Hiscox profit lift beats expectations

27th Jul 2015 08:59

(ShareCast News) - Insurer Hiscox reported a lift in pre-tax profit for the first half of the year, but warned mother nature could impact its business.The FTSE 250 firm reported pre-tax profits for the first six months up 8.4% to £135.1m from £124.6m, and said it benefited from a lack of major catastrophes.Gross premium revenues were up 12% from £978.9m to £1,096.3m.Chief executive Bronek Masojada said the company was reaping the benefits of growing its retail specialty businesses in the UK, Europe and the USA."Although conditions for reinsurance and big ticket insurance remain tough, our teams have demonstrated their creativity and determination to succeed. Hiscox has the brand, distribution and talent for a bright future," Masojada said.Hiscox declared an interim dividend for 2015 of 8p per share, an increase of 6.7%, above last year's 7.5p.RBC Capital said the half year pre-tax profit was 6% higher than consensus and 12.5% above its own expectations.Analysts held an 'outperform' rating on the stock and a price target of 931p.RBC said the insurer's US business, where premiums grew 16.9% in the last six months, remained a key reason to own the stock."We expect that the company will continue to grow this segment focusing on a target market of c5m potential customers offering the company significant growth opportunities."