Hiscox profits fall after £128m claims hit from LA wildfires
The wildfires, which raged in California during the first half of January, have been estimated by some to be the costliest natural disaster in US history.
Aki Hussain, group chief executive at Hiscox, branded it the 'largest wildfire insurance event in history', estimating earlier this year the loss to the sector could be as high as 40 billion dollars (£30.1 billion).
More than 16,200 structures were destroyed as flames ripped through Pacific Palisades, Malibu, Pasadena and Altadena areas of Los Angeles.
Estimates of the total economic loss from the firestorm have been estimated to surpass 250 billion dollars (£188 billion).
The wildfire claims saw half-year profits at Hiscox fall 2% to 276.6 million dollars (£208 million) in the six months to June 30.
On an underlying basis, pre-tax operating profits were 9% lower at 262 million dollars (£197 million).
Hiscox said despite the profit drop, it would increase its share buybacks by 100 million dollars (£75.2 million) and hike its interim dividend payout by 9.1%.
Mr Hussain said: 'Our balance sheet remains strong and we are achieving sustained and strong capital formation which underpins our increased return of capital to shareholders, through step-ups in ordinary dividends and buybacks, over the last two years.'
Shares jumped 8% after the half-year results.
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Sky News
11 minutes ago
- Sky News
Israeli minister announces plans for new West Bank settlement to 'bury' idea of Palestinian state
Israel's far-right finance minister has announced plans to build a new settlement in the Israeli-occupied West Bank, which he said would "bury" the idea of a Palestinian state. Palestinians and rights groups said the settlement would effectively cut the West Bank into two separate parts and rob them of any chance to build a Palestinian state. This comes as several countries, including the UK, said they would recognise a Palestinian state in September, unless Israel meets several conditions, including agreeing to a ceasefire in Gaza. "This reality finally buries the idea of a Palestinian state, because there is nothing to recognise and no one to recognise," finance minister Bezalel Smotrich said as he announced the construction plans. "Anyone in the world who tries today to recognise a Palestinian state will receive an answer from us on the ground." The settlement is planned to be built in E1, an open tract of land east of Jerusalem, and includes around 3,500 apartments to expand the existing settlement of Maale Adumim, Mr Smotrich said. E1 has been eyed for Israeli development for more than two decades, but plans were halted due to pressure from the US during previous administrations. Now-US President Donald Trump and the US ambassador to Israel, Mike Huckabee, were praised on Thursday by Mr Smotrich as "true friends of Israel as we have never had before". Mr Smotrich, himself a Jewish settler, told Sky News' international correspondent Diana Magnay that Israeli Prime Minister Benjamin Netanyahu and Mr Trump had agreed to the revival of the E1 scheme. There was no confirmation of this claim from either leader. The E1 plan has not yet received its final approval, which is expected next week. 0:56 Construction of homes 'within a year' Peace Now, which tracks settlement activity in the West Bank, said some bureaucratic steps remain before construction could begin, including the approval of Israel's high planning council. But if the process moves quickly, infrastructure work could start in the next few months, with the construction of homes to follow in about a year. "The E1 plan is deadly for the future of Israel and for any chance of achieving a peaceful two-state solution. We are standing at the edge of an abyss, and the government is driving us forward at full speed," Peace Now said in a statement. It added that the plan was "guaranteeing many more years of bloodshed". Mr Smotrich was also criticised by an Israeli rights group established by former Israel Defence Forces (IDF) soldiers, who accused the far-right politician of encouraging West Bank settlement activity while the world's attention was on the Gaza war. As well as official, government-approved settlements, there are also Israeli outposts, which are established without government approval and are considered illegal by Israeli authorities. But