Business

Hiscox posts H1 profits of $133.4m

For the six-month period, pre-tax profits reached $133.4m (£95.8m) whilst gross premiums written rose to $2.42bn (£1.73bn) from $2.23bn (£1.6bn) in 2020

Hiscox has revealed it has returned to profit for the six months ended 30 June 2021 from a previous year’s loss of $138.9m (£99.8m).

For the six-month period, pre-tax profits reached $133.4m (£95.8m) whilst gross premiums written rose to $2.42bn (£1.73bn) from $2.23bn (£1.6bn) in 2020.

The increase was primarily driven by “good growth and positive rate momentum” in all three divisions.

Meanwhile, 2020 Covid-19 net claims “remained unchanged” at $475m (£341m) whilst its pandemic-related claims estimate for 2021 were “lower than expected” at $17m (£12.2m).

For the UK division, net premiums written were up 16.7% and delivered pre-tax profits of $87.3m (£62.7m) from $16.3m (£11.7m) in 2020.

Broker commercials in the UK also performed “well” with a number of large schemes launched in the first six months of the year.

However, new business generation was “negatively impacted” by the effects of Covid-19 and government restrictions on specific sectors of the economy.

Due to the reduced activity in events, entertainment and hospitality it had an approximately 2% “adverse impact” on the group’s UK’s growth in the first half of the year, although the hospitality and events market has started to open again in July.

Bronek Masojada, CEO, Hiscox, said: “This is a good result driven by strong performances across all our businesses. Our investments in digital trading continues to bear fruit and market conditions are the best we have experienced for many years. Hiscox has the fire-power, new leadership and talent to capture the many opportunities ahead.”

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