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| 08.08.25 13:31:46 |
Hiscox Erste Hälfte 2025 Ergebnis: EPS schlägt Erwartungen |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Entdecken Sie Hiscox's Fair Values aus der Gemeinschaft und wählen Sie Ihre
Hiscox (LON:HSX) Erste Hälfte 2025 Ergebnisse
Wichtigste Finanzergebnisse
Umsatz: 1,84 Mrd. US$ (bis 6,9 % ab 1H 2024). Nettoeinkommen: 227.1 Mio. US$ (ab 12% ab 1H 2024). Gewinnmarge: 12% (ab 15% in 1H 2024). Der Margenrückgang wurde durch höhere Aufwendungen getrieben. EPS: US$0.67 (ab US$0.75 in 1H 2024).
Diese Technologie könnte Computer ersetzen: Entdecken Sie die 20 Aktien arbeiten, um Quanten-Computing Realität zu machen. LSE:HSX Ergebnis- und Umsatzwachstum 8. August 2025
Alle in der obigen Abbildung dargestellten Zahlen sind für die Dauer von 12 Monaten (TTM)
Hiscox EPS schlägt Erwartungen
Der Umsatz entsprach den Schätzungen der Analytiker. Das Ergebnis pro Aktie (EPS) übertraf die Analystenschätzungen um 75%.
In den nächsten 3 Jahren wird der Umsatz durchschnittlich um 8,9 % wachsen, verglichen mit einer 4,6%-Wachstumsprognose für die Versicherungswirtschaft im Vereinigten Königreich.
Leistung der britischen Versicherungsbranche.
Die Aktien des Unternehmens sind vor einer Woche um 4,0% gestiegen.
Risikoanalyse
Du solltest über das 1 Warnzeichen erfahren, das wir mit Hiscox entdeckt haben.
Haben Sie Feedback zu diesem Artikel? Über den Inhalt? Kontaktieren Sie uns direkt. Alternativ, E-Mail Editorial-team (at) einfachwallst.com.
Dieser Artikel von Simply Wall St ist allgemein in der Natur. Wir liefern Kommentare basierend auf historischen Daten und Analystenprognosen nur unter Verwendung einer unvoreingenommenen Methodik und unsere Artikel sind nicht als Finanzberatung gedacht. Es stellt keine Empfehlung dar, Aktien zu kaufen oder zu verkaufen, und berücksichtigt nicht Ihre Ziele oder Ihre finanzielle Situation. Wir wollen Ihnen langfristig fokussierte Analyse durch grundlegende Daten bringen. Beachten Sie, dass unsere Analyse möglicherweise nicht in den neuesten preisempfindlichen Unternehmensankündigungen oder qualitativen Material ausschlaggebend ist. Einfach Wand St hat keine Position in den genannten Beständen.
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| 07.08.25 07:21:04 |
Is Hiscox Ltd's (LON:HSX) Neueste Stock-Performance zu seinen starken Fundamentals zusammengefügt? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Der Bestand von Hiscox (LON:HSX) ist in den letzten drei Monaten um beachtliche 20% gestiegen. Angesichts der beeindruckenden Leistung des Unternehmens haben wir uns entschlossen, seine Finanzindikatoren enger zu studieren, da die finanzielle Gesundheit eines Unternehmens langfristig in der Regel Marktergebnisse diktiert. In diesem Artikel haben wir uns entschlossen, sich auf den ROE von Hiscox zu konzentrieren.
Die Eigenkapitalrendite oder ROE ist eine wichtige Maßnahme, um zu bewerten, wie effizient das Management eines Unternehmens das Kapital des Unternehmens nutzt. Einfacher ausgedrückt, misst sie die Rentabilität eines Unternehmens in Bezug auf das Eigenkapital des Aktionäres.
AI wird die Gesundheitsversorgung verändern. Diese 20 Bestände arbeiten an allem von der Frühdiagnostik bis zur Drogenentdeckung. Der beste Teil - sie sind alle unter $10bn in marktcap - es gibt noch Zeit, in früh zu bekommen.
