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Hiscox
(LSE:HSX)
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Rating:67Neutral
Price Target:
1,928.00 p
â–˛(4.78% Upside)
Action:Downgraded
Date:08/05/26
The score is driven primarily by improved profitability and generally sound balance-sheet leverage, reinforced by a constructive earnings update (guidance upgrade, strong combined ratio, and active shareholder returns). These positives are tempered by meaningful cash-flow volatility and weak near-term technical momentum (bearish indicators and price below key short-term moving averages), while valuation appears reasonable and supportive.
Positive Factors
Improved underwriting profitability & ROTE
Sustained underwriting improvement (combined ratio ~90.4% and RoTE ~20%) indicates the business is turning underwriting discipline into durable returns. This strengthens capital generation, supports reinvestment and distributions, and reduces reliance on investment returns over the medium term.
Negative Factors
Inconsistent cash generation and free cash flow volatility
Material swings in operating and free cash flow reduce predictability of internal funding for growth and shareholder returns. For a P&C insurer, inconsistent cash conversion complicates capital planning and raises the risk that underwriting losses or investment shocks force external financing or reduced distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved underwriting profitability & ROTE
Sustained underwriting improvement (combined ratio ~90.4% and RoTE ~20%) indicates the business is turning underwriting discipline into durable returns. This strengthens capital generation, supports reinvestment and distributions, and reduces reliance on investment returns over the medium term.
Read all positive factors
Hiscox (HSX) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
ÂŁ5.82B
Dividend Yield2.07%
Average Volume (3M)1.39M
Price to Earnings (P/E)12.5
Beta (1Y)0.99
Revenue Growth4.50%
EPS Growth7.58%
CountryUK
Employees3,000
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.95
Shares Outstanding319,958,470
10 Day Avg. Volume1,308,669
30 Day Avg. Volume1,386,463
Financial Highlights & Ratios
PEG Ratio2.63
Price to Book (P/B)1.62
Price to Sales (P/S)1.17
P/FCF Ratio87.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
ÂŁ1,932.29Price Target Upside5.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.74
Revenue Forecast (FY)ÂŁ5.28B
Hiscox Business Overview & Revenue Model
Company Description
Hiscox Ltd, through its subsidiaries, provides insurance and reinsurance services in the United Kingdom, Europe, the United States, and internationally. It operates through Hiscox Retail, Hiscox London Market, and Hiscox Re segments. The company o...
How the Company Makes Money
Hiscox makes money primarily through (1) underwriting income and (2) investment income on its insurance float.
1) Underwriting income (premiums minus claims and expenses):
- Premiums: Hiscox collects insurance premiums from policyholders across i...
Hiscox Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 03, 2027
Earnings Call Sentiment Positive
The call presents a predominantly positive picture: strong premium and underwriting growth, materially improved underwriting profitability and ROE, clear progress on a disciplined change program and robust capital returns. The company upgraded retail guidance and is realizing measurable operating‑leverage benefits from technology and AI. Offsetting risks include mark‑to‑market investment headwinds, targeted profit pressure in London Market due to the Middle East conflict and softer rating conditions, ongoing transformation costs and deliberate pullbacks in some reinsurance/property exposures. Overall, the positives—notably upgraded guidance, double‑digit ROE performance, reserve releases and execution of efficiency initiatives—outweigh the headwinds described.Positive Updates
Strong Group Premium and Underwriting Growth
Gross written premiums (ICWP) increased 10.1% to over $3.2bn; net ICWP grew 6.8% to $2.3bn. Insurance service result rose 30.2% to $255.4m. Adjusted operating profit before tax was $331m, up 26.3% year‑on‑year. Undiscounted combined ratio improved 220 basis points to 90.4%. Return on tangible equity was 20.2%, materially ahead of the mid‑teens through‑the‑cycle target.
Negative Updates
Investment Mark‑to‑Market Drag
Investment result was $128.2m and lower than prior year due to mark‑to‑market movements on fixed income assets. Management expects these MTM impacts to unwind over the next ~18 months as bonds mature, but they reduced the H1 investment result and headline comparability.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Group Premium and Underwriting Growth
Gross written premiums (ICWP) increased 10.1% to over $3.2bn; net ICWP grew 6.8% to $2.3bn. Insurance service result rose 30.2% to $255.4m. Adjusted operating profit before tax was $331m, up 26.3% year‑on‑year. Undiscounted combined ratio improved 220 basis points to 90.4%. Return on tangible equity was 20.2%, materially ahead of the mid‑teens through‑the‑cycle target.
