Hiscox Ltd (LON:HSX) has announced its full-year results for the year ended 31 December 2023
| 2023 | 2022 As restated under IFRS 17 | |
| Insurance contract written premium[1] | $4,598.2m | $4,355.4m |
| Net insurance contract written premium1 | $3,555.8m | $3,225.5m |
| Insurance service result | $492.3m | $360.9m |
| Net investment result | $384.4m | $(187.3)m |
| Profit before tax | $625.9m | $275.6m |
| Earnings per share | 206.1¢ | 73.8¢ |
| Earnings per share adjusted for Bermuda DTA | 162.7¢ | 73.8¢ |
| Total dividend per share | 37.5¢ | 36.0¢ |
| Net asset value per share1 | 951.1¢ | 764.5¢ |
| Group combined ratio (discounted)1 | 85.5% | 88.7% |
| Group combined ratio (undiscounted)1 | 89.8% | 91.1% |
| Return on equity1 | 27.6% | 10.1% |
| Return on equity adjusted for Bermuda DTA | 21.8% | 10.1% |
| Positive prior year development1 | $122.8m | $209.4m |
| Bermuda solvency capital ratio (BSCR)[2] | 212% | 199% |
Highlights
· Net insurance contract written premium (net ICWP) grew by 10.7% in constant currency to $3,555.8 million (2022: $3,225.5 million).
· Record profit before tax of $625.9 million (2022: $275.6 million), underpinned by:
o a 36.4% increase in the insurance service result at $492.3 million (2022: $360.9 million); and
o a record net investment income of $384.4 million (2022: loss of $187.3 million).
· Undiscounted combined ratio of 89.8% (2022: 91.1%).
· Group ROE of 21.8%3.
· $150 million buyback, with pro-forma BSCR post ordinary final dividend and capital return of 200%2.
· Strong start to 2024 across all business segments.
A conference call for investors and analysts will be held at 10:00 GMT on Tuesday, 5 March 2024.
Participant dial-in numbers:
United Kingdom (Local): 020 3936 2999
All other locations: +44 20 3936 2999
Participant access code: 466558
Aki Hussain, Group Chief Executive Officer, Hiscox Ltd, commented:
“Our business has delivered excellent results, with record profits of $625.9 million underpinned by a 36% improvement in the underwriting result and a record investment income. The Group combined ratio below 90% and ROE of 21.8%[3] have led to very strong capital generation, which we are deploying for further growth in all parts of the business in addition to a special return to shareholders of $150 million.”
[1]Alternative performance measure definitions used by the Group are included within the consolidated financial statements.
[2]Estimated for 2023.
[3]Excludes impact of Bermuda DTA.
