Hiscox Re & ILS profit soars in 2024 as ICWP exceeds $1bn

Hiscox Re & ILS, the international reinsurance and insurance-linked securities arm of Hiscox, has reported a 2024 pre-tax profit of $267.5 million, up from $221.4 million in 2023, alongside an improved undiscounted combined ratio of 69%.

Hiscox Re & ILS surpassed the $1 billion insurance contract written premium (ICWP) mark in 2024, growing by 4.7% to $1.03 billion, up from $986.3 million in 2023, while net ICWP rose by 11.1% to $499.3 million, driven by additional capital deployment amid attractive market conditions. Meanwhile, the segment’s insurance service result of $165.7 million and an undiscounted combined ratio of 69.0% reflect “another year of excellent performance.”

Turning to Hiscox Retail, which includes the firm’s retail businesses worldwide — Hiscox UK, Hiscox Europe, Hiscox USA, and DirectAsia — ICWP grew by 5.1% compared to the prior year, reaching $2.5 billion.

The Retail insurance service result in 2024 was $246.5 million, a 39% increase compared to 2023, leading to an undiscounted combined ratio improvement of 2.8 percentage points to 93.6%. Profit before tax in the Hiscox Retail segment was 298.5 million, up from $256 million in 2023.

As for the Hiscox London Market segment, ICWP was $1.23 billion marking a decline of 2% from 2023.

The firm said this reflects its proactive cycle management within casualty and its exit from the space market, with the impact diminishing in the fourth quarter as the business returned to growth, driven by attractive market opportunities in property and crisis management, while rate increases for the year were 2%, bringing cumulative rate increases to 74% since 2018.

A Hiscox London Market undiscounted combined ratio of 88.6% marks the fifth consecutive year this segment has reported a ratio in the 80s, achieved despite an active loss year that included Hurricanes Milton and Helene, along with several man-made losses.

Profit before tax in this segment was down, falling to $215.0 million from $262.7 million in 2023.

Looking at Hiscox’s groupwide results for 2024, ICWP grew by $168.7 million compared to 2023, reaching $4.76 billion, largely driven by the previously mentioned Retail premium growth of $147.3 million.

Disciplined underwriting in an active loss environment resulted in an undiscounted combined ratio of 89.2% for 2024, while the firm also reported a record pre-tax profit of $685.4 million, up 9.5% year-on-year.

Commenting on the claims environment for the year, Hiscox said, “We have set aside $1.6 billion for re/insurance claims, $117 million more than in 2023 due to a more active loss environment, particularly impacting the London Market business.

“2024 was an active natural catastrophe year, with five hurricanes making landfall in the USA, flooding in Spain, Germany and central Europe, and a number of weather events in Canada. Natural catastrophe losses were within expectations, with a reduction in our initial loss estimate from Hurricane Milton offset by an increase in the amounts reserved for certain other 2024 loss events.

“In addition, there were a number of man-made losses that affected our big-ticket business in 2024. These included a net loss of $28 million from the MV Dali collision in Baltimore and a number of small- to mid-size events.”

Hiscox continued, “The start of 2025 saw several wildfires impact the Greater Los Angeles area, causing a tragic loss of life and widespread destruction. We extend our sympathies to our customers and to all of those impacted by these events.

“The Group estimates a net loss from the wildfires of around $170 million, at an industry loss of $40 billion. This event is largely a reinsurance loss with $150 million expected to be recognised in Hiscox Re & ILS, and $10 million in each of Hiscox London Market and Hiscox Retail. Our estimate, which will be booked in the first quarter of 2025, includes reinstatement premiums and does not make any allowance for subrogation.”

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