Hiscox swings to $107m H1 loss, but CEO bullish on big-ticket business

London-listed  Hiscox suffered heavy losses in its investment book in the first half of 2022 with mounting headwinds and pressures due to the sharply rising interest rates, widening credit spreads and equity markets selling off dragging down the overall results, despite "much-improved" underwriting profitability and gross premium.

The specialist global re/insurer swung to a pre-tax loss of $107.4 million in H1, compared with a profit of $133.4 million a year earlier.

Its gross written premium for the period was up 9.2% to $2.65 billion, from $2.426 billion in H1 2021, driven by strong growth in Europe and improved performance in the UK.

Hiscox noted that rate momentum is continuing to keep pace with or exceed inflation expectations in all its three divisions - London Market, Hiscox Re & ILS and retail.

Overall, the group combined ratio improved to 91.3% in H1 2022, compared with 93.1% in the prior year period.

Aki Hussain (pictured), group chief executive officer of Hiscox, said: "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."