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Hiscox profit falls as forex loss, lower reinsurance rates hurt
July 28, 2014 / 6:42 AM / 3 years ago

Hiscox profit falls as forex loss, lower reinsurance rates hurt

July 28 (Reuters) - Hiscox Ltd posted a 31 percent fall in first-half profit as the Lloyds of London insurer and reinsurer continued to feel the pinch of declining reinsurance rates and recorded a foreign exchange loss compared with a gain a year earlier.

Profit fell to 124.6 million pounds ($211.6 million) from 180.7 million pounds a year earlier.

Net premiums earned rose 2.5 percent to 643.5 million pounds.

The underwriter, which insures risks ranging from oil rigs to kidnappings, fine art, property and vintage cars, said a benign claims environment was masking an underlying deterioration in rates.

After a difficult January, rates in reinsurance continue to decline, while rates in insurance lines were either broadly stable or softening, the company said. ($1 = 0.5890 British Pounds) (Reporting by Richa Naidu and Roshni Menon; Editing by Gopakumar Warrier)

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