In a strategic move that has paid off handsomely, the insurer has reported a notable 19.9% return on equity (ROE), attributing this success to a substantial surge in revenue, insurance service results, and profits across all its business units.
Hiscox has achieved a substantial milestone with net insurance contract written premiums (net ICWP) totaling $1.945 billion, reflecting an impressive 11.4% increase. This boost is a testament to the successful execution of the company’s strategic vision. The ICWP figure itself saw a 6.3% rise to $2.617 billion, which, considering the current stage of the business cycle, aligns with expectations.
A standout achievement is witnessed in the underwriting profits (insurance service results), which have skyrocketed by a remarkable 57.9%, recording a remarkable $221.4 million. This impressive outcome can be attributed to disciplined growth and margin expansion, all within a favorable underwriting landscape.
In terms of specific business segments, the retail ICWP experienced a steady growth of 5.5% in constant currency, reaching $1.271 billion. This growth was driven by robust performances in Europe, coupled with increased momentum in the UK and US DPD. The group showcased its retail combined ratio at 93.8% on an undiscounted basis.
Hiscox London Market also stood out in the first half of the year, with net ICWP surging by 14.2% to $443.4 million. This increase was powered by attractive property rates and fresh business growth in the upstream energy and marine lines.
Hiscox Re & ILS maintained its advantageous position within the hard market conditions, capitalizing on incremental capital deployment to enhance exposure and improve the quality of its book. This strategy resulted in a remarkable 17.9% surge in net ICWP for the division, amounting to $345.1 million.
The group’s profit before tax showcased substantial growth, reaching $264.8 million from $239.4 million. Additionally, the total net reserves for loss events in the first half were well within expectations, providing a solid foundation for the company’s financial stability.
Hiscox also reported a positive investment result of $121.8 million, a stark contrast to the previous year’s results that saw a loss of $214.1 million during the same period.
Reflecting on these impressive achievements, Hiscox Group CEO Aki Hussain commented, “Our business has delivered growth in revenues and profits in every business unit, as our proactive and disciplined underwriting and favorable market conditions come together. Our portfolio of businesses, our people, and our innovative approach to meeting the evolving needs of our customers position us strongly to sustain high-quality growth and earnings.”
Hiscox’s robust financial performance stands as a testament to its strategic prowess and proactive approach in a dynamic market landscape.
