Hiscox (HSX) Q1 2025 TU earnings summary

Executive summary

• Group insurance contract written premiums rose 2.4% year-over-year to nearly $1.6 billion, led by 6.1% constant currency growth in Retail and a 4% increase in London Market, with Re & ILS net ICWP up 9.1%.

• Investment result reached $114.1 million, a 1.4% return year-to-date, up from $66.9 million and 0.8% in Q1 2024, driven by interest and strong coupon income.

• Share buyback program is progressing, with 2.2 million shares repurchased for $33.0 million as of 30 April 2025.

Financial highlights

• Group invested assets totaled $8.5 billion at 31 March 2025, up from $8.2 billion at FY 2024.

• Bond portfolio reinvestment yield was 4.5% with a 1.8-year duration and average A rating.

• Net loss estimate for California wildfires remains at $170 million, with $150 million in Re & ILS, $10 million each in London Market and Retail.

Outlook and guidance

• Retail is on track to deliver over 6% constant currency growth for 2025, with continued momentum expected.

• Re & ILS expects to maintain capital deployment at mid-year renewals and take rate on loss-affected business.

• Combined ratio guidance for Retail remains at 89%-94%, with operating leverage and economies of scale expected to improve efficiency.

• Market volatility is anticipated, but the short duration and high-quality fixed income portfolio positions the group well.