Report and Accounts 2024
Report and Accounts 2024
JOURNEY
PLANNER
How the Hiscox approach to learning and development is shaping the experts and leaders of tomorrow.
INTELLIGENT
INSURANCE
How Hiscox is using technology and data to differentiate its offering.
CUSTOM MADE
Lifting the lid on customer centricity.
STATES OF PLAY
Writing our next chapter A closer look |
Governance |
Remuneration |
Financial summary |
Life at Hiscox
We are a growing, global business, offering everything from small business insurance to insurance-linked securities, and that means no two days at Hiscox are the same. In the pages that follow, find out more about life at Hiscox in 2024.
STATES OF |
INTELLIGENT |
CUSTOM |
JOURNEY |
|
PLAY |
INSURANCE |
MADE |
PLANNER |
|
Meet |
How Hiscox is using |
Lifting the lid on |
How the Hiscox approach |
|
Chief Executive Officer of |
technology and data |
customer centricity. |
to learning and development |
|
|
to differentiate its offering. |
is shaping the experts and |
||
leaders of tomorrow. |
||||
See pages 38 to 41. |
See pages 48 to 51. |
See pages 60 to 63. |
See pages 70 to 73. |
Writing our next chapter
- Highlights of the year
- At a glance
- A strategy that creates value
- A balanced business
- Clear priorities
- The world around us
- Actively managing risk
- Our key performance indicators (KPIs)
A closer look
- Chief Executive's report
- Risk management
- Stakeholder engagement
- Sustainability
- People
Task Force on Climate-related Financial Disclosures (TCFD)
Governance
- Governance summary
- Board of Directors
- Group Executive Committee (GEC)
- Chair's letter to shareholders
- Corporate governance
- Compliance with the
UK Corporate Governance Code 2018
Nominations and Governance Committee report
- Audit Committee report
- Risk Committee report
- Directors' report
- Directors' responsibilities statement
- Advisors
Remuneration |
Financial summary |
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121 |
Remuneration Committee |
166 |
Independent auditor's report |
report |
174 |
Consolidated income statement |
|
124 |
Summary of remuneration |
174 |
Consolidated statement of |
arrangements |
comprehensive income |
||
126 |
Directors' remuneration report |
175 |
Consolidated statement of |
140 |
Implementation of the |
financial position |
|
remuneration policy for 2025 |
176 |
Consolidated statement of |
|
143 |
Other remuneration matters |
changes in equity |
|
152 |
Remuneration policy |
177 |
Consolidated cash |
flow statement |
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178 |
Notes to the consolidated |
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financial statements |
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243 |
Alternative performance |
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measures (APMs) |
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245 |
Five-year summary |
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246 |
Glossary |
As a
Any additional disclosures over and above these requirements, have been made for the benefit of shareholders, on a voluntary basis.
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Hiscox Ltd Report and Accounts 2024 |
1 |
Writing our next chapter A closer look |
Governance |
Remuneration |
Financial summary |
Highlights of the year
Financial performance
Non-financial achievements
|
|
Insurance contract written |
Profit before tax of |
premium of |
(2023: |
(2023: |
|
89.2%* |
19.8%* |
Undiscounted combined ratio of 89.2% |
Retuon equity of 19.8% |
(2023: 89.8%). |
(2023: 21.8%). |
72 |
57% |
A retail claims transactional net |
Over half of our London Market |
promoter score (NPS)† for 2024 that |
sabotage and terrorism business |
reflects customers' high satisfaction with |
is now supported by our AI-lead |
our claims experience (see page 130). |
underwriting solution. |
*Represents alternative performance measure (APM) used by the Group. APM definitions used by the Group are included within the consolidated financial statements on page 229.
