Insurance company Lloyd’s of London Hiscox (HSX.L) saw a 6.3% increase in gross written premiums in the first quarter and said paying dividends in 2021 was a top priority, boosted by strong growth in the London market and its European operations.
Hiscox has not paid dividends for the past two years as insurers battled the fallout from the coronavirus pandemic.
But now insurers are benefiting from higher rates. Hiscox said on Wednesday that rates on the London commercial insurance market rose 13%.
“Our large businesses are benefiting from improved conditions and a strong market position,” Chief Executive Bronek Masojada said in a statement.
“Our retail business continues to benefit from
transition to digital trade ”.
Hiscox is working to rebuild its brand after losing a litigation over the formulation of a pandemic-related policy statement in the UK earlier this year.
The insurer said its board of directors will assess the possibility of paying dividends in 2021 pending interim results.
Gross written bonuses rose to 1.26 billion pounds ($ 1.75 billion) in the first quarter.
Hiscox said it has set aside a net $ 47 million to cover losses from the Uri winter storm in North America.
It said that Australian floods and losses at sea due to the blockage of the Suez Canal by the container ship Ever Given were “not expected to be significant events” for the company.
(1 dollar = 0.7196 pounds)
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