Hiscox To Return GBP200 million to Shareholders
The second largest Lloyd's of London insurer by market value, Hiscox Ltd has initiated plans to return nearly US$303 million to its shareholders. This is due to the surge of pretax profits earned by the firm, causing share values to increase twelve fold. Each share would receive 38 pence in special dividends, totaling GBP150 million together with its 12 pence per share final dividend.
The news was announced by the firm as it reported a pretax profit of GBP217 million in 2012 from just GBP17.3 in 2011. The profits beat projections of just GBP197.3 million.
This is not new as many other commercial insurers have been paying special dividends to its shareholders after premium rates increased in 2012 after 2011 was the most expensive year for insurers because of the occurrence of many natural disasters, many one after the other. These insurance firms include Beazely Plc and Lancashire Holdings Plc.