Insurer Hiscox swings to interim profit

(Sharecast News) - Insurer Hiscox said on Tuesday that it swung to an interim profit as gross premiums written rose across its divisions.
In the six months to 30 June, the company made a pre-tax profit of $133.4m compared to a loss of $138.9m in the first half of last year, with gross premiums written up 8.5% to $2.4bn, driven by good growth and positive rate momentum in all three of its divisions.

Hiscox said 2020 Covid-19 net claims were unchanged at $475m, but its 2021 claims estimate was lower than expected at $17m.

The insurer declared an interim dividend per share of 11.5 cents, having not paid one the year before.

Hiscox noted the severe flash floods in the UK and continental Europe in July, which caused material damage to properties and livelihoods. "Given the high-net-worth nature of the private customers we cover in these regions, we expect an elevated level of individual claims coming through in the third quarter," it said.

Chief executive officer Bronek Masojada 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."