For the year ended 31 December 2016
“A record result”
| 2016 | 2015 | |
| Gross premiums written | £2,402.6m | £1,944.2m |
| Net premiums earned | £1,675.0m | £1,435.0m |
| Profit before tax | £354.5m | £216.1m |
| Earnings per share | 119.8p | 72.8p |
| Total ordinary dividend per share for year | 27.5p | 24.0p |
| Special dividend | 16.0p | |
| Net asset value per share | 649.9p | 545.0p |
| Group combined ratio | 84.4% | 85.0% |
| Return on equity | 23.0% | 16.0% |
| Investment return | 1.9% | 1.0% |
| Foreign exchange gains | £152.4m | £15.2m |
| Reserve releases | £213.0m | £205.9m |
Highlights
- A record profit of £354.5 million, an increase of 64%, with gross written premium growth of 23.6% (14.1% in local currency).
- Hiscox Retail now accounts for 49% of the Group’s GWP, 61% of NWP and 45% of profits (60% excluding foreign exchange gains). Hiscox UK and Europe doubled profits, and Hiscox USA remains the stand-out performer with premium growth of over 30%.
- Hiscox London Market is navigating its way through a challenging trading environment, growing selectively and focusing on long-term opportunity.
- Hiscox Re and ILS delivered an excellent result. It benefited from good underwriting and an increasing contribution from fees and profit commissions. Kiskadee Investment Managers’ Assets Under Management now $1.25 billion.
- Final dividend of 19.0p, a step up in the full year ordinary dividend to 27.5p, which is an increase of 15%. Going forward we will maintain our progressive dividend policy. The Group continues to use retained profits to fund future growth opportunities.
Bronek Masojada, Chief Executive of Hiscox Ltd, commented:
“This is a good result, flattered by foreign exchange and boosted by a strong investment return. Our retail business has come of age, driving growth and profitability for the Group. This gives us options and, although there are uncertainties in both the insurance and political environments, we have the right people, footprint and financial power to adapt. We will remain focused and disciplined where margins are shrinking and invest where we see opportunities for long-term profitable growth.”
For further information
| Hiscox Ltd | |
| Jeremy Pinchin, Group Company Secretary, Bermuda | +1 441 278 8300 |
| Kylie O’Connor, Head of Group Communications, London | +44 (0)20 7448 6656 |
| Brunswick | |
| Tom Burns | +44 (0)20 7404 5959 |
| Simone Selzer | +44 (0)20 7404 5959 |
Notes to editors
About The Hiscox Group
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It’s a long-standing strategy which in 2016 helped generate gross premiums written of £2,402.6 million and a record profit before tax of £354.5 million.
The Hiscox Group employs over 2,300 people in 13 countries, and has customers worldwide. Through the retail businesses in the UK, Europe and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re and ILS.
Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.
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