Shares in Lloyd's of London insurer Hiscox saw a more than 10% rise in early trading following the firm's decision to increase its share buyback.
Despite a slight drop in interim profit due to wildfire claims impacting its reinsurance division, the group boosted capital returns thanks to significant investment income, as reported by .
Pre-tax profit for the first half of 2025 was $276.6m (£207.9m), a decrease from $283.5m the previous year.
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Total written premiums increased by 5.7% to $2.94bn, with all three core divisions contributing to this growth.
Hiscox Retail boost growth
The company operates through three main segments: Retail (海角视频, US and Europe), Hiscox London Market (large-scale international insurance via Lloyd's), and Hiscox Re & ILS (reinsurance and insurance-linked securities).
The Retail division, covering the 海角视频, Europe and US, remained the largest contributor to group growth, delivering a pre-tax profit of $180.7m, up from $151.4m. Net written premiums rose to $2.13bn, while the group combined ratio slightly increased to 92.6% from 90.4% last year.
However, the insurance service result fell to $196.2m, and earnings before interest, tax, depreciation and amortisation (EBITDA) dropped to $262.0m from $288.1m. Earnings per share decreased to 67.2 cents, and return on equity softened to 12.8% from 16.5%.
Despite a dip in earnings, the group has announced a nine per cent increase in its interim dividend to 14.4 cents (11p) per share and has boosted its ongoing share buyback programme by $100m to $275m.
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The net asset value per share surged to 850p, bolstered by robust investment gains and capital formation. Investment income saw an uptick to $234.9m, buoyed by higher coupons and mark-to-market gains on fixed income assets.
Wildfires hit Hiscox's bottom line
Hiscox's financial results were impacted by wildfires, but the company's chief executive Aki Hussain remarked: "We have delivered a strong performance in the first half with profitable growth in each of our businesses."
He also noted, "Despite the industry experiencing the largest wildfire insurance event in history, we achieved a strong operating return on tangible equity of 14.5 per cent."
Hussain highlighted the positive trajectory in Retail, stating, "Growth and earnings momentum continues to build in Retail as we capture the vast structural opportunities."
He further commented on shareholder returns, saying, "We have the flexibility to take further steps to improve our balance sheet efficiency and reward shareholders immediately through an increase of $100m to our ongoing share buyback."
Additionally, Hussain pointed out the consistent performance of Hiscox London Market, which "Hiscox London Market delivered its fifth consecutive first-half combined ratio in the 80s, even as pricing in some lines softens from generational highs."
Lastly, he mentioned that Hiscox Re & ILS remained profitable in underwriting, despite absorbing wildfire losses, thanks to new third-party capital and expansion in specialty lines.
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"Retail momentum is building, helped by new distribution deals in the 海角视频, US and Europe, and two acquisitions - one in Italy and another in a US insurtech.
"We are using AI to enhance underwriting efficiency and market access, including auto-underwriting for high-value 海角视频 household and brokered cargo risks.
"Our fraud savings in the first half were already materially ahead of those delivered during the whole of 2024.
"We reaffirm full-year guidance of over six per cent Retail growth in constant currency."