Hiscox (GB:HSX)
LSE:HSX
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Hiscox
(LSE:HSX)
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Rating:75Outperform
Price Target:
1,731.00 p
▲(7.65% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by solid financial performance (strong recent profitability and growth, tempered by cash-flow volatility), supported by constructive technical momentum (price above key moving averages, positive MACD). Valuation is a major positive due to a very low P/E, while the earnings call adds support via upbeat guidance and capital returns, partially offset by pricing, tax, and catastrophe-related risks.
Positive Factors
High operating RoTE / strong underwriting returns
Operating RoTE near 21% signals durable underwriting discipline and capital efficiency. Sustained high RoTE supports internal capital generation, funds reinvestment and shareholder returns, and indicates the business can absorb normal cycle volatility while maintaining profitability.
Negative Factors
Inconsistent cash generation
Volatile operating cash flow reduces confidence in free cash conversion and complicates capital planning. For an insurer, swings in cash impede predictable funding for reinsurance, change‑programme costs, buybacks and dividends, raising structural execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High operating RoTE / strong underwriting returns
Operating RoTE near 21% signals durable underwriting discipline and capital efficiency. Sustained high RoTE supports internal capital generation, funds reinvestment and shareholder returns, and indicates the business can absorb normal cycle volatility while maintaining profitability.
Read all positive factors
Hiscox (HSX) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£5.21B
Dividend Yield1.93%
Average Volume (3M)1.39M
Price to Earnings (P/E)4.2
Beta (1Y)1.17
Revenue Growth2.06%
EPS Growth-4.60%
CountryUK
Employees3,000
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.82
Shares Outstanding322,343,320
10 Day Avg. Volume1,308,669
30 Day Avg. Volume1,386,463
Financial Highlights & Ratios
PEG Ratio2.62
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
£23,279.88Price Target Upside1347.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)1.73
Revenue Forecast (FY)£5.24B
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. The company operates through four segments: Hiscox Retail, Hiscox London Market, Hiscox Re & I...
How the Company Makes Money
Hiscox primarily makes money through insurance underwriting and investing the premiums it holds. (1) Underwriting income: The core revenue stream is net earned premiums from policyholders. Hiscox collects premiums upfront, pays claims and claims-h...
Hiscox Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call conveys a clearly positive performance and outlook: Hiscox reported record underwriting, investment and profit outcomes, strong organic premium growth (notably in Retail), robust capital generation (BSCR well above target), active product and distribution innovation and early, measurable benefits from the efficiency/change program. Key headwinds are a softening rate environment in big‑ticket markets, a higher effective tax rate and conservative reserving that lifts buffers. These lowlights are important but largely manageable given the company’s strong capital position, diversified portfolio and visible change program trajectory.Positive Updates
Record Financial Performance
Group delivered record results: undiscounted combined ratio of 87.8% (best in a decade), insurance service result of $614m, record investment result of $443m, and record profit before tax of $733m (up 6.9%). Operating RoTE ~21% materially above mid‑teens target and book value per share grew ~12%.
Negative Updates
Softening Rate Environment in Big‑Ticket Segments
Market rates softened in 2025 and into 2026: reinsurance rates down ~5% in 2025 and a further ~13% at January 2026 renewals (notably property/cat/retro); London Market rates down ~4% in 2025 and another ~4% in January 2026. Retail pricing momentum also eased (rate increases fell from ~7% in 2023 to ~2%).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Financial Performance
Group delivered record results: undiscounted combined ratio of 87.8% (best in a decade), insurance service result of $614m, record investment result of $443m, and record profit before tax of $733m (up 6.9%). Operating RoTE ~21% materially above mid‑teens target and book value per share grew ~12%.
