Hiscox (LSE:HSX) announced a third straight year of record financial performance in 2025, with insurance contract written premiums increasing 5.9% to $4.98 billion and profit before tax climbing to $732.7 million. The insurer achieved its strongest combined ratio in ten years at 87.8%, alongside record underwriting and investment income. Robust capital generation enabled a 20% rise in the final dividend and the launch of a new $300 million share repurchase programme, lifting total announced capital returns over the past three years to more than $1.1 billion.
Retail operations delivered solid momentum, with premiums rising 6.3% at constant currency as Hiscox broadened its reach into adjacent specialist markets. The company expanded into Italy through a bolt-on broker acquisition and accelerated product rollouts, particularly targeting emerging professional sectors and technology-related risks. Management highlighted that its ongoing multi-year transformation programme contributed a $29 million profit uplift in 2025 and remains on course to generate $200 million in annual benefits from 2028, supporting faster retail expansion and strengthening Hiscox’s position as a focused specialty insurer.
The company’s stock assessment reflects attractive valuation metrics and supportive corporate developments, notably the newly announced share buyback. While operating performance remains steady, cash flow pressures persist. Technical signals currently indicate a bearish trend, though valuation levels may imply potential upside if fundamentals continue to improve.
More about Hiscox
Hiscox Ltd is a Bermuda-based global specialty insurer listed on the London Stock Exchange. The group specialises in complex and niche risks, combining catastrophe-exposed underwriting with more stable local specialty insurance activities across its retail, London Market and reinsurance divisions. Hiscox serves both commercial and personal clients across the United States, the United Kingdom, Europe and other international markets.
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