Latest news with #Hiscox
Daily Mail
4 days ago
- Business
- Daily Mail
Interest rate hopes send Footsie to a record high as traders shrug off concerns about Trump's India tariffs
The FTSE 100 hit a fresh record yesterday as traders placed bets on another interest rate cut from the Bank of England. The index closed up 0.2 per cent, or 21.58 points, at 9164.31 after a similar record-breaking session on Tuesday when it passed 9142. Traders shrugged off concerns about a trade war between the US and India after Donald Trump announced he would slap a 50 per cent tariff on goods from the South Asian nation in response to its importing of oil from Russia. The FTSE 100 was led higher by insurer Hiscox, which jumped 9.4 per cent, or 119p, to 1379p after it announced it would be increasing its stock buyback plans by £75million. Precious metals miner Fresnillo jumped 8.9 per cent, or 135p, to 1655p following strong results this week. Traders were also pricing in an expected interest rate cut from the Bank of England later today. Market forecasts are predicting the central bank will lower rates by 0.25 per cent to 4 per cent. Rate cuts tend to boost stock markets as they make it easier for firms to borrow and invest, stimulating growth. Lower rates also make it easier for mortgage holders and other borrowers to repay their debts, leaving them with extra cash to spend elsewhere. A rate of 4 per cent would be the lowest in over two years and signal that the decision-makers on the Bank's Monetary Policy Committee believe inflation pressures are starting to ease. But Tom Matterson, investment manager at Saltus, warned 'significant instability remains', highlighting the autumn Budget and turmoil in the global economy.
Times
4 days ago
- Business
- Times
Hiscox shares rise despite hit from LA fires
Shares in one of the London stock market's biggest insurers rose despite taking a $170 million hit from the Los Angeles wildfires as it extended a share buyback scheme by $100 million. Hiscox reported a 6.2 per cent rise in first-half group net insurance premiums to $2.94 billion, supported by consistent growth in its retail business. Hiscox's combined ratio, a key metric for insurers where a figure below 100 indicates underwriting profitability, was 92.6 per cent, compared with 90.4 per cent a year earlier. • Business live: FTSE 100 extends record run The FTSE 100 business said profitability was underpinned by margin expansion in Hiscox Retail, which includes home, business, travel and motor cover; Hiscox London Market, which is for areas such as property, marine and energy and crisis insurance; and Hiscox Re & ILS, its reinsurance arm. The company said that Hiscox Re & ILS continued to deliver underwriting profits despite 'the largest wildfire insurance event in history'. It absorbed an estimated $170 million loss from the wildfires that destroyed parts of Los Angeles in January. At the pre-tax level, wildfire claims caused profits to dip, from $283.5 million in the same period last year to $276.6 million. Several neighbourhoods, including the wealthy Pacific Palisades community and Altadena, were devastated by blazes that lasted for three weeks in January. It was one of the worst wildfires to have hit California. London-listed Hiscox, which is based in Bermuda, provides reinsurance to US insurers, and covering portions of their losses accounts for the bulk of its exposure to the disaster. Hiscox said it would increase the share buyback scheme from a previously announced $175 million cap to a maximum of up to $275 million. Shares in Hiscox rose 132p, or 10.5 per cent, to £13.92 in afternoon trading in London. Aki Hussain, the chief executive, said: 'We have delivered a strong performance in the first half with profitable growth in each of our businesses. In retail, growth momentum has continued in line with our expectations and we are expanding margins. 'Our balance sheet remains in great shape, enabling us to keep investing to capture the opportunities ahead and accelerate retail growth.'
Leader Live
4 days ago
- Business
- Leader Live
Hiscox profits fall after £128m claims hit from LA wildfires
The specialist insurer revealed earlier this year it was expecting claims to reach 170 million US dollars (£128 million) – an estimate which still stands, it said on Tuesday. 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.
Glasgow Times
4 days ago
- Business
- Glasgow Times
Hiscox profits fall after £128m claims hit from LA wildfires
The specialist insurer revealed earlier this year it was expecting claims to reach 170 million US dollars (£128 million) – an estimate which still stands, it said on Tuesday. 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.
Reuters
4 days ago
- Business
- Reuters
UK stocks rise amid mixed corporate results, eyes on upcoming BoE rate decision
Aug 6 (Reuters) - British equities edged higher on Wednesday, as investors assessed a mixed bag of corporate earnings and awaited a Bank of England rate cut on Thursday. The blue-chip FTSE 100 (.FTSE), opens new tab was up 0.2% as of 0916 GMT, rising for a third consecutive session after touching a four-month low on Friday. The domestically focused midcap FTSE 250 (.FTMC), opens new tab also rose 0.2%. Insurance stocks (.FTNMX303020), opens new tab rose by 2.7%, after Hiscox (HSX.L), opens new tab reported a 6.2% rise in first-half group net insurance premiums. Shares of the British insurer jumped 8.7%, making it the biggest percentage gainer in the FTSE 100. Oil and gas (.FTNMX601010), opens new tab sector rose 2.3%, tracking higher oil prices. Heavyweight Shell (SHEL.L), opens new tab and BP (BP.L), opens new tab were among the top gainers in the benchmark index, both up 2.3%. London-listed shares of Coca-Cola Europacific Partners (CCEPC.L), opens new tab and Coca-Cola HBC - bottling units of U.S. beverage giant Coca-Cola (KO.N), opens new tab - fell 11.6% and 9.1%, respectively, after their quarterly reports, dragging on the FTSE 100. Glencore (GLEN.L), opens new tab fell nearly 4% after the UK miner reported a drop in first-half core profit. British healthcare stocks (.FTNMX201030), opens new tab fell marginally after U.S. President Donald Trump said on Tuesday that Washington would initially place a "small tariff" on pharmaceutical imports, eventually increasing it to 250%. Among other individual stocks, TP ICAP (TCAPI.L), opens new tab fell the most in the FTSE 250, down 9.8%, after the British inter-dealer broker posted weaker-than-expected half-year operating profit. Bank of England is widely expected to cut its key interest rate to 4% from 4.25% and to lower it again before the year's end, despite inflation nearing double the central bank's 2% target in June. "The decision to cut rates again is likely to be far from the Bank couches its accompanying commentary will send a strong signal regarding its perception of the trajectories for economic activity and inflation in coming months", said Jeremy Batstone-Carr, European Strategist at Raymond James Investment Services in a note.
