Insurer Hiscox's profits dive after Mother Nature did her worst

Profits at Hiscox have plunged 91% after the “most expensive year” for natural catastrophes, the Lloyd’s of London insurer revealed on Monday.

The FTSE 250 underwriter’s chairman Robert Childs warned wildfires, earthquakes and hurricanes such as Irma and Harvey “battered insurers’ balance sheets” in 2017.

Natural disasters cost the industry an estimated $140 billion (£100 billion) last year, and Hiscox saw its pre-tax profits fall to £30.8 million from £354.5 million.

Gross written premiums rose to £2.5 billion from £2.4 billion.

Chief executive Bronek Masojada appeared unfazed: “Mother nature throws hurricanes in line with her own expectations. That’s why people buy insurance, and that’s why Hiscox has built a diverse and resilient portfolio.”

He said the firm’s retail arm, whose clients include High Street chains and entrepreneurs from the Sunday Times Rich List, is performing well. Masojada added that he was “optimistic” about 2018.

UBS analyst Jonny Urwin said: "Overall, a largely in-line headline result in a volatile year."

The shares fell 67p to 1329p.