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Shares in Hiscox Ltd on Wednesday rose as it announced better-than-expected first-half profit and increased its share buyback by $100 million. In response, shares in the Bermuda-based specialist insurer jumped 7.0% to 1,348.30 pence each in London on Wednesday morning, the best performing stock in the FTSE 100 index, which itself was up 0.2%. Hiscox posted pretax profit of $276.6 million for the six months that ended June 30, down 2.4% from $283.5 million a year before, but 30% ahead of $212 million Visible Alpha consensus. Net insurance contract written premiums rose 2.4% to $2.11 billion from $2.06 billion, while the firm’s investment result improved 54% to $234.9 million from $152.4 million. All three business segments improved, Hiscox said, with Retail contributing the majority of the growth. Earnings per share fell to $67.2 US cents from 75.1 cents a year ago, but again beat VA consensus of 52.0 cents. Adjusted operating profit before tax was $262.0 million, down from $288.1 million a year before, while adjusted operating EPS was 63.9 cents, down from 76.5 cents. The undiscounted group combined ratio was 92.6%, up from 90.4% a year ago. ‘We have delivered a strong performance in the first half with profitable growth in each of our businesses. In Retail, growth momentum has continued in line with our expectations and we are expanding margins,’ said Chief Executive Aki Hussain. Hiscox declared an interim dividend of 14.4 cents per share, up 9.1% on-year from 13.2 cents. ‘Our balance sheet remains strong, and we are achieving sustained and strong capital formation which underpins our increased return of capital to shareholders,’ CEO Hussain added. Reflecting this, Hiscox increased the size of its share buyback to $275 million from $175 million. The increased programme will continue with an increase in the initial tranche to $137.5 million from $87.5 million to be completed around the end of the third quarter. Hiscox reaffirmed full year Retail guidance of growth in excess of 6% in constant currency as momentum builds from recently won distribution deals in all markets. ‘We go into the second half of the year well capitalised and with an attractive portfolio of business,’ the company added. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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