Lloyd's of London insurer Hiscox posts record annual profit, launches new buyback
Reuters
Published Mar 05, 2024 07:31
Updated Mar 05, 2024 15:26
(Reuters) -Lloyd's of London insurer Hiscox (LON:HSX) on Tuesday posted a record annual profit and launched a share buyback as higher interest rates and strength in its commercial business helped offset rising claims and the effect of currency swings.
The London-listed company, which underwrites a range of risks from natural catastrophes to cyber attacks to kidnappings and art theft, said it will launch a share buyback worth $150 million and added that the retail outlook for 2024 was positive.
It expects to deliver an annual growth within the 5%-15% range in its retail business.
Commercial insurers have been hit hard in recent years by substantial claims tied to events such as hurricanes, wildfires, the Covid pandemic, and the wars in Ukraine and the Middle East. To counteract this, they have increased premiums and implemented more restrictive coverage policies.
Net insurance contract written premium for 2023 climbed 10.7% to $3.56 billion with its undiscounted combined ratio - a measure of an insurer's profitability - at 89.8%.
Shares in the company were up about 2.8% at 1,152 pence in early trade.
Its profit before tax for the full year ended Dec. 31 rose to $625.9 million, from $275.6 million a year earlier.
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Written By: Reuters
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