Hiscox chiefs miss out on bonuses for 2017 after year of hurricanes and natural disasters

Senior executives at insurer Hiscox have missed out on bonuses this year after a gruelling 2017 hurricane season.

The insurers’ top executives will not receive a bonus for the 2017 financial year after return on equity fell to 1.5 per cent, below the required threshold for a bonus payment.

Chief executive Bronek Masojada received £2.3m for 2017, a fall of 42 per cent from the previous year when he was paid nearly £4m.

Others to miss out include chief underwriting officer Richard Watson and chief financial officer Hamayou Hussain.

Watson’s pay fell 45 per cent from £3.1m to £1.7m, wile Hussain’s remuneration fell from £1.5m to just below £1m.

The insurer was hit by a spike in claims following a series of devastating hurricanes in 2017 which wreaked havoc across the Caribbean, the Gulf of Mexico and the US.

Read more: Hiscox profits dive after “historic” year for natural catastrophes

Its 2017 profits fell after what Masojada described as “an historic year for natural catastrophes”.

Pre-tax profit for 2017 was £30.8m, down from £354.5m, while gross written premiums rose to £2.55bn, up from £2.4bn the year before.

“Our long-held strategy of balance has served us well this year. The strong growth and profits in retail countered the volatility felt in our big-ticket businesses which were impacted by an historic year for natural catastrophes,” said Masojada.

Read more: Lloyd’s boss: Hurricanes will cost $200bn – but that could help insurers

Speaking to The Sunday Times last year, Lloyd’s of London boss Inga Beale said that the 2017 hurricane season could leave insurers with a bill for $200bn (£143bn).

“You could end up with a series of events that could total $200bn,” she said.