Hiscox

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Hiscox Limited
Type Public
Industry Insurance
Founded 1901
Headquarters Hamilton, Bermuda
Key people Robert Hiscox (Honorary President), Robert Childs (Chairman), Bronek Masojada (CEO)
Products Specialty property, casualty, kidnap and ransom, marine, aerospace, hacker and political risk insurance
Revenue £1,699.5 million (2013)[1]
Operating income £252.1 million (2013)[1]
Profit £237.8 million (2013)[1]
Employees 1,400 (2013)
Website www.hiscoxgroup.com
Hiscox is an underwriter at the Lloyd's of London insurance market.

Hiscox Ltd. is a Bermuda-incorporated insurance provider, listed on the London Stock Exchange. An underwriter at Lloyd's of London, the company largely specialises in niche areas of the market, offering property and casualty insurance aimed at companies and high net worth individuals, as well as cover against such risks as hacking, kidnapping and satellite damage. The firm is a constituent of the FTSE 250 Index.

History[edit]

The roots of the company lie with the Roberts agency, which commenced underwriting marine insurance at the Lloyd's market in 1901.[2] In 1946 Ralph Hiscox, who had joined the agency as an underwriter of non-marine insurance eight years earlier, formed the Roberts & Hiscox partnership for the purposes of managing syndicates at Lloyd's.[2] Hiscox was elected chairman of Lloyd's in 1967,[3] the same year his son Robert joined the group's Syndicate 33 as an underwriter of fine art and personal accident insurance.[2] Robert Hiscox subsequently took over as head of the partnership in 1970 after the death of his father, and set about growing the size of the business.[4]

In 1987 the firm reorganised - a holding company, Hiscox Holdings Ltd, was established for the group, which comprised the subsidiaries Hiscox Syndicates (for managing syndicates) and Roberts & Hiscox (for introducing and advising members of the Lloyd's market).[2] Expansion beyond the London market followed in 1989 with the formation of a third subsidiary, Hiscox Underwriting, specifically for this purpose.[2]

Roberts & Hiscox and related interests were demerged in 1994, leaving the company as merely an underwriter and manager of syndicates.[2] Having previously listed on the Alternative Investment Market, Hiscox plc transferred to the main market of the London Stock Exchange in July 1997.[5] Following the purchase of a 28% stake in the company by Chubb Corporation in 1998,[6] the company fought to remain independent, successfully rebuffing two takeover offers by 2001.[7] Chubb subsequently sold off its interest in Hiscox in 2004.[8]

In 2005, the company opened a Bermuda office, writing a mix of worldwide reinsurance and retail business. The following year Hiscox plc moved its country of domicile from the United Kingdom to Bermuda, adopting the new name Hiscox Ltd.[9]

For 2009, the company increased its marketing budget from £400,000 to £10 million and is set to launch a mass media campaign with the strap line "as good as our word".[10]

In 2011, Hiscox had a catastrophe-filled year. With floods in Australia, the tsunami in Japan, and many other catastrophes the company had to pay out a lot and profits suffered.[11]

In March 2014 Hiscox acquired direct-to-consumer online operation DirectAsia. Bronek Masojada, Hiscox CEO, commented: “DirectAsia is a challenger brand with real potential. It gives Hiscox a 21st century distribution platform in Asia that leapfrogs traditional routes to market. DirectAsia complements our direct-to-consumer businesses in Europe and the US, and in time, we will use it to distribute Hiscox products.”

Products[edit]

The company sells both personal and commercial insurance cover in a range of areas: for individuals, Hiscox provides home and contents insurance for "higher value" houses, as well as classic car, fine art, bloodstock, kidnap and ransom and personal accident cover.[12] For companies, cover types include property, marine, aerospace, professional indemnity, hacker and political risk insurance as well as reinsurance.[13]

Shareholder structure[edit]

As at 28 February 2011, Invesco Limited was the largest shareholder in Hiscox with a 14.04% stake. Massachusetts Financial Services Company (5.15%) and Ruane, Cunniff & Goldfarb Inc. (5.10%) were the other institutions to hold more than 5% in the company.[14]

References[edit]

  1. ^ a b c "Preliminary Results 2013". Hiscox. Retrieved 21 March 2014. 
  2. ^ a b c d e f "History". Hiscox. Retrieved 2008-05-31. 
  3. ^ "New Chairman Named By Lloyd's of London". The New York Times. December 13, 1966. Retrieved 2008-06-03. 
  4. ^ Wynn, Sheridan (10 September 2006). "Business Interview: Robert Hiscox, Chairman, Hiscox". The Independent on Sunday. Retrieved 2008-06-04. 
  5. ^ Eakin, Jan (22 July 1997). "The Market: Fall continues in heavy trading". The Daily Telegraph. Retrieved 2008-06-05. [dead link]
  6. ^ Cave, Andrew (23 December 1998). "US insurer buys stake in Hiscox". The Daily Telegraph. Retrieved 2008-06-05. [dead link]
  7. ^ Edwards, Simon (21 March 2001). "Hiscox rejects Chubb takeover". The Daily Telegraph. Retrieved 2008-06-05. 
  8. ^ "Chubb sells Hiscox stake". Investors Chronicle. 16 April 2004. Retrieved 2008-06-05. 
  9. ^ Seib, Christine (19 September 2006). "Omega to follow Hiscox to tax-free haven". The Times (London). Retrieved 2008-06-05. 
  10. ^ Hiscox hands SEO account to VCCP Search Retrieved 2009-08-16
  11. ^ Stuart Bridges: Happy at Hiscox. Retrieved on August 14, 2012.
  12. ^ "Personal Insurance". Hiscox. Retrieved 2008-06-09. 
  13. ^ "Commercial Insurance". Hiscox. Retrieved 2008-06-09. 
  14. ^ "Investors: Major shareholders". Hiscox. Retrieved 2011-04-12. 

External links[edit]