Hiscox has reported a sharp fall in first half profits before tax, with the group recording a drop of almost £27m to £61.3m compared to the first half of 2005.
The fall in profit caused the group's combined ratio to jump almost ten points from 83.5% to 93.2%.
However, Hiscox said the fall was due to adverse movements in the foreign exchange market which has also negatively affected the results of other insurers.
Profit before tax, excluding currency exchange movements, rose to £64.7m from £51.2m.
The combined ratio adjusted for currency exchange on unearned premiums and deferred acquisition costs was 89.5%.
Hiscox noted a 43% rise in gross written premiums to £625.1m.
The group also reported a strong start for both Hiscox Bermuda and Hiscox USA and stated that the global markets were achieving high rates for catastrophe exposed risks. Hiscox added that the planned re-domicile to Bermuda was anticipated to yield long-term benefits.
Robert Hiscox, chairman, said: "It was a good first half with strong growth fuelled by high rates for all business exposed to catastrophes, helped by steady growth from our retail non-catastrophe business. The successful start of our new ventures in Bermuda and the USA have strengthened our strategy of international spread, and balance between high-risk and low-risk specialist insurance."
