Hiscox reports solid growth across all business units

by | Aug 9, 2023

(Sharecast News) – Global insurer Hiscox reported a robust set of interim financial figures on Wednesday, with its insurance contract written premiums rising 6.3% year-on-year to $2.72bn.
The FTSE 100 company said net insurance contract written premiums stood at $1.95bn for the six months ended 30 June – up 11.4% from the same period last year.

Significantly, its underwriting profits, also referred to as the insurance service result, grew by 57.9%, reaching $221.4m, which it put down to disciplined growth and margin expansions in a positive underwriting environment.

Moreover, the company saw growth in revenues, insurance service results, and profits across all business units, resulting in a robust annualised return on equity (ROE) of 19.9%.

Looking further into the numbers, Hiscox’s retail insurance contract written premiums rose 5.5% to $1.27bn, backed by strong growth in Europe and momentum in the UK and US direct property damage (DPD).

Notably, the US DPD insurance contract written premium grew by 7.8%.

Meanwhile, Hiscox’s London market recorded a solid first half, with its net insurance contract written premiums jumping 14.2% to $443.4m, driven by favourable rates in property alongside new business growth in energy and marine sectors.

Hiscox Re & ILS, capitalising on tough market conditions, reported a 17.9% rise in net insurance contract written premiums to $345.1m.

That growth was backed by a significant expansion in the North American natural catastrophe, retrocession, and marine books.

The company’s pre-tax profit also saw a monumental increase, rising to $264.8m from the previous year’s $25.4m.

Another key highlight was the firm’s positive investment result of $121.8m – a sharp turnaround from the loss of $214.1m in the first half of 2022.

In terms of solvency, Hiscox maintained a strong position, with a Bermuda Solvency Capital Requirement (BSCR) of 199%.

The firm reiterated that its reserves for loss events in the first half aligned with expectations, and that large losses remained within budget.

“Our business has delivered growth in revenues and profits in every business unit, as our proactive and disciplined underwriting and favourable market conditions come together,” said group chief executive officer Aki Hussain.

“Our portfolio of businesses, our people and innovation to meet the changing needs of our customers position us well to continue delivering high-quality growth and earnings.”

Reporting by Josh White for Sharecast.com.

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