reports suggest the government often turns a blind eye to their creation. In May, Mr Netanyahu's government approved 22 new settlements, including the legalisation of outposts that had previously been built without authorisation. Since the Hamas-led attacks on 7 October 2023 and Israel's subsequent military bombardment of Gaza, more than 100 Israeli outposts have been established, according to Peace Now. Settler violence against Palestinians has also increased, according to the UN, with an average of 118 incidents each month - up from 108 in 2023, which was already a record year. Trump's ambassador denying existence of the West Bank 'all the encouragement' Smotrich needs Bezalel Smotrich is pumped. His dreams of resettlement and annexation of the West Bank have never been closer to fruition. The E1 settlement plan, which would cut the West Bank from East Jerusalem, was first conceived back in 1995 by then prime minister Yitzhak Rabin. Thirty years later, the extremist settler contingent within the government seems to be on the verge of making it a reality. The prime minister's office has yet to confirm Benjamin Netanyahu's backing, but according to Smotrich, both he and President Trump are on board. E1 (or T1 as they say they will call it, in honour of Donald Trump) would be another symbolic blow to the very notion of Palestinian statehood, as is every settlement and piece of related infrastructure which Israel builds in the occupied West Bank. At a time when the UK, France and others all say they will recognise a Palestinian state unless Israel pushes for a ceasefire in Gaza, Netanyahu's government is doubling down. Per Smotrich, their response will come through roads, buildings, neighbourhoods, the spread of Jewish life across Palestinian lands in the West Bank - the creation of facts on the ground. The UK, France and many others in the international community may not like it, but the real power-broker here, certainly as far as Netanyahu is concerned, is Donald Trump. He is the president who moved the US embassy to Jerusalem; his ambassador has said there is no such thing as the West Bank. For the likes of Smotrich, that is all the encouragement they need. Plans criticised as 'extension of genocide' The Palestinian foreign ministry called the settlement plan an extension of the crimes of genocide, displacement and annexation. Israel has long disputed accusations of genocide and rights abuses, saying it is acting in self-defence. Nabil Abu Rudeineh, the Palestinian president's spokesperson, called on the US to pressure Israel to stop the building of settlements. Hamas said the plan was part of Israel's "colonial, extremist" policies and called on Palestinians to confront it. Qatar, which has been acting as a mediator between Hamas and Israel in a bid to secure a ceasefire in Gaza, said the move was a flagrant violation of international law. "The EU rejects any territorial change that is not part of a political agreement between involved parties. So annexation of territory is illegal under international law," European Commission spokesperson Anitta Hipper said. Today, an estimated 700,000 Israeli settlers live in the West Bank and East Jerusalem. There is also a growing movement of Israelis wanting to build settlements in Gaza. Settlers make up around 5% of Israel's population and 15% of the West Bank's population, according to data from Peace Now. Settlements are illegal under international law and have been condemned by the UN. They are, however, authorised by the Israeli government. According to the Israel Policy Forum, the settlement programme is intended to protect Israel's security, with settlers acting as the first line of defence "against an invasion". Mr Smotrich's settlement announcement comes after the UK, Canada, Australia and New Zealand on Mr Smotrich and his fellow far-right cabinet member, Itamar Ben-Gvir, for "repeated incitements of violence against Palestinian civilians" in the West Bank. 4:33 Foreign Secretary David Lammy said in June that the ministers had been "encouraging egregious abuses of human rights" for "months". Last year, Mr Smotrich, whose National Religious Party largely draws its support from settlers, ordered preparations for the annexation of the West Bank. His popularity has fallen in recent months, with polls showing that his party would not win a single seat in parliament in elections were held today.
