Hiscox's first half profit falls amid tough market conditions

28th Jul 2014 10:09

Insurance provider Hiscox saw first half profit fall, reflecting a slump in the reinsurance rate and the foreign exchange rate. Pre-tax profit in the six months ended June 30th came to £124.6m, down from £180.7m a year earlier, as the company was hurt by a £51m foreign exchange swing from 2103. Earnings per share dropped to 36.4p from 42.4p. Gross premiums written declined to £978.9m from £1bn as the pressure on rates continued. "Falling rates and deteriorating terms and conditions are putting pressure on the market," said Chief Executive Bronek Masojada. "We've seen this before, but our discipline and strategy of balance is designed to absorb these conditions. We will seize opportunities as they present themselves in our specialty lines and maintain our discipline in the face of increasingly strong headwinds." The company declared an interim dividend of 7.5p per share, an increase of 7.1%.RD