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Hiscox Ltd on Tuesday said it will return up to $150 million to shareholders by means of a share buyback, as the Bermuda-based insurer reported a big jump in profit in 2023 thanks an improved underwriting performance and record investment income. Hiscox declared a final dividend of 25 US cents per share, making for a total dividend of 37.5 cents for 2023, up 4.2% from 36.0 cents in 2022. It also said it has commissioned broker Peel Hunt LLP to conduct a $75 million first tranche of a total $150 million share buyback, starting on Tuesday. Hiscox shares were up 3.1% to 1,156.00 pence on Tuesday morning in London. Pretax profit was $625.9 million in 2023, more than doubled from $275.6 million the year before. Net insurance contract written premium totalled $3.56 billion, up 10% from $3.23 billion, and group combined ratio on a discounted basis improved to 85.5% from 88.7%. A combined ratio below 100% indicates profit on underwriting, so the lower the better. In response, Hiscox’s insurance service result rose by 36% to $492.3 million from $360.9 million. Even more dramatically, net investment result swung to positive $384.4 million in 2023 from negative $360.9 million in 2022. Net asset value per share increased by 24% to 951.1 cents on December 31 from 764.5 cents a year before. Return on equity was 27.6% last year, greatly improved from 10.1% in 2022. Chief Executive Officer Aki Hussain said the outlook for 2024 is positive for both its Retail and London Market arms, with a strong start in January. He said Reinsurance market conditions are expected to stabilise this year after the significant improvements seen in 2023. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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