Hiscox posts record annual profit, launches new buyback

(Reuters) — Lloyd’s of London insurer Hiscox on Tuesday 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 cyberattacks to kidnappings and art theft, said it will launch a share buyback worth $150 million and added that the retail outlook for 2024 is positive.

It expects to deliver annual growth within the 5% to 15% 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-19 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% to $3.56 billion with its undiscounted combined ratio — a measure of an insurer’s profitability — at 89.8%. Its profit before tax for the full year rose to $625.9 million, from $275.6 million in 2022.