Times
17 minutes ago
- Times
Tariffs blamed as Britain's exports to US drop to lowest since 2022
UK exports to the United States dropped to a three-year low after President Trump introduced sweeping tariffs on the world economy. The latest trade figures showed the value of British goods exported to the world's largest economy declined by 15 per cent, or £700 million, in June to the lowest since February 2022. Across the second quarter, exports to the US contracted by £4.7 billion after Trump announced a wave of tariffs on goods entering the country from April. The figures do not reflect the impact of the UK-US trade deal, which limits most tariffs on British goods exports to 10 per cent and came into force on June 30. The agreement means the UK is facing an average tariff rate of 9 per cent on US trade, compared with about 1 per cent before April's 'liberation day' announcement. Falling exports to the US partially reflected Trump's import taxes on metals and the car sector. The Office for National Statistics said overall exports of machinery, transport equipment and chemicals fell by £200 million in June, indicating falling automotive sales to the US. The UK-US deal, struck in May, reduced tariffs on most British car exports from 27.5 per cent to 10 per cent and eliminated levies on steel and aluminium. William Bain, head of trade policy at the British Chambers of Commerce, said: 'Implementation of the UK's trade deal with the US in full is now needed to improve prospects, particularly for steel and aluminium goods. The agreement should be a platform to discuss further tariff reform with the US, especially in goods sectors where there is little competition on production.' The UK's overall trade deficit — which measures the difference between exports and imports —widened by £1.7 billion in the second quarter to £9.2 billion. This was due to a larger rise in imports than international sales, the ONS said. Good exports to the European Union rose over the second quarter by £1.5 billion, or 3.6 per cent. The trade deficit reflects the gap in goods trade, where the UK has run a persistent deficit in recent decades. In services, where the UK is a major exporter to the rest of the world, the economy continued to record a surplus, which rose by £4.1 billion to £51.9 billion in the quarter. UK exports to the US surged at the start of the year as American businesses attempted to get ahead of impending tariffs. Net trade boosted the economy by 0.34 per cent in the first quarter and had a marginally positive 0.02 percentage-point push on growth in the second quarter. Anna Titareva, a European economist at UBS, said the economy would be weighed down by rising protectionism in the second half of the year. 'We expect net exports to be the main drag on growth in the coming quarters, with the contribution to GDP growth likely remaining negative in 2026 and 2027 as well,' she said. Almost a third of UK businesses that export to the US have said they have been impacted by US tariffs and are preparing to face higher costs, according to the ONS.
Sky News
29 minutes ago
- Sky News
Israel announces plans for new West Bank settlement to 'bury' idea of Palestinian state
Israel's far-right finance minister has announced plans to build a new settlement in the Israeli-occupied West Bank, which he said would "bury" the idea of a Palestinian state. Palestinians and rights groups said the settlement would effectively cut the West Bank into two separate parts and rob them of any chance to build a Palestinian state. This comes as several countries, including the UK, said they would recognise a Palestinian state in September, unless Israel meets several conditions, including agreeing to a ceasefire in Gaza. "This reality finally buries the idea of a Palestinian state, because there is nothing to recognise and no one to recognise," finance minister Bezalel Smotrich said as he announced the construction plans. "Anyone in the world who tries today to recognise a Palestinian state will receive an answer from us on the ground." The settlement is planned to be built in E1, an open tract of land east of Jerusalem, and includes around 3,500 apartments to expand the existing settlement of Maale Adumim, Mr Smotrich said. E1 has been eyed for Israeli development for more than two decades, but plans were halted due to pressure from the US during previous administrations. Now-US President Donald Trump and the US ambassador to Israel, Mike Huckabee, were praised on Thursday by Mr Smotrich as "true friends of Israel as we have never had before". Mr Smotrich, himself a Jewish settler, told Sky News' international correspondent Diana Magnay that Israeli Prime Minister Benjamin Netanyahu and Mr Trump had agreed to the revival of the E1 scheme. There was no confirmation of this claim from either leader. The E1 plan has not yet received its final approval, which is expected next week. 0:56 Construction of homes 'within a year' Peace Now, which tracks settlement activity in the West Bank, said some bureaucratic steps remain before construction could begin, including the approval of Israel's high planning council. But if the process moves quickly, infrastructure work could start in the next few