Hiscox posts solid delivery for H1 2024 results

Hiscox Ltd reported its interim results for the six months ending 30 June 2024, showing growth in insurance contract written premium (ICWP) and an increase in profit before tax.

ICWP increased by $89.6 million or 3.3%, reaching $2.81 billion, compared to $2.72 billion in the same period last year. This growth was driven by sustained retail expansion and additional capital in large-scale property.

Profit before tax rose by 7.1%, totaling $283.5 million, compared to $264.8 million in the first half of 2023. This rise was supported by an insurance service result of $240.7 million, up from $221.4 million, and an investment result of $152.4 million, up from $121.8 million.

The company’s undiscounted combined ratio was 90.4%, slightly up from 90.2% in the previous year, amid a more active loss environment. The group’s return on equity (ROE) stood at 16.5%, down from 19.9% last year. Tangible net asset value (NAV) per share grew by 23.2%.

Over 85% of a $150 million share buyback program has been completed, and the interim dividend increased by 5.6% to 13.2 cents per share.

Hiscox also noted that it maintained a strong balance sheet and reserves, with an estimated Bermuda Solvency Capital Ratio (BSCR) of 206%.

The company also highlighted its diversified portfolio as designed to deliver sustainable returns and growth through the insurance cycle.

Aki Hussain (pictured above), group chief executive officer of Hiscox Ltd, noted that the company has continued to build on the momentum from 2023.

“We are focused on deploying capital to generate profitable growth and investing in underwriting and technology capabilities to build out our competitive advantages. This has delivered a strong and increased underwriting result of $241 million, despite a more active loss environment, and positions us well to deliver high-quality growth through the insurance cycle,” Hussain said.

The first part of the program, which involved the repurchase of 4,896,100 ordinary shares at 6.5 pence each, wrapped up on May 2 with a total expenditure of US$75 million, excluding additional costs. The buyback was conducted in partnership with Peel Hunt.

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