Monday 02 March 2015
Hiscox Ltd full year results
For the year ended 31 December 2014
“A strong result”
| 2014 | 2013 | |
| Gross premiums written | £1,756.3m | £1,699.5m |
| Net premiums earned | £1,316.3m | £1,283.3m |
| Profit before tax | £231.1m | £244.5m |
| Earnings per share | 67.4p | 66.3p |
| Total dividend per share for year | 22.5p | 21.0p |
| Special distribution | 45.0p | 36.0p |
| Net asset value per share | 462.5p | 402.2p |
| Group combined ratio | 83.9% | 83.0% |
| Return on equity | 17.1% | 19.3% |
| Investment return | 1.8% | 1.9% |
| Reserve releases | £172m | £140m |
Highlights
- Strong premium growth in insurance of 8.8%, including 24.1% for Hiscox USA.
- Record profits in Hiscox UK and Europe of £73.3 million (2013: £56.4 million).
- Retail businesses now over half the Group’s gross premiums written, with retail profits now covering the standard dividend.
- Hiscox London Market profit before tax of £62.6 million (2013: £63.1 million), growing with consistent profitability.
- Hiscox Re reducing premiums as planned by 13.9% and delivered good profits, with new products and Kiskadee ILS funds on track to reach $500 million by mid-year.
- Long-term investment in brand, product and distribution provides opportunities for profitable growth throughout the cycle.
Capital return
- Capital return of 60.0p per share, approximately £192 million, by way of E/F share scheme and share consolidation.
- This comprises a special distribution of 45.0p per share and final dividend equivalent of 15.0p per share, taking the total dividend for the year to 22.5p, an increase of 7.1% (2013: 21.0p).
Bronek Masojada, Chief Executive of Hiscox Ltd, commented:
"Hiscox has had another good year. We have been able to grow profitably in insurance and position Hiscox Re sensibly, reducing premiums and attracting new capital in the face of tough conditions. The strategy of diversification we have pursued for decades means that, whatever the headwinds, we have the firepower to set our own course. We have the strategy, brand, people and capital support for a rewarding future."
For further information:
| Hiscox Ltd | |
| Jeremy Pinchin, Group Company Secretary | +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 |
Notes to editors
About Hiscox
Hiscox, the international specialist insurer, is headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). There are three main underwriting divisions in the Group - Hiscox Retail (which includes Hiscox UK and Europe, Hiscox Guernsey, Hiscox USA and subsidiary brand, DirectAsia), Hiscox London Market and Hiscox Re. Through its retail businesses in the UK, Europe and the US Hiscox offers a range of specialist insurance for professionals and business customers, as well as homeowners. Hiscox underwrites internationally traded, bigger ticket business and reinsurance through Hiscox London Market and Hiscox Re.
For further information, visit www.hiscoxgroup.com.
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