Hiscox Ltd has announced a share repurchase programme, aiming to buy back its ordinary shares for a maximum aggregate consideration of $150 million. The programme will commence with an initial tranche of $75 million and will be conducted through open market transactions. Hiscox has entered into a non-discretionary agreement with Peel Hunt LLP to conduct the initial tranche of the programme, with the intention to cancel the purchased ordinary shares to reduce the company's share capital.
The company has received authority from shareholders to repurchase a maximum of 34,655,073 ordinary shares under the programme. The purchases will be carried out on the London Stock Exchange and/or other recognized investment exchanges. The programme will be conducted within the parameters prescribed by the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052, as well as applicable laws and regulations of the UK Financial Conduct Authority.
Aki Hussain, Group Chief Executive Officer of Hiscox Ltd, stated, "Our business delivered record profits of $625.9 million and ROE of 21.8% in 2023. This excellent result has led to very strong capital generation, which we are deploying for further growth in all parts of the business in addition to a special return to shareholders of $150 million. The buyback will commence immediately and illustrates our objective of delivering strong returns to our shareholders."
The company also intends to enter into arrangements to commence a second tranche of the share buyback programme with Citigroup Global Markets Limited for a maximum aggregate consideration of $75 million in due course.
Hiscox Ltd is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange. The company employs over 3,000 people in 14 countries and offers a range of specialist insurance products in commercial and personal lines.