Hiscox (HSX) CMD 2025 summary

Strategic vision and growth ambitions

• Targeting double-digit Retail growth by 2028, outpacing a 5-6% market CAGR, with a focus on expanding market share in the U.K., U.S., and Europe, and leveraging omni-channel and digital capabilities.

• Retail is set to become a larger profit contributor, driven by sector focus, new product launches, expanded distribution, and selective geographic expansion, including Italy.

• The addressable market exceeds $300 billion, with $150 billion serviceable today and ambitions to narrow this gap through product and distribution expansion.

• Growth will be achieved by deepening sector focus, entering new niches, supercharging distribution, and leveraging technology and leadership.

• Group strategy emphasizes profitable growth, cost discipline, and capital management flexibility.

Financial guidance and capital management

• New group target of mid-teens operating return on tangible equity (ROTE) through the cycle, up from a 10-year average of 11.6%.

• Launching a $200 million annual P&L benefit program by 2028, primarily from operational efficiencies, automation, and procurement savings, with phased benefits and a matching $200 million cost to achieve.

• Dividend per share to increase by 20% in 2025, following a 15% step-up in 2024, with a progressive dividend policy and a $175 million share buyback for 2025.

• New solvency target range set at 190%-200% post-dividend, supporting balance sheet strength and capital flexibility.

• Capital allocation will prioritize profitable Retail growth, maintain a strong balance sheet, and return surplus capital to shareholders.

Operational transformation and technology

• Simplification and modernization initiatives include reducing IT applications, centralizing procurement, and expanding shared services hubs.

• Automation is being scaled, with 68% of retail premiums now auto-underwritten and AI tools deployed to triage submissions and streamline claims.

• Claims transformation aims to automate 10-15% of claims tasks, double the proportion of complex claims paid within five days, and improve fraud detection.

• Technology investments focus on reusing best-in-class solutions, new policy systems, digital portals, and reducing application estate by 30% over three years.

• Centers of excellence in AI, data, and process excellence are breaking down silos and driving group-wide efficiencies.