Hives are a tough problem.
In patients with recurrent hives, a cause can be identified perhaps 50% of the time.
When it is a one-time thing it's tougher yet.
One thing that should be checked for and ruled out is an illness called cold-induced urticaria, or hives triggered by cold.
Since water conducts heat better than air, and some cases of hives progress to shock or breathing difficulties, this is a contraindication to diving, and indded can contraindicate swimming.
If your friend has had no other rashes, and can be in cold water without rashes, itching, or difficulty breathing, this is probably not the case, but would be worth discussing.
As one who has a personal mild allergy to PABA, I can tell you Doc Stein's comments are very accurate. Most people with PABA allergy will be most sensitive where the skin is thinnest.
As I said above, these are not easy questions to answer, and you may never get a complete answer.
Good luck on your search.
John