† As measured by an independent third party across the
82% |
9% |
High global employee engagement |
Reduction in Scope 1 and 2 emissions |
score maintained for the third |
across the Group during 2024 |
consecutive year. |
(vs 2020 baseline). |
The Group has delivered another year of excellent results. Our retail businesses continue to build growth and earnings momentum, while our big-ticket portfolio has shown proactive cycle management, as well as underwriting discipline, to deliver strong results in an active loss year. We've been there for our customers, we've innovated
in what we do and how we do it, and we've attracted and retained top talent."
Group Chief Executive Officer
2 |
Hiscox Ltd Report and Accounts 2024 |
Writing our next chapter |
A closer look |
Governance |
Remuneration |
Financial summary |
Highlights of the year |
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Key moments in 2024
January
Celebrated 30 years in partnership with
June
Read more on pages 38 to 41.
August
Hiscox London Market went live with our generative AI-enhanced lead underwriting model in collaboration with
November
Hiscox Retail's first multi-country deal with a leading digital MGA in
December
Hiscox Europe surpassed the €600 million premium mark.
March
Announced
April
Hiscox Re & ILS launched CyberShock, an industry-first cyber catastrophe consortium.
Celebrated a decade in directors and officers' (D&O) insurance.
July
Hiscox Spain launched new business protection product - the first packaged insurance product on the market for SMEs.
Read more on page 62.
September
AI-enhanced new business automation solution went live in Hiscox
Hiscox London Market launched new Personnel Security Plus product - complementing existing kidnap and ransom (K&R) cover with new perils such as cyber stalking and social engineering.
Hiscox
Hiscox Germany completed its adoption of a new core administration system, as we continue to build a scalable technology infrastructure across
Hiscox Ltd Report and Accounts 2024 |
3 |
Writing our next chapter A closer look |
Governance |
Remuneration |
Financial summary |
At a glance
About us
Where we are
13 32
countriesoffices
Belgium Bermuda France Germany - Guernsey
Ireland - Luxembourg
The Netherlands Portugal Spain Singapore UK USA
3,000+ 1.7m
employees customers
Hiscox is a global, specialty insurer, listed on the
as a niche
We currently employ over 3,000 people worldwide across 13 countries and 32 offices. We serve almost 1.7 million retail customers across the
one of the largest and longest-standing
4 |
Hiscox Ltd Report and Accounts 2024 |
Writing our next chapter A closer look |
Governance |
Remuneration |
Financial summary |
At a glance |
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Our purpose
We give people and businesses the confidence to realise their ambitions. To do this, we provide differentiated products and services that address our customers' needs, delivered by our talented, energetic and connected teams. Success is measured in our reputation, financial performance, and customer attraction and retention.
Our vision
Our values
For Hiscox to be the leading specialist insurer in material markets - not the biggest, but the most respected. We want to be known by customers for being true to our word, by our employees as a great place to work and grow for those who are ambitious and talented, and as an industry leader in growth, profits and value creation.
Human |
Connected |
Clear, fair and inclusive. |
Together, build |
something better. |
|
Integrity |
Ownership |
Do the right thing, |
Passionate, commercial |
however hard. |
and accountable. |
Courage |
|
Dare to take a risk. |
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Hiscox Ltd Report and Accounts 2024 |
5 |
Writing our next chapter A closer look |
Governance |
Remuneration |
Financial summary |
A strategy that creates value
We have a unique business mix
Read more on page 8.
Balanced portfolio of large and complex risks |
SME and personal lines |
•Global risks through Lloyd's platform.
•Heritage of deep technical expertise.
•Leading the market in applying
technology to distribution and underwriting.
Delivers prots and capital generation for reinvestment
•Specialist reinsurance capability.
•Holistic risk insights.
•Expert alternative capital manager.
Delivers underwriting prot and capital-light fee income
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•Small and micro businesses.
•Digitally traded, with low-cost distribution and auto-underwriting.
•Partnership management capability through digital connectivity.
Signicant structural growth opportunity
•Focus on SMEs, not
traded digitally.
•Leadership in specialist lines.
•Long-term broker partnerships.
