Hiscox plunges to Q2 loss as COVID-19 claims rise to $232m

Specialist global insurer Hiscox has raised its COVID-19 loss estimate to $232 million from $175 million, and reported a significant deterioration in loss ratio for the first half of the year.

Hiscox made a pre-tax loss of $138.9 million for the H1 2020, compared with a profit of $168 million in the same period of 2019. The group has estimated $232 million for claims arising from COVID-19 in the first half, up from the previous estimate of around $175 million.

The group’s combined ratio jumped to 114.6 percent for the first half of the year, versus 98.8 percent in the first half of 2019.

Gross written premiums were $2.23 billion in H1 2020, compared with $2.34 billion in H1 2019.

Bronek Masojada, Hiscox’s chief executive officer, said: “The dedication of our people around the world has enabled the business to respond to the challenges of this global pandemic and to deliver a resilient performance. Our investment in technology has paid off in all areas and supported our growth in Hiscox Retail and Hiscox London Market.”

“Our long-held strategy of balancing volatile big-ticket risks with our more steady retail earnings in the US, UK and Europe provides both stability and opportunity,” he added. “We are well positioned to capture the opportunities ahead in all our markets and in all our segments around the world.”