Hiscox Ltd (LSE:HSX) profits rebounded strongly as the insurer took full advantage of what it said were some of the “best market conditions in over a decade”, especially in reinsurance.
Substantial premium increases were pushed through due to this "hard market" with insurance tough to get and all three divisions saw strong growth and earnings.
In North American Catastrophe and retrocession, premium rates went up by 43% and 42% respectively while its London-market businesses are growing again, it said.
Cyber was one of the few areas that weakened but this was offset by household property rising 27%, major property up 23% and terrorism cover up by 15%.
Losses also came within budget, with no more needing to be set aside for the Ukraine war or disasters, which helped the underwriting profit ratio improve to 89.2% (92.6%). A lower number means the business is more profitable.
Gross premiums in the half year to end June rose by 4% to US$2.7 billion.
Profits jumped tenfold to US$264 million (US$25 million), which included a US$335 million swing to an investment gain of US$121 million plus insurance profits of US$221 million (US$140 million).