Specialist insurance provider Hiscox said that its profit before tax for the financial year 2018 tripled to $137.4m from $43m it reported for the financial year 2017.
Image: Hiscox chief executive Bronek Masojada. Photo: courtesy of Hiscox Ltd.
Hiscox said that its strategy of sustaining balance between catastrophe-exposed business and less volatile local specialty business helped it grow its profit in FY 2018 despite it being a challenging year for insurers.
The Bermuda-based company reported gross premiums written of $3.77bn for the year ended 31 December 2018 compared to the figure of $3.29bn it reported in the previous year. This was an increase of 15% owing to double-digit growth in all segments.
The company’s earnings per share for FY 2018 were 45.1¢ compared to 12.0¢ reported in FY 2017.
Hiscox said that Hiscox London Market was its standout performer in 2018 as it returned to growth and profit after three years owing to tough action, withdrawal from poor-performing lines and also because of navigating challenging markets.
The company said that its retail business wrote more than $2bn of premium while serving a million customers. It expects growth in the business to be in the high single digits for the coming 12 months due to portfolio optimization.
Hiscox’s reinsurance and insurance linked strategies (ILS) business was affected by a second year of significant natural catastrophes along with certain large individual claims. The specialist insurer said that its Kiskadee Investment Managers’ assets under management are currently at $1.5bn.
The company said that it is prepared for Brexit by creating a new Luxembourg insurer to undertake its retail risks. The new subsidiary will use Lloyd’s Brussels to insure European Economic Area risks which were placed previously with Lloyd’s of London.
Hiscox chief executive Bronek Masojada said: “We have generated strong growth and good profits in a busy year for claims. The tough action we took in our London Market business is paying off, and we are seeing some positive momentum in big-ticket lines, where rates, terms and conditions are improving.
“We are growing well in our chosen retail segments, and our small market shares mean the size of the opportunity in retail remains immense. We will continue to invest in our people, infrastructure and brand and maintain our focus on disciplined growth.”
Earlier this month, Hiscox led a Series D financing round in insurtech company CoverHound. Through its subsidiary CyberPolicy, CoverHound supports small businesses to compare, quote and buy cyber insurance online.