Analyst Views: What do you make of Hiscox’s results? Is there any cause for concern?
NICK JOHNSON | NUMIS
This is another strong result from Hiscox, with ongoing progress in building the group’s retail business on a number of fronts. The company says that the second year with special dividends should not be seen as a pattern, given that it is working hard to deploy capital in value creating sectors.
SARAH LEWANDOWSKI | ESPIRITO SANTO
Hiscox benefits from a balanced underwriting portfolio and will stay disciplined in its reinsurance business as rates dictate. The investment return was down at 1.9 per cent compared with 3.1 per cent in 2012. This compares relatively favourably with peer group investment returns so far however.
HARI SIVAKUMARAN | ORIEL SECURITIES
Profit before tax was nine per cent below consensus forecasts with higher adverse FX movement and lower underwriting contribution than our expectation. However the results and the special distribution should provide comfort over the health of the business including its profitability and levels of capital.