Hiscox bounces back to black

Hiscox proved its resilience this week, bouncing back from a £85.6m loss in the first half of 2011 to a £125.8m pre-tax profit in the same period this year.

But while the Lloyd’s insurer enjoyed good results in its international reinsurance business in London and Bermuda, owing to a lower level of catastrophes than the record year of 2011, its UK and European retail arms did less well. They posted profits of £15.8m and £84m respectively, as the floods that devastated vast swathes of the UK this year took hold.  

Of particular note, the insurer returned an impressive combined ratio of around 82%, with some analysts tipping it to be among the best results in the non-life sector.

Another significant move by the insurer was the appointment of Rob Childs as the group’s new chairman, succeeding Robert Hiscox.

Childs has all the right credentials for the job, having acquired extensive experience and expertise as underwriter and chief executive of Hiscox Bermuda and executive chairman of Hiscox US.

But question marks remain over who will take on the baton from Childs as chief underwriting officer, with deputy chief underwriting officer Richard Watson being widely tipped to take over.

LV=’s challenge to stay on top

In other results-related news, LV=’s general insurance business continued to post an increase in profitability and premiums in the first half of 2012, despite a 12% cut in broker personal lines business.

Having established an 11% share of the private car market, the Brighton-based insurer continues to go from strength to strength.

LV=’s general insurance managing director John O’Roarke has focused on growing the business steadily, with incremental year-on-year profit growth and a healthy combined ratio.

But in the face of a higher frequency of personal injury claims, increasingly adverse weather conditions and low investment returns, it will be interesting to see if the business is able to maintain its recent success.