Hiscox Ltd · LSE:HSX
Hiscox — H1 2025 Earnings Presentation
51 slides from Hiscox's earnings presentation, Jun 30, 2025
Slide 1: Hiscox Ltd Interim results
Hiscox Ltd Interim results For the six months ended 30 June 2025
Slide 2: Strategy update
Strategy update
Slide 3: H1 2025 results
H1 2025 results Broad-based growth, strong profitability and book value creation Sustained growth in ICWP ($m)1 ISR ($m) remains robust despite Strong investment result ($m) wildfires, 92.6% COR 6% 2,942 -19% 2,782 241 235 2,693 221 54% 196 152 122 H1 23 H1 24 H1 25 H1 23 H1 24 H1 25 H1 23 H1 24 H1
Slide 4: Strong capital generation drives attractive returns
Strong capital generation drives attractive returns Buyback upsized to $275m Capital generation1 Capital returns2 H1 Interim DPS H2 Final DPS Buyback per share 51.5 Buyback increase per share 27 29.8 43.3 17 35.9 29.9 11 18 25.0 24.0 9 17 23.0 16 9 8 13.2 14.4 11.5 12.0 12.5 2021 2022 2023 2024 2025
Slide 5: Hiscox Retail
Hiscox Retail Broad-based growth and margin expansion ICWP (% of portfolio1 and growth2) US DPD 6.9% Europe 8.2% US DPD Europe 22% 31% COR3 92.7% US broker 14% UK 33% US broker 0.0% UK 6.0% 1Percentages in pie chart represent the share of Retail. 2Percentages in bar charts represent year-on-year gro
Slide 6: Hiscox London Market
Hiscox London Market Back to growth, as the diverse portfolio navigates micro-cycles ICWP (% of portfolio1 and growth2) Alternative risk Personal accident Major property3 Terrorism Flood Crisis Kidnap and ransom Household management 18% Product recall Commercial lines Property COR4 39% 87.9% Marine,
Slide 7: Hiscox Re & ILS
Hiscox Re & ILS Selectively deploying capital Net ICWP (% of portfolio1 and growth2) Property - North America Specialty, risk and marine Property - Specialty, North risk and America marine 37% 33% COR3 99.5% Retrocession Property - 12% International Property - International 18% Retrocession 1Percent
Slide 8: Growth initiatives
Growth initiatives Capturing opportunities across the Group Go deeper New New Expand New in chosen segments products distribution geographies sectors Expanding UK Dentists and Affirmative Largest UK Entered tech offer to vets in UK AI cover in distribution deal Italy1 hardware UK tech in recent time
Slide 9: Change programme update
Change programme update On track with early wins in H1 Technology Operational excellence Procurement Continued rollout of AI new Lisbon tech centre of Group-wide business tools across Retail excellence set up procurement system AI claims management tool People function optimised with c.60% of spend
Slide 10: Our commitments
Our commitments On track HY 2025 FY 2025 FY 2028 Retail growth1 6.0% 6.0%+ Double-digit Operating ROTE 14.5% Mid-teens through-the-cycle P&L benefit from On track $25m $200m change programme +9% interim DPS Capital returns Buyback increased +20% final DPS2 Progressive dividend to $275m 1ICWP growth
Slide 11: Financial performance
a HISCOX Financial performance
Slide 12: Group financial performance
Group financial performance Profitability reflects diversity of portfolio and quality of underwriting 30 June 30 June Year-on-year • ICWP growth of 2025 2024 5.7% with all $m $m segments growing Premiums • Strong insurance Insurance contract written premium 2,941.6 2,781.91 service result of $196m 5
Slide 13: Hiscox Retail
Hiscox Retail Broad-based momentum 30 June 30 June1 Year-on-year • Broad-based ICWP 2025 2024 constant currency $m $m growth of 6.0% across all markets, on track to Premiums deliver guidance • Step-up in US growth Insurance contract written premium 1,386.6 1,304.3 6.3% to 4.1% from 2.9% in H1 2024 N
Slide 14: Hiscox London Market
Hiscox London Market Diversity delivers growth and profitability 30 June 30 June Year-on-year • London Market has 2025 2024 returned to growth, as $m $m guided, with ICWP growth of 3.0% Premiums • Business finding attractive opportunities Insurance contract written premium 667.7 648.3 3.0% across al
