Hiscox (HSX) investor relations material

Executive summary

• Achieved record profit before tax of $733 million in 2025, marking the third consecutive year of record results, driven by accelerated growth, product innovation, and expanded distribution across all business segments.

• Group ICWP grew 5.9% year-over-year to $4,979 million, with high-quality, profitable growth across all segments.

• Book value per share grew 12%, operating ROTE reached 21%, and a $300 million share buyback plus a 20% dividend increase were announced.

• Over the last three years, $1.1 billion has been returned to shareholders through dividends and buybacks, supported by strong organic capital generation and a robust balance sheet.

• Operating ROTE reached 20.9%, exceeding the mid-teens through-the-cycle target.

Financial highlights

• Insurance contract written premium (ICWP) up 5.9% to $4,979 million; net ICWP up 6.7% to $3,866 million year-over-year.

• Insurance service result increased 10.9% to $614 million, supported by a record investment result of $443 million.

• Adjusted operating profit before tax rose 8.9% to $744 million.

• Undiscounted combined ratio improved to 87.8%, the best in a decade, with retail at 92.6%, London Market at 85.9%, and reinsurance at 67.4%.

• Reserve releases totaled $293 million (7.2% of opening reserves), reflecting conservative reserving.

Outlook and guidance

• Retail ICWP expected to grow 8% in constant currency by FY 2026, targeting double-digit growth by 2028.

• Combined ratio guidance for retail remains 89%-94%, with expectations to trend toward the lower end as efficiency programs deliver.

• Change program on track to deliver $75 million P&L benefit in 2026 and $200 million by 2028.

• Investment returns expected to remain strong, supported by increased AUM and a 4% reinvestment yield.

• No growth in net catastrophe exposure in reinsurance; capital to be deployed into Retail and selective big-ticket opportunities.