Hiscox posts record annual profit on retail insurance growth, sets stock buyback

Overview

• Bermuda specialty insurer's 2025 pretax profit rose, marking third consecutive record year

• Insurance contract written premium increased by 5.9% yr/yr to $4,979 mln

• Company announced new $300 mln share buyback program

Outlook

• Hiscox Retail expects 8.0% ICWP growth for full year 2026

• Company anticipates $75 mln P&L benefit from change program in 2026

• Hiscox targets double-digit growth in Retail by 2028

Result Drivers

• RETAIL GROWTH - Hiscox Retail's insurance contract written premium increased by 6.3%, driven by new products, expanded distribution, and technological advancements

• LONDON MARKET RESILIENCE - Hiscox London Market maintained a strong combined ratio of 85.9% despite competitive pressures, supported by new risk portfolio deals and AI-enabled capabilities

• REINSURANCE GROWTH - Hiscox Re's net insurance contract written premium grew by 7.9%, driven by growth in pro-rata and specialty lines, with a benign natural catastrophe loss experience

Company press release: ID:nRSY2492Ua

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy"

• Wall Street's median 12-month price target for Hiscox Ltd is GBp1,550.00, about 6% above its February 24 closing price of GBp1,462.00

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

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