Lloyd’s of London underwriter Hiscox experienced “a good start to the year” as its pre-tax profits surged 27% from $129.1 million in H1 2017 to $163.6 in H1 2018, driven by a strong 21% growth in written premiums.
“Our investment across the business is driving strong profitable growth in all segments,” commented Bronek Masojada, Chief Executive Officer, Hiscox. “We are on track to exceed one million retail customers in 2018.”
Gross premiums written reached $2,228 million in H1 2018, up from $1,836 million a year ago. However, this growth is expected to slow and eventually level out.
“We are seeing momentum behind rate increases begin to slow and we expect our rate of premium growth to decline correspondingly,” explained Chairman of Hiscox, Robert Childs.
Additionally, good underwriting resulted in an improved combined ratio of 88%, whilst a reduction in loss estimates for 2017 catastrophes saw reserve releases increase to $154 million.
Childs remained cautious, however, stating, “It has been a good start to the year, but hurricanes can blow us off course in the second half.”