Hiscox's group H1 profit soars 27% to £158m

Hiscox’s half-year group profit after tax is up 27% to £158.1m (H1 2012: £125m), according to figures released today.

The insurer’s combined ratio was down seven percentage points to 74.7% (H1 2012: 81.7%).

This was despite a 37% drop in reserve releases to £73.6m (H1 2012: £116.3m).

The company also suffered a drop in investment returns to 1.5% from 3.1%.

Hiscox chief executive Bronek Masojada said: “Our strategy is working. Our specialist businesses and insurance lines provide stability and opportunity as we navigate more turbulent times in reinsurance. We have a strong brand, good discipline and plenty of options.”

Claims

The company is expecting $22m (£14.3m) in claims from the 2013 catastrophes to date, which include the Oklahoma tornadoes and the European and Calgary floods.

Hiscox has also reduced its loss estimate from the Costa Concordia cruise ship disaster to $19m.

Group GWP increased 12% to £1bn (H1 2012: £906.4m).