Broker snap: Daniel Stewart continues to prefer Hiscox

29th Jul 2013 13:25

Analysts at Daniel Stewart continue to include FTSE-250 listed insurer Hiscox amongst their preferred stocks in the insurance sector. The main reason for the above lies in the fact that they expect the firm to grow at about 10% per year for the next two years. Hiscox today unveiled a rise in interim profits before tax to £180.7m from £125.8m one year ago alongside a rise in gross written premiums of 12.3% to £1,017.9m, driven by property and small commercial lines.Many of the group´s main operating metrics benefitted. Thus, the group´s combined ratio dropped to 74.7% versus 81.7%, its annualised return on equity rose to 25.8% from 21.1%. Hence the 16.7% rise in its dividend pay-out to 7p per share from 6p before. As of 13:40 shares of Hiscox are rising by 6.63% to the 651p mark after having earlier hit a new record high at 661p.AB