Monday 29 July 2019 8:29 am

Hiscox profits rise despite increase in claims in first half

PANAMA CITY, FLORIDA – MAY 10: A roofer repairs the roof of a home home damaged by Hurricane Michael on May 10, 2019 in Panama City, Florida. Seven months after the category five hurricane made landfall near the community, damaged and abandoned homes are still abundant and piles of debris can be seen throughout the city. A short supply of qualified and licensed contractors is often cited as the main contributor to the slow progress. (Photo by Scott Olson/Getty Images)

Insurer Hiscox today said its profit for the first half of the year rose three per cent to $168m, despite a higher volume of claims compared to the same period last year.

Gross written premiums increased by just under 4.9 per cent to $2.3bn (£1.8bn), equivalent to a seven per cent rise in constant currency.

A strong investment performance helped overcome the increased volume of claims in the first half.

Investment return stood at 4.8 per cent, up from 0.7 per cent for the same period last year.

Hiscox said it had strengthened its reserves for prior-year claims from Typhoon Jebi in Japan and Hurricane Michael in the US as industry loss estimates have increased.

The company said the insurance market was improving as “pricing momentum continues to build”.

Chief executive Bronek Masojada said:”Hiscox delivered a profit of $168 million for the first half despite a more challenging claims experience.

“Looking ahead, 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.

“In retail, we will continue to invest in our infrastructure and marketing to drive sustainable growth. Our strategy of diversification gives us options.”