Hiscox (HSX) H1 2025 earnings summary

Executive summary

• Insurance contract written premium grew 5.7% year-over-year to $2,941.6m, with all segments contributing and Retail leading growth.

• Operating return on tangible equity (ROTE) reached 14.5%, in line with mid-teens target, and net asset value per share increased 15% year-over-year.

• Interim dividend increased by 9.1% to 14.4¢ per share; share buyback upsized by $100m to $275m.

• Change programme on track to deliver $25m P&L benefit in 2025, with early wins in technology and procurement.

• Well-capitalised balance sheet with BSCR at 239% and reserve confidence level at 83rd percentile.

Financial highlights

• Insurance contract written premium rose to $2,941.6m from $2,781.9m, a 5.7% increase year-over-year.

• Adjusted operating profit before tax was $262.0m, down year-over-year due to wildfire losses.

• Investment result improved to $234.9m, driven by higher bond yields and fair value gains.

• Reserve releases totaled $132.1m, mainly from runoff of prior year catastrophe losses.

• Group undiscounted combined ratio increased to 92.6% from 90.4% year-over-year.

Outlook and guidance

• Retail expected to grow in excess of 6% in constant currency for the full year, reaffirmed.

• Change programme expected to deliver $25m P&L benefit in 2025.

• Targeting double-digit retail growth by 2028.

• Capital returns to shareholders estimated at 21 percentage points of BSCR by year-end.

• Final 2025 dividend per share anticipated to increase by 20%, with a progressive policy thereafter.