Hiscox H1 profits rise despite 'more active loss environment'

7th Aug 2024 09:15

(Sharecast News) - Lloyd's of London insurer Hiscox posted a rise in first-half pre-tax profit on Wednesday despite a "more active loss environment".

In the six months to 30 June, pre-tax profit grew 7.1% from the same period a year earlier to $283.5m. This was underpinned by an insurance service result of $240.7m, up from $221.4m and an investment result of $152.4m, up from $121.8m.

Insurance contract written premiums rose 3.3% to $2.8bn, with sustained retail growth and additional capital deployed in big-ticket property, it said.

Hiscox highlighted an undiscounted combined ratio of 90.4%, up from 90.2% in the first half of last year, in "a more active loss environment".

The combined ratio is a measure of an insurer's profitability. A ratio below 100% indicates that the company is making an underwriting profit, while a ratio above means it is paying out more money in claims than it is receiving from premiums.

Chief executive Aki Hussain said: "Our business has built on the momentum from 2023 and delivered strong profits and robust growth in the first half. We are focused on deploying capital to generate profitable growth and investing in underwriting and technology capabilities to build out our competitive advantages.

"This has delivered a strong and increased underwriting result of $241m, despite a more active loss environment, and positions us well to deliver high-quality growth through the insurance cycle."

At 0915 BST, the shares were down 2.4% at 1,140.50p.