Hiscox plans dividend hike as retail growth accelerates

Hiscox on Monday raised the profit forecast for its flagship Lloyd's of London syndicate for the 2024 year of account, citing improved performance.

The specialist insurer said it now expects Syndicate 33, which has a capacity of nearly 1.7 billion British pounds, to deliver a profit of between 2.4% and 14.4% of capacity.

This is an increase from the previous forecast of 1.7% to 13.7%, according to the company, which holds a 73% share in the syndicate.

The update follows a trading statement last week where Hiscox reported a 5.9% rise in gross premiums written for the first nine months of the year to $4.05 billion, driven by its retail division.

In that statement, the Bermuda-based insurer also confirmed plans to increase its final 2025 dividend by 20%.

"Capital generation remains strong in the third quarter, driven by the Group's diverse earnings profile, underwriting excellence and further benefiting from a benign weather and large loss experience," Chief Executive Officer Aki Hussain said on Nov. 6.