Wie wird ROE berechnet?
ROE kann mit der Formel berechnet werden:
Eigenkapitalrendite = Nettogewinn (aus fortgeführten Geschäften) ÷ Eigenkapital der Aktionäre
Der ROE für Hiscox ist also auf Basis der obigen Formel:
16% = US$595m ÷ US$3.8b (basierend auf den folgenden zwölf Monaten bis Juni 2025).
Die Rückkehr ist der Gewinn in den letzten zwölf Monaten. Eine Möglichkeit, dies zu konzeptionieren, ist, dass das Unternehmen für jedes 1 Pfund des Kapitals der Aktionäre einen Gewinn von 0,16 Pfund erzielte.
Unsere neueste Analyse für Hiscox anzeigen
Was hat ROE mit Ergebniswachstum zu tun?
Wir haben bereits festgestellt, dass ROE als effizientes Ergebniszeugnis für das zukünftige Ergebnis eines Unternehmens dient. Basierend darauf, wie viel der Gewinne das Unternehmen reinvestiert oder "enthalten" wählt, können wir dann die zukünftige Fähigkeit eines Unternehmens bewerten, Gewinne zu generieren. Angenommen, alles andere bleibt unverändert, je höher die ROE und Gewinnrückhaltung, desto höher ist die Wachstumsrate eines Unternehmens im Vergleich zu Unternehmen, die diese Eigenschaften nicht unbedingt tragen.
Hiscox's Ergebnis Wachstum und 16% ROE
Auf den ersten Blick scheint Hiscox einen anständigen ROE zu haben. Und beim Vergleich mit der Industrie haben wir festgestellt, dass die durchschnittliche Industrie ROE bei 14 % ähnlich ist. Dies bringt sicherlich einen Zusammenhang zu Hiscoxs außergewöhnlichen 56% Nettoeinkommenswachstum in den letzten fünf Jahren. Wir meinen, dass es hier auch andere Faktoren geben könnte. Zum Beispiel hat das Unternehmen eine geringe Auszahlungsquote oder wird effizient verwaltet.
Da die Branche in den letzten Jahren ein Ergebnis von 6,2% erzielte, ist das Nettoeinkommenswachstum des Unternehmens sehr beeindruckend. LSE:HSX Vergangenes Ergebnis Wachstum 7. August 2025
Das Ergebniswachstum ist eine wichtige Metrik, um bei der Bewertung eines Bestands zu berücksichtigen. Der Investor sollte versuchen, festzustellen, ob das erwartete Wachstum oder der Rückgang des Einkommens, je nachdem, was der Fall sein kann, in Preis ist. Damit haben sie eine Idee, ob der Bestand in klare blaue Gewässer geleitet wird oder ob schwammige Gewässer erwarten. Ist Hiscox im Vergleich zu anderen Unternehmen ziemlich geschätzt? Diese 3 Bewertungsmassnahmen helfen Ihnen bei der Entscheidung.
Geschichte geht weiter
Ist Hiscox die effiziente Nutzung seiner Gewinne?
Hiscox' Dreijahresausschüttungsquote liegt auf der unteren Seite bei 24%, was bedeutet, dass es einen höheren Prozentsatz (76%) seiner Gewinne hält. Dies deutet darauf hin, dass das Management die meisten Gewinne reinvestiert, um das Geschäft wie durch das Wachstum des Unternehmens bewiesen zu wachsen.
Darüber hinaus hat Hiscox über einen Zeitraum von mindestens zehn Jahren Dividenden gezahlt, was bedeutet, dass das Unternehmen ziemlich ernst ist, seine Gewinne mit Aktionären zu teilen. Basierend auf den neuesten Schätzungen der Analysten haben wir festgestellt, dass die zukünftige Auszahlungsquote des Unternehmens in den nächsten drei Jahren mit 28 % konstant gehalten wird. Infolgedessen wird Hiscox's ROE auch nicht viel ändern erwartet, was wir aus der analytischen Schätzung von 16% für zukünftige ROE abgeleitet.
