Hiscox Ltd · LSE:HSX
Hiscox — Investor Day (May 2025)
79 slides from Hiscox's investor day presentation, May 22, 2025
Slide 1: Capital Markets Day
London, 22 May 2025 Capital Markets Day
Slide 2: Disclaimer
Disclaimer This document does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any shares or other securities in Hiscox Ltd (‘Hiscox’ or the ‘Company’). For the purposes of this notice, ‘document’ means this document, an oral presentation, any question and
Slide 3: Key messages
Key messages Unique Growth Operating business ambition efficiency • Diversified business • Accelerate Retail growth • $200m annual P&L benefit across lines and to double-digit in 2028 in 2028 and onwards geography • Reinforces confidence • Growing share of to drive Retail margin less volatile Retail
Slide 4: Today's agenda
Today’s agenda Group and retail strategy Hiscox UK Hiscox USA Aki Hussain Jon Dye Mary Boyd Hiscox Group CEO since 2022; Hiscox UK CEO since 2022. Hiscox USA CEO since 2024. CFO 2016-2022. Previous: Prudential Plc; Lloyds Previous: Allianz; Chubb; Previous: Plymouth Rock; The Banking Group; Virgin M
Slide 5: Group strategy
ates Ni a HISCOX =
Slide 6: A leading specialty underwriter built over the last 124 years
A leading specialty underwriter built over the last 124 years Leading platforms with geographic reach1,2 Distinctive Bermuda history and UK heritage Broker3 North Western America Lloyd's Europe DPD Global and other Disciplined, profitable growth Symbiotic portfolio Uncompromising focus on technical
Slide 7: A leading specialty underwriter built over the last 124 years
A leading specialty underwriter built over the last 124 years 14 consecutive years of growth1 Distinctive Re & history and ILS UK heritage Europe London Market USA 2004 2014 2024 Disciplined, $1.5bn $2.9bn $4.8bn profitable growth Multi-channel digital-enabled distribution2 • Pioneers of digital dir
Slide 8: A leading specialty underwriter built over the last 124 years
A leading specialty underwriter built over the last 124 years Underwriting excellence (Ten-year loss ratio1) Distinctive history and Retail 45 heritage London Market 51 Re & ILS 55 Disciplined, profitable growth Balance sheet strength and prudent reserves (Cumulative reserve releases) $5.0bn Uncompr
Slide 9: Diverse specialty business
Diverse specialty business Balanced and symbiotic portfolio Mix of retail and big-ticket Specialty focus 2024 premium1 by segment 2024 premium1 by line of business Global Marine and casualty $4.8bn energy premium in 2024, Crisis +114% over last ten years2 management Re & ILS SME $2.5bn E&S property
Slide 10: Excellent delivery over the last three years
Excellent delivery over the last three years Positive outlook continues Sustained growth in ICWP ($m) Disciplined underwriting delivers Two years of record profit before tax growing insurance service result ($m) ($m) 685 4,767 626 4,355 4,598 554 492 361 276 2022 2023 2024 2022 2023 2024 2022 2023 2
Slide 11: What makes us Hiscox... and makes us stand out
What makes us Hiscox... ...and makes us stand out Entrepreneurial culture Customer centric Organic growth to $4.8bn 72 retail claims NPS Underwriting ecosystem Powerful brand Industry-leading loss ratios 74% prompted brand awareness Unique exposure to specialty markets Diverse platform across the fu
Slide 12: Retail strategy
Retail strategy
Slide 13: Hiscox Retail: A diverse growth platform with leading loss ratios
Hiscox Retail A diverse growth platform with leading loss ratios Geographically diverse Omni-channel distribution Specialty products 2024 ICWP 2024 ICWP 2024 ICWP UK USA DPD High net worth Broker Europe Other Professional liability D&O Leading loss ratios (%) Commercial Net, undiscounted, three-year
Slide 14: Our retail strategy
Our retail strategy High-quality growth in specialist markets underpinned by core competencies Small commercial Complex and and high net worth emerging risks Retail strategy Local reach across the USA and Omni-channel Western Europe 13
Slide 15: We are still at the start of our retail growth journey
We are still at the start of our retail growth journey Ready for the next phase of growth • Leadership team • Covid-19 in the UK strengthened • Broadening of geographic • US DPD • Brand reinvigorated footprint re-platforming • New distribution • Development of • US underwriting deals and product ran
Slide 16: Immense structural opportunity with a TAM of $317bn
Immense structural opportunity with a TAM of $317bn Exciting opportunities across all markets Total TAM, USD bn, gross premiums Total SAM, USD bn, gross premiums Hiscox’s share of SAM, % UK Europe1 68 33 2.0% 27 20 4.2% USA 222 83 1.1% SAM CAGR 2024-30: Ambition to grow ahead 6% of the market TAM: t
Slide 17: Market trends support our retail strategy
Market trends support our retail strategy Propensity to buy and digitisation are increasing in small commercial Propensity to buy is increasing in all markets Digital is increasing in all markets 2024 2030 2024 2030 41% 33% 30% 27% 22% 20% 19% 17% 15% 15% 14% 12% UK USA Europe UK USA Europe Sources:
Slide 18: Accelerate Retail to double-digit growth in 2028
