Hiscox 2016 net profit up 64% on FX and investment returns

Bermuda-based specialist insurer Hiscox posted a record pre-tax profit of £354.5 million in 2016, up 64 percent year-on-year on higher premium growth.

Foreign exchange gains were £152.4 million compared to £15.2 million in 2015.

CEO Bronek Masojada, commented: "This is a good result, flattered by foreign exchange and boosted by a strong investment return. Our retail business has come of age, driving growth and profitability for the Group."

Gross written premiums grew 23.6 percent to £2.40 billion over the period. Hiscox retail now accounts for 49 percent of the group's gross written premiums and 45 percent of profits. Hiscox UK and Europe doubled profits, and Hiscox USA remains the stand-out performer with premium growth of over 30 percent, according to a company statement.

The group’s combined rate improved slightly to 84.4 percent in 2016 from 85.0 percent in 2015.

Hiscox Re and ILS (insurance-linked securities) benefited from good underwriting and an increasing contribution from fees and profit commissions, the company said.

Today’s top stories

QBE CEO relationship with personal assistant costs him A$0.5m

Berkshire boosts 2016 premiums to become one of the world’s leading P&C insurers

Ryan Specialty Group acquires marine MGA Trident

Guardian CEO resigns from Arch Capital board

Endurance profits up despite nat cat losses

Did you enjoy reading this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.