Hiscox
Market Cap
UK£2.7b
Last Updated
2020/03/27 21:12 UTC
Data Sources
Company Financials +
Executive Summary
Hiscox Ltd, together with its subsidiaries, provides insurance and reinsurance services.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential second-rate dividend payer.
Similar Companies
Share Price & News
How has Hiscox's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HSX's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-7.9%
HSX
20.0%
GB Insurance
5.9%
GB Market
1 Year Return
-40.9%
HSX
-26.4%
GB Insurance
-22.7%
GB Market
Return vs Industry: HSX underperformed the UK Insurance industry which returned -23.6% over the past year.
Return vs Market: HSX underperformed the UK Market which returned -18.8% over the past year.
Shareholder returns
| HSX | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.9% | 20.0% | 5.9% |
| 30 Day | -29.1% | -23.4% | -23.1% |
| 90 Day | -35.6% | -26.8% | -28.1% |
| 1 Year | -39.7%-40.9% | -18.3%-26.4% | -18.6%-22.7% |
| 3 Year | -10.3%-15.8% | -16.9%-31.6% | -13.4%-24.7% |
| 5 Year | 19.6%6.8% | -7.4%-31.0% | 1.3%-22.0% |
Price Volatility Vs. Market
How volatile is Hiscox's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Independent Non Executive Director Caroline Foulger Just Bought Shares In Hiscox Ltd (LON:HSX)1 week ago | Simply Wall St
Read This Before Judging Hiscox Ltd's (LON:HSX) ROE1 month ago | Simply Wall St
Update: Hiscox (LON:HSX) Stock Gained 39% In The Last Five YearsValuation
Is Hiscox undervalued compared to its fair value and its price relative to the market?
39.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HSX (£9.22) is trading below our estimate of fair value (£15.33)
Significantly Below Fair Value: HSX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HSX is poor value based on its PE Ratio (66.4x) compared to the Insurance industry average (13x).
PE vs Market: HSX is poor value based on its PE Ratio (66.4x) compared to the UK market (12.7x).
Price to Earnings Growth Ratio
PEG Ratio: HSX is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: HSX is overvalued based on its PB Ratio (1.5x) compared to the GB Insurance industry average (1.3x).
Next Steps
Future Growth
How is Hiscox forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
29.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HSX's forecast earnings growth (29.8% per year) is above the savings rate (0.5%).
Earnings vs Market: HSX's earnings (29.8% per year) are forecast to grow faster than the UK market (15.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HSX's revenue (11.5% per year) is forecast to grow faster than the UK market (2.7% per year).
High Growth Revenue: HSX's revenue (11.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HSX's Return on Equity is forecast to be low in 3 years time (14%).
Next Steps
Past Performance
How has Hiscox performed over the past 5 years?
-32.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HSX has a high level of non-cash earnings.
Growing Profit Margin: HSX's current net profit margins (1.7%) are lower than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: HSX's earnings have declined by -32.2% per year over the past 5 years.
Accelerating Growth: HSX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HSX had negative earnings growth (-58.5%) over the past year, making it difficult to compare to the Insurance industry average (4.5%).
Return on Equity
High ROE: HSX's Return on Equity (2.2%) is considered low.
Next Steps
Financial Health
How is Hiscox's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: HSX has a low level of unsold assets or inventory.
Debt Coverage by Assets: HSX's debt is covered by short term assets (assets are 8.5x debt).
Financial Institutions Analysis
Asset Level: HSX's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if HSX has a sufficient allowance for bad loans.
Low Risk Liabilities: HSX reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if HSX has an acceptable proportion of non-loan assets held.
Low Risk Deposits: HSX has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if HSX has an appropriate level of bad loans.
Next Steps
Dividend
What is Hiscox's current dividend yield, its reliability and sustainability?
3.79%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: HSX's dividend (3.79%) is higher than the bottom 25% of dividend payers in the UK market (2.65%).
High Dividend: HSX's dividend (3.79%) is low compared to the top 25% of dividend payers in the UK market (7.27%).
Stability and Growth of Payments
Stable Dividend: HSX's dividend payments have been volatile in the past 10 years.
