Yahoo Finance Focus on retail propels insurer Hiscox to record profits
Hiscox’s booming retail business has “come of age” after it helped the insurer to a record-breaking profit last year.
Chief executive Bronek Masojada heralded the performance of the business, which accounts for nearly half of the company’s profits, after premiums rose to £1.2 billion last year and profits doubled to £159 million.
“It’s come onstream just at the time the London market is having a tough time. We have been building it for over 20 years and it gives us balance to the more volatile London market business. Hiscox has turned into a consumer-facing brand,” Masojada said.
Group total profit before tax was a record £354.5 million on revenues of £2.4 billion. The dividend was hiked by 15% thanks to the retail strength.
The Lloyd’s of London market is still tough, however. Hiscox has been pulling back from writing certain lines of business due to low rates. Profits fell to £44 million from £54.6 million last year.
Hiscox predicted “particularly tortured London market lines will shrink”.
