Barclays upgrades Hiscox stock rating on retail turnaround potential

Published 20/06/2025, 08:10
Barclays upgrades Hiscox stock rating on retail turnaround potential

Investing.com - Barclays (LON:BARC) upgraded Hiscox Ltd. (LSE:LON:HSX) (OTC:HCXLF) stock rating from Equalweight to Overweight on Friday, while raising its price target to GBP14.00 from GBP11.80.

The upgrade comes as Barclays views Hiscox’s plans to accelerate growth and improve profitability in its Retail business as providing "credible differentiation" for the insurance company’s investment case, particularly as the large ticket reinsurance and large commercial market environment is expected to soften.

Hiscox maintains its existing targets of 5-15% growth and an 89-94% undiscounted combined ratio for its Retail business, according to the research note from Barclays.

The insurance company’s announced US$200 million target profit and loss benefit by 2028 should position the Retail segment "at the better end of the range," Barclays noted in its analysis of Hiscox’s outlook.

Following the assessment of Hiscox’s retail turnaround strategy, Barclays has increased its group net income forecasts for the insurance provider by 8-22% for the 2026-2028 period.

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