Growing Dividend: HSX's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (251.8%), HSX's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HSX's dividends in 3 years are forecast to be well covered by earnings (41.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Bronek Masojada (58yo)
20.17s
Tenure
US$698,196
Compensation
Mr. Bronislaw Edmund Masojada, also known as Bronek, serves at Augmentum Capital LLP. He serves as the Group Chief Executive Officer of Hiscox, Ltd since 2000 and has been its Executive Director since Dece ...
CEO Compensation Analysis
Compensation vs Market: Bronek's total compensation ($USD866.64K) is below average for companies of similar size in the UK market ($USD2.66M).
Compensation vs Earnings: Bronek's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO & Executive Director | 20.17yrs | US$698.20k | 1.04% $27.6m | |
| Group CFO & Executive Director | 3.5yrs | US$539.09k | 0.025% $673.6k | |
| no data | US$541.78k | 0.18% $4.7m | ||
| Group Head of Capital Management & Interim Chief Investment Officer | 1.17yrs | no data | no data | |
| Chief Information Officer | 2.92yrs | no data | no data | |
| Group Compliance & Audit Director | no data | no data | no data | |
| Group General Counsel & Company Secretary | no data | no data | no data | |
| Group Head of Communications | no data | no data | no data | |
| CEO of Hiscox USA & Chief Marketing Officer | no data | no data | 0.033% $874.5k | |
| Chief Human Resources Officer | 14.17yrs | no data | 0.026% $679.2k |
3.9yrs
Average Tenure
52.5yo
Average Age
Experienced Management: HSX's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO & Executive Director | 20.17yrs | US$698.20k | 1.04% $27.6m | |
| Group CFO & Executive Director | 3.5yrs | US$539.09k | 0.025% $673.6k | |
| Independent Non Executive Director | 4.83yrs | US$96.40k | 0.012% $307.8k | |
| Independent Non-Executive Director | 2.33yrs | US$134.01k | 0.0016% $41.8k | |
| Non-Executive Chairman of the Board | 7.08yrs | US$301.86k | 0.42% $11.1m | |
| Independent Non Executive Director | 4.33yrs | US$162.20k | 0.0090% $240.2k | |
| Independent Non Executive Director | 4.83yrs | US$163.66k | no data | |
| Independent Non Executive Director | 2.33yrs | US$124.80k | 0.0017% $46.0k | |
| Independent Non Executive Director | 7.17yrs | US$193.70k | 0.0063% $167.9k | |
| Independent Non-Executive Director | 2.33yrs | US$146.40k | 0.0031% $81.7k |
4.6yrs
Average Tenure
59yo
Average Age
Experienced Board: HSX's board of directors are considered experienced (4.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HSX insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Hiscox Ltd's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Hiscox Ltd
- Ticker: HSX
- Exchange: LSE
- Founded: 1993
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: UK£2.660b
- Shares outstanding: 288.70m
- Website: https://www.hiscoxgroup.com
Number of Employees
Location
- Hiscox Ltd
- Wessex House
- 4th Floor
- Hamilton
- HM 12
- Bermuda
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HSX | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Nov 1994 |
| HCXL.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Nov 1994 |
| HSXL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Nov 1994 |
| H2X3 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Nov 1994 |
Biography
Hiscox Ltd, together with its subsidiaries, provides insurance and reinsurance services. The company operates through four segments: Hiscox Retail, Hiscox London Market, Hiscox Re & ILS, and Corporate Centre. It provides commercial insurance for small-and medium-sized businesses, including household, fine art and collectibles, and luxury motor via brokers, through a growing network of partnerships, and directly to consumers. The company also offers property insurance; marine and energy insurance; casualty insurance; specialty and international employees and officers’ insurance; kidnap and ransom insurance; auto physical damage insurance; and other specialty insurance, such as aviation, contingency, terrorism, personal accident, and product recall. In addition, it provides healthcare and casualty reinsurance services, as well as investment services. The company operates in Bermuda, the United Kingdom, Ireland, the United States, Guernsey, France, Germany, Belgium, the Netherlands, Spain, Portugal, Singapore, and Thailand. Hiscox Ltd was founded in 1993 and is headquartered in Hamilton, Bermuda.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/27 21:12 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.