Hiscox posts 89.2% combined ratio for 2024, flags $170 million net wildfire loss

By Ryan Hewlett

Feb 27 - (The Insurer) - Hiscox grew its top line by 3.7% year on year and generated a “record” pre-tax profit in 2024, the London-listed (re)insurer said on Thursday.

The Bermuda-headquartered carrier's top line, measured by group net insurance contract written premiums (ICWP), rose to $4.87 billion in the 12 months ended December 31, 2024, up from $4.59 billion the previous year.

Growth was driven by Hiscox Retail, which generated ICWP growth of 5.1% in constant currency to $2.50 billion, and continued capital deployment in Hiscox Re & ILS, which grew by 4.7% to $1.03 billion.

This was tempered by a scaling back of its London operations, with Hiscox London Market's ICWP falling 2% to $1.23 billion.

At group level, Hiscox reported an undiscounted combined ratio of 89.2%, an improvement of 0.6 points from the 89.8% reported in 2023. Hiscox said the year-on-year improvement was driven by continued disciplined underwriting in an active loss environment.

On a discounted basis, the combined ratio improved to 84.7% in 2024, compared with 85.5% in 2023.

Hiscox has set aside $1.6 billion for (re)insurance claims in 2024, $117 million more than in 2023 due to a more active loss environment, particularly affecting Hiscox London Market.

The group also disclosed a net loss from January’s California wildfires of around $170 million, based on an industry loss of $40 billion. Hiscox noted that the event is largely a reinsurance loss with $150 million expected to be recognised in Hiscox Re & ILS, and $10 million each at Hiscox London Market and Hiscox Retail.

The investment result for 2024 was $383.9 million, down modestly on the $384.4 million reported in the prior year.

Profit before tax rose 9.5% to a record $685.4 million, with each business segment delivering strong returns.

Hiscox also announced what it described as a “step-up” in its final dividend per share of 19.6%, with a full-year increase of 14.9% in dividend per share, as well as a new special capital return of $175 million in the form of a buyback.