Global specialist insurer Hiscox posted its figures for the six months ending June 30, 2023, revealing significant growth in the underwriting division and overall better performances across its lines.
The insurer saw a 19.9% return on equity (ROE) thanks to a surge in revenue, insurance service result, and profits across every business unit. Hiscox recorded $1.945 billion in net insurance contract written premiums (net ICWP), an increase of 11.4% as it benefitted from strategy execution. ICWP itself rose by 6.3% to $2.617 billion, which, while lower than net ICWP, is to be expected at this point in the cycle.
Underwriting profits (insurance service results) soared by 57.9% to record $221.4 million, a result driven by disciplined growth and margin expansion in a favourable underwriting environment.
Retail ICWP grew by 5.5% in constant currency to $1.271 billion due to strong performances in Europe, as well as improved momentum in the UK and US DPD. In total, the group posted a retail combined ratio of 93.8% on an undiscounted basis.
Hiscox London Market also saw a surge in the first half of the year, with a net ICWP increase of 14.2%, worth $443.4 million. This was driven by attractive property rates and new business growth in upstream energy and marine lines.
Hiscox Re & ILS, meanwhile, also continued to benefit from hard market conditions as it deployed incremental capital to grow exposure and improve book quality. Net ICWP for the division shot up by 17.9%, equal to $345.1 million.
The group’s profit before tax increased to $264.8 million from $239.4 million, while the total net reserves for loss events in the first half were in line with expectations. Hiscox also had a positive investment result of $121.8 million, a clear contrast from its previous year results which saw it losing $214.1 million during the same period.
“Our business has delivered growth in revenues and profits in every business unit, as our proactive and disciplined underwriting and favourable market conditions come together. Our portfolio of businesses, our people and innovation to meet the changing needs of our customers position us well to continue delivering high-quality growth and earnings,” Hiscox Group CEO Aki Hussain said.
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