Report And Accounts 2024

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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.

Writing our next chapter

1. Highlights of the year

1. At a glance

1. A strategy that creates value

1. A balanced business
2. Clear priorities

1. The world around us

1. Actively managing risk

1. Our key performance indicators (KPIs)

A closer look

1. Chief Executive's report

1. Risk management

1. Stakeholder engagement

1. Sustainability

1. People

1. Task Force on Climate-related Financial Disclosures (TCFD)

Governance

1. Governance summary

1. Board of Directors

1. Group Executive Committee (GEC)

1. Chair's letter to shareholders

1. Corporate governance

1. Compliance with the UK Corporate Governance Code 2018

1. Nominations and Governance Committee report

1. Audit Committee report

1. Risk Committee report

1. Directors' report

1. Directors' responsibilities statement

1. Advisors

As a Bermuda-incorporated company, Hiscox is not subject to the UK Companies Act. However, the material provisions of Section 172 of the UK Companies Act are substantively covered by the Bermuda Companies Act, which is the applicable legislation that the Company is required to comply with under Bermuda law. As a company listed on the London Stock Exchange, we comply with the requirements set out in the UK Corporate Governance Code 2018 and the Listing Rules and Disclosure & Transparency Rules of the UK Financial Conduct Authority. Our remuneration report is consistent with UK regulations.

Any additional disclosures over and above these requirements, have been made for the benefit of shareholders, on a voluntary basis.

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Financial performance

Non-financial achievements

*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 UK, Europe and US retail businesses.

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."

Aki Hussain

Group Chief Executive Officer

January

Celebrated 30 years in partnership with Control Risks, through which we offer a market-leading insurance and crisis response service.

June

Mary Boyd appointed Chief Executive Officer of Hiscox USA.

Read more on pages 38 to 41.

August

Hiscox London Market went live with our generative AI-enhanced lead underwriting model in collaboration with Google Cloud, writing sabotage and terrorism risks. Read more on page 49.

November

Hiscox Retail's first multi-country deal with a leading digital MGA in Europe went live.

December

Hiscox Europe surpassed the €600 million premium mark.

March

Announced $150 million share buyback programme.

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 UK, reducing quote handling times by 40%.

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 UK's high-value-household product launched on e-trading platform, Acturis.

Hiscox Germany completed its adoption of a new core administration system, as we continue to build a scalable technology infrastructure across Europe.

About us

Where we are

13 32

countriesoffices

1. Belgium
2. Bermuda
3. France
4. Germany
5. Guernsey
6. Ireland
7. Luxembourg
8. The Netherlands
9. Portugal
10. Spain
11. Singapore
12. UK
13. USA

3,000+ 1.7m

employees customers

Hiscox is a global, specialty insurer, listed on the London Stock Exchange and headquartered in Bermuda. We have grown from our roots

as a niche Lloyd's of London underwriter into a diversified international insurance group operating across direct-to-consumer, broker and partner-distributed retail insurance; large and complex commercial insurance; reinsurance and insurance-linked strategies. We have a distinctive brand, energised and ambitious teams, a strong balance sheet, and plenty of room to grow in each of our chosen markets and lines of business.

We currently employ over 3,000 people worldwide across 13 countries and 32 offices. We serve almost 1.7 million retail customers across the UK, Europe and the USA, and we remain

one of the largest and longest-standing Lloyd's of London syndicates.

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.

We have a unique business mix

Read more on page 8.

The Hiscox Group comprises three business units facing different opportunities and challenges, but with a common set of capabilities and the capital support required for success.

•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

•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

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."

Paul Cooper

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 Hiscox Group, we focus on providing products and services that differentiate us. These range from high-value home insurance and fine art - areas where we have deep foundations to build on - to small business, flood, and kidnap and ransom - where innovative products and service set us apart.

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 1 January 2015. Excludes the final dividend proposed for 2024.

$1.4bn*

returned to shareholders over the last ten years.

82%

High employee engagement score in 2024, for the third consecutive year.

$2bn

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 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 Lloyd's of London. Our product range includes property, marine and energy, casualty and other specialty insurance lines. We now lead on more open market risks, with

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 London and Bermuda and offering property, specialty, cyber, marine and aviation, and risk excess of loss reinsurance products, as well as retrocessional cover. Hiscox ILS is our alternative investment manager, which manages capital for third parties through insurance-linked strategies.