During its Capital Markets Day, specialist insurer Hiscox outlined its strategy to deliver attractive and sustainable returns for shareholders, stating that its ambition for the Retail segment is to accelerate premium growth to double digits by 2028 by continuing to gain market share across its sizeable serviceable addressable markets.
The Capital Markets Day, designed for investors and analysts, underlined the scale of the opportunity in Hiscox’s $317 billion annualised target addressable market.
Hiscox said it plans to achieve this by deepening its presence in specialist sectors and expanding into new ones, broadening distribution through additional channels, introducing new products, and selectively entering new geographies to further extend its reach and customer base.
The firm’s Capital Markets Day also provided details of an acceleration and enhancement of the ongoing change agenda across Hiscox to further unlock growth, optimise expense efficiency and enhance operating leverage.
“These initiatives will enable Hiscox to deliver an annualised P&L benefit of $200 million in 2028 onwards, against the 2024 baseline, with a cost to achieve of $200 million over the same period,” the firm said.
The majority of the $200 million benefit will reportedly be recognised in Retail across a combination of claims, attributable and non-attributable expenses.
“These initiatives reinforce management’s confidence to not only operate sustainably within our stated undiscounted combined ratio operating range of 89%-94%, but also to drive Retail margin improvement while continuing to invest in growth,” Hiscox explained.
In related news, Hiscox has reported an increase in Group insurance contract written premiums of 2.4% to $1.6 billion for the first quarter of 2025, with growth in Retail and London Market slightly offset by a decrease in the Re & ILS business when compared with the prior year.
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