Update shared on03 Sep 2025
Fair value Decreased 0.023%Analysts have modestly raised Hiscox’s price target to £14.64, citing increased confidence in sustainable earnings growth, improved underwriting discipline, and the success of its retail-focused strategy despite a challenging market environment.
Analyst Commentary
- Bullish analysts highlight Hiscox's new retail strategy as a key differentiator, particularly as the large ticket reinsurance and commercial market environment is expected to soften.
- Increased confidence in the company’s ability to deliver sustainable earnings growth underpins upward revisions in price targets.
- The firm’s ongoing strategic initiatives are viewed as driving margin expansion and improving the quality of its earnings.
- Analysts note better risk selection and disciplined underwriting practices as supporting stronger performance prospects.
- Upward price target adjustments reflect expectations for improved capital returns and the company’s defensiveness in the current market cycle.
What's in the News
- RBC Capital raised its price target for Hiscox to 1,400 GBp from 1,300 GBp, maintaining a Sector Perform rating (Periodicals).
- Hiscox announced an increase in its equity buyback plan, boosting total authorization by $100 million to $275 million, with the first tranche expanded from $87.5 million to $137.5 million and completion targeted by end Q3 2025 (Key Developments).
- The Board declared an interim dividend of 14.4 cents per share for the six months to 30 June 2025, up from 13.2 cents per share in the prior year, payable 23 September 2025 (Key Developments).
- Dividend guidance for full year 2025 anticipates a 20% increase in final dividend per share, with plans for a progressive dividend policy thereafter (Key Developments).
- The conversion rate for dividends from USD to GBP will be calculated based on the average exchange rate between 2 September and 8 September 2025 for the Scrip Dividend price (Key Developments).
Valuation Changes
Summary of Valuation Changes for Hiscox
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £14.59 to £14.64.
- The Future P/E for Hiscox has significantly fallen from 11.45x to 8.59x.
- The Consensus Revenue Growth forecasts for Hiscox remained effectively unchanged, at 12.9% per annum.
Disclaimer
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