Should I buy Hiscox stock in 2025?

Why trust HelloSafe ?

At HelloSafe, our expert has been tracking the performance of Hiscox for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Hiscox.

What is Hiscox?

How much is Hiscox stock?

The price of Hiscox stock is down this week. Hiscox is trading at 1,233 GBX, with a daily change of -1.12% and a weekly decrease of 2.76%. The company’s current market capitalisation stands at £4.24 billion, supported by an average daily volume of 1.39 million shares over the past three months. Hiscox has a price/earnings ratio of 9.48, pays a dividend yield of 2.56%, and shows a low market beta of 0.59, reflecting moderate share volatility. This environment may appeal to investors looking for stable financials with steady income potential.

Our full analysis on Hiscox stock

After an extensive review of Hiscox's latest results and its share price trajectory over the past three years, we have leveraged our proprietary set of analytical algorithms to combine fundamental indicators, technical signals, market intelligence, and competitive benchmarks into a holistic view. In this analysis, we integrate both short-term catalysts and long-term strengths to illuminate the outlook for this major name in the insurance sector. So, why might Hiscox stock once again become a strategic entry point into the property and casualty insurance sector in 2025?

Recent performance and market context

Hiscox stock has shown strong resilience in recent months, currently trading at 1,233 GBX and up over 11% year-on-year. Although there has been a slight pullback of 2.76% this week, the overall six-month trend remains bullish, up 11.18%—well above the sector average and indicative of increasing investor confidence. The insurer has continued to outperform market expectations, buoyed by positive macroeconomic drivers such as stabilising interest rates and renewed momentum across the global insurance industry. Notably, recent analyst upgrades from both Goldman Sachs and Barclays have reaffirmed confidence in the company’s outlook, designating Hiscox as a “Buy” and “Overweight” respectively, and supporting the case for continued upward movement. Furthermore, Hiscox’s diversified geographic revenue mix—nearly half from the US and robust growth in the UK and Europe—has provided stability and reduced regional market risk, aligning closely with emerging global growth opportunities. Overall, the context favours momentum-driven investors and long-term holders alike.

Technical analysis

From a technical perspective, Hiscox presents several elements that suggest a renewed bullish phase. The current Relative Strength Index (RSI) is around 51, indicating a neutral stance but with significant upward headroom before entering an overbought condition. The Moving Average Convergence Divergence (MACD) signals have moved from negative to mixed, reflecting the start of renewed buying interest. Importantly, key moving averages provide constructive signals: the 200-day moving average, currently at 1,991 GBX, sits comfortably below the current price, indicating active support, while the stock remains above a vital support threshold at 1,217 GBX. The 52-week price range (1,008–1,360 GBX) identifies current levels as ideal for investors seeking entry before a potential test of recent resistance near the 1,360 GBX zone. The moderate beta of 0.59 also demonstrates lower volatility when compared to the broader market—an attractive feature for investors aiming to limit risk while capturing upside moves. These technical foundations, aligned with growing analyst optimism, suggest that Hiscox may be preparing to embark on a new upward trajectory.

Fundamental analysis

A review of Hiscox’s fundamentals highlights compelling reasons for optimism. Most notably, the company delivered record pre-tax profits of $685.4 million in 2024, reflecting a 9.5% year-over-year increase and confirming the business’s robust earnings power. Revenue rose to $3.81 billion, underpinned by a 2.94% increase, signalling reliable top-line growth even during unpredictable market cycles. With a price/earnings ratio of just 9.48, Hiscox appears attractively valued against both sector peers and its own historical averages, suggesting strong upside potential for multiple expansion. The dividend yield stands at 2.56%, providing a steady income stream for income-focused investors and underscoring prudent capital allocation. Structural levers—such as the company’s technological leadership in AI-driven risk modelling, its nearly unrivalled position at Lloyd’s of London, and a consistent pipeline of product and digital innovations—demonstrate why Hiscox is widely regarded as one of the most progressive operators in the insurance arena. These factors, paired with a historic return on equity above 19%, mean Hiscox is well-positioned to benefit from both cyclical and secular trends in the sector.

Volume and liquidity

Liquidity is a cornerstone of a healthy stock, and Hiscox does not disappoint. With an average daily trading volume of 1.39 million shares, the stock maintains healthy liquidity and readily accommodates institutional as well as retail orders without significant price slippage. This sustained volume has contributed to stable pricing and facilitates active portfolio management. Hiscox’s market capitalisation, now at £4.24 billion, and its float—comprised of 81% institutional holdings—create a buoyant environment conducive to dynamic revaluation and digestion of significant newsflow. Such robust liquidity also reassures investors seeking flexibility, whether to take tactical positions or anchor more strategic, multi-year allocations.

Catalysts and positive outlook

• Significant digital transformation initiatives, including new API launches, will drive efficiency and future revenue streams.
• Continued global expansion, especially in the US and Europe, increases both revenue diversification and total addressable market.
• A series of analyst upgrades (Goldman Sachs, Barclays) reiterate institutional conviction and signal widespread market support for upward revisions.
• The company’s robust pipeline of products—including those developed using advanced risk modelling and AI capabilities—positions it at the forefront of insurtech innovation.
• The implementation of a share buyback programme underscores management’s confidence in the business and enhances shareholder value.
• Strategic partnerships, such as with Bellwether for wildfire risk modelling, set Hiscox apart from the competition by delivering tangible improvements in underwriting precision and risk management.