months, with the construction of homes to follow in about a year. "The E1 plan is deadly for the future of Israel and for any chance of achieving a peaceful two-state solution. We are standing at the edge of an abyss, and the government is driving us forward at full speed," Peace Now said in a statement. It added that the plan was "guaranteeing many more years of bloodshed". Mr Smotrich was also criticised by an Israeli rights group established by former Israel Defence Forces (IDF) soldiers, who accused the far-right politician of encouraging West Bank settlement activity while the world's attention was on the Gaza war. As well as official, government-approved settlements, there are also Israeli outposts, which are established without government approval and are considered illegal by Israeli authorities. But reports suggest the government often turns a blind eye to their creation. In May, Mr Netanyahu's government approved 22 new settlements, including the legalisation of outposts that had previously been built without authorisation. Since the Hamas-led attacks on 7 October 2023 and Israel's subsequent military bombardment of Gaza, more than 100 Israeli outposts have been established, according to Peace Now. Settler violence against Palestinians has also increased, according to the UN, with an average of 118 incidents each month - up from 108 in 2023, which was already a record year. Trump's ambassador denying existence of the West Bank 'all the encouragement' Smotrich needs Bezalel Smotrich is pumped. His dreams of resettlement and annexation of the West Bank have never been closer to fruition. The E1 settlement plan, which would cut the West Bank from East Jerusalem, was first conceived back in 1995 by then prime minister Yitzhak Rabin. Thirty years later, the extremist settler contingent within the government seems to be on the verge of making it a reality. The prime minister's office has yet to confirm Benjamin Netanyahu's backing, but according to Smotrich, both he and President Trump are on board. E1 (or T1 as they say they will call it, in honour of Donald Trump) would be another symbolic blow to the very notion of Palestinian statehood, as is every settlement and piece of related infrastructure which Israel builds in the occupied West Bank. At a time when the UK, France and others all say they will recognise a Palestinian state unless Israel pushes for a ceasefire in Gaza, Netanyahu's government is doubling down. Per Smotrich, their response will come through roads, buildings, neighbourhoods, the spread of Jewish life across Palestinian lands in the West Bank - the creation of facts on the ground. The UK, France and many others in the international community may not like it, but the real power-broker here, certainly as far as Netanyahu is concerned, is Donald Trump. He is the president who moved the US embassy to Jerusalem; his ambassador has said there is no such thing as the West Bank. For the likes of Smotrich, that is all the encouragement they need. Plans criticised as 'extension of genocide' The Palestinian foreign ministry called the settlement plan an extension of the crimes of genocide, displacement and annexation. Israel has long disputed accusations of genocide and rights abuses, saying it is acting in self-defence. Nabil Abu Rudeineh, the Palestinian president's spokesperson, called on the US to pressure Israel to stop the building of settlements. Hamas said the plan was part of Israel's "colonial, extremist" policies and called on Palestinians to confront it. Qatar, which has been acting as a mediator between Hamas and Israel in a bid to secure a ceasefire in Gaza, said the move was a flagrant violation of international law. "The EU rejects any territorial change that is not part of a political agreement between involved parties. So annexation of territory is illegal under international law," European Commission spokesperson Anitta Hipper said. Today, an estimated 700,000 Israeli settlers live in the West Bank and East Jerusalem. There is also a growing movement of Israelis wanting to build settlements in Gaza. Settlers make up around 5% of Israel's population and 15% of the West Bank's population, according to data from Peace Now. Settlements are illegal under international law and have been condemned by the UN. They are, however, authorised by the Israeli government. According to the Israel Policy Forum, the settlement programme is intended to protect Israel's security, with settlers acting as the first line of defence "against an invasion". Mr Smotrich's settlement announcement comes after the UK, Canada, Australia and New Zealand on Mr Smotrich and his fellow far-right cabinet member, Itamar Ben-Gvir, for "repeated incitements of violence against Palestinian civilians" in the West Bank. 4:33 Foreign Secretary David Lammy said in June that the ministers had been "encouraging egregious abuses of human rights" for "months". Last year, Mr Smotrich, whose National Religious Party largely draws its support from settlers, ordered preparations for the annexation of the West Bank. His popularity has fallen in recent months, with polls showing that his party would not win a single seat in parliament in elections were held today.