Schlussfolgerung
Insgesamt freuen wir uns sehr über Hiscoxs Performance. Insbesondere ist es toll zu sehen, dass das Unternehmen stark in sein Geschäft investiert und zusammen mit einer hohen Rendite, die zu einem beträchtlichen Wachstum in seinem Ergebnis geführt hat. Das Ergebniswachstum des Unternehmens wird sich, wie in den aktuellen Analystenschätzungen prognostiziert, voraussichtlich verlangsamen. Um mehr über die neuesten Analysten Vorhersagen für das Unternehmen zu erfahren, schauen Sie sich diese Visualisierung der Analystenprognosen für das Unternehmen an.
Haben Sie Feedback zu diesem Artikel? Über den Inhalt? Kontaktieren Sie uns direkt. Alternativ, E-Mail Editorial-team (at) einfachwallst.com.
Dieser Artikel von Simply Wall St ist allgemein in der Natur. Wir liefern Kommentare basierend auf historischen Daten und Analystenprognosen nur unter Verwendung einer unvoreingenommenen Methodik und unsere Artikel sind nicht als Finanzberatung gedacht. Es stellt keine Empfehlung dar, Aktien zu kaufen oder zu verkaufen, und berücksichtigt nicht Ihre Ziele oder Ihre finanzielle Situation. Wir wollen Ihnen langfristig fokussierte Analyse durch grundlegende Daten bringen. Beachten Sie, dass unsere Analyse möglicherweise nicht in den neuesten preisempfindlichen Unternehmensankündigungen oder qualitativen Material ausschlaggebend ist. Einfach Wand St hat keine Position in den genannten Beständen.
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| 06.08.25 08:34:47 |
Hiscox Gewinne fallen nach £128m Forderungen von LA wildfires getroffen |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Der Versicherer Hiscox (HSX.L) hat die Renditen für Investoren gesteigert, obwohl er nach einem Einsturz von £128 Mio. von der „größten Wildfire Insurance-Veranstaltung“ im Januar nach den verheerenden Los Angeles-Feuern eingetreten ist.
Der Fachversicherer zeigte sich in diesem Jahr, dass Forderungen auf 170 Millionen US-Dollar (£128 Millionen) – eine Schätzung, die noch steht, sagte er am Dienstag.
Die in Kalifornien während der ersten Januarhälfte verwüstete Feuer wurden von einigen geschätzt, um die teuerste Naturkatastrophe in der US-Geschichte zu sein.
Aki Hussain, Gruppenchef bei Hiscox, markierte es die „größte Wildfeuerversicherungsveranstaltung in der Geschichte“, die vorher in diesem Jahr den Verlust des Sektors so hoch wie 40 Milliarden Dollar (£30.1 Milliarden).
Mehr als 16.200 Strukturen wurden als Flammen durch Pacific Palisades, Malibu, Pasadena und Altadena Gebiete von Los Angeles zerstört.
Schätzungen des gesamten wirtschaftlichen Verlustes aus dem Feuersturm wurden auf 250 Milliarden Dollar geschätzt (£188 Milliarden).
Die Schadensersatzansprüche sahen die Halbjahresgewinne bei Hiscox in den sechs Monaten bis zum 30. Juni 2% auf 276,6 Millionen Dollar (£208 Millionen).
Auf der Basis lagen die Vorsteuer-Betriebsgewinne bei 262 Millionen Dollar um 9 % niedriger (£ 197 Millionen).
Hiscox sagte trotz des Gewinnrückgangs, es würde seine Aktienrückkäufe um 100 Millionen Dollar (£75,2 Millionen) erhöhen und seine Zwischenausschüttung um 9,1% erhöhen.
