Hiscox Re & ILS has reported a profit before tax of $267.5 million in the 2024 fiscal year, sharply up from the 2023 figure of $221.4 million.

The result for the reinsurance businesses in London and Bermuda of Bermudian-headquartered Hiscox Group, and insurance-linked securities activity written through Hiscox ILS, came as the group reported a record profit before tax of $685.4 million — up 9.5 per cent year-on-year, and with a return on equity of 19.8 per cent.

Hiscox Re and ILS topped the billion-dollar mark in insurance contract written premium at $1.03 billion, up 4.7 per cent compared with the 2023 total of $986.3 million.

Net insurance contract written premium was $499.3 million, up 11.1 per cent on the 2023 total of $449.6 million.

The combined ratio was 65.7 per cent (2023: 68.3 per cent).

The company said ILS assets under management at January 1 were $1.4 billion (January 1, 2024: $1.6 billion) after planned capital returns and new inflows of $460 million.

Aki Hussain, group chief executive, Hiscox Ltd, said: “The group has delivered another set of excellent results and a second consecutive year of record profits.

“Our retail business continues to build broad-based growth and earnings momentum, and our big-ticket portfolio has again delivered an outstanding performance, leading to a strong return on equity in an active loss year.”

Group-wide, Hiscox reported that insurance contract written premium grew by 3.7 per cent or $168.7 million to $4.77 billion (2023: $4.6 billion), driven by retail premium growth of $147.3 million.

The company said disciplined underwriting in an active-loss environment resulted in an undiscounted combined ratio of 89.2 per cent (2023: 89.8 per cent).

Hiscox reported an investment result of $383.9 million (2023: $384.4 million).

The group said it estimates a net loss from the Greater Los Angeles wildfires in January of about $170 million, at an industry loss of $40 billion.

Hiscox said the event is largely a reinsurance loss, with $150 million expected to be recognised in Hiscox Re & ILS, and $10 million in each of Hiscox London Market and Hiscox Retail.

The company said its estimate, which will be booked in the first quarter of 2025, includes reinstatement premiums and does not make any allowance for subrogation.