For the year ended 31 December 2018:
- Profit before tax tripled to $137.4 million (2017: $39.7 million), with a strong underwriting result of $148.0 million (2017: $43.0 million) in another busy year for claims.
- Gross premiums written grew by 15.0% with double-digit growth in all segments.
- The standout performer was Hiscox London Market, which returned to growth and profit after three years of disciplined cycle management.
- Hiscox Retail wrote over $2 billion of premium and served one million customers for the first time, and its profits cover the dividend for the third consecutive year.
- Hiscox Re & ILS was impacted by a second year of significant natural catastrophes and some large individual claims. ILS assets under management now at $1.5 billion.
- Ongoing investment in brand and infrastructure to capture long-term growth opportunity continues.
Bronek Masojada, Chief Executive of Hiscox Ltd, commented:
“We have generated strong growth and good profits in a busy year for claims. The tough action we took in our London Market business is paying off, and we are seeing some positive momentum in big-ticket lines, where rates, terms and conditions are improving. We are growing well in our chosen retail segments, and our small market shares mean the size of the opportunity in retail remains immense. We will continue to invest in our people, infrastructure and brand and maintain our focus on disciplined growth.”
A track record of profitable growth
|Gross premiums written ($m)||3,778.3||3,286.0|
|Net premiums earned ($m)||2,573.6||2,416.2|
|Profit before tax ($m)||137.4||39.7|
|Profit after tax ($m)||128.0||33.9|
|Earnings per share (¢)||45.1||12.0|
|Total ordinary dividend per share for year (¢)||41.9||39.8|
|Special dividend (¢)||-||-|
|Net asset value per share (¢)||819.1||935.1|
|Group combined ratio (%)||94.9||99.9|
|Group combined ratio excluding FX (%)||94.4||98.8|
|Return on equity (%)||5.6||1.5|
|Investment return (%)||0.7||2.0|
|Reserve releases ($m)||326.5||324.2|
Operational highlights and Group KPIs.