Takeover Report Lifts Shares of London-Listed Insurer Hiscox, Peers
By Elena Vardon
Shares of Hiscox rose up to almost 15% after a media report suggested that the Lloyd's of London insurer could be a takeover target.
Japanese group Sompo Holdings and Italy's Assicurazioni Generali are said to be among the suitors, according to trade publication Insurance Insider.
At 1334 GMT, Hiscox's stock was up 11% at 1,244 pence, leading the FTSE 250 index, which traded flat. The news boosted its market capitalization to around 4.24 billion pounds ($5.44 billion).
The report also lifted peers Beazley--whose shares rose 3.3% and topped the FTSE 100's risers--as well as those of Lancashire Holdings and Conduit Re.
"The bid rumours do not really come as a surprise, as the depressed post-COVID-19 valuations of specialist London-based (re)insurers - including peers Beazley, Lancashire and Conduit Re - always raised questions as to whether they would be potential targets," Berenberg analyst Tryfonas Spyrou said in a note to clients.
The specialist insurer, which is headquartered in Bermuda and listed in London, reported $625.9 million in pretax profit on $3.56 billion net insurance contract written premiums for 2023.
Hiscox and Generali declined to comment when contacted by Dow Jones Newswires. Sompo wasn't immediately available to comment.
Write to Elena Vardon at elena.vardon@wsj.com
(END) Dow Jones Newswires
July 08, 2024 10:02 ET (14:02 GMT)
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