Hiscox shares soar as Lloyd’s of London insurer attracts foreign takeover interest
Shares in Hiscox surged as a lot as 14 per cent on Monday following information that two foreign rivals are contemplating takeover bids for the Lloyd’s of London insurer.
Japan’s Sompo Holdings and Italy’s Assicurazioni Generali are eyeing a potential acquisition, in response to commerce publication Insurance Insider.
Sompo, based mostly in Tokyo, gives property and casualty insurance coverage, whereas Trieste-based Generali is a basic insurer.
City A.M. approached Hiscox for touch upon the reported takeover interest.
Hiscox’s inventory is presently buying and selling at 1,252p – its highest stage since February 2020, when the agency’s shares plunged through the begin of the Covid-19 pandemic.
Following Monday’s good points, the corporate’s market capitalisation stands at £4.25bn. Shares in fellow insurers Lancashire Holdings and Beazley adopted Hiscox increased, rising round three per cent.
The information underscores what has been a surge of takeover interest in London-listed companies this yr as principally abroad patrons look to pounce on firms’ comparatively low inventory market valuations in comparison with their friends in different nations.
In May, Hiscox posted wholesome premium development and stated that for the primary time in a quantity of years, all elements of its UK enterprise had been in “growth mode” and that Europe was additionally performing strongly.
Its insurance coverage contract written premium (ICWP) grew to $1.54bn (£1.23bn) within the first three months of 2024 from $1.42bn (£1.13bn) throughout the identical interval final yr.
Hiscox’s retail ICWP grew 5.8 per cent in fixed foreign money through the first quarter, whereas US digital partnerships and direct development rose to 11.3 per cent.
Hiscox, which relies in Hamilton, Bermuda, noticed its highest-ever annual revenue final yr on the again of increased interest charges and a powerful efficiency from its industrial enterprise.
