Continued headwinds’ within its US broker division, which contributed to ICWP’s 3.1% growth in the first quarter of the year, partially offset this.
The insurer stated, “These obstacles are not novel, and we are certain they will be surmounted as the year advances and our endeavors produce results; profitable expansion will continue to be our foremost concern.”
It stated that “challenging market conditions” in the cyber sector had prevented it from pivoting to growth as quickly as anticipated following the re-underwriting of the backlog.
Hiscox shares decreased by 3.53 per cent, or 43 pence, to 1,174 pence in early trading on Thursday.
Written premiums for Re & ILS increased by 19% to $497.4 million, whereas they decreased by 4.9% for Hiscox London Market to $316.9 million.
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According to Hiscox, this was primarily the result of significant binder deals not being renewed to concentrate on the open market business.
The claims experience of Hiscox during the initial quarter was “substantially in line with anticipated losses from natural disasters.”
However, it warned that it could face a ‘moderate’ net loss due to the fallout from the Baltimore Bridge collapse.
Hiscox does not have any direct liability to the port’s business interruption policy or the property policy that protects the bridge.
Nevertheless, due to Hiscox London Market’s involvement in the reinsurance for the International Group of Protection and Indemnity Clubs, the premium may increase.
“As this is an emerging event, no associated reserves were recorded in the first quarter; however, due to the reinsurance arrangements in place, we anticipate the net loss to be moderate for the Group.”
2024 has gotten off to a good start, with our focus on profitable growth continuing to deliver,” said CEO Aki Hussain. The prognosis for the coming year continues to be optimistic.
