Hiscox (HSX) H2 2025 earnings summary

Executive summary

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

• Premiums increased by $275 million (6% year-over-year), with group ICWP up 5.9% to $4,979 million and 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 past 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.

Financial highlights

• Record profit before tax of $733 million, up 6.9% year-over-year, with adjusted operating profit before tax rising 8.9% to $744 million.

• Insurance service result reached $614 million, supported by a record investment result of $443 million, up 15.3%.

• Year-end BSCR at 233%, pro forma 211% after capital returns, above the 190%-200% target range.

• Retail ICWP grew 6.3% in constant currency to over $2.6 billion, with retail now nearly half of group PBT.

• London Market ICWP increased 1.6%, with an undiscounted combined ratio of 85.9%.

Outlook and guidance

• Retail growth expected to accelerate to 8% in 2026 and reach double digits by 2028, with combined ratio guidance for retail at 89%-94%.

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

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