The boss of one of the UK’s biggest insurers has come to the defence of the London market, claiming firms are being too quick to up sticks for New York.
Aki Hussain, chief executive of Hiscox, said while firms were moving to the US to try to boost their value, there was no guarantee Wall Street’s overperformance would last.
The comments from the boss of the £4.2 billion firm, which does 60 per cent of its trade in the US and is continuing to grow, will come as a relief to the City after an exodus of firms to New York.
Rash decision: Aki Hussain said while firms were moving to the US to try to boost their value, there was no guarantee Wall Street’s overperformance would last
Hussain admitted the past few years ‘have been tough’ for London, with money flowing out of stocks. But he warned that the trend could still reverse.
‘The question is, is that now a forever statement – that’s the way the world is going to be – or is this cyclical and could it change? If you go back ten years, US insurers would look at the UK with envy because of the valuations we were getting.
‘You hear talk that this is a tipping point. I don’t have that certainty.’
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