2022 Interim Results

For the six months ended 30 June 2022

”Strong underwriting result in a complex environment"

  H1 2022 H1 2021
Gross premiums written $2,649.8m


Net premiums earned $1,440.9m


Underwriting result $123.2m $99.8m
Investment result $(214.1)m $61.9m
(Loss)/profit before tax $(107.4)m


(Loss)/earnings per share (25.3)¢


Interim dividend per share 12.0¢


Net asset value per share ($) 679.5¢


Group combined ratio 91.3%


Return on equity (annualised) (6.8)%


Foreign exchange gains/(losses) $18.2m


Positive prior year development $76.9m




  • Gross premiums written increased by 9.2% to $2,649.8 million (H1 2021: $2,426.2 million), despite FX headwinds from a strengthening US Dollar. Rate momentum is continuing to keep pace with or exceed inflation expectations in all three divisions.
  • Premium growth and portfolio adjustments leading to strong underwriting result of $123.2 million (H1 2021: $99.8 million), up 23.4% on prior period and our best result since 2018.
  • Growth momentum is building across Hiscox Retail, as gross premiums written increased 1.5% to $1,235.2 million (H1 2021: $1,216.4 million), or 5.9% in constant currency, driven by strong growth in Europe and improved performance in the UK. Growth in Retail go-forward gross premiums written[1] accelerated to 8.5% in constant currency (H1 2021: 6.4%).
    • The planned US broker channel re-underwriting is now complete, and good progress is being made on the US DPD re-platforming, with all direct customers now live across 50 states; partner migration will commence in the third quarter. To maintain excellent customer service and reduce complexity during the technology transition, we have chosen to switch off some new business opportunities and pause onboarding of new partners. For these reasons growth in US DPD gross premiums written has moderated to 10.1% in the first half and we expect it to grow in the middle of 5% to 15% range in 2022, before accelerating to in excess of 15% in 2023.
    • Hiscox Retail combined ratio remains on track to be in the 90% to 95% range in 2023, with a strong result of 95.5% (H1 2021: 100.7%[2]).
  • In Hiscox London Market, focus continues to be on selective growth and building balanced portfolios at attractive returns.
    • Deliberate reductions in under-priced natural catastrophe exposure resulted in a 3.0% decline in gross premiums written to $591.9 million (H1 2021: $609.9 million). Growth continues in attractive business classes, such as casualty, marine, energy and flood.
    • A combined ratio of 86.1% (H1 2021: 81.7%) after absorbing the net loss from the conflict between Russia and Ukraine (‘Ukraine net loss’) contributing around 10 percentage points. This reflects the benefits of multi-year underwriting actions undertaken to reduce volatility of returns.

  • In Hiscox Re & ILS excellent growth is underpinned by ILS inflows and an improving market environment.
    • Gross premiums written up 37.1% to $822.7 million (H1 2021: $599.9 million).
    • ILS net inflows of $561 million and assets under management (AUM) of $1.9 billion as at 1 July 2022.

    • Combined ratio of 80.2% (H1 2021: 76.7%) after absorbing the Ukraine net loss.

  • The ultimate Group loss from all risks in Ukraine and Russia, including aviation, is $48 million[3] net of reinsurance, with $34 million attributable to Hiscox London Market.
  • Good claims performance across the Group with natural catastrophes in line with expectations.
  • Two further legacy portfolio transactions (LPT) completed in 2022[4]. Overall 20% of 2019 and prior years’ gross reserves reinsured up to a 1-in-200 downside risk through four LPTs executed over the last two years.
  • Conservatively reserved with a 11.0% margin above actuarial best estimate (H1 2021: 11.3%).
  • Strongly capitalised with BSCR of 200% and well funded with leverage below 25%.
  • Investment result loss of $214.1 million (H1 2021: profit of $61.9 million), due to interest rates rising sharply, credit spreads widening and equity markets selling off. Debt and fixed income losses are mostly unrealised and non-economic in nature.

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

“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. In Retail, ongoing investment in technology and brand is driving growth in 2022 and is expected to accelerate in 2023.”

[1] 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.

[2] 96.7% excluding Covid-19, net claims and LPT costs. 

[3] Includes margin over best estimate and the impact of reinstatement premiums.

[4] In July the Group competed an LPT reinsuring circa $116 million of Group’s share of Syndicate 33 reserves of 1993 to 2018 year of accounts. This transaction is treated as a non-adjusting post balance sheet event in the H1 2022 financial statements.

Read the full statement


 A conference call for investors and analysts will be held at 10:00 BST on Wednesday, 3 August 2022.

Participant dial-in numbers:

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Participant Access Code: 248242

Inside information

The person responsible for arranging and authorising the release of this announcement on behalf of the Company is Marc Wetherhill, Group Company Secretary and General Counsel.

For further information

Investors and analysts

Yana O’Sullivan, Group Head of Investor Relations, London +44 (0)20 3321 5598

Marc Wetherhill, Group Company Secretary, Bermuda +1 441 278 8300


Kylie O’Connor, Director of Communications, London +44 (0)20 7448 6656

Tom Burns, Brunswick +44 (0)20 7404 5959

Simone Selzer, Brunswick +44 (0)20 7404 5959

Notes to editors

About The Hiscox Group

Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. 

The Hiscox Group employs over 3,000 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the USA, we offer a range of specialist insurance products in commercial and personal lines. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.

Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.

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