Lloyd’s of London insurer Hiscox on Tuesday (Mar 5) posted a record annual profit and launched a share buyback as higher interest rates and strength in its commercial business helped offset rising claims and the effect of currency swings.

The London-listed company, which underwrites a range of risks from natural catastrophes to cyber attacks to kidnappings and art theft, said it will launch a share buyback worth US$150 million and added that the retail outlook for 2024 was positive.

It expects to deliver an annual growth within the 5 per cent-15 per cent range in its retail business.

Commercial insurers have been hit hard in recent years by substantial claims tied to events such as hurricanes, wildfires, the Covid pandemic, and the wars in Ukraine and the Middle East. To counteract this, they have increased premiums and implemented more restrictive coverage policies.

Net insurance contract written premium for 2023 climbed 10.7 per cent to US$3.56 billion with its undiscounted combined ratio – a measure of an insurer’s profitability – at 89.8 per cent.

Its profit before tax for the full year ended Dec 31 rose to US$625.9 million, from US$275.6 million a year earlier. REUTERS

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