Hiscox, the international specialist insurer, said its investment result to 31 March 2015 was 0.8% on a non-annualised basis.
In its first quarter interim management statement, the insurer noted that "it has been a positive period for both bonds and equities, particularly following the announcement of quantitative easing by the European Central Bank."
Invested assets totalled about £3.2bn ($5.0bn) at the end of March, excluding third-party assets managed by Kiskadee Investment Managers. In early April about £192m was returned to shareholders. Risk assets now account for approximately 8.5% of the portfolio.
Reporting that gross written premiums increased by 12% to £561.7m (2014: £501.6m) in the first quarter, Hiscox observed that consensus is building that the Federal Reserve will announce its first rate increase since 2006 by the end of this year, "albeit gradually and subject to the data".
"We therefore prefer credit risk to duration risk in our bond portfolios and still expect equities to outperform over the medium term," Hiscox said.