Hiscox Ltd on Thursday reported healthy growth in first quarter insurance contract written premiums despite a drop in the London market which followed the non-renewal of a large contract.

Shares in Hiscox fell 3.5% to 1,174.00 pence in London on Thursday.

Insurance contract written premiums totalled $1.54 billion in the first-quarter of the year, a rise of 8.3% from $1.42 billion a year prior.

In Hiscox Retail, there was growth of 8.1%, while in the reinsurance and insurance-linked strategy unit, it climbed 19%.

Retail was driven by a step up in growth in the UK business, as well as robust growth in US Direct & Partnerships and Europe. These positive drivers were partly offset by continued subdued momentum in the US broker business, Hiscox said.

In the Hiscox London Market division, however, contract written premiums declined 4.9%.

Hiscox explained: ‘Hiscox London Market ICWP contracted temporarily, following the non-renewal of certain large binder deals to instead write more open market business and also due to the impact of one-off accounting reclassification items. The first quarter contraction is expected to be offset by growth over the course of the year.’

Hiscox added that large natural catastrophe losses were within expectations for the first quarter.

Chief Executive Officer Aki Hussain said: ‘A good start to 2024, with our focus on profitable growth continuing to deliver. Retail momentum has improved with growth accelerating in Hiscox UK and US DPD as our initiatives achieve targeted outcomes, and solid sustained growth in Hiscox Europe. In Hiscox London Market and Hiscox Re & ILS we continue to deploy capital where we see attractive opportunities. The outlook for the year remains positive.’

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