Hiscox posts record profit

By Simon Challis

LONDON (Reuters) - UK-listed insurer Hiscox (HSX.L) shrugged off the effects of turbulent financial markets to post record first-half pretax profit on Monday, beating forecasts, as its international corporate businesses increased their profits.

Bermuda-based Hiscox, a Lloyd's underwriter and leading fine art and kidnap insurer, said pretax profit in the six months to the end of June rose to 109.2 million pounds, from 105.6 million in the same period a year ago.

Profit was well ahead of an average forecast of 88.4 million pounds from six analysts. The forecasts, published by the company, ranged from 58 million to 103.3 million pounds.

"It is very pleasing (and slightly surreal) to be able to announce record half year results when the financial markets are in turmoil, and our rating by the stock market is so low," the firm's chairman Robert Hiscox said in a statement.

Unlike rivals Beazley (BEZG.L) and Catlin (CGL.L), whose interim profits fell due to slumping investment income and competition in big-ticket risks, Hiscox's profits were boosted by its regional corporate businesses.

Although gross written premiums fell nearly 13 percent at its biggest unit, Global Markets, this was offset by sharply higher premiums and profit at its International and UK and European units.

BOOSTED BY REGIONAL UNITS

Its International operation, which comprises its Bermuda, United States and Guernsey units, made 20.3 million pounds, up from 12.1 million last year, while its UK and European businesses, which offer cover to wealthy individuals and small companies, made 16.3 million pounds, up from 6.6 million pounds.