Higher premiums help lift Hiscox interims
Lloyds of London insurer Hiscox reported interim profits at the upper end of its guidance range, with a 4.8% investment return and more earnings from premiums offsetting claims from natural disasters.
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Pre-tax profits came in at $168m (£135.7m), up from $162.7m. The company earlier this month forecast first-half pre-tax profits of $150m - $170m.
It added that the impact of events such as typhoon Jebi in Japan and hurricane Michael in Florida would impact reserve strengthening needed for those catastrophes of around $40m.
Gross premiums written increased by 4.9% to $2.33bn. Net earned premiums were $1.31bn, up from $1.27bn. The combined ratio was 98.8%, compared with 87.9% a year ago.
Chief executive Bronek Masojada said with six consecutive quarters of rate growth in some Lloyd's business "the market is in a better position than it has been for some time", although the company warned that "as we approach hurricane season there is still potential for the wind to blow us off course".
"After a particularly benign start to 2018, our retail businesses have encountered a more normal loss experience so far this year, and we expect this to continue in the second half," Hiscox said in a statement.
"This includes a higher volume of claims in US Directors & Officers for private companies, where we have reduced our exposure and continue to do so. We expect the full year combined ratio for Hiscox Retail to be at the top end of our 90-95% range."
Reserve releases for the first half were $26m, compared with $154m a year earlier and Hiscox said it expected second half reserve releases to be below $100m, against $168m last time.