Hiscox bounces back to profit in 2021 with growth in big-ticket businesses
Despite elevated natural catastrophe losses, specialist global re/insurer Hiscox has turned around previous year's net loss into a full-year profit, producing the highest underwriting result in five years.
Its gross written premium for the year was up 5.9% for the year to $4.3 billion, from $4 billion in 2020, driven by continued positive rate momentum across its London Market, Hiscox Re & ILS and retail divisions, as well as strong customer growth in retail.
Across the group, underwriting profit was $215.6 million against $370.6 million in 2020, with a combined ratio of 93.2%, compared with 114.5%.
Overall, the group reported a profit before tax of $191 million in 2021, compared with a loss of $268.5 million in 2020.
“Our big-ticket businesses in London and Bermuda are benefitting from good risk selection and substantial rate rises,” said the company's chairman Robert Childs (pictured). “Digital initiatives in Hiscox London Market are broadening our appetite and providing new opportunities. In Hiscox Re & ILS, our prudent approach to reserving and discipline in risk selection has delivered an excellent result in another year of higher than average natural catastrophes.”
Aki Hussain, Hiscox chief executive officer, commented: “I am pleased with the strong results the Group has delivered despite elevated natural catastrophe losses, reflecting successful execution of our strategy, and the management actions we have undertaken to improve the performance and quality of our portfolios.
“ Hiscox has a significant technical underwriting capability, which combined with investment in digital, positions us well to capitalise on the many opportunities ahead as we continue to serve our customers and build a sustainable insurance business.”
Commenting on the outlook, Childs said: “We aim to grow our top-line profitably in this underwriting climate and continuously attract first-rate talent. We are embracing, and in many cases leading, the digital revolution in insurance and continue to invest. Aki has clear and exciting plans that are motivating our people and which the Board supports.
“In the insurance industry, catastrophes can happen at any time, but there is a fair wind behind us and I am looking forward to a great year - we are disciplined, rates are up, we are attracting exceptional talent, and the opportunity ahead of us is huge.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
