Bermuda-incorporated and London-listed Hiscox has reported improved half-year earnings, and says it is considering a new European operation under its post-Brexit strategy.

Britain’s vote in June to leave the EU has created “a great deal of uncertainty”, but the specialist insurer says it is readying for the challenges ahead.

“We are preparing for a range of outcomes, depending on whether we remain in the single market or need to navigate new trading arrangements,” the company said.

“We believe this represents a structural rather than strategic challenge for the group.

“Over the coming months and years we will work to understand future trading arrangements, and if necessary set up a new EU-based insurance company.”

For the half-year to June 30, net profit grew to £197.63 million ($346.27 million) from £129.38 million ($226.69 million) in the corresponding period last year.

Gross written premium increased to £1.29 billion ($2.26 billion) from £1.1 billion ($1.93 billion) and the combined operating ratio improved to 80.7% from 82.5%.

The Alberta wildfires in Canada, earthquakes in Japan and other natural catastrophes resulted in a combined £9.1 million ($15.94 million) net loss for the Hiscox London Market business.