Bermuda-based specialist insurer Hiscox has reported a 12% increase in gross written premium (GWP) to £561.7 million ($1.1 billion) for the March quarter.

CEO Bronek Masojada has welcomed the “excellent start to the year” in a difficult market.

“While the market has been tough, with a reduction in pricing in the big-ticket businesses, we have continued to grow in our specialty lines and expand our [insurance-linked securities] business,” he said.

Rates in retail insurance lines are “stable, with sustainable margins”, according to Mr Masojada. But rates for larger insurance risks, including big-ticket US property, aviation and offshore energy segments, are under pressure. 

“The group maintains a policy of walking away from unprofitable business,” he said.

The “ongoing benign claims environment” continues to put pressure on reinsurance rates, with US catastrophe rates down 10% in the first quarter.

Insurance website DirectAsia.com, which Hiscox acquired last year, is “developing as expected”. It delivered gross premium income of $US7.3 million ($9.1 million) for the March quarter.

Hiscox Re remained “broadly stable”, with GWP of $US240.2 million ($299 million), up 1.3% on the corresponding period last year.