Read all positive updates
Company Guidance
Management upgraded 2026 retail growth guidance to 9% (from 8%) and remains on track for double‑digit retail growth in 2028; the change programme has already delivered $45m of P&L benefit in H1 and is on track for $75m in 2026 and $200m in 2028; shareholder returns stay active with the interim dividend up ~16.7% to $0.168/share and a $300m buyback (32% completed in H1) after returning $460m to shareholders in the last 12 months while growing book value +9%; profitability and capital metrics underpinning the guidance include an operating RoTE of ~20% (vs mid‑teens target), an undiscounted combined ratio ~90.4%, organic capital generation of +14 points and an estimated BSCR of ~224% (pro‑forma ~210%).Hiscox Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.60B | 5.48B | 3.81B | 3.70B | 2.98B | 3.29B |
| Gross Profit | 3.87B | 5.48B | 3.81B | 3.58B | 2.98B | 3.29B |
| EBITDA | 834.47M | 883.45M | 799.20M | 730.00M | 335.60M | 248.20M |
| Net Income | 640.55M | 616.77M | 627.20M | 712.00M | 253.90M | 189.50M |
Balance Sheet | ||||||
| Total Assets | 12.37B | 12.19B | 11.24B | 11.06B | 13.72B | 13.85B |
| Cash, Cash Equivalents and Short-Term Investments | 1.33B | 878.32M | 1.23B | 1.47B | 1.40B | 1.35B |
| Total Debt | 832.50M | 902.00M | 743.00M | 754.20M | 635.90M | 746.50M |
| Total Liabilities | 8.40B | 8.24B | 7.55B | 7.76B | 11.31B | 11.31B |
| Stockholders Equity | 3.97B | 3.95B | 3.69B | 3.30B | 2.42B | 2.54B |
Cash Flow | ||||||
| Free Cash Flow | 722.46M | 73.00M | 75.30M | 188.40M | 352.50M | -42.30M |
| Operating Cash Flow | 725.70M | 74.33M | 114.40M | 232.10M | 373.40M | 16.60M |
| Investing Cash Flow | -143.91M | -115.78M | -38.50M | -34.20M | -81.90M | -36.60M |
| Financing Cash Flow | -566.81M | -364.69M | -282.60M | -128.90M | -190.90M | -246.20M |
Hiscox Technical Analysis
Positive
1840.00
Price Trends
1812.04
Positive
1707.63
Positive
1551.32
Positive
Market Momentum
-5.60
Positive
52.54
Neutral
44.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HSX, the sentiment is Positive. The current price of 1840 is above the 20-day moving average (MA) of 1828.55, above the 50-day MA of 1812.04, and above the 200-day MA of 1551.32, indicating a bullish trend. The MACD of -5.60 indicates Positive momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 44.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HSX.
Hiscox Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ÂŁ11.90B | 16.96 | 51.59% | 5.71% | 0.12% | -15.35% | |
78 Outperform | ÂŁ7.68B | 15.45 | 19.23% | 1.93% | -3.16% | -29.27% | |
77 Outperform | ÂŁ425.41M | 11.52 | 11.29% | 7.38% | -10.22% | -5.62% | |
75 Outperform | ÂŁ1.46B | 5.98 | 21.73% | 17.04% | -1.60% | 36.00% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | ÂŁ5.82B | 12.52 | 15.63% | 2.03% | 4.50% | 7.58% | |
55 Neutral | £1.05B | 68.21 | -15.72% | ― | 12.19% | ― |
* Financial Sector Average
GB:HSX
Hiscox
1,807.00
500.98
38.36%
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GB:SBRE
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Hiscox Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Hiscox lifts retail growth guidance as interim profits and returns surge
Positive
Aug 5, 2026
Hiscox reported interim results for the six months to 30 June 2026 showing insurance contract written premiums up 10.1% to $3.24 billion, with profitable growth across all three business segments and an undiscounted combined ratio improving to 90....
Regulatory Filings and Compliance
Hiscox updates market on total voting rights and treasury shares
Neutral
Aug 3, 2026
Hiscox Ltd has disclosed that as of 31 July 2026, its issued ordinary share capital consists of 327,031,069 ordinary shares of 6.5p each, with 6,739,282 of these held in treasury and therefore excluded from voting. This leaves a total of 320,291,7...
Business Operations and StrategyStock Buyback
Hiscox Cancels Newly Repurchased Shares Under Ongoing Buyback
Positive
Aug 3, 2026
Hiscox Ltd has continued executing its previously announced share buyback programme, purchasing a series of tranches of ordinary shares between 27 and 31 July 2026 through Peel Hunt LLP. The bought-back shares, acquired at volume-weighted average ...
