Hiscox full-year profit jumps 64%
Hiscox posted a surge in full-year pre-tax profit as gross written premiums grew and the Lloyd's of London underwriter benefited from favourable currency moves.
FTSE 250
19,601.98
17:09 25/04/24
FTSE 350
4,434.34
17:09 25/04/24
FTSE All-Share
4,387.94
16:49 25/04/24
Hiscox Limited (DI)
1,203.00p
16:40 25/04/24
Insurance (non-life)
3,614.78
17:09 25/04/24
For the year to the end of December, pre-tax profit increased 64% to a record £354.4m, as gross written premiums rose 23.6% to £2.4bn and net premiums came in at £1.7bn from £1.4bn the year before
Investment return was 1.9% versus 1.0% the year before and the combined ratio totalled 84.4% compared to 85% in 2015. A ratio below 100% signals the company is making an underwriting profit, while a ratio above means it is paying out more in claims than it is receiving in premiums.
The company said it saw foreign exchange gains of £152.4m, up significantly from £15.2m in 2015
Hiscox declared a final dividend of 19p per share, taking the total payout to 27.5p for the year, up 15%.
Chief executive Bronek Masojada said: "This is a good result, flattered by foreign exchange and boosted by a strong investment return. Our retail business has come of age, driving growth and profitability for the group.
"This gives us options and, although there are uncertainties in both the insurance and political environments, we have the right people, footprint and financial power to adapt. We will remain focused and disciplined where margins are shrinking and invest where we see opportunities for long-term profitable growth."
Also on Monday, Hiscox said it is in discussions with regulators in two European Union countries about setting up a new insurance base so it can continue to do business in Europe after the UK leaves the EU.
"Hiscox has been planning for a Brexit in which the UK will have regulatory equivalence with the EU-27, but no passporting or freedom of services. This means that to continue to conduct business in Europe we will have to incorporate a new carrier within the EU-27. Our European business employs 300 people, underwrites £174.7m in premiums and has a combined ratio of 86.3%, so we have an incentive to retain and expand this business."
At 0846 GMT, the shares were up 0.3% to 1,068p.