Underwriting profits hit five-year high at Hiscox
Hiscox has reported increased gross written premium and the highest underwriting profit for five years in its full year 2021 results.
GWP was up 5.9% for the year to $4.27bn, from $4.03bn in 2020, driven by continued positive rate momentum across its London Market, Hiscox Re & ILS and retail divisions, as well as strong customer growth in retail.
Across the group, underwriting profit was $215.6 against $370.6m in 2020, with a combined ratio of 93.2%, compared with 114.5%.
“Our big-ticket businesses in London and Bermuda are benefitting from good risk selection and substantial rate rises,” the chairman’s statement added. “Digital initiatives in Hiscox London Market are broadening our appetite and providing new opportunities. In Hiscox Re & ILS, our prudent approach to reserving and discipline in risk selection has delivered an excellent result in another year of 'higher than average" natural catastrophes.”
Overall, the group reported a profit before tax of $190.8m in 2021, compared with a loss of $268.5m in 2020.
“I am pleased with the strong results the Group has delivered despite elevated natural catastrophe losses, reflecting successful execution of our strategy, and the management actions we have undertaken to improve the performance and quality of our portfolios,” said Aki Hussain, Hiscox Ltd chief executive officer.
“Hiscox has a significant technical underwriting capability, which combined with investment in digital, positions us well to capitalise on the many opportunities ahead as we continue to serve our customers and build a sustainable insurance business.”