Read all positive updates
Company Guidance
Hiscox guided that Retail momentum will accelerate to 8% growth in 2026 and reach double‑digit growth by 2028 (Retail ICWP >$2.6bn; policy count +7.5%; Retail undiscounted combined ratio guided to 89–94% and currently 92.6%), the change programme is on track to deliver $75m of P&L benefit in 2026 (after $29m in 2025) and $200m by 2028, and the group expects to keep net catastrophe exposure broadly flat in reinsurance in 2026 while pursuing specialty growth; management reiterated strong profitability targets (operating RoTE ~21% in 2025, materially above mid‑teens target), a modest reinvestment yield (~4%), continued robust capital generation (year‑end BSCR 233% and pro‑forma 211% after a new $300m buyback and a 20% final dividend step‑up), and ongoing third‑party capital expansion (ILS AUM $1.5bn as of 1 Jan 2026, >$330m raised in the year; fee income $109m).Hiscox Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.48B | 3.81B | 3.70B | 2.98B | 3.29B |
| Gross Profit | 5.48B | 3.81B | 3.58B | 2.98B | 3.29B |
| EBITDA | 883.45M | 799.20M | 730.00M | 335.60M | 248.20M |
| Net Income | 616.77M | 627.20M | 712.00M | 253.90M | 189.50M |
Balance Sheet | |||||
| Total Assets | 12.19B | 11.24B | 11.06B | 13.72B | 13.85B |
| Cash, Cash Equivalents and Short-Term Investments | 878.32M | 1.23B | 1.47B | 1.40B | 1.35B |
| Total Debt | 902.00M | 743.00M | 754.20M | 635.90M | 746.50M |
| Total Liabilities | 8.24B | 7.55B | 7.76B | 11.31B | 11.31B |
| Stockholders Equity | 3.95B | 3.69B | 3.30B | 2.42B | 2.54B |
Cash Flow | |||||
| Free Cash Flow | 73.00M | 75.30M | 188.40M | 352.50M | -42.30M |
| Operating Cash Flow | 74.33M | 114.40M | 232.10M | 373.40M | 16.60M |
| Investing Cash Flow | -115.78M | -38.50M | -34.20M | -81.90M | -36.60M |
| Financing Cash Flow | -364.69M | -282.60M | -128.90M | -190.90M | -246.20M |
Hiscox Technical Analysis
Positive
1608.00
Price Trends
1510.98
Positive
1458.94
Positive
1392.06
Positive
Market Momentum
26.42
Negative
66.43
Neutral
75.24
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 1608 is above the 20-day moving average (MA) of 1549.85, above the 50-day MA of 1510.98, and above the 200-day MA of 1392.06, indicating a bullish trend. The MACD of 26.42 indicates Negative momentum. The RSI at 66.43 is Neutral, neither overbought nor oversold. The STOCH value of 75.24 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | £7.56B | 3.39 | 19.23% | 2.99% | 3.77% | -16.97% | |
78 Outperform | £9.72B | 6.88 | 51.59% | 7.42% | 5.63% | 15.65% | |
76 Outperform | £1.44B | ― | 11.24% | 11.03% | 2.58% | -12.71% | |
75 Outperform | £5.21B | 4.20 | 15.63% | 1.93% | 2.06% | -4.60% | |
75 Outperform | £363.99M | 4.18 | 11.29% | 4.89% | -10.30% | 6.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £860.47M | -28.14 | -15.72% | ― | 12.19% | ― |
* Financial Sector Average
GB:HSX
Hiscox
1,624.00
502.32
44.78%
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3,172.00
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49.48%
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589.00
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21.36%
GB:SAGA
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GB:SBRE
Sabre Insurance Group plc
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21.09%
Hiscox Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Hiscox grants deferred bonus share awards to senior executives
Positive
Mar 25, 2026
Hiscox Ltd has granted deferred bonus share awards to three executive directors under its Deferred Bonus Plan, reflecting 40% of their 2025 bonuses. Group CEO Hamayou Akbar Hussein received rights over 64,652 shares, Group Chief Underwriting Offic...
Business Operations and StrategyStock Buyback
Hiscox Cancels 289,055 Shares in Ongoing Buyback Programme
Positive
Mar 23, 2026
Hiscox has continued to execute its previously announced share buyback programme, repurchasing a total of 289,055 ordinary shares between 16 and 20 March 2026 through broker Peel Hunt. The shares, acquired at volume-weighted average prices ranging...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Hiscox publishes 2025 annual report and sets date for 2026 AGM
Neutral
Mar 16, 2026
Hiscox Ltd has published and distributed to shareholders its Notice of the 2026 Annual General Meeting, the related Form of Proxy, and its Annual Report and Accounts for the year ended 31 December 2025. The documents have been filed with the U.K. ...
Business Operations and StrategyStock Buyback
Hiscox Cancels Over 200,000 Shares in Latest Buyback Tranche
Positive
Mar 16, 2026
Hiscox has continued to execute its previously announced share buyback programme, repurchasing 204,311 ordinary shares between 9 and 13 March 2026 through broker Peel Hunt at volume‑weighted average prices ranging from about 1,448.84p to 1,4...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Hiscox Cancels 69,849 Shares and Shifts to Weekly Buyback Disclosures
Neutral
Mar 9, 2026
Hiscox has repurchased 69,849 ordinary shares on 6 March 2026 under its previously announced buyback programme, paying a volume-weighted average price of 1,459.08 pence per share, with the shares to be cancelled to reduce the company’s share...
Business Operations and StrategyStock Buyback
Hiscox Advances Capital Return Plan With Fresh Share Buyback
Positive
Mar 6, 2026
Hiscox Ltd has continued execution of its previously announced share buyback programme, repurchasing 85,000 ordinary shares on 5 March 2026 through Peel Hunt at a volume-weighted average price of 1,473.24 pence. The insurer will cancel the purchas...
