Hiscox
Website:
Hiscox
Index:
FTSE 100
EPIC: HSX
Supersector:
Insurance
Sector:
Nonlife Insurance
Subsector:
Property and Casualty Insurance
Market Cap:
£4.97B
Payout Frequency: Semi-Annual
Hiscox Dividend Analysis and Summary
Key dividend details
- Final dividend: 35.9¢ per share (USD), up 20% year-on-year.
- Interim dividend already paid: 14.4¢ (USD). FY25 total dividend per share: 50.3¢ (vs 43.1¢ in FY24).
- Ex-dividend date: 23/04/2026 (derived from the stated record date of 24/04/2026).
- Record date: 24/04/2026; Payment date: 08/06/2026.
- Currency and method: Declared in USD; paid in Sterling by default unless shareholders elect USD. FX conversion window: 19–26/05/2026 (average rate).
- Scrip Dividend Scheme: Suspended. DRIP available; election deadline: 18/05/2026.
- Dividend policy: Described as progressive and expected to be maintained.
Focused analysis: sustainability and growth
- Earnings cover: FY25 basic EPS 180.7¢ and adjusted operating EPS 183.9¢ versus DPS 50.3¢ implies a payout ratio of ~28% (c. 3.5–3.7x cover) — comfortably sustainable.
- Capital and solvency: Bermuda solvency capital ratio (BSCR) 233% at year-end; pro forma after the final dividend and new buyback 211% (still above the 190–200% target range). Liquidity at HoldCo remains > $1bn. Supports ongoing distributions.
- Operating performance: Undiscounted combined ratio 87.8%; third consecutive year of record PBT $732.7m; investment result $442.7m. Positive reserve releases of $292.7m aided results; not guaranteed to repeat at this scale.
- Growth trajectory and policy: Second consecutive +20% increase in the final dividend and FY DPS up ~17% YoY align with the progressive policy. Management guides Retail growth to 8% in FY26 and expects $75m P&L benefit from the change programme in 2026 (building to $200m from 2028), which should underpin earnings and the dividend.
Structural/corporate actions and policy signals
- Shareholder returns: New $300m buyback announced; > $1.1bn returned over the last three years across dividends and buybacks. Signals confidence but also a balanced tilt toward buybacks alongside dividend progression.
- Financing: Issued $500m subordinated notes (7% due 2036); redeemed prior subordinated notes. Leverage 17.4%, within target range — supports capital flexibility.
- Portfolio actions: Disposal of DirectAsia Singapore; bolt-on acquisitions (Italy digital broker Lokky; US MGA Corix) to support Retail and US broker growth. Generally supportive of medium-term earnings and cash generation.
- Reporting/currency: Functional currency change to USD for key entities from July 2025 and dividends declared in USD; UK holders face FX translation to GBP on payment.
- Distribution mechanics: Scrip suspended; DRIP in place — indicates a preference for cash returns and/or buybacks rather than equity issuance for dividends.
Risks and flags for dividend stability
- Reserve releases: FY25 benefited from $292.7m of favourable prior-year development; future releases may moderate, potentially trimming one-off support to earnings.
- Market cycle: Evidence of rate softening in reinsurance (e.g., -13% at Jan-26 renewals in property cat) and parts of London Market; could pressure underwriting margins if not offset by mix/discipline.
- Catastrophe exposure: Reinsurance and specialty portfolios remain exposed to nat-cat volatility; benign H2’25 may not persist.
- Tax headwinds: Bermuda corporate income tax lifted the effective tax rate to 17.6%; OECD GMT guidance could require additional tax from 2027 (linked to the Bermuda DTA), modestly reducing free cash flow.
- Investment environment: Management expects bond yields to fall over the near-to-medium term; while the larger asset base helps, reinvestment yield drift could temper future investment income support.
