(Reuters) -Hiscox Ltd posted a 76.5% plunge in its full-year profit on Wednesday, dented by heavy losses in its investment portfolio from market volatility, although higher premium rates helped the British insurer generate an underwriting profit.
Hiscox (LON:HSX), which underwrites a range of risks, including for events, fine art, vintage cars, kidnap and ransom, recorded an investment loss of $187.3 million in 2022, versus a profit of $51.2 million last year.
The company reported a combined ratio - a measure of an insurer's profitability - of 90.6% for the reported period ended Dec. 31, helped by a 25% rise to $269.5 million in its annual underwriting profit.
A level below 100% indicates an underwriting profit and a lower percentage indicates higher earnings.
The Lloyd's of London insurer posted an annual profit before tax of $44.7 million, compared with a profit of $190.8 million pounds in the year-ago period. UBS analysts had expected a loss of $14 million.
Hiscox also said Chairman Robert Childs, who had joined the insurer in 1986, will retire this year.