Weak sterling boosts the numbers at Hiscox

The FTSE 250 firm said gross written premiums grew by 14.3% in local currency to £1.86bn, from £1.54bn in the same period last year.

Its board said there was a “strong performance” across all segments.

In sterling terms gross written premiums grew by 20.9%, helped by material foreign exchange gains.

Despite the growth, Hiscox London Market and Hiscox Re continued to face difficult trading conditions.

The company said its retail businesses performed well in a more stable environment.

Gross written premiums for Hiscox Retail grew 12.8% to £871.2m in local currency, or 16.8% in sterling terms.

Of that, Hiscox UK and Ireland was up 10.3% to £369.4m, Hiscox Europe grew 8.1%, to €173.9m, Hiscox Special Risks declined 14.8% to $96.4m, Hiscox USA was up 33% to $400.9m, and DirectAsia shrunk 33.3% to £10.2m.

At Hiscox London Market, gross written premiums were up 9.3% in local sterling and 17.6% in sterling terms to £520.2m, while Hiscox Re was up 26.8% in local currency and 34% in sterling to $649.1m, or £466.8m.

“It has been a good quarter for the group, albeit flattered by foreign exchange gains,” said group CEO Bronek Masojada.

“Our retail businesses continue to grow well, benefitting from long term investment in infrastructure and brand.

“However, margins are evaporating in some areas of the London market, and we are adjusting our underwriting accordingly.”