7th Nov 2019 14:28
(Alliance News) - Hiscox Ltd on Thursday clarified the medium term outlook given in its quarterly update on Monday, saying the market opportunity for its Retail arm remains "significant".
Shares in the FTSE 100-listed insurer were down 14% in London in afternoon trade on Thursday at 1,192.00 pence each. By far the worst performer in the blue chip index.
On Monday, Hiscox said it expects a combined ratio of between 97% and 99% for its Retail unit in 2019. Hiscox reported a group combined operating ratio of 94.9% in 2018. Any combined ratio below 100% means an insurer made a profit from its underwriting.
The insurer added, that over the medium term, it is targeting a group combined ratio of between 90% and 95%.
Then on Thursday, Hiscox clarified it expects a ratio between 97% to 99% in 2019, a ratio between 96% to 98% in 2020, between 95% to 97% in 2021 and between 90% to 95% in 2022.
"At a meeting for analysts on Wednesday November 6, responding to questions requesting clarification over the meaning of medium term, the group's management team described an expected return to a target range of underwriting profitability for Hiscox Retail with a progressive improvement of 1% to 2% per annum over the next two to three years," the insurer explained.
Hiscox said this did not constitute inside information, it was merely clarifying the medium term outlook given on Monday.
The company added: "Hiscox believes that these are conservative expectations, which of course it will aim to exceed. The Retail market opportunity for the group remains significant and the growth engine of the business remains intact."
By Paul McGowan; [email protected]
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