Hiscox, the UK-listed insurance group, brushed aside the turmoil in financial markets and the credit crunch to register record first-half profits today.

The Bermuda-based group, which is a Lloyds underwriter and specialist insurer of fine art as well as kidnap risk, beat forecasts to lift its pre-tax profits to £109.2 million, up 3.4 per cent from £105.6 in the same period last year.

Profits outstripped analysts’ forecasts for the first-half, which had ranged from £58 million to £103.3 million.

The enhanced profitability of the group came despite a fall of almost 13 per cent in its gross written premiums at its largest division, global markets.

That blow was offset by big gains in pre-tax profits at its international, UK and European operations.

Hiscox’s international division, which includes its Bermuda, US, and Guernsey businesses, achieved a rise in profits to £20.3 million — a 68 per cent increase from £12.1 million last year.

The UK and European operations, which specialise in insurance for wealthy people and small businesses, made £16.3 million — more than double the £6.6 million achieved a year earlier.

Investment income in the group was substantially weaker, dropping to £17.3 million, from £46.8 million last year.

Hiscox announced a rise in its interim dividend to 4.25p per share, up from 4p. The company's shares rose 2 per cent or 4.5p to 224p.

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