Delivers stable prot generation and growth
Attractive and sustainable returns for shareholders
Long-term profitable growth |
Operational leverage |
Progressive dividend |
Managed volatility delivering |
lower cost of capital |
Attractive and sustainable ROE
6 |
Hiscox Ltd Report and Accounts 2024 |
Writing our next chapter |
A closer look |
Governance |
Remuneration |
Financial summary |
A strategy that |
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creates value |
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We leverage our differentiated offering
Hiscox is truly distinctive within the sector, thanks to our mix of big-ticket and retail businesses, as well as how and where we operate. This allows us to effectively manage the insurance cycle, as our big-ticket businesses have done excellently in 2024, with sustainable value creation in mind."
Group Chief Financial Officer
Global reach
We are an international business, but we invest in local market knowledge and experience to truly understand the markets we operate in and provide relevant products and services. This gives us a unique breadth of expertise, serving customers from sole traders to multinational companies and ILS investors.
Specialist products
In every part of the
Claims experience
Being true to our word is the cornerstone of our claims service. Each customer and claim is different, which is why we have embedded experienced claims teams with specialist product knowledge in every part of our business.
Talented and highly skilled people
The quality of our people is a crucial factor in our continuing success. Their expertise, energy and commitment drive our reputation for quality and professionalism. In return, we aim to provide a work environment that brings out the best in everybody and rewards hard work.
Powerful brand
We have invested significantly over many years to build a recognised and renowned brand. Our distinctive marketing campaigns are developed from a deep understanding of our customers and positively contribute to consumer buying decisions.
We create value for all our stakeholders
Read more on pages 52 to 55.
*Includes share buybacks and all special,
ordinary, and Scrip Dividends paid to shareholders since
returned to shareholders over the last ten years.
82%
High employee engagement score in 2024, for the third consecutive year.
paid out to customers in claims in 2024.
Two-thirds
We currently lead on two-thirds of the London Market business we write through Syndicate 33.
Hiscox Ltd Report and Accounts 2024 |
7 |
Writing our next chapter A closer look |
Governance |
Remuneration |
Financial summary |
A balanced business
Hiscox Retail
Read more on pages 30 to 32.
Hiscox London Market
Read more on pages 32 to 33.
Hiscox Re & ILS
Read more on page 33.
Structure
† DirectAsia is no longer regarded as part of the core Hiscox Retail portfolio and is classified as a disposal group held for sale in the financial statements.
*Includes ILS, quota share and catastrophe bond funds.
Our retail operations focus on specialist areas of personal lines, such as high-value homes and fine art, and commercial lines including emerging professions, media and tech, and small business insurance. We aim to be available however customers choose to purchase - whether that's through a broker, via our website or over the phone. With each of our retail operations at different stages of maturity, we are focused on building scale as the size of our addressable markets is huge, so we continue to invest in our brand, distribution and technology.
Our big-ticket insurance business uses the global licences, distribution network and credit rating of Lloyd's to insure clients throughout the world with large, and often complex, insurance needs. This business is written through a number of our syndicates including Syndicate 33, one of the largest syndicates at
a combination of underwriting and digital expertise that differentiates us.
Our reinsurance and ILS business serves clients worldwide in different ways. Hiscox Re is our global reinsurance business, written out of
Group |
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Structure |
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Retail† |
London Market |
Re & ILS |
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Commercial |
Commercial |
Commercial |
Property |
Property |
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High-value |
High-value |
Marine, specialty |
Marine and |
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personal lines |
personal lines |
and energy |
specialty |
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Proposition |
Casualty |
ILS* |
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Crisis |
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management |
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Distribution |
Direct and |
Direct |
Direct |
Brokers |
Brokers |
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partners |
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Brokers |
Brokers |
Brokers |
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Customer |
SMEs |
SMEs |
SMEs |
Corporates |
Insurers and |
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reinsurers |
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High net worth |
High net worth |
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8 |
Hiscox Ltd Report and Accounts 2024 |
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