Hiscox staying cool on impact of heatwave as half-year premiums soar

Insurer Hiscox has said it is too early to tell what impact Britain’s record heatwave will have on possible insurance claims.

The specialist insurer, which offers cover to homes and small businesses in the UK, saw several claims from the February’s Beast from the East cold snap but the fallout from the heatwave could take longer to materialise.

Chief executive Bronek Masojada said the concern over Britain’s record-breaking temperatures was longer term, such as the impact on building foundations and possible cracking. “It’s much slower and it affects you in different timescales,” he said.

“I suspect if we have a reasonably normal autumn then it won’t have much [impact].”

The FTSE 250-listed company, which has a large Lloyd’s of London business, reported good half-year numbers today with gross written premiums up to $2.3 billion (£1.8 billion) from $1.8 billion due to rising prices.

Pre-tax profits were $163.6 million, up from $129.1 million, and the company is on track to get more than one million retail customers this year.

Hiscox International saw premiums rise past the $500 million mark.