Hiscox reported an increase in written premiums in the first quarter, but warned of a “moderate” loss in the fallout from the Baltimore bridge accident.
In the first three months of the year, total written premiums for insurance contracts (PCOI) increased by 8.3 percent to $1.5 billion.
It was boosted by Hiscox’s retail division, which saw written premiums grow 5.8 per cent, as well as strong results in the UK (up 8.3 per cent) and Europe.
Hiscox reported an increase in written premiums driven by strong performance in its retail business
The insurer said that “for the first time in several years, all parts of the UK business are in growth mode.”
This was partially offset by “continued headwinds” within its US brokerage business, which saw ICWP grow 3.1 percent in the first three months of the year.
“These challenges are not new and we are confident that they will be overcome as the year progresses and our initiatives bear fruit, with profitable growth being the top priority,” the insurer said.
He said there had been “challenging market conditions” in the cyber sector and it had taken longer than expected to pivot to growth after support was resubscribed.
Shares in Hiscox fell 3.53 per cent, or 43 pence, to 1,174 pence in early trading on Thursday.
Re & ILS recorded a 19 per cent rise in written premiums to $497.4 million, while Hiscox London Market reported a 4.9 per cent drop to $316.9 million.
Hiscox said this was mainly due to the non-renewal of certain large binding agreements to focus on its open market business.
Hiscox’s claims experience in the first quarter was “well within expectations for natural catastrophe losses.”
However, it warned that it could face a “moderate” net loss due to the fallout from the Baltimore bridge accident.
Hiscox “has no direct exposure to the port’s business interruption policy or the property policy covering the bridge.”
However, Hiscox London Market participates in the reinsurance of the International Group of Protection and Indemnity Clubs, which could rise.
“No associated bookings were recorded in the first quarter as this remains an emerging event, however we expect the net loss to be moderate for the Group due to the reinsurance arrangements in place.”
Chief executive Aki Hussain said it had been a “good start to 2024, and our focus on profitable growth continues to deliver results… The outlook for the year remains positive.”
