Highlights from Hiscox’s Q2’24 earnings call

Hiscox held its Q2’24 earnings call on Aug 7, 2024, led by Group CEO Aki Hussain. Key highlights include:

• In the first six months of this year, Hiscox added $90 million to its top line, with $77 million coming from its retail business.

• Growth in US Digital Partnerships and Direct (DPD) business moderated in Q2 due to variable performance from a few established partners. Hiscox is actively working with these partners to regain momentum in the second half of the year.
• The US broker business saw a 4.8% revenue decrease, as some specialist lines faced challenging market conditions.
• Hiscox spent $50 million on marketing in the first half of the year, a more than 30% increase compared to last year, focusing primarily on brand marketing to build long-term recognition rather than immediate growth.
• Hiscox is collaborating with partners on joint marketing efforts set to launch soon.
• New business formation in the US remains strong, with approximately 33.5 million businesses to target.
• Nicholas Johnson from Deutsche Bank questioned the return on marketing investment and the potential continuation of growth in the London market into 2025. Hussain explained that the $50 million marketing spend included both immediate growth-driven acquisition marketing and long-term brand marketing, justified by high retention rates in their retail business. Regarding the London market, he noted strong rates and expected growth to continue in the second half, with more clarity on 2025 to come later.
• Somewhat related, Jim Whetstone, who spent over 14 years at Hiscox before joining rival Next Insurance as head of product, has left after just 9 months. According to LinkedIn, he’s now VP of Programs at GUARD.