Hiscox Ltd has announced growth across its segments, reporting a profit before tax of US$685.4 million for the year ending December 31, 2024.
The company’s insurance contract written premium rose to US$4.77 billion, up from US$4.6 billion the previous year, while net insurance contract written premium increased to US$3.68 billion from US$3.56 billion.
The insurance service result reached US$553.5 million, compared to US$492.3 million in 2023. The investment result stood at US$383.9 million, slightly lower than the US$384.4 million recorded in the prior year. Earnings per share rose to 183.2 cents from 162.7 cents, while the total dividend per share increased to 43.1 cents from 37.5 cents.
These latest results represent the latest upward trend for the insurer. Hiscox’s performance in 2023 saw the group reporting a profit before tax of US$625.9 million, a substantial increase from $275.6 million in 2022.
Hiscox also weathered serious loss events in the previous year. The company faced a US$28 million loss due to the collapse of the Francis Scott Key Bridge in Baltimore in March 2024, resulting from a cargo ship collision. This event contributed to a combined ratio of 86.9% for the first half, slightly higher than the previous year.
The group’s combined ratio, on a discounted basis, improved to 84.7%, compared to 85.5% in 2023. On an undiscounted basis, the combined ratio stood at 89.2%, down from 89.8% the previous year. Return on equity was 19.8%, down from 21.8% in 2023.
Hiscox also reported positive prior year development of US$145.5 million, up from US$122.8 million in 2023. The Bermuda solvency capital ratio increased to 225%, compared to 212% in the previous year.
Group chief executive officer Aki Hussain (pictured above) said the company achieved another year of record profits, with continued growth in its retail business and strong performance in its big-ticket portfolio. Hussain also noted the company’s return on equity remained strong in what he described as an active loss year.
What are your thoughts on this story? Please feel free to share your comments below.
