Hiscox shares rose to the top of the FTSE 100 on Tuesday after the insurer reported strong growth over the first nine months of the year, led by its retail insurance business, and continued a share buyback.
The specialist insurer said gross premiums rose 9.5% to $4.4bn, with its retail division growing 9.1% at constant currency across all its markets.
It said it remained on track to meet its upgraded target of 9% retail growth for the full year, helped by new distribution deals and investment in technology, including AI tools. Hiscox may soon be case study for AI implementation boosting revenues.
In its larger “big-ticket” businesses, which insure commercial and reinsurance risks, Hiscox grew while maintaining underwriting discipline, walking away from business it considered underpriced as rates softened, and expanding into new speciality areas.
It noted increased demand in some lines from the Middle East conflict, though it also incurred some marine losses from it.
Hiscox said its loss experience was within expectations, and that it had completed most of a $300m share buyback. Its investment result was lower, reflecting fair-value losses on bonds that it expects to reverse as they mature.
Insurance companies have been in favour this year, and sector positivity and strong results today saw Hiscox flirt with all-time highs on Tuesday.
Hiscox shares were 2.8% higher at 1,936p at the time of writing.