Hiscox has completed the first tranche of its share buyback initiative.
The first part of the program, which involved the repurchase of 4,896,100 ordinary shares at 6.5 pence each, wrapped up on May 2 with a total expenditure of $75 million, excluding additional costs. The buyback was conducted in partnership with Peel Hunt.
Following the initial phase, Hiscox entered a new agreement with Citigroup Global Markets to launch the second tranche of the buyback. This stage is set to conclude by the end of the third quarter of 2024, with another $75 million allocated for purchasing the shares and Citigroup serving as principal.
The share repurchase occurs through open market transactions, facilitated by Citigroup based on the prevailing market conditions, share prices, and trading volumes. The ongoing program operates under the authority approved by Hiscox’s shareholders during last year’s annual general meeting.
The total allowable shares for repurchase under the program are capped at 34,655,073 ordinary shares. With the first tranche concluded, up to 29,758,973 ordinary shares remain eligible for repurchase in the current phase. Transactions are executed on the London Stock Exchange and other approved trading platforms.
The buyback program is aimed at reducing Hiscox’s issued share capital. All shares acquired through this program will be cancelled subsequently. The initiative will persist until the designated $75 million cap for the second tranche is reached or may conclude earlier if determined by the company.
Earlier this month, Hiscox reported an 8.3% increase in its insurance contract written premiums (ICWP) for the quarter ended March 31. Group ICWP in Q1 stood at $1.5 billion. Of the sum, $723.2 million came from Hiscox Retail, $316.9 million from Hiscox London Market, and $497.4 million from Hiscox Re & ILS.
At the time, chief executive Aki Hussain (pictured) said: “A good start to 2024, with our focus on profitable growth continuing to deliver. Retail momentum has improved with growth accelerating in Hiscox UK and US DPD as our initiatives achieve targeted outcomes, and solid sustained growth in Hiscox Europe.
“In Hiscox London Market and Hiscox Re & ILS, we continue to deploy capital where we see attractive opportunities. The outlook for the year remains positive.”
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