Investment strategies

• The stock is currently trading near a key technical low (support at 1,217 GBX), which could limit downside risk and maximise risk/reward for new positions.
• Short-term traders may see opportunities in recent analyst upgrades and momentum as catalysts for an imminent bounce.
• Medium-term investors benefit from a lineup of strong pipeline news (product launches, further upgrades), and the company’s continuing share buyback programme could underpin steady appreciation.
• For long-term buyers, Hiscox’s four-pillar strategy—revenue growth, international expansion, innovation in risk management, and proven operational resilience—provides multiple avenues for value creation.
• Entry before the next technical resistance (1,360 GBX) may position investors advantageously to benefit from the next major upward thrust.

Is it the right time to buy Hiscox?

In summary, Hiscox offers a rare combination of resilient earnings growth, attractive valuation, robust liquidity, and multiple upward catalysts—from digital innovation to international expansion and ongoing share buybacks. The stock’s low P/E ratio, secure dividend yield, and strong technicals form the bedrock for renewed investor interest. For those seeking to diversify with a high-quality exposure to the insurance sector, Hiscox seems to represent an excellent opportunity for both immediate accumulation and long-term portfolios. Its clear strategic vision and ability to execute on both innovation and margin growth suggest that the stock may be entering a new bullish phase—one that rewards confidence and patient conviction as sector tailwinds gather pace.

How to buy Hiscox stock in the UK?

Buying Hiscox stock online is both simple and secure when you use a regulated UK broker. As an investor, you can choose between two main options: buying Hiscox shares outright (spot buying) for long-term ownership, or trading Hiscox via CFDs (Contracts for Difference) for flexible, short-term strategies using leverage. Each method offers its own advantages—spot buying gives you real ownership, while CFDs enable you to speculate on price movements with additional features. To find the best option and lowest fees, check out our broker comparison further down the page.

Spot buying

A cash purchase of Hiscox stock means directly buying shares and owning them within your investment account. Most UK brokers charge a fixed commission per order, usually between £5 and £10. You pay the current market price plus this fee, receiving dividends and participating in shareholder meetings if you wish.

Gain scenario

For example, if the Hiscox share price is £12.33, you can buy around 81 shares with a £1,000 stake, including a brokerage fee of approximately £5.

If the share price rises by 10%, your shares are now worth £1,100.

Result: +£100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading on Hiscox shares lets you speculate on price movements without owning the underlying stock. With CFDs, you can use leverage (often up to 5x) to amplify your exposure. Instead of a commission, you pay a spread (the broker’s markup on the buy/sell price) and overnight financing if you hold your position for several days. This method is well suited for active traders seeking short-term opportunities.

CFD Gain Scenario Example

For instance, you open a CFD position on Hiscox shares with a £1,000 stake and 5x leverage.

This gives you a market exposure of £5,000.

✔️ Gain scenario:

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +£400 gain, on a stake of £1,000 (excluding fees).

Final advice

Before investing, always compare the fees, spreads and conditions of different brokers to select the most cost-effective platform for your needs. Whether you choose spot buying for long-term wealth building or CFDs for short-term strategies, the right method depends on your investment objectives and risk profile. Our broker comparison table below will help you make the best informed choice.

Our 7 tips for buying Hiscox stock

The latest news about Hiscox

Goldman Sachs has upgraded Hiscox to “Buy” with a price target of 1,395 GBX. Announced on 2 July 2025, this endorsement by one of the world’s leading investment banks highlights Hiscox’s continued outperformance and attractive entry point, especially for UK-based investors. The price target implies an upside of over 13% from the current market price, signalling renewed institutional confidence.

Barclays has raised its recommendation on Hiscox to “Overweight” following recent results. In late June 2025, Barclays positively revised its rating, reflecting improving retail margin prospects and the company’s robust position within the domestic insurance sector. This move signals growing institutional optimism surrounding Hiscox’s strategic roadmap and earnings potential in the UK market.

Hiscox’s trading volume and liquidity remain strong, supporting efficient price discovery. Average daily volume over the last three months has held steady at 1.39 million shares on the London Stock Exchange, underlining reliable investor interest and facilitating prompt entry and exit strategies for both institutional and retail participants in the UK.

The company’s consistent profitability and positive operating margins support expectations for further dividend growth in the UK. Recent annual earnings showed a 9.5% increase in profit before tax and a 2.56% dividend yield, highlighting Hiscox’s compelling value proposition for UK income investors, further evidenced by a moderate P/E ratio of 9.48 and strong return on equity.

UK-focused strategic initiatives and product innovation are reinforcing the company’s leadership. Through the launch of new risk-modelling tools and ongoing digital transformation, Hiscox continues to adapt to evolving regulatory requirements and customer needs in the United Kingdom, strengthening its long-term prospects in this core market.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.