|
|
H1 2021 |
H1 2020 |
|---|---|---|
|
Gross premiums written |
$2,426.2m |
$2,235.5m |
|
Net premiums earned |
$1,423.1m |
$1,328.2m |
|
Profit/(loss) before tax |
$133.4m |
$(138.9)m |
|
Earnings/(loss) per share ($) |
34.8¢ |
(50.2)¢ |
|
Interim dividend per share |
11.5¢ |
- |
|
Net asset value per share ($) |
738.1¢ |
712.4¢ |
|
Group combined ratio |
93.1% |
114.6% |
|
Return on equity (annualised) |
10.4% |
(12.7)% |
|
Investment return (annualised) |
1.7% |
2.5% |
|
Foreign exchange gains/(losses) |
$11.2m |
$(13.6)m |
|
Positive prior year development |
$79.0m |
$63.0m |
Highlights:
- Group GWP +8.5% to $2,4bln (HY 2020: $2,2bln), driven by good growth and positive rate momentum in all three divisions.
- PBT of $133.4m (HY2020: loss of $138.9m) – a material beat on consensus, predominantly due to a significantly improved loss performance across the divisions but mainly in the big ticket business where the results of multi-year course correction are now bearing fruit.
- 2020 Covid-19 net claims unchanged at $475m; 2021 claims estimate lower at $17m.
- In big-ticket, NWP are growing at a faster rate than GWP, as we deployed more capital into a hard market:
- Hiscox LM GWP +9.7%, NWP +16.7% and PBT of $87.3m (HY 2020: $16.3m); COR 81.7% a 23.5ppt improvement on PY (HY 2020: 105.2);
- Hiscox Re & ILS GWP + 8.6%, NWP +39.7% and returned to profit of $38.1m (HY2020: loss of $15m) despite $33m impact of Winter Storm Uri; COR 76.7% (HY 2020: 123.6%).
- Hiscox Retail GWP +7.9% to $1.2bln (2020: $1.1bln); +2.6% in CCY.
- The US broker business is half way through the planned $100m premium reduction. Adjusting for this, the Retail go-forward portfolio grew by 6.4% in CCY, in line with guidance.
- Group DPD GWP+23% to $355m; 880,000 customers.
- US DPD +30% to GWP $220m; 490,000 customers.
- Underlying Retail COR 96.7% (excl. LPT $23m and Covid-19 $17m) is an improvement on FY2020 and in line with guidance; on track to meet the target of 90-95% by 2023.
- Investment return of $61.9m (HY2020: $84.6m) impacted by low reinvestment yield on bond portfolio.
- Strong reserves at 11.3% above actuarial estimate (2020: 9.6%); 2 LPTs significantly reduce uncertainty around PY loss development.
- Strong capital generation, end June position 210% BSCR, a 20ppt improvement on December 2020 and drawn contingent bank facilities paid down.
- Interim dividend resumed at 11.5¢ per share; progressive dividend policy going forward.
Bronek Masojada, Group Chief Executive Officer, commented:
“This is a good result driven by strong performances across all our businesses. Our investments in digital trading continues to bear fruit and market conditions are the best we have experienced for many years. Hiscox has the fire-power, new leadership and talent to capture the many opportunities ahead.”
To view the full press release click here.
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