Hiscox swings back to profit after insurance premium rates rise

·1 min read

Insurer Hiscox has bounced back to a profit for the first half of the year and resumed its dividend for shareholders.

Shares in the London-listed firm climbed on Tuesday morning after it reported a pre-tax profit of 133.1 million US dollars (£95.7 million) for the six months to June 30.

It represented a return to the black after it posted a 138.9 million dollar (£99.9 million) loss in the same period last year.

Hiscox said its recovery was boosted by an improvement in rates across its operations while Covid-related claims so far this year have been below expectations.

Last year, the company tumbled to a loss after it was faced with 475 million dollars worth of pandemic-related claims.

It said it has been impacted by 17 million dollars in claims so far.

Meanwhile, the group said it has also benefited from a rise in insurance premium rates this year, with increases across recent months for cyber, product recall and space lines.

The update comes two weeks after the insurance firm said that its chief executive Bronek Masojada will retire at the end of the year after two decades leading the business.

He 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 firepower, new leadership and talent to capture the many opportunities ahead.”

The insurer’s board said it has therefore approved a decision to resume dividends with an interim payment of 11.5 cents per share to investors.

Shares were 3.7% higher at 897.4p in early trading.

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