He said: "I don't think we expected to lose by that margin. Unfortunately we were chasing the game and gave away a couple of silly tries right at the end trying to run from our own five-metre line.
"At the start of the second-half we played very well for 15 minutes and at 23-17, Saracens were momentarily a little rattled I think."
Hill's side were forced to chase the game as Saracens wing David Strettle scored a quick-fire hat-trick after just 23 minutes.
But Warriors fought back thanks to tries from Josh Drauniniu and Matt Kvesic and Hill admits he was pleased with parts of the game.
He continued: "We looked good in parts. Our players were encouraged by some of the plays we made.
"We scored two tries, which is good down here, made some line breaks and kept the ball reasonably well - particularly in the first-half.
"But they are a team that are really going for the championship this year. They're hitting some quality form and they are a very good side."
Warriors play their last home game of the season at Sixways next Saturday against Harlequins, who are all but guaranteed a play-off spot.
And Hill admits his side would love to end their Sixways campaign on a high in front of the club's fans.
He added: "We've got an opportunity to sign-off at home with a win so we'd like to do that for our supporters.
"It's crucial for us to put in a strong performance against another top side and we're going to have to produce something special."