HISCOX POSTS $139M H1 LOSS ON HIGHER COVID-19 LOSSES

Hiscox has swung to a pre-tax loss of $139m from a profit of $168m a year earlier as it upped its reserves for Covid-19 claims to $232m. The London market giant added $82m to its pandemic claims reserves to cover property-related losses, travel bonds and third-party claims in US allied health. The company had previously disclosed $150m for claims in event cancellation and abandonment, media and entertainment, and travel. The additional loss reserves took the company to a combined operating ratio of 114.6% in the first half of the year from 98.8% a year earlier. The results were also affected by a sharp decline in investment returns, which fell to $85m from $148m in the first half of 2019. Gross written premiums reduced by 4% in constant currency to $2.2bn, with growth in its retail and London market business.