Hiscox group interim 2021 results and trading statement

Hiscox mid-year results show a “Return to profitable growth”

Hiscox which manages syndicates 33, 6104 and 3624 has today reported a pre-tax profit of $133.4m for H1 2021 (H1 2020: $138.9m loss) and confirmed the favourable market conditions declared by peers.

Highlights include:

• Gross premium up by 8.5% to $2,426.2m (2020: $2,235.5m)
• Positive rate movement in all three divisions; Hiscox Retail, Hiscox London Market and Hiscox Re & ILS
• 2020 Covid claims unchanged at $475m; 2021 estimate lower than anticipated at $17m
• Interim dividend resumed at 11.5₵ per share with progressive dividend policy going forward
• Group combined ratio 93.1% (2020: 114.6%)
• Strong reserves at 11.3% above actuarial estimate (2020: 9.6%)

Hiscox London Market, Hiscox’s Lloyd’s platform has reported encouraging results;

• GWP up 9.7% to $609.9m (2020: $555.9m)
• Pre-tax profit $87.3m (2020: $16.3m)
• Combined ratio 81.7%

Underwriters at Lloyd’s have delivered 12% average growth across the portfolio, with 15 of 17 lines enjoying price rises and 11 lines benefitting from double-digit rate increases. "London Market rates are up 20% in 2020, c.43% compound rate growth since 2017."

Bronek Masojada, Chief Executive Officer, Hiscox Ltd, who will retire at the end of this year, commented:

“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.”

Robert Childs, Chairman, commented:

“I am optimistic about the outlook for the rest of the year. We have turned a corner, our business performance is on track and the course correction actions will continue to earn through. While the recent extreme weather events, such as flash floods in Europe and wild fires in North America, are a stark reminder that climate change is driving increasing weather volatility, our business is strongly capitalised with financial flexibility as we enter the annual hurricane season.”

The Press Release can be viewed in full on the Hiscox website; click here for access. and the slides shown at the presentation to analysts' are available here.