Herr Hussain sagte: „Unsere Bilanz bleibt stark, und wir erreichen eine anhaltende und starke Kapitalbildung, die unsere gesteigerte Kapitalrendite an die Aktionäre untermauert, indem wir im Laufe der letzten zwei Jahre auf Schritten in ordentlichen Dividenden und Rückkäufen zurückgreifen. „
Die Aktien stiegen 8% nach dem Halbjahresergebnis.
Kommentare anzeigen |
| 28.03.25 10:50:38 |
Investors in Hiscox (LON:HSX) have seen favorable returns of 52% over the past five years |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
When you buy and hold a stock for the long term, you definitely want it to provide a positive return. Better yet, you'd like to see the share price move up more than the market average. Unfortunately for shareholders, while the Hiscox Ltd (LON:HSX) share price is up 39% in the last five years, that's less than the market return. Unfortunately the share price is down 3.4% in the last year.
So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over half a decade, Hiscox managed to grow its earnings per share at 61% a year. The EPS growth is more impressive than the yearly share price gain of 7% over the same period. So it seems the market isn't so enthusiastic about the stock these days. This cautious sentiment is reflected in its (fairly low) P/E ratio of 8.39.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).LSE:HSX Earnings Per Share Growth March 28th 2025
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our freereport on Hiscox's earnings, revenue and cash flow.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Hiscox's TSR for the last 5 years was 52%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
While the broader market gained around 10% in the last year, Hiscox shareholders lost 1.0% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 9% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Hiscox better, we need to consider many other factors. Take risks, for example - Hiscox has 2 warning signs (and 1 which is a bit concerning) we think you should know about.
Story Continues
Hiscox is not the only stock insiders are buying. So take a peek at this freelist of small cap companies at attractive valuations which insiders have been buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 14.03.25 16:08:00 |
Sapiens Cloud Adopted by Hiscox UK: Should You Watch the Stock? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Sapiens International SPNS announced that Hiscox UK went live with the Sapiens Insurance Platform on Sapiens Cloud. This migration from Microsoft's MSFT cloud platform Azure to SPNS’s cloud-native architecture, powered by Kubernetes, resulted in a 30% improvement in application speed. The transition enhances operational efficiency and service consistency, aligning with Hiscox UK’s long-term strategy of digital transformation and customer-centric innovation.
The Sapiens Insurance Platform is an AI-driven, open and integrated solution that accelerates adoption and maximizes long-term value. It enables insurers to scale, modernize and optimize operations efficiently.
The move also enables Hiscox UK to leverage Sapiens's modern API layer, facilitating seamless integration with top-tier solutions for rating, rules and document management alongside extended digital trading capabilities. This ecosystem empowers Hiscox UK to deliver agile services across its market-leading offerings for both commercial lines and high-net-worth private clients.
Can Sapiens Cloud’s Deal With Hiscox UK Boost Its Stock?
Hiscox UK's transition to the Sapiens Insurance Platform on Sapiens Cloud could positively impact the SPNS stock’s performance. The successful deployment enhances Sapiens' credibility in the insurance technology space, attracting more clients and driving revenue growth.
Sapiens' successful cloud migration for Hiscox UK, delivering a 30% boost in application speed, underscores the strength of its cloud-native architecture. This proven efficiency could position SPNS as a top choice for insurers seeking modernization.
The ongoing collaboration with Hiscox UK, a partner since 2014, exemplifies Sapiens' commitment to delivering tangible business benefits, fostering a strong foundation for sustainable growth and continuous innovation.
However, Sapiens faces competition from Synchronoss Technologies SNCR and Verint Systems VRNT, both of which offer advanced technology solutions to enterprises. While Synchronoss excels in cloud and digital transformation for telecom providers, Verint focuses on AI-powered customer engagement and workforce optimization, posing challenges to Sapiens' market presence.
SPNS’s Revenues Hit by Unfavorable Forex
Sapiens faced significant headwinds due to unfavorable forex, which negatively impacted its revenue growth. As a global company operating in multiple regions, SPNS generates a substantial portion of revenues in foreign currencies, including the euro, British pound and Israeli shekel.
