Lloyd's insurer Hiscox turned in a solid enough first-half performance, although exchange-rate fluctuations created something of a dent. So while the combined ratio (of claims to premiums) improved from 81.0 per cent to 79.5 per cent, net of £42.8m worth of foreign-exchange losses, it deteriorated from 79.7 per cent to a still solidly profitable 88.3 per cent.
However, Hiscox made giant strides on the investment side. Whereas last year saw net realised gains of £4.2m, and asset writedowns swallowing £34.2m, this year saw realised gains nearly doubling to £8.1m and fair value gains of £38.3m. Insurance premiums in catastrophe-prone areas of business remained very strong, but non-catastrophe business saw weaker premiums as a result of greater competition.