The Lloyd's of London insurer said the provisions were for expected losses primarily from its portfolio of political violence, war, and terror, and that sanctions against Moscow had little impact on the London-listed group.
Rising premium rates have aided the British insurance industry's gradual recovery from large claims during the pandemic, but Russia sanctions and the devastation in Ukraine could upset the momentum as businesses file claims to cover crisis losses.
Hiscox said in a first-quarter trading update on Thursday that losses were minimal, despite a 10.3 percent increase in overall gross premiums written to $1.39 billion for the three months ended March 31.
Chief Executive Officer Aki Hussain stated that the company is assisting customers who have been affected by the crisis.
Hiscox, which underwrites risks ranging from natural disasters to cyberattacks to kidnappings and art theft, also stated that its direct investment exposure to Russia and Ukraine had been reduced to approximately $3 million in Ukrainian bonds.
S&P Global, a ratings agency, predicted losses in the specialty insurance market of $16 billion to $35 billion as a result of the geopolitical conflict in late March, including claims in aviation, cyber, political risk, and marine war insurance.
Hiscox rival Lancashire estimated net losses in Ukraine at $20 million to $30 million last month.