Hiscox Retail delivered record profits of £59.3 million (2014: £37.4 million)
Strong growth in Hiscox London Market and Hiscox USA improves capital utilisation
Hiscox Re benefits from product innovation and an absence of catastrophes to deliver excellent profits of £59.6 million (2014: £75.6 million)
Bronek Masojada, Chief Executive Officer, Hiscox Ltd, commented
"We are reaping the benefits of our growing retail specialty businesses in the UK, Europe and the USA. Although conditions for reinsurance and big ticket insurance remain tough, our teams have demonstrated their creativity and determination to succeed. Hiscox has the brand, distribution and talent for a bright future."
Dividend, balance sheet and capital management
The Board of Hiscox Ltd has declared an interim dividend for 2015 of 8.0p per share (2014: 7.5p) an increase of 6.7%. The record date for the dividend will be 7 August and the payment date will be 16 September.
The Board proposes to offer again a scrip dividend alternative in respect of the interim dividend, subject to the terms and conditions of Hiscox Ltd's Scrip Dividend Alternative. A circular with further details will be sent on 10 August.
During the period the Group returned capital via a special distribution of £192 million (60p per share), including a final dividend equivalent of £48 million (15p per share). Net asset value per share has increased by 9.3% from the year end.
At this stage in the year it is too early to anticipate capital returns as the hurricane season has just started and earthquakes can happen at any time. In addition, the impact of Solvency II, continued desire to invest in the brand, and ongoing growth, especially in more long-tail casualty business means that our capital requirements are increasing. These will all affect our assessment of what constitutes excess capital at the end of the year.