Our recent performance

Operational highlights

For the year ended 31 December 2022

  • Gross premiums written increased by 3.6% to $4,424.9 million (2021: $4,269.2 million), helped by an attractive rate environment across the Group, despite FX headwinds from a strengthening US Dollar.
  • Strong underwriting profit of $269.5 million (2021: $215.6 million), the highest since 2015, up 25.0% on prior period, notwithstanding another year of elevated large natural catastrophe and man-made losses. Group combined ratio of 90.6% achieved.
  • Hiscox Retail achieved a combined ratio of 94.8%, which returns the segment to the 90%-95% combined ratio range, a year ahead of the stated target, and we expect to operate within this range going forward[1].  
  • Hiscox Retail gross premiums written increased 5.1% in constant currency to $2,272.1 million (2021: $2,290.0 million), driven by strong growth in our commercial business. On a go-forward basis[2], Hiscox Retail grew 6.6% in constant currency.
    • Europe continued to grow strongly, up 13.6% year-on-year in constant currency, now passing the €500 million milestone. 
    • A year of transition for Hiscox USA, as the business delivered two major change initiatives – repositioning of the broker portfolio which completed in the first half of the year and re-platforming of the digital partnerships and direct (DPD) business, which is now substantially complete. Excluding the impact of the former, Hiscox USA grew 5.6% year-on-year.
    • As a result of platform migration the US DPD business grew 9.7%, as previously guided. As the partnership business embeds on the new technology, growth will continue to be temporarily moderated with a subdued first quarter before building momentum towards the middle of the 5% to 15% range in 2023. Once the embedding of the partnership business is complete, growth is expected to accelerate, with no change to longer-term growth expectations.
    • The completion of the two change initiatives in the US combined with ongoing good growth in Europe and improving momentum in Hiscox UK means Hiscox Retail growth is expected to trend towards the middle of the 5% to 15% range in 2023.
  • In Hiscox London Market, our focus continues to be on disciplined growth and building balanced portfolios at attractive returns.
    • Gross premiums written declined 4.8% to $1,114.9 million (2021: $1,171.4 million), mainly due to the underwriting actions taken on the property binder portfolio. The attractive rating environment means London Market is expected to grow gross premiums written in 2023.  
    • A strong combined ratio of 84.8% (2021: 89.1%) represents a 4.3 percentage points improvement on the prior year, after absorbing net losses from Hurricane Ian ($40 million) and Ukraine ($34 million). The business is building a strong track record of profitability with a third consecutive year of delivering a combined ratio in the 80% range.
  • In Hiscox Re & ILS strong top-line growth is underpinned by ILS inflows in H1 2022 and an improving underwriting and rating environment.
    • Gross premiums written up 28.5% to $1,037.9 million, crossing the $1 billion milestone for the first time (2021: $807.8 million).
    • Combined ratio of 81.6% (2021: 68.0%) after absorbing Hurricane Ian ($90 million) net losses.
    • As a result of deploying organic capital at 1/1 2023 renewals, Re & ILS’s January 2023 net premiums written were up 49% year-on-year.
  • No material change to previously announced Group net losses from Hurricane Ian ($135 million) and the Russia/Ukraine conflict ($48 million).
  • Conservatively reserved with a 8.9% margin above actuarial best estimate (2021: 11.7%). As uncertainty on prior-period losses reduced, we have moderated the margin to be at the upper end of the 5% - 10% range.
  • Completed two legacy portfolio transactions (LPT) in 2022. Overall 23% of 2019 and prior years’ gross reserves are reinsured up to a 1-in-200 downside risk through a total of four LPTs executed over the last two years.
  • Deploying additional organically generated capital into the highly attractive reinsurance market, while remaining strongly capitalised with estimated Bermuda Solvency Capital Requirement (BSCR) of 197%.
  • Investment result loss of $187.3 million (2021: profit of $51.2 million), primarily due to unrealised mark-to-market losses in our bond portfolio which are expected to unwind as the bonds mature. Bond reinvestment yield of 5.1% at 31 December 2022 (up from 1.0% at 31 December 2021) represents significant upside for 2023. The investment portfolio remains defensively positioned with short duration and 93% of fixed income portfolio in investment grade bonds. 
  • Final dividend of 24.0¢ per share.

[1] Under IFRS 4.

[2] Adjusted for the reduction in gross premiums written in the US broker channel business over the course of 2021 and in the first half of 2022 to strategically reshape the portfolio towards smaller business customers with revenues below $100 million.

Aki Hussain, Group Chief Executive Officer, Hiscox Ltd, commented:

“I am very pleased with the progress made across the Group during 2022, as we delivered the strongest underwriting result in seven years. We have a refined strategy, a new experienced and energetic leadership team, we have made significant progress in rolling out new-generation technology in the USA and Europe and we are enjoying our highest employee engagement scores in ten years.

“The outlook for 2023 is very positive. We are facing favourable market conditions in all of our key markets; our talented teams supported by a strong balance sheet and financial flexibility are set to make the most of the significant opportunities ahead."

Find out more about our performance over the last five years

Group KPIs

  2022 2021
Gross premiums written $4,424.9m $4,269.2m
Net premiums earned $2,928.2m $2,919.9m
Underwriting profit



Profit before tax $44.7m $190.8m
Earnings per share 12.1¢ 55.3¢
Total ordinary dividend per share for the year 36.0¢ 34.5¢
Net asset value per share 701.2¢ 739.8¢
Group combined ratio 90.6% 93.2%
Return on equity 1.7% 8.1%
Investment return (2.6)% 0.7%
Positive prior year development $239.1m $148.9m