Business Operations and StrategyStock Buyback
Hiscox Continues Share Buyback With 40,000-Share Purchase for Cancellation
Positive
Mar 5, 2026
Hiscox has continued to execute its previously announced share buyback programme, repurchasing 40,000 ordinary shares on 4 March 2026 via Peel Hunt at a volume-weighted average price of 1,484 pence. The shares, bought on the London Stock Exchange ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Hiscox Cancels 75,000 Shares in Ongoing Buyback Programme
Positive
Mar 4, 2026
Hiscox has continued to execute its recently announced share buyback programme, repurchasing 75,000 ordinary shares on 3 March 2026 via Peel Hunt at prices between 1,471p and 1,492p, with a volume-weighted average price of 1,479.82p. The shares bo...
Business Operations and StrategyFinancial Disclosures
Hiscox posts strong 2023 Lloyd’s syndicate results and lifts profit outlook
Positive
Mar 3, 2026
Hiscox has reported the final 2023 results for its Lloyd’s Syndicates 33 and 6104, alongside updated estimates for the 2024 and 2025 underwriting years. Syndicate 33, in which Hiscox holds a 73% share of £1,699 million capacity, deliver...
Business Operations and StrategyStock Buyback
Hiscox Continues Buyback With £1,524 VWAP Share Repurchase
Positive
Mar 3, 2026
Hiscox has continued its recently announced share buyback programme, repurchasing 35,416 ordinary shares on 2 March 2026 at a volume-weighted average price of 1,524.10 pence. The shares, acquired through Peel Hunt on the London Stock Exchange, wil...
Regulatory Filings and Compliance
Hiscox Updates Market on Total Voting Rights and Share Capital
Neutral
Mar 2, 2026
Hiscox Ltd has confirmed that as of 27 February 2026 its issued ordinary share capital consists of 332,381,637 ordinary shares, of which 7,523,190 are held in treasury without voting rights. This leaves 324,858,447 voting shares in circulation, a ...
Business Operations and StrategyStock Buyback
Hiscox Advances Share Buyback With Fresh £0.6m Repurchase
Positive
Mar 2, 2026
Hiscox has continued executing its recently announced share buyback programme, repurchasing 37,515 ordinary shares on 27 February 2026 through Peel Hunt at a volume-weighted average price of 1,541.08 pence. The company plans to cancel these shares...
Business Operations and StrategyStock Buyback
Hiscox Cancels 55,000 Shares in Latest Buyback Tranche
Positive
Feb 27, 2026
Hiscox has executed a further tranche of its recently announced share buyback programme, repurchasing 55,000 ordinary shares on 26 February 2026 via Peel Hunt at a volume‑weighted average price of 1,524.68 pence. All of the shares, bought on...
Stock BuybackRegulatory Filings and Compliance
Hiscox Advances Buyback With £0.78m Share Repurchase for Cancellation
Positive
Feb 26, 2026
Hiscox has continued its recently announced share buyback programme with the repurchase of 51,029 ordinary shares on 25 February 2026 via Peel Hunt at a volume-weighted average price of 1,524.13 pence. The shares, all bought on the London Stock Ex...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Hiscox launches new $300m buyback as specialty insurer steps up capital returns
Positive
Feb 25, 2026
Hiscox has launched a new share repurchase programme of up to $300 million, beginning with a $150 million tranche to be completed by the end of the third quarter of 2026, as it returns surplus capital to investors and cancels the shares bought bac...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Hiscox Delivers Record 2025 Results and Boosts Capital Returns
Positive
Feb 25, 2026
Hiscox reported a third consecutive year of record results for 2025, with insurance contract written premiums up 5.9% to $4.98 billion and profit before tax rising to $732.7 million. The group posted its best combined ratio in a decade at 87.8%, r...
Regulatory Filings and Compliance
Hiscox Updates Market on Total Voting Rights and Share Capital
Neutral
Feb 2, 2026
Hiscox Ltd has announced that, as of 30 January 2026, its issued ordinary share capital consists of 332,380,013 ordinary shares of 6.5p each, of which 7,523,190 are held in treasury and carry no voting rights. As a result, the total number of voti...
Regulatory Filings and Compliance
Hiscox Confirms Updated Share Capital and Voting Rights as of Year-End 2025
Neutral
Jan 2, 2026
Hiscox Ltd has reported that as of 31 December 2025 its issued ordinary share capital comprised 332,375,257 ordinary shares of 6.5p each, of which 7,523,190 are held in treasury. After excluding treasury shares, the company confirmed that the tota...
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.