Slide 15: Hiscox Re & ILS
Hiscox Re & ILS Robust result having absorbed wildfires loss 30 June 30 June Year-on-year • Net growth of 7.9% 2025 2024 driven by growth in $m $m specialty and pro-rata • Majority of premium will Premiums earn through in H2 Insurance contract written premium 887.3 829.3 7.0% • Fee income reduced to
Slide 16: Change programme update
Change programme update On track to realise $25m benefit in 2025 Capital markets day change programme commitment • Over 300 initiatives P&L benefit ($m) identified Cost to achieve ($m) • P&L benefit achieved to 200 date includes improved fraud recovery and organisational simplification 145 • Cost to
Slide 17: Investment performance
Investment performance Cash and coupon income driving strong result Cash and bond income net of fees ($m) Gains/(losses) on debt and fixed • Investment result of income holdings ($m) $234.9m, return of 2.9%1 year-to-date 150 154 • High cash and bond 7 82 income continuing 102 (8) • Book yield on bon
Slide 18: Claims discounting impact on profit and COR
Claims discounting impact on profit and COR Net impact on profit is a reduction of $11m $70m ($73m)1 ($8m) H1 2025 H1 2025: H1 2025: in line H1 2025: on weighted average with full year average rates $288m $277m of 3.6% guidance of decreased by $125m-$155m just 0.12% Estimate using Expected unwind PB
Slide 19: Reserve releases
Reserve releases $132m positive reserve development Reserve releases1 as % of opening net reserves • Prudent reserving philosophy continues to generate positive reserve development 3.3% • Development reflects nature of reserves maturing at a point in time and benefitted from run-off of large catastr
Slide 20: Reserves
Reserves Balance sheet remains strong $m • Prudent reserving Best estimate philosophy Events not in data remains unchanged Risk adjustment • Confidence level at 83rd percentile 83rd confidence level percentile – within target range of 75th-85th percentile – demonstrates continued 83rd confidence rob
Slide 21: Very strong capital position
Very strong capital position Strong organic capital generation in H1 Estimated Bermuda solvency capital requirement (BSCR) • Deployed capital into attractive market conditions • Very strong net capital generation • Regulatory and ratings capital position remains strong • Estimated 14 points of capit
Slide 22: Underwriting
Underwriting
Slide 23: Underwriting strategy
Underwriting strategy Balanced and diversified portfolio Balanced portfolio, Excellence in diversified by geography, Accelerating cycle management line and risk size high-quality growth Opportunity to expand profitably through-the-cycle 22
Slide 24: Attractive rate environment sustained
Attractive rate environment sustained Majority of portfolio with substantial rate adequacy Compound rate change, indexed to 2018 2025 rate adequacy by business unit (% of ICWP) Core London Market Catastrophe reinsurance Retail Re & ILS London Market 200 180 47% 48% 160 70% 83% 140 120 38% 45% 100 25
Slide 25: Power of an actively managed portfolio
Power of an actively managed portfolio Continuing to benefit from strategy of balance H1 2025 Group ICWP (year-on-year in constant currency1) • Building Retail growth momentum +5% – Commercial growth $1,079m across all markets – Double-digit UK APC growth Professional liability +7% $890m • Reinsuran
Slide 26: Underwriting management
Underwriting management Effectively managing the cycle Emerging market Forward-looking view of risk and loss trends Investment in understanding changing nature of Adapting to emerging and future risk across property, casualty and specialty trends across risk, loss and customer behaviour Underwriting
Slide 27: Enhancing our product and proposition capability
Enhancing our product and proposition capability Leveraging the power of the Group New New Group innovation hub Go deeper led by Group CUO in chosen segments products sectors • Faster development and speed-to-market • Customer-centric Expanding UK Dentists and Affirmative proposition tech offer to v
