Hiscox (LSE: HSX) shares rose 7% on Wednesday after the insurer reported better-than-expected first-half profits and announced a $100 million increase to its share buyback programme.
Pretax profit fell slightly to $276.6 million but beat the consensus estimate by a wide margin. Net premiums grew modestly while investment income soared by more than half. These numbers show that Hiscox is not just keeping pace but finding ways to improve its financial strength.
Earnings per share dropped compared to last year but still exceeded expectations. The combined ratio increased to 92.6 percent but remains below 100 percent, signalling ongoing underwriting discipline.
CEO Aki Hussain highlighted profitable growth in every part of the business, with retail making the biggest contribution. The company raised its interim dividend and increased the buyback size from $175 million to $275 million. This move signals confidence in the balance sheet and future cash flow.
Hiscox expects retail revenue growth above 6 percent for the full year, boosted by recent distribution agreements. With a strong capital position and focused portfolio, Hiscox appears ready for the months ahead.
While other insurers face pressures from claims and costs, Hiscox is showing it can still deliver returns and reward shareholders.