Hiscox Shares Soar Amid Potential Takeover Bids from International Rivals

July 8, 2024

Shares in Hiscox experienced a significant rise of up to 14 per cent on Monday following reports that two foreign competitors are contemplating acquisition bids for the Lloyd’s of London insurer.

According to trade publication Insurance Insider, Japan’s Sompo Holdings and Italy’s Assicurazioni Generali are exploring potential bids. Sompo, headquartered in Tokyo, specializes in property and casualty insurance, while Generali, based in Trieste, is a general insurer.

City A.M. reached out to Hiscox for comments regarding the reported takeover interest.

Currently, Hiscox’s shares are trading at 1,252p, marking their highest level since February 2020, when the company’s stock plummeted at the onset of the Covid-19 pandemic. With Monday’s gains, Hiscox’s market capitalization now stands at £4.25 billion. Shares of other insurers, such as Lancashire Holdings and Beazley, also saw an increase, climbing approximately three per cent.

This development highlights a growing trend of takeover interest in London-listed companies this year, driven primarily by international buyers targeting firms with relatively low stock market valuations compared to their global counterparts.

In May, Hiscox reported robust premium growth, noting that, for the first time in several years, all segments of its UK business were in “growth mode,” with strong performance in Europe as well.