Announcement of share repurchase programme

Hiscox Ltd

05 March 2024

 

Announcement of share repurchase programme

Hamilton, Bermuda (5 March 2024) - 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 $150 million (the "Programme"), in order to return additional capital to shareholders. The Programme will commence today with an initial tranche of $75 million.

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 $75 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 2023 Annual General Meeting held on 11 May 2023 (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 34,655,073 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 reaches $75 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 12 of the 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 with Citigroup Global Markets Limited for a maximum aggregate consideration of $75 million in due course.

Aki Hussain, Group Chief Executive Officer, Hiscox Ltd, commented:

"Our business delivered record profits of $625.9 million and ROE of 21.8%[1] in 2023. This excellent result has led to very strong capital generation, which we are deploying for further growth in all parts of the business in addition to a special return to shareholders of $150 million. The buyback will commence immediately and illustrates our objective of delivering strong returns to our shareholders."

ENDS

For further information

Investors and analysts

Yana O'Sullivan, Director of Investor Relations, London [phone]

Marc Wetherhill, Group Company Secretary, Bermuda [phone]

Media

Eleanor Orebi Gann, Group Director of Communications, London [phone]

Simone Selzer, Brunswick [phone]

Tom Burns, Brunswick [phone]

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 14 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.

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[1]Excludes impact of Bermuda Deferred Tax Asset.

 

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