REG - Hiscox Ltd - Hiscox Ltd Capital Markets Day

HiscoxAnnouncement

22/05/2025 13:15

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RNS Number : 8297J  Hiscox Ltd  22 May 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Hiscox Ltd Capital Markets Day

Hamilton, Bermuda (22 May 2025) - Hiscox Ltd (LSE:HSX), the international
specialist insurer, today hosts a Capital Markets Day for investors and
analysts.

The event will feature management presentations by the Group and Retail
business unit Chief Executive Officers, Group Chief Operations and Technology
Officer and Group Chief Financial Officer. During the course of the
presentation, management will set-out:

 

·      The Hiscox Group strategy to deliver attractive and sustainable
returns for shareholders through the substantial opportunities available
through our diversified business model, highly differentiated exposure to
specialty markets and our specialist technical capabilities.

 

·      A deep dive into the Hiscox Retail strategy, including details
on:

o  The size of the opportunity in our target addressable market of $317
billion annualised premiums.

o  How each of our Retail business units will capture this opportunity to
deliver profitable and sustainable growth, outgrowing the market, through:

§ going deeper into our specialist sectors and expanding into new ones

§ expanding distribution and adding more channels

§ adding new products, and

§ entering selective new geographies

o  The ambition for Retail is to accelerate premium growth to double-digit in
2028 by continuing to take share in each of our sizeable serviceable
addressable markets.

 

·      Details of an acceleration and enhancement of the ongoing change
agenda across the Group to further unlock growth, optimise expense efficiency
and enhance operating leverage.

o  These initiatives will enable Hiscox to deliver an annualised P&L
benefit of $200 million in 2028 onwards, against the 2024 baseline, with a
cost to achieve of $200 million over the same period.

o  The majority of the $200 million benefit will be recognised in Retail
across a combination of claims, attributable and non-attributable expenses.

o  These initiatives reinforce management's confidence to not only operate
sustainably within our stated undiscounted combined ratio operating range of
89%-94%, but also to drive Retail margin improvement while continuing to
invest in growth.

o  The phasing of the programme will be:

 

 US$m             FY 2025  FY 2026  FY 2027  FY 2028
 P&L benefit      25       75       145      200
 Cost to achieve  (25)     (75)     (100)    -
 Net benefit      -        -        45       200

 

·      Our plans to drive capital and balance sheet efficiency to
further maximise shareholder returns, including:

o  The introduction of a Bermuda Solvency Capital Ratio (BSCR) target range
that the Group intends to operate within of 190%-200% 1 ; and

o  To appropriately deploy the headroom in the Group's leverage in supporting
the Group's strategic ambitions.

 

 

Enhanced and sustainable go-forward shareholder returns

 

Reflecting the changing shape of the Group, with Retail expected to be a
greater proportion as each of the businesses grow over time, and the
confidence in the strategy, the Board is setting new guidance which reflects
Hiscox's enhanced and more sustainable return profile:

 

·      A mid-teens operating Return on Tangible Equity(( 2 )) through
the cycle.

·      A 20% step-up in final Dividend per Share at full-year 2025,
subject to final ratification ahead of full-year 2025 results, with a
progressive dividend per share thereafter.

o  This follows the 15% step-up in the ordinary dividend per share in 2024.

o  For the interim dividend, our policy going forward will be to pay
one-third of the prior year total ordinary dividend per share, providing more
clarity on mid-year capital returns.

o  Hiscox's previously announced $175 million buyback programme for 2025
continues.

 

 

The presentation materials and the link to the webcast will be available on
Hiscox's corporate website prior to the event. A recording of the event will
be made available afterwards. Both can be accessed at
https://www.hiscoxgroup.com/investors (https://www.hiscoxgroup.com/investors)

 

No new material trading information will be disclosed at the event.

 

ENDS

 

 

A conference call for investors and analysts will be held at 14:00 BST on
Thursday, 22 May 2025.

