International specialist insurer Hiscox has restated its financial results for the full year and half year 2022 under new accounting standard IFRS (International Financial Reporting Standards) 17.
Here are the changes, based on the new presentation and remeasurement of numbers:
Half year 2022 profit/(loss) before tax
IFRS 4 – US$(107.4 million)
IFRS 17 – US$25.4 million
Full year 2022 profit/(loss) before tax
IFRS 4 – US$44.7 million
IFRS 17 – US$275.6 million
Explaining the difference, Hiscox said: “Discounting of claims reserves of US$195.6 million has a positive impact on profit before tax to US$275.6 million (IFRS 4: US$44.7 million), as interest rates increased through 2022. Discounting also main contributor of a US$218.3 million increase in closing shareholders’ equity on transition to IFRS 17.”
Meanwhile, the insurance group pointed out that there is no change in the outlook for Hiscox. The company’s strategy, economics of the business, investment result and strategic asset allocation, reserving philosophy, and capital and dividend approach all remain the same.
“While IFRS 17 marks a significant change in the accounting, presentation, and disclosures of our financial results, the economics of our business remain unchanged,” group chief financial officer Paul Cooper stated. “We continue to look forward with confidence given our strong foundations, favourable market conditions, and investment income outlook.”
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