Hiscox dividend: payout, cash cover and yield
MyStockButler's October 2026 analysis: The forecast shows Hiscox's dividend rising from $0.58 to $0.70 per share in the base case. Hiscox's operating cash flow was only $72.8 million against $732.7 million of pre-tax profit in 2025, so reported profit and distributable cash answer different questions.
How much does Hiscox pay per share over the years shown?
Dividends rise from $0.58 to $0.70 per share in the base case. The path is slower than the latest interim increase because Hiscox has no payout target and must preserve capital. The bear case pauses at $0.52 before a small recovery, while the bull case reaches $0.77 if earnings and solvency remain strong; management estimated a 210% capital ratio after planned distributions.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 578 (484 / 655) | 696 (492 / 808) | 761 (519 / 914) |
| Shares (millions) | 311 (318 / 306) | 305 (320 / 297) | 299 (322 / 288) |
| Dividends per share | 0.58 (0.52 / 0.60) | 0.64 (0.52 / 0.68) | 0.70 (0.54 / 0.77) |
| Price to earnings | 11.00 (8.00 / 13.00) | 11.00 (7.00 / 14.00) | 10.00 (7.00 / 14.00) |
Does Hiscox's cash flow cover its dividend?
Operating cash flow was only $72.8 million against $732.7 million of pre-tax profit in 2025. The apparent weakness reflects the way an insurer works. It receives premiums, invests them in bonds, sells or matures those investments, and later pays claims. Those investment transactions are classified as operating cash flows, so they can make cash conversion look volatile.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Net income | 604.1 | 627.2 | 712.0 | 253.9 | 189.5 |
| = Earnings for common shareholders | 604.1 | 627.2 | 712.0 | 253.9 | 189.5 |
| − Dividends paid on ordinary shares | 149.4 | 130.8 | 126.1 | 120.5 | 39.4 |
| − Share buybacks | 275.7 | 149.1 | 0 | 0 | 0 |
| = Kept to grow and build capital | 179.0 | 347.3 | 585.9 | 133.4 | 150.1 |
| Paid out, % of earnings for common | 70.4% | 44.6% | 17.7% | 47.5% | 20.8% |
What could change Hiscox's dividend?
By 2028, the key test is whether the change programme reaches its promised annual benefit. Catastrophe losses or adverse reserves could reduce solvency headroom in any year through October 2029, lowering buybacks and valuation.
What is Hiscox's dividend yield against its share price?
Today’s valuation assumes that Hiscox can earn more than the cost of the capital it must hold.
| Today (Oct 28, 2026) | |
|---|---|
| Share price | 1,844.0 |
| Market value (calculated) | 5,858.3 |
| P/E, last 12 months (calculated) | 12.9x |
| Price to book (calculated) | 2.0x |
| Dividend yield (calculated) | 2.1% |
What this means. The price-to-earnings ratio based on core earnings uses the insurer’s own measure of ongoing profit, so it may differ from the ordinary price-to-earnings ratio.