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Hiscox Ltd on Wednesday reported a return to the black in 2021 as the insurer was able to turn around its underwriting performance.
The midcap stock was 4.3% higher in London on Wednesday morning at 934.00 pence each.
In 2021, Hiscox improved to a pretax profit of $190.8 million from the $268.5 million loss reported in 2020.
The return to profit was exhibited in the Hamilton, Bermuda-based firm's combined ratio improving to 93.2% from 114.5%. A combined ratio below 100% indicates underwriting profit.
Underwriting profit improved to $215.6 million from a loss of $370.6 million in 2020.
Gross written premiums rose to $4.27 billion from $4.03 billion in 2020. Net premiums earned increased to $2.92 billion from $2.75 billion. Hiscox noted it reserved $223.8 million net of reinstatement premiums for natural catastrophe losses in an ‘elevated catastrophe loss environment’.
Hiscox London Market gross premiums written rose 5.6%, Hiscox Re & ILS gross premiums written increased 8.7%, and Hiscox Retail gross premiums written grew 5.0%.
Chief Executive Aki Hussain said: ‘I am pleased with the strong results the group has delivered despite elevated natural catastrophe losses, reflecting successful execution of our strategy, and the management actions we have undertaken to improve the performance and quality of our portfolios.
‘Hiscox has a significant technical underwriting capability, which combined with investment in digital, positions us well to capitalise on the many opportunities ahead as we continue to serve our customers and build a sustainable insurance business.’
It declared a dividend of 34.5 US cents for 2021 after withholding its payout in 2020.
Chair Robert Childs added: ‘In the insurance industry, catastrophes can happen at any time, but there is a fair wind behind us and I am looking forward to a great year - we are disciplined, rates are up, we are attracting exceptional talent, and the opportunity ahead of us is huge.’
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