Hiscox (HSX) H1 2024 earnings summary

Executive summary

• Profit before tax increased 7.1% to $283.5m, with return on equity at 16.5% and strong growth in retail and property.

• Insurance contract written premium (ICWP) rose 3.3% year-over-year to $2.81bn, with all segments contributing to profit.

• Interim dividend increased by 5.6% to 13.2¢ per share; over 85% of share buyback completed.

• Capital return to shareholders up 150% year-over-year, including buybacks.

• Strong balance sheet with estimated BSCR of 206%.

Financial highlights

• Net insurance contract written premium up 4.2% year-over-year to $2.03bn.

• Insurance service result increased 8.7% to $240.7m; investment result up 25.1% to $152.4m.

• Group combined ratio (undiscounted) was 90.4%; EPS rose to 75.1¢.

• Net asset value per share reached 989.0¢, up from 823.3¢ a year ago.

• Reserve releases of $51m in H1, continuing a positive trend.

Outlook and guidance

• Retail growth momentum expected to build in H2; London Market to return to moderate growth; Re & ILS net growth to exceed ICWP for the full year.

• Group expects continued high-quality earnings in 2024 and beyond, with disciplined underwriting.

• Updated full-year 2024 IFRS 17 guidance range to $135m-$165m.

• Well-capitalised to face wind season with high-quality portfolio at attractive rates.