Hiscox has posted a pre-tax loss of more than $107 million for the six months to 30 June, a swing from a profit of $133 million in the same period of 2021.
It recorded a loss from all risks in Ukraine and Russia, including aviation, of $48 million net of reinsurance, with $34 million attributable to Hiscox London Market.
It made an investment loss of $214.1 million versus a profit of $61.9 million a year earlier, which it attributed to interest rates rising sharply, credit spreads widening and equity markets selling off.
Gross written premium for the period rose by 9.2% year on year, to more than $2.65 billion from $2.4 billion, despite FX headwinds from a strengthening US Dollar, the company said. Rate momentum is continuing to keep pace with or exceed inflation expectations in all of its three divisions–Hiscox Retail, Hiscox London Market and Hiscox Re+ILS.
“Excellent growth” in Hiscox Re & ILS was underpinned by ILS inflows and an improving market environment, the company said. GWP in that business rose 37.1% year on year, to almost $823 million from just shy of $600 million. It had ILS net inflows of $561 million and assets under management of $1.9 billion as at 1 July 2022. Its combined ratio of 80.2% was an improvement of 3.5 points on the first-half result of last year, after absorbing the Ukraine net loss.
“I am pleased with the group’s performance during the first half of the year as rate strengthening and disciplined growth drove much-improved underwriting profitability,” said Aki Hussain, group chief executive officer of Hiscox Ltd.
“Whilst macro-economic and geo-political concerns are affecting the global economic outlook, our strategy and diverse portfolio of businesses continues to create opportunity, and we are well positioned to generate high quality growth and earnings.
“Our big-ticket businesses have experienced positive market conditions and our well-balanced portfolio is generating attractive returns. In Retail, ongoing investment in technology and brand is driving growth in 2022 and is expected to accelerate in 2023.”