Hiscox says may set up EU-based insurance firm

Lloyd’s of London underwriter and specialist insurer Hiscox Ltd (HSX.LN) said it may set up an EU-based insurance company following the U.K.’s exit from the European Union.

The company reported its bottom line has benefited from sterling weakness after the Brexit vote as it posted a rise in interim pretax profit.

The company Monday recorded a pretax profit of 206 million pounds ($272,000) for the six months ended June 30, up from GBP135.1 million the previous year, on gross premiums written up to GBP1.29 billion from GBP1.1 billion.

The interim dividend rises to 8.5 pence from 8 pence.

“Our retail businesses continue to grow in strength and profitability,” said Chief Executive Bronek Masojada.

“Brexit has caused volatility and Sterling weakness, resulting in a foreign exchange gain which has benefited the bottom line,” he added.

Hiscox it remains cautious ahead of the hurricane season and that following the E.U. referendum it “will work to understand future trading arrangements, and if necessary set up a new EU-based insurance company.”

Source: MarketWatch