Insurer Hiscox rewards shareholders after stellar 2012

Specialist insurer Hiscox outlined details on Tuesday of its proposed special dividend of 38.0p per share and share consolidation - a day after reporting a rise in annual profits.

Specialist insurer Hiscox outlined details on Tuesday of its proposed special dividend of 38.0p per share and share consolidation - a day after reporting a rise in annual profits.

The Bermuda-based firm, which insures fine art, property, vintage cars and the assets of individuals, will reward shareholders with a special distribution of £150m on top of a 12p-per-share payment in lieu of a final dividend for 2012.

The amount combined with an interim dividend of 6.0p per share paid in September, takes the total dividend for 2012 up to 18p per share, a 6.0% year-on-year increase.

Hiscox plans to return capital by way of an issue of B shares, allowing shareholders to receive proceeds as capital and/or income. That will be subject to overseas restrictions and tax laws.

Each shareholder will receive one B Share for every existing ordinary share held on March 28th.

Meanwhile, the company announced a 89-for-100 share capital consolidation to reduce the number of issued ordinary shares to reflect the reduction in the company's net tangible asset value.

On Monday, the company posted a jump in profits before tax to £217.1m for 2012, up from £17.3m in the previous year.

During the year the company dealt with record floods in the UK, Hurricane Sandy in the US, fine art thefts in Europe, fires across the world and the sinking of Costa Concordia.

However, Hiscox flew in the face of such tragedies, delivering solid results which were driven by strong underwriting performance and return on investments.

Shares fell 0.78% to 510.50p at 09:50 Tuesday.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Investors are shunning UK stocks – but they might regret that in a year’s time
UK stockmarkets

Investors are shunning UK stocks – but they might regret that in a year’s time

There are a number of reasons why investors aren't buying UK stocks, says John Stepek. But they may want to rethink that strategy.
29 Sep 2020
Are we really in a stockmarket bubble?
US stockmarkets

Are we really in a stockmarket bubble?

The rise of “cash shell” companies, sky-high valuations – everything seems to point to a stockmarket bubble. But all may not quite be as it appears, s…
28 Sep 2020
Two commodities that could lie at the heart of the next resources bubble
Energy

Two commodities that could lie at the heart of the next resources bubble

Commodities tend to move in cycles. And if you can identify early on which ones are about to surge in demand, you can profit handsomely. Dominic Frisb…
30 Sep 2020