Hiscox results fall slightly, despite growth

Bermuda-based Hiscox Insurance posted a slight fall in its pre-tax profit in 2015, but the company did grow its gross written premiums (GWP) and reported that Hiscox Re is performing well.

Hiscox made £216.1 million before tax last year compared with £231.1 million in 2014.

The company’s group combined ratio also faltered slightly last year to 85 percent, compared with 83.9 percent in 2014. Its return on equity fell also to 16 percent in 2015, compared with 17.1 percent in the previous year and its investment return was down to 1 percent in 2015, compared with 1.8 percent in 2014.

The insurer did see growth last year however, posting GWP of £1.94 billion, compared with £1.76 billion in 2014. Hiscox also said that each division delivered good profits through careful risk selection, growth in profitable niches and an absence of natural catastrophes.

Hiscox Re is also performing well according to the firm, while Kiskadee Investment Managers’ assets under management (AUM) is on track to reach $1 billion in 2016 after its second year of operation.

“Our strategy continues to deliver good growth with our retail businesses contributing 50 percent of income,” said Bronek Masojada, chief executive of Hiscox.

“We have established profitable operations in everything from direct-to-consumer small business insurance to ILS fund management. This diversity sets us apart and gives us options.”