In the fourth quarter of 2024, the depreciation of key currencies relative to the U.S. dollar resulted in a revenue drag, affecting the company's top-line growth despite stable business operations.
Story Continues
Sapiens’ Earnings Estimates Trend Downward
The Zacks Consensus Estimate for SPNS’s first-quarter 2025 earnings is pegged at 35 cents, which has moved down by a penny over the past 30 days. The estimate indicates a 2.78% year-over-year decline.
The Zacks Consensus Estimate for SPNS’s 2025 earnings has declined by 3 cents to $1.46 per share in the past 30 days. The estimate indicates a 1.35% decline from the 2024 actual.
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Microsoft Corporation (MSFT) : Free Stock Analysis Report
Synchronoss Technologies, Inc. (SNCR) : Free Stock Analysis Report
Verint Systems Inc. (VRNT) : Free Stock Analysis Report
Sapiens International Corporation N.V. (SPNS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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| 01.03.25 09:54:03 |
Hiscox Full Year 2024 Earnings: EPS Beats Expectations |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Hiscox (LON:HSX) Full Year 2024 Results
Key Financial Results
Revenue: US$4.03b (up 9.0% from FY 2023). Net income: US$627.2m (down 12% from FY 2023). Profit margin: 16% (down from 19% in FY 2023). The decrease in margin was driven by higher expenses. EPS: US$1.83 (down from US$2.06 in FY 2023).LSE:HSX Earnings and Revenue Growth March 1st 2025
All figures shown in the chart above are for the trailing 12 month (TTM) period
Hiscox EPS Beats Expectations
Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.6%.
Looking ahead, revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 7.6% growth forecast for the Insurance industry in the United Kingdom.
Performance of the British Insurance industry.
The company's shares are up 14% from a week ago.
Risk Analysis
Before we wrap up, we've discovered 2 warning signs for Hiscox (1 shouldn't be ignored!) that you should be aware of.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 28.02.25 07:06:28 |
Hiscox Ltd (HCXLF) Full Year 2024 Earnings Call Highlights: Record Profits and Strategic Growth ... |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Revenue Increase: $170 million increase in revenue, with $150 million from the retail business. Undiscounted Combined Ratio: 93.6% for retail and 81.6% for big ticket. Retail Profits: Approximately $300 million. Record Profits: $685 million for the group. Return on Equity: 19.8%. Final Dividend Increase: 20% increase, leading to a full-year EPS increase of 15%. Special Return of Capital: $175 million through a share buyback. Insurance Contract Written Premium (ICWP): Increased by $169 million. Expense Ratio Improvement: Decreased by around 1 percentage point. Investment Return: $384 million. Net Loss from California Wildfires: Estimated at $170 million. Net Premium Growth in Re & ILS: Over 11% increase. Fee Income from ILS Strategies: Record $128 million. Retail ICWP Growth: 5.1% in constant currency to $2.5 billion. London Market ICWP Decline: 2% decline. Net ICWP Growth in Re & ILS: 11.1% increase. Investment Return Rate: 4.8%. Reserve Releases: $146 million or 3.7% of opening reserves. Net Asset Value (NAV) per Share Growth: 14% year-on-year. Estimated BSCR: 225%.
Warning! GuruFocus has detected 2 Warning Sign with HCXLF.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Hiscox Ltd (HCXLF) reported record profits of $685 million for the second consecutive year, with a strong return on equity of 19.8%. The company achieved broad-based growth, increasing revenues by approximately $170 million, primarily driven by its retail business. Hiscox Ltd (HCXLF) announced a 20% increase in its final dividend, reflecting a full-year EPS increase of 15%, and a special return of capital of $175 million through a share buyback. The retail segment showed strong growth, with the UK business growing at its fastest rate since 2018, and the European business delivering robust growth with new distribution partnerships. The Re & ILS segment delivered a combined ratio of 69% and attracted $460 million of new inflows into ILS strategies, contributing to record fee income of $128 million.
