GWP and profits soar by 40% and 30% respectively

Hiscox has reported GWP growth of more than 40% to 906m for the first half of 2009 and pre-tax profits up nearly 30% to £141.4m.

Financial highlights (2008 in brackets)

  • Gross premiums written £906.0m (£639.4m)
  • Net premiums earned £565.2m (£486.8m)
  • Profit before tax £141.4m (£109.2m)
  • Profit before tax and FX £243.7m (£114.9m)
  • Earnings per share 33.2p (21.7p)
  • Interim dividend per share 4.5p (4.25p)
  • Group combined ratio 88.3% (79.7%)
  • Group combined ratio before monetary FX 79.5% (81.0%)

The company said all three divisions, Global Markets, International and UK and Europe saw increases in GWP of 41%, 72% and 24%, respectively

Robert Hiscox

Robert Hiscox, Chairman, Hiscox said: “This is a great result considering it is after significant accounting losses from foreign exchange differences during the period.

“I am writing this in Bermuda as the island battens down the hatches with the onset of Hurricane Bill, but our catastrophe account is well able to withstand a normal hurricane season.

“Good underwriting and investing has helped to keep our long term strategy firmly in place, which is to continue to build a first class, balanced, international insurance business to the benefit of our customers, shareholders and staff.'

Estimates raised

Hiscox has raised it estimates for its Syndicate 33’s 2007 account and for Syndicate 6104's 2008 account.

Syndicate account estimates (previous in brackets)

  • 33 2007 - 17.5% to 25.0% (10.0% to 17.5%)
  • 33 2008 - 0.0% to 7.5% (0.0% to 7.5%)
  • 6104 2008 - 22.5% to 30.0% (10.0% to 25.0%)