The specialist insurer adds $100 million to its share repurchase program, fueled by a standout performance in its retail division and solid premium growth across the business.
LONDON – Shares in the specialist insurer Hiscox (LON:HSX) surged on Wednesday after the company announced a significant increase to its share buyback program, signaling strong confidence on the back of a robust first-half performance.
The London-listed group’s stock jumped 6.8% after it added $100 million to its buyback plan, bringing the total program to $275 million. The move was driven by solid momentum across the business, with the retail segment singled out as the main driver of growth.
Hiscox reported that its total insurance-contract written premiums rose to $2.94 billion in the first half of the year, up from $2.78 billion in the same period last year. This growth was seen across all major segments.
The retail division was the standout performer, with premiums increasing by 6.0% in constant currency. The company noted that all its retail markets showed positive momentum, particularly in the U.K. and the U.S. This positive trend has led analysts to praise the performance as “reassuring,” given the retail segment’s importance to the company’s investment case.
Buoyed by this success, Hiscox confirmed it remains on track to deliver retail growth above 6% for the full year, supported by new distribution agreements and other recent strategic initiatives.
Further highlighting its strong financial health, the company’s investment income rose significantly to $234.9 million, benefiting from higher returns. While pre-tax profit saw a slight dip, partly due to industry-wide losses from California wildfires, the overall results painted a picture of a company with strong underlying fundamentals and a clear growth trajectory.
Looking ahead, Hiscox stated it remains focused on profitable growth and expects the positive momentum in its retail business to continue through the second half of the year.