Read more
Hiscox Annual Dividend Yield - 2.12%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 24/04/2025 |
09/06/2025 |
Final |
29.90¢ |
USX |
| 14/08/2025 |
23/09/2025 |
Interim |
14.40¢ |
USX |
Total (Annual Dividends Per Share):
32.81p
(Using exchange rate on 29/04/2026
$ = £0.74069)
Dividend Yield =
Annual Dividends Per Share (32.81p)
÷ Share Price (1548p)
= 2.12%
Hiscox Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 23/04/2026 |
08/06/2026 |
Final |
35.90¢ |
USX |
| 14/08/2025 |
23/09/2025 |
Interim |
14.40¢ |
USX |
| 24/04/2025 |
09/06/2025 |
Final |
29.90¢ |
USX |
| 15/08/2024 |
24/09/2024 |
Interim |
13.20¢ |
USX |
| 02/05/2024 |
12/06/2024 |
Final |
25.00¢ |
USX |
| 17/08/2023 |
26/09/2023 |
Interim |
12.50¢ |
USX |
| 04/05/2023 |
13/06/2023 |
Final |
24.00¢ |
USX |
| 11/08/2022 |
20/09/2022 |
Interim |
12.00¢ |
USX |
| 05/05/2022 |
13/06/2022 |
Final |
23.00¢ |
USX |
| 12/08/2021 |
22/09/2021 |
Interim |
11.50¢ |
USX |
| 14/05/2020 |
10/06/2020 |
Final |
29.60¢ |
USX |
| 08/08/2019 |
11/09/2019 |
Interim |
13.75¢ |
USX |
| 09/05/2019 |
12/06/2019 |
Final |
28.60¢ |
USX |
| 09/08/2018 |
11/09/2018 |
Interim |
13.25¢ |
USX |
| 10/05/2018 |
12/06/2018 |
Final |
19.50¢ |
USX |
| 10/08/2017 |
13/09/2017 |
Interim |
9.50¢ |
USX |
| 11/05/2017 |
20/06/2017 |
Final |
19.00¢ |
USX |
| 04/08/2016 |
09/09/2016 |
Interim |
8.50¢ |
USX |
| 10/03/2016 |
07/04/2016 |
Special |
16.00p |
GBX |
| 10/03/2016 |
07/04/2016 |
Final |
16.00p |
GBX |
| 06/08/2015 |
16/09/2015 |
Interim |
8.00p |
GBX |
| 26/03/2015 |
02/04/2015 |
Special |
45.00p |
GBX |
| 26/03/2015 |
02/04/2015 |
Final |
15.00p |
GBX |
| 06/08/2014 |
17/09/2014 |
Interim |
7.50p |
GBX |
| 13/03/2014 |
09/04/2014 |
Special |
36.00p |
GBX |
| 13/03/2014 |
09/04/2014 |
Final |
14.00p |
GBX |
| 07/08/2013 |
18/09/2013 |
Interim |
7.00p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
13.200 |
25.000 |
|
USX |
38.200 |
4.650 |
| 2023 |
12.500 |
24.000 |
|
USX |
36.500 |
4.280 |
| 2022 |
12.000 |
23.000 |
|
USX |
35.000 |
204.340 |
| 2021 |
11.500 |
|
|
USX |
11.500 |
-61.140 |
| 2020 |
|
29.600 |
|
USX |
29.600 |
-30.100 |
| 2019 |
13.750 |
28.600 |
|
USX |
42.350 |
29.310 |
| 2018 |
13.250 |
19.500 |
|
USX |
32.750 |
14.910 |
| 2017 |
9.500 |
19.000 |
|
USX |
28.500 |
16.320 |
| 2016 |
8.500 |
|
16.000 |
GBX |
24.500 |
-64.490 |
| 2015 |
8.000 |
16.000 |
45.000 |
GBX |
69.000 |
17.940 |
| 2014 |
7.500 |
15.000 |
36.000 |
GBX |
58.500 |
178.570 |
| 2013 |
7.000 |
14.000 |
|
GBX |
21.000 |
|
Hiscox Dividend Calculator
Hiscox Dividend Growth
| Dividend Growth (1Y) |
15.48%
|
| Dividend CAGR (5Y) |
34.95%
|
| Years of Growth |
4
|
| Payout Ratio |
24.09%
|
| Buyback Yield |
1.94%
|
| Shareholder Yield |
4.31%
|
| P/E Ratio (TTM) | 11.84 |
|---|
| Forward P/E | 11.68 |
|---|
| P/FCF | 93.57 |
|---|
| Earnings Yield | 9.03% |
|---|
| FCF Yield | 1.07% |
|---|
| ROE | 15.82% |
|---|
| ROCE | 6.73% |
|---|
| Profit Margin | 15.01% |
|---|
| Operating Margin | 19.69% |
|---|
| Gross Margin | 24.73% |
|---|