Announcement of share
repurchase programme
Hamilton, Bermuda (27 February 2025)
- Hiscox Ltd ("Hiscox" or the "Company")
today announces it will commence a buyback of its ordinary shares
of 6.5 pence each ("Ordinary Shares") for a maximum aggregate
consideration of up to $175 million (the "Programme"), in order to
return additional capital to shareholders. The Programme will
commence today with an initial tranche of $87.5 million to be
completed no later than the end of the third quarter of
2025.
Hiscox has entered into a
non-discretionary agreement with Peel Hunt LLP ("Peel Hunt") to
conduct the initial tranche of the Programme with the Company
subsequently purchasing its Ordinary Shares from Peel Hunt. Under
this arrangement, Peel Hunt will act as principal and make trading
decisions independently of Hiscox, except for Hiscox's ability to
terminate Peel Hunt's mandate in certain limited
circumstances.
The maximum aggregate consideration
under the initial tranche is $87.5 million (excluding expenses).
The Company intends to cancel such Ordinary Shares purchased. The
sole purpose of the Programme is to reduce Hiscox's share
capital.
Purchases under the Programme will
take place in open market transactions and may be made from time to
time by Peel Hunt, depending on market conditions, share price and
trading volumes. The Programme will be effected under the authority
granted by shareholders at the Company's 2024 Annual General
Meeting held on 9 May 2024 (and any subsequent authority) and, as
at the date of this announcement, the maximum number of shares that
may be repurchased under the Programme is 29,836,837 Ordinary
Shares. Any purchases contemplated by this announcement will be
carried out on the London Stock Exchange and/or other recognised
investment exchange(s). The Programme's initial tranche will end
when the maximum aggregate consideration is equal to, or as close
as possible to (but does not exceed) $87.5 million or as otherwise
terminated.
The Programme will be conducted
within the parameters prescribed by the Market Abuse Regulation
596/2014 and the Commission Delegated Regulation (EU) 2016/1052 as
it forms part of UK law pursuant to the UK's European Union
(Withdrawal) Act 2018 and the Market Abuse (Amendment) (EU Exit)
Regulations 2019) as well as applicable laws and the regulations of
the UK Financial Conduct Authority (including Chapter 9.6 of the UK
Listing Rules). Any repurchase of shares will be announced no later
than 7:30 a.m. on the business day following the calendar day on
which the repurchase occurred.
There is no guarantee that the
Programme will be implemented in full.
The Company intends to enter into
arrangements to commence a second tranche of the share buyback
programme in due course for a maximum aggregate consideration of up
to $87.5 million in due course.
Aki Hussain, Group Chief Executive
Officer, Hiscox Ltd, commented:
"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, leading to a strong return on
equity in an active loss year. This earnings momentum underpins
substantial capital generation, creating the flexibility to pursue
multiple growth opportunities and return 10%[1] of equity to shareholders through a combination of
a 20% step-up in the final dividend per share and a $175 million
share buyback. This demonstrates both the power of - and confidence
in - the outlook for our diversified business. I would like to
thank all of my Hiscox colleagues for their dedication in
delivering another strong year."
ENDS
For
further information
Investors and analysts
Yana O'Sullivan, Director of
Investor Relations, London +44 (0)20 3321 5598
Marc Wetherhill, Group Company
Secretary, Bermuda +1 441 278 8300
Media
Eleanor Orebi Gann, Group Director
of Communications, London +44 (0)20 7081
4815
Simone Selzer, Brunswick +44 (0)20
7404 5959
Tom Burns, Brunswick +44 (0)20 7404
5959
Notes to
editors
About The Hiscox Group
Hiscox is a global specialist
insurer, headquartered in Bermuda and listed on the
London Stock Exchange (LSE:HSX). Our ambition is to be a respected
specialist insurer with a diverse portfolio by product and
geography. We believe that building balance between
catastrophe-exposed business and less volatile local specialty
business gives us opportunities for profitable growth throughout
the insurance cycle.
The Hiscox Group employs over 3,000
people in 13 countries, and has customers worldwide. Through the
retail businesses in the USA, UK, Europe and Asia, we offer a range
of specialist insurance products in commercial and personal lines.
Internationally-traded, bigger-ticket business and reinsurance is
underwritten through Hiscox London Market and Hiscox Re &
ILS.
Our values define our business, with
a focus on people, courage, ownership and integrity. We pride
ourselves on being true to our word and our award-winning claims
service is testament to that. For more
information, visit www.hiscoxgroup.com.