Accelerate Retail to double-digit growth in 2028 How we will capture the opportunity Accelerated growth and operating leverage Simplify the business Channel expansion Specialist product expansion Technology Geographic expansion Procurement Unleash the power of the Group Growing market opportunity Op
Slide 19: Hiscox UK
Hiscox UK
Slide 20: Hiscox UK
Hiscox UK Strong foundations and well positioned to lead in our specialist sectors • Leading UK specialist insurer • Serving 500k customers £676m premium, up 60% since 20141 Met through omni-channel distribution • Recognised by small • Exceptional customer business owners satisfaction 83% prompted b
Slide 21: Our journey
Our journey Leading the market in specialist underwriting 2000-2018 2018-2022 2023-2024 Sustained growth Consolidation Building momentum 2018: 2019: 2010: broker dedicated Irish business re-platformed transferred schemes team to Europe established 2016: 2023: 2004: DPD brand commercial re-platformed
Slide 22: Hiscox UK at a glance
Hiscox UK at a glance Distribution channels Business mix 2024 ICWP 2024 ICWP DPD Personal Commercial Broker Customers1 Products 2024 ICWP Large 2024 ICWP Medium High-value Professional homes, cars Nano and indemnity and art micro Small Commercial liability D&O Other Cyber Commercial property 21 1Com
Slide 23: Structural opportunity
Structural opportunity Significant room for growth despite maturity of the market Large addressable SME market1 Significant market share in high net worth3 Gross premium Gross premium P&C commercial market 2024: $45bn TAM 2024: $25bn P&C personal market 2024: $26bn SAM 2024: $18bn HNW SAM 2014-24: +
Slide 24: Market trends
Market trends Secular tailwinds supporting the growth opportunity Broker Digitisation of Opportunity in consolidation distribution high net worth Specialisms position Set up to reach our Capturing business us as a priority partner customers and as competitors exit as brokers narrow intermediaries th
Slide 25: Unlocking growth...
Unlocking growth… …to build share in our target markets Accelerated policy and premium growth Supercharge distribution Expand into new niches Go deeper in specialist sectors 2024 ICWP growth of 5.8% in CCY with growing policy count 24 Not to scale.
Slide 26: 1. Go deeper in specialist sectors
1. Go deeper in specialist sectors Increase our share of target markets Market leaders1 Building our market position1 69% of premium 31% of premium Strong brand, broad appetite, superb Specialist offering with strong proposition expertise and tailored propositions • Health, beauty and well-being Mar
Slide 27: 2. Expand into new niches
2. Expand into new niches Leverage capabilities and expertise to capture new opportunities Develop Leverage best Develop brand adjacencies of Hiscox new niches Use sector expertise Leverage wider Hiscox Build on Hiscox DNA to and capabilities to write experience, expertise write new and emerging ris
Slide 28: 3. Supercharge distribution
3. Supercharge distribution Broker DPD Scale up Expand schemes partnerships Accelerate Digitise private decision-making client service Expand digital Simplify the distribution customer journey 27
Slide 29: Our right to win
Our right to win In a significant opportunity • Premium brand, which our 5 million customers love and trust SMEs • Best-in-class claims service, there for our customers when 2 million they need us HNW individuals • Omni-channel distribution, reaching customers through their preferred channel $27bn S
Slide 30: Hiscox USA
Hiscox USA
Slide 31: Hiscox USA
Hiscox USA First-mover in the small commercial market, positioned to be America’s leading insurer for entrepreneurs and the preferred partner of their advisors • Proven US business-builder • Omni-channel distribution Grew 150% in last ten years to $921m in 2024 Reaching 600k customers where they pre
Slide 32: Our journey
Our journey Building America’s leading insurer for entrepreneurs and the preferred partner of their advisors 2006-2011 2012-2019 2020-2024 Build-out Initial expansion Re-focus on small businesses 2021-2023: 2024: DPD poised for re-platformed omni-channel 2019: growth broker re-focused on smaller tic
Slide 33: Hiscox USA at a glance
Hiscox USA at a glance Strategic focus on nano and micro businesses Distribution channels Business mix 2024 ICWP 2024 ICWP Broker DPD Commercial Customers1 Products 2024 ICWP 2024 ICWP Medium Large Cyber Other Commercial multi-peril 2 Small Professional liability 3 Commercial Nano and liability micr
Slide 34: Structural opportunity
Structural opportunity Room to grow in a growing market Large addressable SME market1 With faster growth in the DPD nano-micro Gross premium Hiscox Market market growth P&C commercial market share3 2024-304 +6% p.a.1 2024: $466bn Digital direct 9% +7% p.a. TAM +10% p.a.1 2024: $222bn Digital SAM 3%
Slide 35: Getting ahead of market trends
Getting ahead of market trends Well positioned for an evolving market Digitisation of Appetite of Market distribution across retail channels becoming all channels widening more efficient Extending our expertise Onboarding digital Unleashing insights in digital from direct to wholesalers, automating
Slide 36: Unlocking growth...