Executive/Board ChangesRegulatory Filings and Compliance
Hiscox Grants Sharesave Options to CFO Paul Cooper Under UK Disclosure Rules
Positive
Jul 29, 2026
Hiscox Ltd is an international specialist insurer, providing property, casualty and specialty insurance products to businesses and high-net-worth individuals. The company focuses on underwriting complex and niche risks, with a strong presence in t...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Hiscox Cancels Fresh Tranche of Shares in Ongoing Buyback Programme
Positive
Jul 27, 2026
Hiscox Ltd has continued to execute on its previously announced share buyback programme, repurchasing a series of tranches of ordinary shares between 20 July and 24 July 2026 via Peel Hunt LLP. The insurer bought roughly 334,000 shares over the fi...
Business Operations and StrategyStock Buyback
Hiscox Advances Share Buyback With Further Share Cancellations
Positive
Jul 20, 2026
Hiscox Ltd has continued to execute its previously announced share buyback programme, repurchasing a series of tranches of ordinary shares between 13 July and 17 July 2026 via broker Peel Hunt LLP. The purchases, which ranged around the mid-1,800 ...
Business Operations and StrategyStock Buyback
Hiscox Cancels 332,743 Shares in Ongoing Buyback Programme
Positive
Jul 13, 2026
Hiscox Ltd has continued to execute its previously announced share buyback programme, repurchasing a total of 332,743 ordinary shares of 6.5p each between 6 and 10 July 2026 through Peel Hunt LLP at volume-weighted average prices ranging from abou...
Business Operations and StrategyStock Buyback
Hiscox Continues Share Buyback, Cancels 335,000-Plus Shares
Positive
Jul 6, 2026
Hiscox has continued executing its previously announced share buyback programme, acquiring a series of tranches of its 6.5p ordinary shares via Peel Hunt between 29 June and 3 July 2026. Across the five trading days, the insurer repurchased more t...
Business Operations and StrategyRegulatory Filings and Compliance
Hiscox Clarifies Total Voting Rights Following Treasury Share Holdings
Neutral
Jul 1, 2026
Hiscox Ltd has reported that as of 30 June 2026, its issued ordinary share capital consists of 328,880,875 ordinary shares of 6.5p each, with 6,739,282 of those shares held in treasury and therefore not carrying voting rights. This leaves a total ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Hiscox Continues Share Buyback, Cancels Newly Repurchased Stock
Positive
Jun 29, 2026
Hiscox has continued to execute its previously announced share buyback programme, repurchasing and cancelling a series of tranches of ordinary shares between 22 June and 26 June 2026 through broker Peel Hunt. The purchases, carried out at volume&#...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Hiscox Cancels 351,000 Shares in Latest Tranche of Buyback Programme
Positive
Jun 22, 2026
Hiscox has continued to execute its previously announced share buyback programme, repurchasing just over 351,000 ordinary shares between 15 and 19 June 2026 at prices generally ranging from about 1,754p to 1,795p per share. The purchased shares wi...
DividendsRegulatory Filings and Compliance
Hiscox CFO Increases Stake via Dividend Reinvestment Share Purchase
Positive
Jun 17, 2026
Hiscox Ltd disclosed that its Chief Financial Officer, Paul Cooper, acquired 1,962 ordinary shares in the company through a dividend reinvestment programme. The purchase, linked to the final dividend of 39.9 cents per share and executed on 9 June ...
Business Operations and StrategyStock Buyback
Hiscox Cancels 359,260 Shares in Ongoing Buyback Programme
Positive
Jun 15, 2026
Hiscox has continued to execute its previously announced share buyback programme, repurchasing a total of 359,260 ordinary shares between 8 and 12 June 2026 via broker Peel Hunt at volume-weighted average prices ranging from about 1,727p to 1,756p...
Business Operations and StrategyStock Buyback
Hiscox cancels 80,000 shares under ongoing buyback programme
Positive
Jun 8, 2026
Hiscox has continued to execute its previously announced share buyback programme, repurchasing a total of 80,000 ordinary shares between 1 June and 5 June 2026 through broker Peel Hunt at volume-weighted average prices ranging from about 1,725p to...
Regulatory Filings and Compliance
Hiscox Updates Total Voting Rights After Treasury Share Holdings
Neutral
Jun 1, 2026
Hiscox Ltd has confirmed that, as of 29 May 2026, its issued ordinary share capital consists of 329,373,827 shares of 6.5p each, of which 7,523,190 are held in treasury without voting rights. This leaves a total of 321,850,637 voting rights, a key...
