Hiscox (GB:HSX)
LSE:HSX
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Hiscox
(LSE:HSX)
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Rating:75Outperform
Price Target:
1,972.00 p
â–²(22.64% Upside)
Action:Reiterated
Date: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
Diversified specialty portfolio
Hiscox's earnings come from multiple durable channels—Retail, London Market, Reinsurance/ILS—reducing reliance on any single line. This distribution across geographies and products supports steadier premium growth and underwriting diversification over insurance cycles, strengthening long-term resilience.
Negative Factors
Cash generation volatility
Hiscox shows material swings in operating and free cash flow across years, which reduces predictability of internal funding for growth, buybacks and catastrophe claims. Inconsistent cash conversion increases reliance on capital markets or reduced reinvestment in weak years, pressuring strategy execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified specialty portfolio
Hiscox's earnings come from multiple durable channels—Retail, London Market, Reinsurance/ILS—reducing reliance on any single line. This distribution across geographies and products supports steadier premium growth and underwriting diversification over insurance cycles, strengthening long-term resilience.
Read all positive factors
Hiscox (HSX) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£5.62B
Dividend Yield1.93%
Average Volume (3M)1.39M
Price to Earnings (P/E)12.9
Beta (1Y)1.08
Revenue Growth2.06%
EPS Growth-4.60%
CountryUK
Employees3,000
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.82
Shares Outstanding321,850,650
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
£1,752.88Price Target Upside9.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.72
Revenue Forecast (FY)£5.27B
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 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:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 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
1617.76
Positive
1536.10
Positive
1433.37
Positive
Market Momentum
48.49
Positive
58.58
Neutral
18.18
Positive
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 below the 20-day moving average (MA) of 1737.95, below the 50-day MA of 1617.76, and above the 200-day MA of 1433.37, indicating a bullish trend. The MACD of 48.49 indicates Positive momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 18.18 is Positive, 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 | £7.58B | 11.28 | 19.23% | 2.99% | 3.77% | -16.97% | |
78 Outperform | £9.83B | 13.00 | 51.59% | 7.42% | 5.63% | 15.65% | |
76 Outperform | £1.44B | 11.81 | 11.24% | 11.03% | 2.58% | -12.71% | |
75 Outperform | £5.62B | 12.90 | 15.63% | 1.93% | 2.06% | -4.60% | |
75 Outperform | £370.34M | 13.20 | 11.29% | 4.89% | -10.30% | 6.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
52 Neutral | £749.35M | -76.10 | -15.72% | ― | 12.19% | ― |
* Financial Sector Average
GB:HSX
Hiscox
1,754.00
460.66
35.62%
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3,262.00
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22.14%
GB:SAGA
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GB:SBRE
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26.12%
Hiscox Corporate Events
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...
Regulatory Filings and Compliance
Hiscox updates total voting rights following treasury share holdings
Neutral
May 1, 2026
Hiscox Ltd has reported that as of 30 April 2026 its issued ordinary share capital consists of 330,165,171 shares with a par value of 6.5 pence each, of which 7,523,190 shares are held in treasury. As treasury shares carry no voting rights, the to...
Business Operations and StrategyStock Buyback
Hiscox Cancels 325,000 Shares in Latest Tranche of Ongoing Buyback
Positive
Apr 27, 2026
Hiscox has continued its previously announced share buyback programme, repurchasing a total of 325,000 ordinary shares between 20 and 24 April 2026 at volume‑weighted average prices ranging from about 1,559p to 1,614p. The shares, acquired t...
Business Operations and StrategyStock Buyback
Hiscox Cancels 279,904 Shares in Ongoing Buyback Programme
Positive
Apr 20, 2026
Hiscox has continued to execute its previously announced share buyback programme, repurchasing a total of 279,904 ordinary shares between 13 and 17 April 2026 through Peel Hunt at volume-weighted average prices ranging from about 1,571p to 1,603p....
Business Operations and StrategyStock Buyback
Hiscox Continues Share Buyback With April Share Purchases
Positive
Apr 13, 2026
Hiscox Ltd has continued to execute its previously announced share buyback programme, repurchasing a total of 232,500 ordinary shares between 7 and 10 April 2026 through Peel Hunt LLP at volume-weighted average prices ranging from about 1,564.57p ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Hiscox Cancels 215,000 Shares Under Ongoing Buyback Programme
Positive
Apr 7, 2026
Hiscox has continued to execute its previously announced share buyback programme, repurchasing a total of 215,000 ordinary shares between 30 March and 02 April 2026 at volume-weighted average prices ranging from about 1,500p to 1,543p per share. T...
Regulatory Filings and Compliance
Hiscox Updates Market on Total Voting Rights and Share Capital
Neutral
Apr 1, 2026
Hiscox Ltd has reported that as of 31 March 2026 its issued ordinary share capital stands at 331,452,855 shares with a par value of 6.5p each, of which 7,523,190 are held in treasury. This leaves 323,929,665 voting shares in circulation, a key den...
Business Operations and StrategyStock Buyback
Hiscox Cancels 205,000 Shares in Ongoing Buyback Programme
Positive
Mar 30, 2026
Hiscox has continued to execute its previously announced share buyback programme, repurchasing a total of 205,000 ordinary shares between 23 and 27 March 2026 through broker Peel Hunt. The purchases, made at volume-weighted average prices ranging ...
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 ...
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.