Negative Points
The US broker business contracted in 2024, although there is an expectation of returning to growth in 2025. The London market business saw a decline in ICWP by 2% due to proactive cycle management and exiting certain business lines like space. The California wildfires in Q1 2025 resulted in an estimated net loss of $170 million, impacting the Re & ILS segment significantly. The Bermuda corporate income tax implementation will increase the group's effective tax rate to between 15% and 20%, with uncertainty around the future benefit of a $155 million deferred tax asset. The group faced a challenging environment with over 200 large risk losses notified in 2024, an 8% increase year-on-year, highlighting the active loss year.
Story Continues
Q & A Highlights
Q: Can you provide more color on the confidence behind the 6% growth target for retail, especially with some segments accelerating into double digits? A: Hamayou Akbar Hussain, CEO: The 6% growth target is based on a gradual increase from 4% in 2023 to 5% in 2024, with expectations for continued momentum in 2025. This growth is driven by management actions such as brand reinvigoration, distribution capability enhancements, and efficiency improvements. The new business policy count doubled in 2024 compared to 2023, indicating strong underlying improvement.
Q: How do you view the impact of the California wildfires on your capital return decisions? A: Hamayou Akbar Hussain, CEO: The wildfires did not significantly impact our capital return decisions. Our balance sheet remains robust, and we continue to follow our capital framework, which prioritizes growth, balance sheet strength, and returning excess capital to shareholders.
Q: Can you elaborate on the sustainability of the $128 million fee income and its components? A: Paul Cooper, CFO: The $128 million fee income is entirely from Re & ILS, with a significant portion being volume-driven. We attracted $460 million of additional capital and grew our quota share outwards. While profit commissions have been substantial due to low combined ratios, the expectation for 2025 is that the profit commission element will be lower.
Q: What is your outlook for growth in the London market, especially given the current rate environment? A: Joanne Musselle, Chief Underwriting Officer: We see good opportunities to grow in the London market, particularly in areas like ESG syndicates and renewable construction projects. While we exercise discipline in areas like casualty where rates have softened, we believe the majority of our portfolio is priced to deliver attractive returns.
Q: How do you plan to use the excess capital, given the current BSCR level? A: Paul Cooper, CFO: We retain capital for growth and balance sheet strength, with any excess considered for shareholder returns. We maintain financial flexibility to capitalize on emerging opportunities, and our capital management framework ensures we are good custodians of shareholder capital.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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| 28.02.25 06:19:54 |
Is Hiscox Ltd's (LON:HSX) Stock's Recent Performance Being Led By Its Attractive Financial Prospects? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Most readers would already be aware that Hiscox's (LON:HSX) stock increased significantly by 13% over the past week. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Specifically, we decided to study Hiscox's ROE in this article.
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
Check out our latest analysis for Hiscox
How Do You Calculate Return On Equity?
Return on equity can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Hiscox is:
17% = US$627m ÷ US$3.7b (Based on the trailing twelve months to December 2024).
The 'return' refers to a company's earnings over the last year. That means that for every £1 worth of shareholders' equity, the company generated £0.17 in profit.
What Is The Relationship Between ROE And Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
Hiscox's Earnings Growth And 17% ROE
At first glance, Hiscox seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 13%. This certainly adds some context to Hiscox's exceptional 63% net income growth seen over the past five years. However, there could also be other causes behind this growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
When you consider the fact that the industry earnings have shrunk at a rate of 21% in the same 5-year period, the company's net income growth is pretty remarkable.LSE:HSX Past Earnings Growth February 28th 2025
Earnings growth is a huge factor in stock valuation. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Hiscox's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
Story Continues
Is Hiscox Making Efficient Use Of Its Profits?
