Bermuda-based insurer Hiscox Ltd.'s chairman Robert Hiscox described his company's 2008 financial results as a "robust performance", despite seeing its profit before tax more than halved over the past year.

The insurance company's profit before tax fall from £237.2 million in 2007 to £105.2 million last year, while gross premiums written declined to £1.15 billion for 2008 from £1.19 billion in the previous year. The company also announced in the release that Rob Childs will be replaced in his role as chief executive of Hiscox Bermuda by Charles Dupplin, chairman of Hiscox's art and private client division and director of mergers and acquisitions, in April 2009, with the former returning to the UK and continuing his work as group director of underwriting and chairman of Hiscox USA and internal non-executive of Hiscox Bermuda.

Its group combined ratio was also down from 84.4 percent in 2007 to 76.1 percent for the corresponding period last year, with investment return falling by 1.3 percent from 5.4 percent year-on-year.

But its total dividend per share for the year rose to 12.75 pence from 12 pence, while operationally it increased its rates in the reinsurance, marine and energy sectors, opened five new offices and recruited 43 new staff in the US.

It also increased the capacity of its Syndicate 33 to £750 million and created a new Syndicate 3624 with £80 million capacity.

Mr. Hiscox said: "This is a robust performance, especially in view of the near-collapse of the financial markets and the third most expensive hurricane on record.

"Rates in our markets are increasing selectively, especially in reinsurance, which is the third of our book, so conditions are good for our existing and new teams to continue to grow a profitable balanced business."

The report revealed that Hiscox Bermuda had shrunk its top line significantly in response to the difficult market conditions affecting the reinsurance market, with third-party reinsurance reduced to $211.7 million from $297.3 million in 2007, while dealing with the impact of Hurricanes Ike and Gustav.

Despite this, it concluded that the business produced a positive underwriting result, although it had to shut its specialty reinsurance operation on the Island due to capital being allocated elsewhere in the face of the financial crisis.