Hiscox Ltd reported rate increases for its reinsurance and London market businesses during the first quarter.

The Bermudian-based insurer and reinsurer said its gross premiums written grew by 3.3 per cent to $1.165 billion from $1.157 billion in the same period a year earlier.

Hiscox Re and ILS, whose main operation is based in offices in Wessex House, on Reid Street, saw rate increases of about 2 per cent across its portfolio, with retrocession and risk excess accounts achieving the highest rate increases.

“Rates in US catastrophe-exposed business are up low single digits, while pressure continues in the international book where rates are down slightly in aggregate, despite increases of more than 25 per cent on loss-affected Japanese business at the April renewals.

The division’s gross written premiums fell by 4.6 per cent to $342.8 million. The main driver of the decrease was a reduction of capital available to be deployed by Hiscox’s insurance-linked securities funds after significant losses last year, the company said.

For Hiscox London Market, rates rose by about 4 per cent year to date. Hiscox said the cumulative impact of two consecutive years of heavy market losses and the Lloyd’s “Decile 10” directive continued to drive rate improvement in the majority of classes.

“Cargo, marine hull and US public company directors and officers’ have seen the most significant rate rises, all up double digits, while pricing in property lines continues to firm,” Hiscox said. “Pricing in cyber and terrorism remains competitive.”

The company’s investment return for the quarter was $84.2 million, or 5.3 per cent on an annualised basis. Assets under management at the end of the quarter totalled $6.334 billion.