Hiscox Ltd (LSE:HSX) saw its shares slide after the specialist insurer company posted a pre-tax loss in the first half of the year, due to "mark-to-market falls" in its bond portfolio.
Shares were down 6.74% to 816.80p in London.
The Anglo-Bermudan insurance company, listed on the London Stock Exchange, reported a pre-tax loss of US$107.4mln, compared with a profit of US$133.4mln for the same period last year.
An investment loss of US$214.1mln was reported by the Lloyd's of London underwriter, against a profit of US$61.9mln in the first half of 2021 due to interest rates rising sharply, "credit spreads widening" and equity markets selling off.
In spite of foreign-exchange headwinds, the company said its gross premiums written increased to US$2.64bn from US$2.42bn in the year-ago comparative period, propelled by strong growth in Europe and an improved performance in the UK.
A dividend of 12.0c per share has been declared, compared with 11.5c previously.
A combined operating ratio of 91.3% was recorded, down from a ratio of 93.1% in the first half of 2021. A ratio less than 100% indicates profitability in underwriting.
"Whilst macro-economic and geo-political concerns are affecting the global economic outlook, our strategy and diverse portfolio of businesses continues to create opportunity, and we are well positioned to generate high quality growth and earnings," said Aki Hussain, chief executive.