Update on dividend payment and guidance

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO 596/2014 (MAR)

FOR IMMEDIATE RELEASE

 Hiscox Ltd
 

Update on dividend payment and guidance
 

Hamilton, Bermuda (8 April 2020) - In order to help Hiscox serve the needs of businesses and households through the extraordinary challenges presented by COVID-19, and with the support of our regulators, the Hiscox Ltd Board has decided that the resolution to approve the 2019 final dividend of 29.6 cents per share, which was scheduled for payment on 10 June 2020, will no longer be put to shareholders at the Annual General Meeting (AGM). The Board has also agreed that for 2020 the Company will not propose an interim dividend payment, or conduct any share buyback.

Hiscox's capital, liquidity and funding positions remain strong. Trading across the Group for the first two months of the year was ahead of expectations, however in view of the uncertain impact of COVID-19 on the global economy, the Group is unable to accurately forecast the outlook for 2020. As such, we are withdrawing all financial guidance for 2020 until there is more clarity. We remain confident in our ability to return to our normal 90-95% combined ratio target range for the Retail business in 2022.

We remain focused on supporting our customers, employees and other stakeholders through this crisis.

Ends

Marc Wetherhill was responsible for the disclosure of this announcement for the purposes of MAR.

For further information:

Hiscox Ltd

Marc Wetherhill, Group Company Secretary, Bermuda                            +1 441 278 8300

Kylie O'Connor, Group Communications Director, London                       +44 (0)20 7448 6656

Ryan Thompson, Investor Relations Manager, London                            +44 (0)20 7448 6522

Brunswick

Tom Burns                                                                                                 +44 (0)20 7404 5959

Simone Selzer                                                                                           +44 (0)20 7404 5959

Notes to the Editor:

1.   Executive Director bonuses will not be paid until the dividend has resumed. As previously announced, Executive Directors were not eligible for a bonus for 2019 as ROE was below performance threshold level. 

2.   About the Hiscox Group

Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. 

The Hiscox Group employs over 3,100 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the USA, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.

Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.