Participant dial-in numbers:

United Kingdom (Local): +44 20 3936 2999

All other locations: +44 800 358 1035

Participant Access Code: 573127

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

The person responsible for arranging and authorising the release of this
announcement on behalf of the Company is Marc Wetherhill, Group Company
Secretary.

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 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 (http://www.hiscoxgroup.com) .

 

This announcement does not constitute an invitation to underwrite, subscribe
for, or otherwise acquire or dispose of any shares or other securities in
Hiscox Ltd ("Hiscox" or the "Company").

 

This announcement contains certain forward-looking statements regarding our
intentions, beliefs or current expectations concerning, amongst other things,
our results of operations, financial condition, liquidity, prospects, growth,
strategies and the economic and business circumstances occurring from time to
time in the countries and markets in which the Company operates. These
statements are often, but not always, made through the use of words or phrases
such as "believe," "anticipate," "could," "may," "would," "should," "intend,"
"plan," "potential," "predict," "will," "expect," "estimate," "project,"
"positioned," "strategy," "outlook", "target" and similar expressions.

 

It is believed that the expectations reflected in this announcement are
reasonable but they may be affected by a wide range of variables that could
cause actual results to differ materially from those currently anticipated.
Among the key factors that could cause actual results to differ materially
from those projected in the forward-looking statements, assumptions and
information included in this announcement are known or unknown risks,
identified or unidentified uncertainties and other factors related to the
following: the effect of mergers, acquisitions and divestitures on Hiscox's
operating results and businesses generally; the impact of adverse domestic or
international legislation and regulation; changes in domestic or international
tax laws and rates; adverse litigation and dispute outcomes and the effect of
such outcomes on Hiscox's financial condition; changes or differences in
domestic or international economic or political conditions; the ability to
obtain price increases and the impact of price increases on consumer
affordability thresholds; adverse decisions by domestic or international
regulatory bodies; translational and transactional foreign exchange rate
exposure; the ability to maintain credit ratings; the ability to develop,
produce or market new alternative products and to do so profitably; the
ability to effectively implement strategic initiatives and actions taken to
increase sales growth; the ability to enhance cash generation and pay
dividends and changes in the market position, businesses, financial condition,
results of operations or prospects of Hiscox.

 

Past performance is no guide to future performance and persons needing advice
should consult an independent financial adviser. The forward-looking
statements contained in this announcement reflect the knowledge and
information available to Hiscox at the date of preparation of this
announcement and Hiscox undertakes no obligation to update or revise these
forward-looking statements, whether as a result of new information, future
events or otherwise. Readers are cautioned not to place undue reliance on such
forward-looking statements.

 

No statement in this communication is intended to be, nor should be construed
as, a profit forecast or a profit estimate and no statement in this
communication should be interpreted to mean that earnings per share of Hiscox
for the current or any future financial periods would necessarily match,
exceed or be lower than the historical published earnings per share of Hiscox.

 

 

 

 1 After payment of the final ordinary dividend.

 2 The Group is introducing four new alternative performance measures to
provide a clearer view of the underlying performance of the Group's ongoing
core operating activities: adjusted operating profit before tax, adjusted
operating profit after tax, adjusted operating earnings per share, operating
return on tangible equity. The adjusting P&L items for adjusted operating
profit before tax include; impacts of mark-to-market movements on fixed income
investments, the impact of movement in yields on insurance finance income and
expense, one-offs such as restructuring costs or inception of LPTs, profit or
loss arising from discontinued or non-core operations, share of profit or loss
of associates and foreign exchange gains or losses. Adjusted operating profit
after tax is calculated using adjusted operating profit before tax and the
Group's effective tax rate, adjusted for any one-off tax items. Adjusted
operating earnings per share is calculated as adjusted operating profit after
tax divided by the average number of shares in the period, in line with the
earnings per share calculation. Operating return on tangible equity is
calculated as adjusted operating profit after tax divided by adjusted opening
tangible equity. Adjusted opening tangible equity is calculated as opening
equity adjusted for the time-weighted impact of equity raises and
distributions, goodwill and intangibles, accumulated fair value gains or
losses on fixed income investments and the net impact of discounting on
insurance assets and liabilities.

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