Insurer Hiscox swings to first-half loss

Insurer Hiscox said on Wednesday that it swung to an interim loss despite a strong underwriting performance.

In the six months to 30 June, the company swung to a pre-tax loss of $107.4m from a profit of $133.4m in the same period a year earlier.

Gross premiums written rose 9% to $2.65bn despite forex headwinds from a strengthening dollar and the combined ratio came in at 91.3%, an improvement on the 93.1% seen a year earlier. A ratio below 100% indicates that the company is making an underwriting profit, while a ratio above means it is paying out more money in claims than it is receiving from premiums.

However, Hiscox posted an investment loss of $214.1m versus a profit of $61.9m a year earlier. This was put down to interest rates rising sharply, credit spreads widening and equity markets selling off. Hiscox also said it booked a net loss of $48m for the conflict in Ukraine.

Chief executive officer Aki Hussain said: "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.

"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."