Hiscox Ltd on Thursday said it has maintained a $170 million net loss reserve for claims related to the recent California wildfires, with no changes made to previous estimates, while reporting premium growth and a strong investment performance in the first quarter of 2025.
The Hamilton, Bermuda-based business insurer said $150 million of the wildfire reserve sits in its reinsurance unit, Hiscox Re & ILS, while $10 million each is allocated to Hiscox London Market and Hiscox Retail. Hiscox noted it has not yet factored in any potential subrogation despite increasing prospects for recoveries tied to the Eaton fire.
Outside of wildfire-related costs, loss experience for the first quarter was in line with expectations, the company said.
Group insurance contract written premiums rose 2.4% year-on-year to $1.56 billion from $1.52 billion. Growth was driven by a 6.1% increase in Hiscox Retail premiums at constant currency, as well as a return to growth in the London Market unit. Re & ILS premiums declined 1.0%, though net written premiums grew 9.1%.
Hiscox also reported a first-quarter investment result of $114.1 million, up from $66.9 million a year earlier, equating to a year-to-date return of 1.4%. The group’s invested assets totalled $8.5 billion at March-end.
Chief Executive Officer Aki Hussain said the business is seeing ‘high quality growth,’ highlighting double-digit expansion in its US digital direct operations and strong progress in Europe. ‘We look forward to providing greater insight into our business at our capital markets day on May 22,’ he added.
The group said it remains well-capitalised, with ample liquidity and capital flexibility. Its $175 million share buyback is ongoing, with 2.2 million shares repurchased as of April 30 for approximately $33 million.
Shares in Hiscox were down 0.3% at 1,095.50 pence in London on Thursday morning. The wider FTSE 100 index was down marginally.
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