Hiscox Ltd on Wednesday reported its highest underwriting profit since 2015 but a steep drop in annual profit, as its chair, Roberts Childs, announced his retirement.
In 2022, the Hamilton, Bermuda-based insurer reported a pretax profit of $44 million, down sharply from $190.8 million in 2021.
The company suffered an investment result loss of $187.3 million compared to a profit of $51.2 million a year earlier, as a result of ‘unrealised mark-to-market losses in our bond portfolio which are expected to unwind as the bonds mature’, it said.
Gross premiums written totalled $4.42 billion, up from $4.27 billion, while net premiums earned totalled $2.928 billion, up slightly from $2.919 billion. Jefferies had previously anticipated gross written premiums of $4.49 billion.
Underwriting profit totalled $269.5 million, up from $215.6 million in 2021. Hiscox said this was its highest since 2015, notwithstanding another year of elevated large natural catastrophe and man-made losses.
Looking forward, Chief Executive Aki Hussain said the outlook for 2023 was ‘very positive’ thanks to ‘favourable’ market conditions in all its key markets.
He said: ‘I am very pleased with the progress made across the group during 2022, as we delivered the strongest underwriting result in seven years. The outlook for 2023 is very positive. We are facing favourable market conditions in all of our key markets; our talented teams supported by a strong balance sheet and financial flexibility are set to make the most of the significant opportunities ahead.’
Hiscox declared a final dividend of 24.0 cents per share, taking the total dividend to 36.0 cents, up 4.3% from 34.5 cents in 2021.
Separately, Hiscox announced that Childs will step down as chair during 2023. He joined the company ins 1986.
The company has began a process to identify his successor. The process will be led by Senior Independent Director Colin Keogh.
Childs said: ‘It has been a privilege to lead the board and be part of Hiscox’s journey over the past 37 years. Hiscox has a strong management team, and is well-positioned to grow and deliver for customers around the world. When the time comes, I will leave knowing that Hiscox is in great shape with huge opportunities ahead of it.’
Shares were up 1.2% at 1,086.00 pence each on Wednesday morning in London.
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