Slide 28: Closing remarks
Closing remarks
Slide 29: Executing on opportunities across the diversified Group
Executing on opportunities across the diversified Group Strong progress in H1 provides momentum Growth Retail on course to grow 6%+ in 2025 and selective deployment of capital in big-ticket into attractive opportunities Efficiency Change programme on track to deliver $25m benefit this year Financial
Slide 30: Appendices
Appendices • Geographical reach • ICWP geographical and currency split • Hiscox investment case • Group reinsurance security • Long-term growth • Reinsurance • Hiscox sustainability strategy • Investment result • Sustainability strategy in action • Portfolio – asset mix • Group performance • Portfol
Slide 31: Geographical reach
Geographical reach 31 offices in 13 countries UK Guernsey Birmingham Europe Colchester St Peter Port Amsterdam Glasgow Berlin London Bordeaux Maidenhead USA Bermuda Brussels Manchester Atlanta Hamilton Cologne York Chicago Latin American Dublin Los Angeles gateway Frankfurt New York City Miami Hambu
Slide 32: Hiscox investment case
Hiscox investment case Balanced portfolio of large and complex risks SME and personal lines Delivers profits and capital Significant structural generation for reinvestment growth opportunity Delivers underwriting profit Delivers stable profit and capital-light fee income generation and growth Attrac
Slide 33: Long-term growth
Long-term growth Group premium1 ($m) Hiscox Re & ILS Hiscox UK Hiscox Special Risks Hiscox London Market Hiscox Europe Hiscox USA 5,000 4,500 Hiscox London Market Hiscox Re & ILS Insurance contract written premiums ($m)5 4,000 3,500 3,000 2,500 2,000 Hiscox Retail 1,500 1,000 500 0- 2 3 4 2004 2005
Slide 34: Hiscox sustainability strategy
Hiscox sustainability strategy We want to give people We aim to be a great place We are committed to doing We continually adapt We are committed and businesses the to work, attracting, business in the right to an evolving risk to having a positive confidence to realise their nurturing and retaining
Slide 35: Sustainability strategy in action
Sustainability strategy in action • During 2024, 1,066 • Hiscox has maintained • An assessment of our impact • We continue to adapt our • We have reduced LeakBot devices were the same employee on nature and biodiversity underwriting portfolios: our Scope 1 and 2 installed for Hiscox engagement score
Slide 36: Group performance
Group performance Six months to 30 June 2025 Constant currency ICWP ICWP change ICWP change $m % % Hiscox Retail1 1,386.6 6.3% 6.0% Hiscox UK 463.4 8.4% 6.0% Hiscox Europe 427.2 6.7% 8.2% Hiscox USA 496.0 4.1% 4.1% Hiscox London Market 667.7 3.0% 3.0% Hiscox Re & ILS 887.3 7.0% 7.0% Total1 2,941.6 5
Slide 37: Segmental analysis
Segmental analysis 30 June 2025 30 June 2024 Hiscox Hiscox Hiscox London Hiscox Other Group Hiscox London Hiscox Group 1 1 Retail Market Re & ILS $m Total Retail Market Re & ILS Other Total1 $m $m $m $m $m $m $m $m $m Insurance contract premium written1 1,386.6 667.7 887.3 ‒ 2,941.6 1,304.3 648.3 82
Slide 38: Hiscox Ltd results
Hiscox Ltd results 1 1 $m 30 June 2025 30 June 2024 31 December 2024 Insurance contract premiums written1 2,941.6 2,781.9 4,703.7 Net insurance contract premiums written1 2,125.2 2,000.9 3,622.4 Insurance service result 196.2 240.7 553.5 Investment return 234.9 152.4 383.9 Profit before tax 276.6 28
Slide 39: Adjusted operating profit and operating ROTE reconciliation
Adjusted operating profit and operating ROTE reconciliation $m 30 June 2025 30 June 2024 31 December 2024 Profit before tax 276.6 283.5 685.4 Unrealised fair value (gains) or losses on fixed income (47.7) 2.8 (46.4) securities carried at fair value Impact on discounting from changes in yield curve i
Slide 40: Realistic disaster scenarios
