Hiscox remains confident as profits dip

The insurer and reinsurer, which underwrites a range of risks from oil refineries to kidnappings, said fierce competition had affected its results in 2014, which was also a “relatively benign year for large scale natural catastrophes”.

Profit before tax fell from £244.5 in 2013 to £231.1 last year.

Gross premiums written rose by just over five per cent to £1.76bn. Insurance premiums rose almost nine per cent worldwide, with growth of 24.1 per cent in Hiscox USA.

Hiscox UK and Europe saw record profit of £73.3m, up from £56.4m in 2013.

Hiscox London Market profit before tax dropped 0.8 per cent to £62.6m.

The business plans to return £192m to shareholders through a special dividend of 45p per share and 15p per share instead of a final dividend.

Bronek Masojada, Chief Executive of Hiscox, said the firm had a good year despite tough conditions.

He said: “The strategy of diversification we have pursued for decades means that, whatever the headwinds, we have the firepower to set our own course.”

Hiscox employs 140 people in York and is on schedule to complete its £19m office development in the city this year.

Hiscox chairman Robert Childs said he had been “inspired by the enthusiasm and drive” of the York team in a recent visit.

The new office will be the insurer’s largest outside London. It will house up to 500 insurance experts, underwriters, IT, HR, claims and legal advisers.

Alan Millard, chief operating officer at Hiscox UK, said the business has been impressed by the quality of talent in York, with the team achieving 96 per cent customer satisfaction scores since its launch last year.

Mr Millard said: “We will open our new, landmark office in the second half of the year and be as involved in the local community as we were last year.

“Trading conditions remain tough for insurers, but we achieved good business growth in 2014 which we are well positioned to build on this year.”