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Shares in Hiscox Ltd jumped on Friday as Insurance Post reported Canada’s Intact Financial Corp was exploring a potential bid for the Bermuda-based insurance provider. Hiscox shares traded 13% higher at 1,856.00 pence each mid-Friday afternoon in London and are up 57% in the past 12 months. It was the best performing stock on the FTSE 100 which was 1.7% lower. Citing multiple sources Insurance Post said Intact is exploring a potential bid for Hiscox as it tries to build out its commercial lines business. Last year, Intact UK and International CEO Ken Norgrove admitted if the Canadian general insurance provider was to realise its target of doubling the business by 2030, it would need acquisitions, the report said. While, it is understood Intact Intact Chief Executive Charles Brindamour is a fan of Hiscox, the report noted. Analysts at RBC Capital Markets noted that at its peak in 2019, Hiscox traded close to a 3 times forward tangible net asset value multiple and a high-teens forward PE multiple. ‘We think that the board would be unlikely to entertain a sale at lower multiples, given strong and improving momentum in its Retail business, improving profitability and its strong franchise at Lloyd’s and in Bermuda,’ RBC added. RBC calculates that 3x 2026 forecast TNAV on current forecasts implies a share price of 2,550 pence. ‘We think materially higher multiples would be appropriate than those paid for Beazley by Zurich (2.4x historic TNAV and 10.8x historic PE), given the greater franchise value of its Retail businesses,’ RBC said, noting ‘a material step-up in returns forecast in 2028.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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