Hiscox Ltd on Thursday reported ‘record’ annual profit and announced a $175 million share buyback, as the insurer said it expects positive momentum to continue in 2025.
The Hamilton, Bermuda-based business insurer said pretax profit for the year to December 31 rose 9.5% to $685.4 million from $625.9 million the year prior. Earnings per share climbed to 183.2 cents from 162.7 cents.
Insurance revenue rose 4.2% to $4.67 billion from $4.48 billion in 2023.
Hiscox allocated $1.6 billion for reinsurance claims in 2024, up $117 million from the prior year due to a more ‘active loss environment’. Natural catastrophes, including US hurricanes and European floods, drove losses, alongside man-made incidents like the MV Dali collision in Baltimore.
Early 2025 wildfires in Los Angeles added an estimated $170 million net loss, mostly impacting subsidiary Hiscox Re & ILS.
Hiscox increased its total dividend for 2024 to 43.1 cents per share, up 15% from 37.5 cents in 2023, with a 20% rise in the final payout to 29.9 cents from 25.0 cents.
The company also announced a share buyback programme worth up to $175 million, starting Thursday with an initial tranche of $87.5 million which will be completed by no later than the end of the third quarter of 2025.
Chief Executive Officer Aki Hussain said: ‘The group has delivered another set of excellent results and a second consecutive year of record profits. Our Retail business continues to build broad-based growth and earnings momentum, and our big-ticket portfolio has again delivered an outstanding performance.’
Hiscox’s combined ratio improved slightly to 89% from 90%. A ratio under 100% indicates an underwriting profit.
Looking ahead, the company expects further progress in 2025, forecasting a return to growth in its London Market business. It said favourable market conditions, new product launches, and the fading impact of the 2024 binder non-renewal would support expansion in the division, which uses Lloyd’s global licences, distribution network, and credit rating to insure clients.
Profit before tax in the segment declined to $215.0 million from $262.7 million in 2023.
Hiscox added it will outline its growth strategy in more detail at a Retail-focused capital markets day in May.
Shares in Hiscox were up 2.5% at 1,147.00 pence in London on Thursday at midday.
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