Unlocking growth… …to be America’s leading insurer for entrepreneurs and the preferred partner of their advisors Accelerated policy and premium growth Expand platform approach Expand distribution Expand solutions 2024 ICWP growth of 2.5% with growing policy count 35 Not to scale.
Slide 37: 1. Expand solutions
1. Expand solutions Unlocking progress for more Steadily expand existing products New products Add services • New products and • Refresh parts of our • Ensure the success of product features product suite (e.g. broker our customers through: cyber, DPD BOP) – business-building • Enter new sub-classes
Slide 38: 2. Expand distribution
2. Expand distribution Deep connections across the US market, a diverse network of over 190 partners and 240 brokers Digital partners1 Brokers 2024 ICWP 2024 ICWP Top ten global Insurtech brokers3 aggregators Wholesalers Top ten US wholesale Other brokers4 specialist Insurance brokers carriers Alrea
Slide 39: 2. Expand distribution
2. Expand distribution Becoming the preferred partner in every channel Digital direct Digital partnerships Broker Become the go-to ecosystem Deepen partnerships of Predictable appetite with for entrepreneurs to ensure mutual benefit solution-oriented underwriting their progress and clear decisions •
Slide 40: 3. Expand platform approach
3. Expand platform approach Further monetise our distribution and marketing strength TODAY TOMORROW • Single partnership Comprehensive range of • One product complementary products and services (i.e. workers’ compensation) HAPPY PARTNERS HAPPY CUSTOMERS Hiscox provides access Hiscox becomes one-stop
Slide 41: Our right to win
Our right to win In a vast opportunity • First-mover advantage is real 35 million SMEs • Our specialism and expertise in entrepreneurs to respond to emerging needs 83% of SMEs underinsured • Proven leadership in digital to write small business profitably $222bn SME TAM, of which • Omni-channel platf
Slide 42: Hiscox Europe
Hiscox Europe
Slide 43: Hiscox Europe
Hiscox Europe Powerful growth engine across multiple markets, positioned to be Europe’s go-to specialist insurer • Scalable operation • Serving 400k customers Grew 217% in last ten years to €605m in 2024 Wherever they are • Digital first • Single platform across Europe 79% auto-underwritten • Recogn
Slide 44: Our journey
Our journey Accelerated growth from solid foundations 1993-2007 2008-2017 2018-2024 Build-out Expansion Accelerated growth 2024-2025: 1993: entered France single 1994: entered Germany pan-European 2020: tech platform 1999: entered Netherlands tech transformation commenced 2019: Irish business German
Slide 45: Hiscox Europe at a glance
Hiscox Europe at a glance Distribution channels Business mix 2024 ICWP 2024 ICWP DPD Personal Commercial Broker Customers1 Products 2024 ICWP 2024 ICWP Large High-value homes, cars Professional Medium and art indemnity Nano and micro Commercial property Small Cyber Commercial D&O liability Other2 1C
Slide 46: Structural opportunity
Structural opportunity Significant room to grow as the market evolves Large addressable SME market1 Meaningful presence in a growing high net worth market3 Gross premium Gross premium P&C commercial market P&C personal market 2024: $138bn 2024: $193bn TAM 2024: $64bn SAM 2024: $29bn 2014-24: +4% p.a
Slide 47: Market trends
Market trends Ready to capture the trends Broker Evolving Digitisation, consolidation customer digitisation, and MGA growth expectations digitisation... Partnering at scale with Offering flexible, Building seamless pan-European carriers easy-to-access connectivity – portals, products across APIs, an
Slide 48: Continue strong growth trajectory...
