Insurance Insider reported that Japan’s Sompo Holdings and Italy’s Assicurazioni Generali are both exploring a possible acquisition. Sompo, based in Tokyo, specialises in property and casualty insurance, while Trieste-based Generali is a general insurer.
Hiscox has not commented on the reports.
Hiscox’s share price is currently trading at 1,525p, its highest level since February 2020, when the sector’s shares plunged at the start of the Covid-19 pandemic. Following Monday’s gains, Hiscox’s market capitalisation is £4.25 billion. Shares in fellow insurers Lancashire Holdings and Beazley also rose, by around 3%.
The news comes amid a surge of takeover interest in London-listed firms this year, as overseas buyers look to take advantage of the companies’ relatively low stock market valuations compared to their peers in other countries.
In May, Hiscox posted healthy premium growth and said that all parts of its UK/European business were in “growth mode” for the first time in several years. Its insurance contract written premium (ICWP) grew to $1.54bn (£1.23bn) in the first three months of 2024 from $1.42bn (£1.13bn) during the same period last year.
Hiscox’s retail ICWP grew by 5.8% in constant currency during the first quarter, while US digital partnerships and direct growth rose by 11.3%.
Hiscox, based in Bermuda, saw its highest-ever annual profit last year due to higher interest rates and solid performance from its commercial business.
