REG - Hiscox Ltd - Announcement of share repurchase programme

HiscoxAnnouncement

27/02/2025 07:15

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RNS Number : 6111Y  Hiscox Ltd  27 February 2025

 

 

Announcement of share repurchase programme

 

Hamilton, Bermuda (27 February 2025) - Hiscox Ltd ("Hiscox" or the
"Company") today announces it will commence a buyback of its ordinary shares
of 6.5 pence each ("Ordinary Shares") for a maximum aggregate consideration of
up to $175 million (the "Programme"), in order to return additional capital to
shareholders. The Programme will commence today with an initial tranche of
$87.5 million to be completed no later than the end of the third quarter of
2025.

 

Hiscox has entered into a non-discretionary agreement with Peel Hunt LLP
("Peel Hunt") to conduct the initial tranche of the 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 $87.5 million
(excluding expenses). The Company intends to cancel such Ordinary Shares
purchased. The sole purpose of the Programme is to reduce Hiscox's share
capital.

 

Purchases under the 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 Programme will be effected under the
authority granted by shareholders at the Company's 2024 Annual General Meeting
held on 9 May 2024 (and any subsequent authority) and, as at the date of this
announcement, the maximum number of shares that may be repurchased under the
Programme is 29,836,837 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 Programme's initial tranche will end
when the maximum aggregate consideration is equal to, or as close as possible
to (but does not exceed) $87.5 million or as otherwise terminated.

 

The 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
repurchase of shares will be announced no later than 7:30 a.m. on the business
day following the calendar day on which the repurchase occurred.

 

There is no guarantee that the 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 $87.5 million in due course.

 

Aki Hussain, Group Chief Executive Officer, Hiscox Ltd, commented:

 

"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, leading to a strong return on
equity in an active loss year. This earnings momentum underpins substantial
capital generation, creating the flexibility to pursue multiple growth
opportunities and return 10% 1  of equity to shareholders through a
combination of a 20% step-up in the final dividend per share and a $175
million share buyback. This demonstrates both the power of - and confidence in
- the outlook for our diversified business. I would like to thank all of my
Hiscox colleagues for their dedication in delivering another strong year."

 

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 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, Europe and Asia, 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 (http://www.hiscoxgroup.com) .

 

 1 Total estimated cost of returns (interim dividend, final dividend and $175
million buyback) as a percentage of opening adjusted equity.

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