Hiscox Ltd Report and Accounts 2020
Ownership Passionate, commercial and accountable. Ownership means making it your business..
Why ownership is so important to us Taking ownership means making it your business. It means being passionate, curious and restless, always looking for a better way of doing things. We strive to be the kind of people who take responsibility, are ambitious, accountable, pragmatic, tenacious and proudly high-achieving.
In a growing business like ours, taking initiative is something we expect of everyone, regardless of their role. It shows itself in a willingness to speak up, to confront problems, to avoid easy excuses, and to embrace hard work.
These are qualities we have always valued and nurtured. But in 2020, Covid-19 meant that instinct to step up and take ownership was more vital than ever before.
It is in difficult times that our values are tested, but it is also in difficult times that they prove the greatest guide. Throughout this report, you will find some examples of how we showed ownership in 2020. Hiscox is a diversified international insurance group with a powerful brand, strong balance sheet and plenty of room to grow.
We are headquartered in Bermuda, listed on the London Stock Exchange, and currently have over 3,000 staff across 14 countries and 35 offices.
Our products and services reach every continent, and we are one of the only insurers to offer everything from small business and home insurance to reinsurance and insurance-linked securities.
Chapter 1: Chapter 2: Chapter 3: Chapter 4: A balanced business A closer look Governance Remuneration
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3 Showing ownership 17 Owning our understanding 51 Owning the Hiscox view 75 Taking ownership of in claims of the cyber risk of risk employee well-being 4 Our key performance 18 Chairman’s statement 52 Board of Directors 76 Letter from the Chair of the indicators (KPIs) 21 Chief Executive’s report 54 Senior management Remuneration Committee 6 Our response to Covid-19 34 Capital 56 Chairman’s letter 78 Remuneration summary 8 Our purpose, values, culture 36 Risk management to shareholders 80 Annual report on and vision 40 Stakeholder engagement 57 Corporate governance remuneration 2020 10 Our strategy and 42 Environmental, social and 63 Compliance with the UK 88 Implementation of how we operate governance (ESG) Corporate Governance remuneration policy 12 Key risks and business Code 2018 for 2021 priorities 68 Nominations and Governance 90 Other remuneration matters 14 Why invest in Hiscox? Committee report 94 Remuneration policy 71 Audit Committee report
Chapter 5: Chapter 6: Shareholder information Financial summary
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107 Owning our contributions 113 Owning our adoption of As a Bermuda–incorporated to the local community big-ticket digital trading company, Hiscox is not subject 108 Directors’ report 114 Independent auditor’s report to the UK Companies Act. As a 111 Directors’ responsibilities 122 Consolidated income company listed on the London statement statement Stock Exchange, we comply with 111 Advisors 122 Consolidated statement of the requirements set out in the comprehensive income UK Corporate Governance Code 123 Consolidated balance sheet 2018 and the Listing Rules and 124 Consolidated statement of Disclosure & Transparency Rules changes in equity of the of the UK Listing Authority. 125 Consolidated statement of Our remuneration report is cash flows consistent with UK regulations. 126 No tes to the consolidated Any additional disclosures over financial statements and above these requirements, 187 Additional performance have been made for the benefit of measures (APMs) shareholders, on a voluntary basis. 188 Five-year summary
Hiscox Ltd Report and Accounts 2020 1 2 Hiscox Ltd Report and Accounts 2020 Chapter 1: A balanced business
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Be passionate, curious, restless and always look for a better way.
Showing ownership in claims Among the many life-changing impacts of Covid-19, a postponed concert, deferred sports event or cancelled flight may seem trivial. But for businesses that rely on events for revenue, or individuals unable to return home or be reunited with family members, these cancellations can be devastating. Travel disruption was one of the earliest impacts of Covid-19, and required immediate ownership from our claims teams. In the first month of the UK lockdown, we processed over 200 travel claims, including repatriation costs for customers who were abroad when the Foreign & Commonwealth Office advised all British nationals to return home immediately.
Travel bans and restrictions were soon followed by event cancellations. Our UK team worked with small- to medium-sized businesses to provide support and find solutions. One example was Motorcycle Live 2020, a Birmingham-based show representing the best of the British motorcycle industry. With a global audience, cancelling the November show was not taken lightly, but as a result of our prompt claims resolution they were able to make an announcement in June, provide significant notice for attendees, and shift their efforts to promoting the 2021 event.
Hiscox Ltd Report and Accounts 2020 3 Chapter 1 3 Chapter 2 17 Chapter 3 51 Chapter 4 75 Chapter 5 107 Chapter 6 113 A balanced business A closer look Governance Remuneration Shareholder information Financial summary
Our key performance indicators (KPIs) The global pandemic impacted on profitability in 2020, but digitisation and exceptional commitment from our employees helped to deliver good underlying performance and our usual service levels.
Financial KPIs
Gross premiums written Net premiums earned (Loss)/profit before tax $4,033.1m $2,752.2m $(268.5)m