Business Operations and StrategyStock Buyback
Hiscox Cancels 50,716 Shares in Latest Buyback Tranche
Positive
Jun 1, 2026
Hiscox has continued to execute its previously announced share buyback programme, repurchasing a total of 50,716 ordinary shares between 26 and 29 May 2026 at volume-weighted average prices ranging from 1,770.00p to 1,819.50p. The company will can...
DividendsShareholder Meetings
Hiscox Sets Sterling Equivalent for Final Dividend Payout
Positive
May 28, 2026
Hiscox Ltd, the Bermuda-based specialist insurer, has confirmed the currency details for its previously announced final dividend of 35.9 cents per share, approved by shareholders at its May 14, 2026 Annual General Meeting. Shareholders on the regi...
Business Operations and StrategyStock Buyback
Hiscox Cancels 55,000 Shares in Latest Buyback Tranche
Positive
May 26, 2026
Hiscox has continued to execute its previously announced share buyback programme, repurchasing 55,000 ordinary shares between 18 and 22 May 2026 at prices ranging from 1,819p to 1,866p per share. The shares, acquired through Peel Hunt, will be can...
Business Operations and StrategyStock Buyback
Hiscox cancels 230,052 shares as buyback programme advances
Positive
May 18, 2026
Hiscox has continued executing its previously announced share buyback programme, repurchasing a total of 230,052 ordinary shares between 11 and 15 May 2026 through broker Peel Hunt. The transactions were carried out at volume-weighted average pric...
Executive/Board ChangesRegulatory Filings and Compliance
Hiscox Executives Receive Vested Performance Share Awards and New Nil-Cost Options
Positive
May 15, 2026
Hiscox Ltd has confirmed that awards granted under its Performance Share Plan to directors and other senior managers vested on 15 May 2026, with participants achieving 91.20% of their original performance-based awards. In line with the plan’...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Hiscox grants long-term performance share awards to top executives
Positive
May 15, 2026
Hiscox Ltd has granted new performance-based nil-cost share options to its top executives under the company’s Performance Share Plan, aligning long-term pay with shareholder returns. Awards were made on 15 May 2026 to Group CEO Aki Hussain o...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Hiscox investors back all AGM resolutions, affirming governance and capital plans
Positive
May 14, 2026
Hiscox shareholders have approved all resolutions at the company’s 14 May 2026 annual general meeting, endorsing the annual report, directors’ remuneration report and policy, and final dividend for the 2025 financial year. Investors al...
Business Operations and StrategyFinancial Disclosures
Hiscox posts stable profit outlook for key Lloyd’s syndicates
Positive
May 14, 2026
Hiscox has published updated profit estimates for its Lloyd’s Syndicates 33 and 6104 for the 2024 and 2025 underwriting years, expressed as a percentage of capacity. The figures show stable projections for Syndicate 33, where Hiscox holds a ...
Business Operations and StrategyExecutive/Board Changes
Hiscox director Jane Guyett to join TP ICAP board as non-executive
Positive
May 14, 2026
Hiscox has announced that independent non-executive director Jane Guyett will join TP ICAP Group PLC as a non-executive director from 1 July 2026. The additional board role at another LSE-listed financial services firm underscores the cross-indust...
Business Operations and StrategyStock Buyback
Hiscox advances share buyback with 275,000-share repurchase
Positive
May 11, 2026
Hiscox has continued executing its previously announced share buyback programme, repurchasing a total of 275,000 ordinary shares between 5 and 8 May 2026 through broker Peel Hunt. The transactions were executed at volume-weighted average prices ra...
Business Operations and StrategyStock BuybackFinancial Disclosures
Hiscox lifts Q1 premiums 10% as retail and AI push underpin outlook
Positive
May 7, 2026
Hiscox reported a 10.2% rise in group insurance contract written premiums to $1.72 billion in the first quarter of 2026, with Retail growing fastest at 8% in constant currency and stable expansion in London Market and reinsurance. Management empha...
Business Operations and StrategyStock Buyback
Hiscox Cancels Nearly 300,000 Shares in Ongoing Buyback
Positive
May 5, 2026
Hiscox has continued executing its previously announced share buyback programme, repurchasing a total of 298,643 ordinary shares between 27 April and 1 May 2026 through broker Peel Hunt at prices broadly in the mid‑1500p range. The company c...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.