Hiscox cancels dividends as it braces for tough times ahead

Hiscox will not pay a dividend of 29.6 cents per share, which had been scheduled for payment on June 10, 2020, and will not propose an interim dividend payment in 2020, or conduct any share buybacks, in light of the COVID-19 crisis.

The re/insurer said it had taken the decision “to help Hiscox serve the needs of businesses and households through the extraordinary challenges presented by COVID-19.”

Hiscox stressed its capital, liquidity and funding positions remained strong, while trading across the group for the first two months of the year was ahead of expectations. “However, in view of the uncertain impact of COVID-19 on the global economy, the group is unable to accurately forecast the outlook for 2020,” it said. “As such, we are withdrawing all financial guidance for 2020 until there is more clarity.”

However, it said it remained confident in its ability to return the combined ratio of its retail business to the “normal” range of 90-95 percent in 2022.