Realistic disaster scenarios April 2025 Hiscox Group – losses shown as percentage of gross and net written premium Gross loss Industry loss Net loss return period Japanese windstorm 2% 6% $20bn 1 in 50 year Japanese earthquake 5% $50bn 1 in 400 year 16% Gulf of Mexico windstorm 15% $200bn 1 in 60 ye
Slide 41: Non-natural catastrophe extreme loss scenarios
Non-natural catastrophe extreme loss scenarios Changing portfolios, changing risk • As our casualty businesses continue to grow, we develop extreme loss scenarios to better understand and manage the associated risks • We have included more loss scenarios to illustrate other non-natural catastrophe e
Slide 42: Boxplot and whisker diagram of modelled Hiscox Ltd net loss
Boxplot and whisker diagram of modelled Hiscox Ltd net loss ($m) April 2025 Superstorm Sandy – $20bn market Loma Prieta Quake – $6bn market Hurricane Andrew – $56bn market Northridge Quake – $24bn market market loss, 45-year return period Hurricane Katrina – $50bn market Lower 5%- upper 95% range 20
Slide 43: Natural catastrophe risk
Natural catastrophe risk Expanding and contracting through the cycle US windstorm Hiscox Ltd mean net modelled loss ($m)1 5-10yr Inflated 25-50yr Inflated 100-250yr Inflated 600 500 400 300 200 100 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1Disclosed U
Slide 44: ICWP geographical and currency split
ICWP geographical and currency split H1 2025 geographical split H1 2025 currency split UK GBP North America USD Western Europe (excl.UK) EUR Worldwide CAD and other Other 2.2% 8.4% 17.0% 19.4% 18.8% 8.7% 18.3% 47.5% 59.6% 43
Slide 45: Group reinsurance security
Group reinsurance security Reinsurance assets at H1 2025 of $2.3bn H1 2025 reinsurance protections1 (FY 2024: $2.0bn) First loss exposure by rating AAA and collateralised Collateralised AA AA range2 A A range Other/non-rated ILS 1.0% 0.8% 20.7% 21.4% 28.0% 36.0% 41.8% 50.3% 1Reinsurance placements i
Slide 46: Reinsurance
Reinsurance Ceded as a percentage of ICWP/GWP1 Reinsurance receivables as a percentage of total assets1 33.5 31.8 31.7 30.8 28.2 27.9 27.8 27.0 26.9 26.3 25.9 25.6 24.3 23.5 22.9 22.7 22.6 21.0 20.1 19.3 19.2 19.0 19.0 19.0 19.0 18.8 17.6 12.3 12.1 11.7 11.6 10.6 10.3 10.2 12010-2021 under IFRS 4; 2
Slide 47: Investment result
Investment result Return of $234.9m (H1 2024: $152.4m) 30 June 2025 30 June 2024 Asset Asset allocation Return Return allocation Return Return % % $m % % $m Debt and fixed income holdings £ 9.9 10.4 $ 61.7 59.9 Other 11.3 10.0 Total 82.9 3.2 215.5 80.3 1.9 118.3 Equity and investment funds 2.4 0.8 1
Slide 48: Portfolio – asset mix
Portfolio – asset mix High quality, short duration portfolio Investment portfolio $8.9bn as at 30 June 2025 Asset allocation Debt and fixed income Debt and fixed holdings credit quality income currency Debt and fixed income holdings Gvt.1 USD Cash and cash equivalents AAA GBP Equity and investment f
Slide 49: Portfolio – USD debt and fixed income holdings
Portfolio – USD debt and fixed income holdings As at 30 June 2025 Portfolios: $5.4bn BB and AAA AA A BBB below and Total Duration % % % % unrated % years % Government issued 14.2 0.1 0.6 1.1 16.0 1.9 Government supported1 0.1 0.6 0.6 0.2 0.1 1.6 2.3 Asset backed 9.9 9.9 1.2 Mortgage backed agency 5.
Slide 50: Portfolio – GBP and other currencies debt and fixed income holdings
Portfolio – GBP and other currencies debt and fixed income holdings As at 30 June 2025 GBP portfolios: BB and $868m AAA AA A BBB below and Total Duration % % % % unrated % years % Government issued 16.7 16.7 2.2 Corporates 10.4 3.2 31.6 36.5 0.3 82.0 1.6 Credit funds 1.3 1.3 1.5 Total 10.4 19.9 31.6
Slide 51: Business segments
Business segments Hiscox Retail Hiscox Re & ILS Hiscox Retail brings together the results of the Group’s Hiscox Re & ILS is the reinsurance division of the Hiscox retail business divisions in the UK, Europe and USA. Group, combining the underwriting platforms in Bermuda Hiscox UK and Hiscox Europe u