Continue strong growth trajectory… ...to be Europe’s go-to specialist insurer Accelerated policy and premium growth Expand geographic footprint Supercharge distribution Lead in specialist sectors 2024: ICWP +7.6% in CCY with growing policy count 47 Not to scale.
Slide 49: 1. Lead in specialist sectors
1. Lead in specialist sectors Focused on sectors with unique risks that we can serve better Market leaders1 Building our market position1 48% of premium 52% of premium Market share2 Tech 24% • High-value homes, cars and art • Professional coaches Cyber 20% • Health, beauty and well-being Entertainme
Slide 50: 2. Supercharge distribution
2. Supercharge distribution Brokers and Bancassurance Partners Direct MGAs • Seek pan-European • Meaningful channel • Embedded insurance • Digital small but partnerships in Spain, Portugal could reach >15% growing, 1.5x faster • Focus on and France of European P&C than the market niche products and
Slide 51: 3. Expand geographic footprint
3. Expand geographic footprint Present in the largest European markets European target addressable market split by country1 Present in ten markets, entered Italy in 2025 Ireland Luxembourg Portugal Established Austria Recent entry Belgium France Spain Netherlands Germany Italy Hiscox’s footprint rep
Slide 52: 3. Expand geographic footprint: Entered Italy in 2025
3. Expand geographic footprint Entered Italy in 2025 Attractive and evolving market Why Italy? • Italy has 4.3 million nano-micro2 enterprises (Germany 2.2 million) P&C commercial market 2024: $18bn • Regulated professions dominated by sole traders and micro businesses • Brokers control over 50% of
Slide 53: Our right to win
Our right to win In a vast opportunity • Underwriting DNA and specialism, profitably 21 million responding to emerging needs SMEs • Deep broker relationships, partners of choice across Europe 3 million HNW individuals • Modern technology, scalable and efficient $68bn SME + HNW TAM, of which • Brand
Slide 54: Retail summary
Retail summary
Slide 55: Accelerate Retail to double-digit growth in 2028
Accelerate Retail to double-digit growth in 2028 Leading specialist business in vast and growing markets Growth levers • Supercharging distribution • Going deeper and opening Distinctive rights Vast opportunity new specialist niches to win • Target market over • Expanding footprint • Culture, brand
Slide 56: Scale and operating leverage
Scale and operating leverage
Slide 57: Complexity is a by-product of the successful growth journey
Complexity is a by-product of the successful growth journey Gross premium1 >10,000 vendors at peak in 2023 c.1,000 IT applications c. 40% of underwriters’ time on admin tasks 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 56 12014-2021 GWP, 2022-2024 ICWP.
Slide 58: Accelerating our change agenda...
Accelerating our change agenda... Set for scale at pace Become more efficient Enable faster decision-making Improve customer experience $200m annual P&L benefit in 2028 and onwards Augment employee experience Unlock growth 57
Slide 59: ...while staying true to who we are
...while staying true to who we are Human touch Entrepreneurial when it matters culture Preserve Hiscox DNA Underwriting Sector excellence specialty 58
Slide 60: Unlocking scale and operating leverage
Unlocking scale and operating leverage Operational Technology Procurement excellence 59
Slide 61: 1. Operational excellence
1. Operational excellence Delivery already underway • Standardising core workflows across business units • Enhancing end-to-end customer journeys • Automating routine tasks in underwriting, claims and finance • Scaling workflow tools to cut manual steps • Expand proven CoEs in AI, data, cyber, reins
Slide 62: 1. Operational excellence: Transforming claims
1. Operational excellence Transforming Retail and London Market claims Three-year journey • Unified customer journey >2x share of First notice of loss • Expanded self-service functionality claims settled • Standardised digital claim record, regardless within five days of input channel spectrum • Sin
Slide 63: 2. Technology
2. Technology Build on the previous investments ENHANCEMENT AND INDUSTRALISATION EARLY USES OF GEN AI 2025+ NEXT GEN DIGITAL APPS 2024-2025 • The best of Hiscox to the BUILDING CORE SYSTEMS 2021-2025 rest of Hiscox • AI-enhanced lead 2010-2022 underwriting in • Democratisation of AI • New pricing sy
Slide 64: 2. Technology