The three-year median payout ratio for Hiscox is 31%, which is moderately low. The company is retaining the remaining 69%. By the looks of it, the dividend is well covered and Hiscox is reinvesting its profits efficiently as evidenced by its exceptional growth which we discussed above.
Additionally, Hiscox has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 22% over the next three years. Regardless, the future ROE for Hiscox is predicted to decline to 13% despite the anticipated decrease in the payout ratio. We reckon that there could probably be other factors that could be driving the forseen decline in the company's ROE.
Summary
On the whole, we feel that Hiscox's performance has been quite good. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 27.02.25 08:01:53 |
Hiscox takes £134m hit on LA wildfires after second year of record profit |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Hiscox (HSX.L) has said it will take a 170 million dollar (£134 million) hit from the Los Angeles wildfires which broke out at the start of 2025.
The wildfires, which raged during the first half of January, have been estimated by some to be the costliest natural disaster in US history.
More than 16,200 structures were destroyed as flames ripped through Pacific Palisades, Malibu, Pasadena and Altadena areas of Los Angeles.
Hiscox said on Thursday that the wider insurance industry loss could be as high as 40 billion dollars (£31.6 billion), while most of its own losses would come through its reinsurance arm, Hiscox RE & ILS.
Estimates of the total economic loss from the firestorm have been estimated to surpass 250 billion dollars (£197.9 billion).
And property losses from the Palisades and Eaton fires alone have been predicted to potentially top 30 billion dollars (£23 billion), according to a Los Angeles Times analysis.
Hiscox, meanwhile, said it would book its own loss on the event in the first quarter of the upcoming financial year, as it revealed a second consecutive year of record profit.
The insurer made 685.4 million dollars (£541 million) in pre-tax profit in 2024, up nearly a 10th year-on-year.
The group said the wildfires caused “tragic loss of life and widespread destruction. We extend our sympathies to our customers and to all of those impacted by these events”.
Hiscox also pointed to a 28 million dollar (£22 million) loss from the Baltimore Bridge collapse, which saw the major US suspension bridge collapse after a container ship struck one of its piers.
The group said 2024 was also an “active natural catastrophe year”, pointing to five hurricanes in the US, flooding in Spain, Germany and central Europe and more extreme weather events in Canada.
It said natural catastrophe-related losses were “within expectations”, while Hurricane Milton, which struck Florida in October did not result in as big a loss as expected.
It added: “Hiscox exists to support our customers at times like this and we firmly believe that a high-quality claims service is essential to help them get back on their feet as quickly as possible.”
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| 16.01.25 10:33:08 |
Is Now The Time To Put Hiscox (LON:HSX) On Your Watchlist? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.
If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Hiscox (LON:HSX). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.
See our latest analysis for Hiscox
Hiscox's Improving Profits
Hiscox has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. Thus, it makes sense to focus on more recent growth rates, instead. To the delight of shareholders, Hiscox's EPS soared from US$1.36 to US$2.12, over the last year. That's a fantastic gain of 56%.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. It's noted that Hiscox's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. EBIT margins for Hiscox remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 16% to US$3.8b. That's progress.
In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers.LSE:HSX Earnings and Revenue History January 16th 2025
While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Hiscox?
Are Hiscox Insiders Aligned With All Shareholders?
It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. Hiscox followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. As a matter of fact, their holding is valued at US$17m. That's a lot of money, and no small incentive to work hard. While their ownership only accounts for 0.5%, this is still a considerable amount at stake to encourage the business to maintain a strategy that will deliver value to shareholders.
Story Continues
Is Hiscox Worth Keeping An Eye On?
If you believe that share price follows earnings per share you should definitely be delving further into Hiscox's strong EPS growth. This EPS growth rate is something the company should be proud of, and so it's no surprise that insiders are holding on to a considerable chunk of shares. On the balance of its merits, solid EPS growth and company insiders who are aligned with the shareholders would indicate a business that is worthy of further research. You still need to take note of risks, for example - Hiscox has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.
While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in GB with promising growth potential and insider confidence.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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