27th Feb 2025 12:00
(Alliance News) - Hiscox Ltd on Thursday reported "record" annual profit and announced a USD175 million share buyback, as the insurer said it expects positive momentum to continue in 2025.
The Hamilton, Bermuda-based business insurer said pretax profit for the year to December 31 rose 9.5% to USD685.4 million from USD625.9 million the year prior. Earnings per share climbed to 183.2 cents from 162.7 cents.
Insurance revenue rose 4.2% to USD4.67 billion from USD4.48 billion in 2023.
Hiscox allocated USD1.6 billion for reinsurance claims in 2024, up USD117 million from the prior year due to a more "active loss environment". Natural catastrophes, including US hurricanes and European floods, drove losses, alongside man-made incidents like the MV Dali collision in Baltimore.
Early 2025 wildfires in Los Angeles added an estimated USD170 million net loss, mostly impacting subsidiary Hiscox Re & ILS.
Hiscox increased its total dividend for 2024 to 43.1 cents per share, up 15% from 37.5 cents in 2023, with a 20% rise in the final payout to 29.9 cents from 25.0 cents.
The company also announced a share buyback programme worth up to USD175 million, starting Thursday with an initial tranche of USD87.5 million which will be completed by no later than the end of the third quarter of 2025.
Chief Executive Officer Aki Hussain said: "The group has delivered another set of excellent results and a second consecutive year of record profits. Our Retail business continues to build broad-based growth and earnings momentum, and our big-ticket portfolio has again delivered an outstanding performance."
Hiscox's combined ratio improved slightly to 89% from 90%. A ratio under 100% indicates an underwriting profit.
Looking ahead, the company expects further progress in 2025, forecasting a return to growth in its London Market business. It said favourable market conditions, new product launches, and the fading impact of the 2024 binder non-renewal would support expansion in the division, which uses Lloyd's global licences, distribution network, and credit rating to insure clients.
Profit before tax in the segment declined to USD215.0 million from USD262.7 million in 2023.
Hiscox added it will outline its growth strategy in more detail at a Retail-focused capital markets day in May.
Shares in Hiscox were up 2.5% at 1,147.00 pence in London on Thursday at midday.
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights reserved.