# Lloyd’s of London insurer Hiscox profit spikes on premium rise Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-08-09 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Hiscox Profits Surge on Premium Rise Meta Description: Discover how Lloyd's of London insurer Hiscox saw a sharp increase in pretax profit due to higher premium rates, despite shares falling on disappointing URL: https://financedigest.com/lloyds-of-london-insurer-hiscox-profit-spikes-on-premium-risehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-08-09t063641z1lynxmpej7806trtroptp4hiscox-outlook-1736813676588-compressed.jpg) # Lloyd’s of London insurer Hiscox profit spikes on premium rise By Carolyn Cohn LONDON (Reuters) -Lloyd’s of London insurer Hiscox posted a sharp rise in pretax profit on rising premium rates, but its shares fell on Wednesday as analysts focused on a disappointing retail outlook. Commercial insurers who have faced hefty claims in recent years relating to hurricanes and wildfires, the COVID-19 pandemic and war in Ukraine, have responded by raising rates and restricting coverage. Hiscox’s performance had improved “as a result of favourable market conditions we are seeing in reinsurance and in our Lloyd’s market,” Chief Executive Aki Hussain told Reuters. In the London market, Hiscox saw premium [rate rises](https://www.financedigest.com/global-shares-rise-dollar-rebounds-as-fed-seen-on-target-for-rate-hike.html "Global shares rise, dollar rebounds as Fed seen on target for rate hike") of 9% overall. Household property rates [rose 27% and major property rates gained](https://www.financedigest.com/at-europes-big-banks-women-make-some-gains-despite-rose-exit.html "At Europe’s big banks, women make some gains despite Rose exit") 23%, with Hiscox seeing further rises this year. However, the insurer’s shares fell 4.2% at 0739 GMT, making it one of the worst performers in the FTSE 100 index. RBC analysts pointed to Hiscox’s latest guidance for [growth in the mid-single digits for its retail business](https://www.financedigest.com/7-stages-of-business-growth.html "7 Stages of Business Growth"), which they said compared with a previous outlook of around 10%. RBC reiterated its “perform” rating on the stock. Hiscox’s pretax profit for the first half of 2023 rose to $265 million, from $25 million a year earlier. Rising interest rates helped Hiscox’s investment performance, which showed a positive return of $122 million, compared with a $214 million loss a year earlier. (Reporting by Carolyn Cohn; Editing by Sinead Cruise and Alexander Smith) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---