27th Jul 2015 14:35
LONDON (Alliance News) - Hiscox Ltd on Monday said the move to grow its retail specialty businesses has been of great benefit, with the specialty insurer expecting the tough environment for big-ticket insurance and reinsurance to continue into 2016, as its results showed an increase in pretax profit for the first half of 2015.
Hiscox said it is too soon to say much about potential capital returns for 2015, due to the unpredictability of Mother Nature, with the insurer noting the start of the hurricane season and the unpredictability of earthquakes. In addition, Solvency II, the new European insurance rules coming into force at the start of 2016, investment and growth are "increasing" the insurer's capital requirements, the company said.
"We are reaping the benefits of our growing retail specialty businesses in the UK, Europe and the USA. Although conditions for reinsurance and big ticket insurance remain tough, our teams have demonstrated their creativity and determination to succeed. Hiscox has the brand, distribution and talent for a bright future," Chief Executive Bronek Masojada said in a statement.
Hiscox, which is headquartered in Bermuda and listed on the London Stock Exchange, underwrites insurance through three main divisions: Hiscox Retail, Hiscox London Market and Hiscox Re.
"The balance and diversity of our business, has long been a key driver of the group's profitability. Our retail businesses have plenty of room for profitable growth and will continue to find new opportunities where others find the conditions more challenging," Chairman Robert Childs said in a statement.
The specialty insurer said it made a GBP135.1 million pretax profit in the six months ended June 30, compared with GBP124.6 million in the corresponding period of the prior year.
Gross premiums written increased to GBP1.10 billion in the first half, compared with GBP978.9 million in the same part of the prior year.
Its combined ratio, a key measure of underwriting profitability, crept up to 82.5% from 82.0% year-on-year, with any percentage below 100% representing an underwriting profit.
Foreign exchange losses narrowed to GBP15.7 million from GBP16.4 million year-on-year, hitting pretax profit as
Hiscox increased its interim dividend to 8.0 pence per share from 7.5p.
Shares in the insurer were down 3.8% at 896.00 pence Monday afternoon in London.
By Samuel Agini; [email protected]; @samuelagini
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