Despite increasing competition, falling rates, and the Brexit issue, insurance provider
Hiscox managed to survive the first half of 2016.
According to
Investors Chronicle, it was thanks to Hiscox’s focus on niche markets and new businesses that the company’s net premiums rose by 8%, but exclude a £87.3-million boost to earnings from currency movements. Pre-tax profits also dropped by 21% to £119m.
The Lloyd’s of London underwriter was able to balance its international “catastrophe-exposed” business with local and less volatile offerings. Hiscox’s retail arm was reportedly its biggest profit contributor for the first half of 2016, as the company introduced new insurance products for vintage cars, home renovations, and cyber-attacks.
Hiscox’s diversification offset its lower premiums in the special risks subdivision, especially since the weakened mining and oil markets deterred business travel to high-risk areas. Fortunately, the company’s London business unit managed to endure pressure on rates in aviation, energy, and luxury property.
The company, however, took a £9.1-million hit in the first half of the year—the total result of various major disasters in countries the company operates in. Such disasters include the recent wildfires in Canada, flooding in Texas, and earthquakes in Japan and Ecuador.
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