2. Technology Improve customer experience and equip employees with market-leading capabilities Customers and partners Employees Connecting with customers via APIs and Building a single digital interface, portals that meet them where they are – integrating the power of multiple apps brokers, MGAs, or
Slide 65: 3. Procurement
3. Procurement Vendor management in practice Team System Governance Consolidated procurement Launched Group-wide Change expense culture across the Group in source-to-pay software one team Automated receipting Standardised processes Plan to increase team’s and invoicing spend under management from <2
Slide 66: Clear path to deliver $200m in annual P&L benefit
Clear path to deliver $200m in annual P&L benefit in 2028 and onwards Efficiency + Growth $200m We’re doing this the annual P&L Hiscox way = Value benefit in 2028 and onwards 65
Slide 67: Capital and financial framework
Capital and financial framework
Slide 68: New target: Mid-teens operating ROTE
New target: Mid-teens operating ROTE Increased returns on a more consistent basis underpinned by Group’s evolution and management actions Mid-teens through the cycle Capital management Cost 11.6% discipline Global Profitable minimum growth tax Ten-year average Target operating ROTE1 ROTE Not to scal
Slide 69: New metric: operating return on tangible equity
New metric: operating return on tangible equity Provides clearer view of business performance Numerator: 2024 adjusted operating profit after tax Adjusted operating PAT Operating ROTE = Adjusted opening tangible equity • New APMs1: Adjusted operating profit before tax, adjusted operating profit afte
Slide 70: 1. Profitable growth
1. Profitable growth Unlocking growth-driven operating leverage Expanding margin in three steps We will achieve operating leverage through: Driving Retail growth to double-digit in 2028 Premium Reducing our expense base Building a business that is fit to scale, so that expenses grow Expenses at a sl
Slide 71: 2. Cost discipline
2. Cost discipline $200 million P&L benefit in 2028 and onwards P&L benefit from change programme $1.3bn1 • Approximately 1/3 benefit from claims; $1.1bn2 2/3 from attributable and non-attributable4 expenses Claims and Addressable – Claims benefit will be realised through claims costs3 improved reco
Slide 72: 2. Cost discipline
2. Cost discipline Cost neutral before significant ramp up in benefit from 2027 Expected benefit profile ($ million) • The programme has FY 2025 FY 2026 FY 2027 FY 2028 commenced with a number of initiatives in flight P&L • Cost to achieve includes 25 75 145 200 reorganisation costs and benefit inve
Slide 73: 3. Capital management philosophy
3. Capital management philosophy Growth, financial resilience and flexibility INVESTMENT IN RESILIENCE AND BALANCE SHEET GROWTH AND FLEXIBILITY EFFICIENCY EFFICIENCY • Invest in long-term • Maintain strong • Pay a progressive structural growth solvency and liquidity dividend opportunities in Retail
Slide 74: 3. Capital management
3. Capital management Evolution of Group allows BSCR target range of 190%-200% Solvency framework Bermuda solvency capital ratio Excess capital • BSCR target range of 190%-200% after final dividend ~190%-200% Management buffer – FY 2024 pro-forma BSCR within range • S&P ‘A’ rating not a fixed point
Slide 75: 3. Capital management
3. Capital management Flexibility to optimise the capital stack Leverage significantly below historical levels Net debt leverage (%)1 29% 23% • Can deploy leverage 19% headroom to support strategic ambitions 17% 15% • Strong capital generation has reduced leverage significantly • Growth in lower vol
Slide 76: Looking forward
Looking forward Attractive returns drive step-up in shareholder distributions Costs Shareholder distributions • P&L benefit of $200 million in 2028 and onwards • 20% step-up in final DPS for FY 2025 • Interim to be one-third of prior year total DPS, effective from HY 2025 • Excess capital will conti
Slide 77: Closing remarks
Closing remarks
Slide 78: Key takeaways
Key takeaways Unique business well placed to realise significant opportunity Unique business with a specialty focus built over decades Significant structural growth opportunity in under-penetrated, fragmented and growing markets across the USA, UK and Europe Retail growth strategy focused on superch
Slide 79: Our commitments
Our commitments Evolution of the Group unlocks step-up in shareholder returns Accelerate Retail Simplify business Mid-teens growth to and realise $200m operating double-digit in 2028 P&L benefit ROTE through at improving margin in 2028 and onwards the cycle Capital generation and distribution +20% i