The Hiscox Group’s move to a Bermuda domicile seems to have paid off. The firm announced first half 2007 net pretax profits of £105.6 million ($209 million) and a 17.3 percent increase in gross premiums written to £733 million ($1.45 billion), compared to £625.1 million ($1.237 billion) in the same period of 2006.
Other financial highlights for the period included the following:
– Net earned premium increased 17.5 percent to £471.9 million [$934 million] (2006: £401.7 million [$795 million])
– Group combined ratio 84.8 percent (2006: 94.6 percent)
– Earnings per share increased to 20.3p [40.17 cents] (2006: 12.1p) [24 cents]
– Net asset value per share increased to 185.4p [$3.67] (2006: 149.8p) [$2.96]
– Dividend increased 33 percent to 4p (2006: 3p) [app. 8 cents from 6 cents]
– Investment portfolio secure and liquid
The bulletin also listed the following “Operational Highlights:”
– Increased profit driven by Hiscox Global Markets.
– Firm rates for catastrophe exposed insurance and reinsurance. Rates increasing in the UK property market but marked competition in commodity lines elsewhere. Specialty lines broadly stable.
– Regional businesses in UK, Europe and the USA continue to grow through diverse channels. Acquisition of American Live Stock Insurance Co will access new markets in the USA.
– Losses arising from floods in the UK within expectations for a UK catastrophe both in the regional and the reinsurance accounts.
Chairman Robert Hiscox commented: “A record half-year result despite a turbulent period of catastrophes in the UK and Europe. The acquisition of a US insurance company has added a further building block to our regional specialist business. We continue to build a strong insurance group balanced between reinsurance and insurance and global and regional business, well spread geographically and backed by powerful marketing to emphasize that we are different.”
The full report and additional information may be obtained on the Group’s web site at: