Hiscox Limited (DI) (HSX)

Sector:

Insurance

Index:

FTSE 250

1,150.00p
   
  • Change Today:
      17.00p
  • 52 Week High: 1,193.00p
  • 52 Week Low: 938.00p
  • Currency: UK Pounds
  • Shares Issued: 347.77m
  • Volume: 1,364,660
  • Market Cap: £3,999.32m
  • RiskGrade: 130

Morgan Stanley downgrades Hiscox, upgrades Lancashire

By Benjamin Chiou

Date: Tuesday 05 Sep 2023

LONDON (ShareCast) - (Sharecast News) - Morgan Stanley has reassessed its performance ratings on stocks in the insurance sector, leading to a downgrade for Hiscox and an upgrade for Lancashire Holdings.
As part of its review of European insurance, Hiscox was cut from 'overweight' to 'equal weight' (price target reduced from 1,387p to 1,233p) and Lancashire was moved from 'underweight' to 'equal weight' (price target increased from 627p to 692p).

European insurance stocks are trading at 9x earnings - a 24% discount to the broader stock market, compared with the 15-year average discount of 29%. "Given the cash flow profile (7.5% capital return yield), strong Solvency capital (229% S2 ratio) and rising interest rates benefits, we believe there is further upside for the sector and thus we maintain our Attractive view going into year end."

Nevertheless, on Hiscox, Morgan Stanley said its previous positive rating centred around the company's "diversified growth profile, which provided more stable earnings than peers as well as improved underwriting following corrective actions in Retail and London Market."

The stock has now outperformed Lloyds of London peers Beazley and Lancashire by 11% and 5% so far this year, respectively. "Following the 1H23 results we move down to 'equal weight' as we see less visibility on improving growth and underwriting from here," the bank said.

In regards to Lancashire, the stock has underperformed European insurance peers by 15%, despite delivering higher top-line growth and better pricing conditions than others. The bank pointed out that shares now trading at just 5.3x forward earnings "which we view as attractive".

By 1133 BST, Hiscox shares were down 0.2% at 993.5p while Lancashire was up 2.9% at 587.47p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

HSX Market Data

Currency UK Pounds
Share Price 1,150.00p
Change Today 17.00p
% Change 1.50 %
52 Week High 1,193.00p
52 Week Low 938.00p
Volume 1,364,660
Shares Issued 347.77m
Market Cap £3,999.32m
RiskGrade 130

HSX Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
10.36% below the market average10.36% below the market average10.36% below the market average10.36% below the market average10.36% below the market average
55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average
Price Trend
79.08% above the market average79.08% above the market average79.08% above the market average79.08% above the market average79.08% above the market average
Sector averageSector averageSector averageSector averageSector average
Income
72.66% below the market average72.66% below the market average72.66% below the market average72.66% below the market average72.66% below the market average
50% below the sector average50% below the sector average50% below the sector average50% below the sector average50% below the sector average
Growth
59.6% below the market average59.6% below the market average59.6% below the market average59.6% below the market average59.6% below the market average
80% below the sector average80% below the sector average80% below the sector average80% below the sector average80% below the sector average

What The Brokers Say

Strong Buy 2
Buy 5
Neutral 8
Sell 1
Strong Sell 0
Total 16
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

HSX Dividends

  Latest Previous
  Interim Final
Ex-Div 17-Aug-23 04-May-23
Paid 26-Sep-23 13-Jun-23
Amount 12.50¢ 24.00¢

Trades for 01-Mar-2024

Time Volume / Share Price
16:40 78,688 @ 1,150.04p
16:35 244,283 @ 1,150.00p
16:35 2 @ 1,150.00p
16:35 5,320 @ 1,150.00p
16:35 259 @ 1,150.00p

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