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Member, Beacon International Group, Ltd.
HAMILTON, BermudaHiscox Ltd. posted record profit in 2006, which the insurer attributed in part to its decision to redomicile to Bermuda from London.
Hiscox recorded record profit before tax of £201.1 million ($388.7 million), a 186% increase on the 2005 figure.
Bronek Masojada, chief executive, said that moving the company's domicile to Bermuda had been one of the strategies for improving the balance sheet in 2006. Others included starting underwriting through the Bermudian reinsurance business and starting operating in the United States, he said.
The combined ratio was 88.3% compared with 96% in 2005. Hiscox Global Markets' combined ratio was down to 89% from 99.9% , while Hiscox International's combined ratio was down to 62.2% from 91.3%.
Hiscox also launched a sidecar, Panther Re, in 2006. In a statement, Hiscox said that, "this was a first for the Lloyd's market. The team will benefit from the increased market presence the sidecar gives them and will receive a ceding commission and a profit commission based on actual performance. Rates in the reinsurance area remain attractive, despite the flow of underwriting capacity into this area over the past 12 months."