Hamilton, Bermuda (06 August 2025) - Hiscox Ltd ("Hiscox" or the "Company") today announces it is increasing the quantum of the buyback of its ordinary shares of 6.5 pence each ("Ordinary Shares") that was announced on 27 February 2025 from a maximum aggregate consideration of up to $175 million to a maximum aggregate consideration of up to $275 million, in order to return additional capital to shareholders (the “Increased Programme”). The Increased Programme will continue with an increase to the initial tranche from $87.5 million to $137.5 million to be completed around the end of the third quarter of 2025.
Hiscox has amended its non-discretionary agreement with Peel Hunt LLP ("Peel Hunt") to conduct the initial tranche of the Increased Programme with the Company subsequently purchasing its Ordinary Shares from Peel Hunt. Under this arrangement, Peel Hunt will act as principal and make trading decisions independently of Hiscox, except for Hiscox's ability to terminate Peel Hunt's mandate in certain limited circumstances.
The maximum aggregate consideration under the initial tranche is $137.5 million (excluding expenses). The Company intends to cancel such Ordinary Shares purchased. The sole purpose of the Increased Programme is to reduce Hiscox's share capital.
Purchases under the Increased Programme will take place in open market transactions and may be made from time to time by Peel Hunt, depending on market conditions, share price and trading volumes. The Increased Programme will be effected under the authority granted by shareholders at the Company's 2025 Annual General Meeting held on 15 May 2025 (and any subsequent authority) and, as at the date of this announcement, the maximum number of shares that may be repurchased under the Increased Programme is 33,995,732 Ordinary Shares. Any purchases contemplated by this announcement will be carried out on the London Stock Exchange and/or other recognised investment exchange(s). The Increased Programme's initial tranche will end when the maximum aggregate consideration is equal to, or as close as possible to (but does not exceed) $137.5 million or as otherwise terminated.
The Increased Programme will be conducted within the parameters prescribed by the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052 as it forms part of UK law pursuant to the UK's European Union (Withdrawal) Act 2018 and the Market Abuse (Amendment) (EU Exit) Regulations 2019, as well as applicable laws and the regulations of the UK Financial Conduct Authority (including Chapter 9.6 of the UK Listing Rules). Any purchase of shares will be announced no later than 7:30 a.m. on the business day following the calendar day on which the purchase occurred.
There is no guarantee that the Increased Programme will be implemented in full.
The Company intends to enter into arrangements to commence a second tranche of the share buyback programme in due course for a maximum aggregate consideration of up to $137.5 million.
Aki Hussain, Group Chief Executive Officer, Hiscox Ltd, commented:
“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. The benefits of our diversified business model and the quality of our underwriting ecosystem are reflected in our Group results. The industry experienced the largest wildfire insurance event in history, despite this we achieved a strong operating ROTE of 14.5%.
Hiscox is successfully executing on strategy. Growth and earnings momentum continues to build in Retail as we capture the vast structural opportunities, and we are selectively deploying capital into attractive opportunities across our diverse big-ticket businesses.
Our balance sheet remains strong, and we are achieving sustained and strong capital formation which underpins our increased return of capital to shareholders, through step-ups in ordinary dividends and buybacks, over the last two years. In addition, following strong organic capital generation and capital management actions in the first half, we have the flexibility to take further steps to improve our balance sheet efficiency and reward shareholders immediately through an increase of $100 million to our ongoing share buyback, taking it from $175 million to $275 million. And our balance sheet remains in great shape, enabling us to keep investing to capture the opportunities ahead and accelerate Retail growth.”
ENDS
For further information
Investors and analysts
Yana O’Sullivan, Director of Investor Relations, London +44 (0)20 3321 5598
Marc Wetherhill, Group Company Secretary, Bermuda +1 441 278 8300
Media
Eleanor Orebi Gann, Group Director of Communications, London +44 (0)20 7081 4815
Simone Selzer, Brunswick +44 (0)20 7404 5959
Tom Burns, Brunswick +44 (0)20 7404 5959
Notes to editors
About The Hiscox Group
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to continue to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle.
The Hiscox Group employs over 3,000 people in 13 countries, and has customers worldwide. Through the retail businesses in the USA, UK and Europe, we offer a range of specialist insurance products in commercial and personal lines. Internationally traded, bigger-ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.
Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word, and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.
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