Berenberg Makes 'Modest' Hiscox Forecast Changes Amid Retail Growth Expectations

05:32 AM EDT, 08/24/2026 (MT Newswires) -- Berenberg made "modest" adjustments to its forecasts for Hiscox (HSX.L) amid its view that the London-listed insurance group's growth momentum, thanks to its retail business, is "underpriced." "In the current market conditions, Hiscox offers a rare story of accelerating top-line growth among the insurers in our coverage, driven by the Retail business, its crown jewel. Past and ongoing initiatives in Retail, along with a growing addressable market, bode well for Hiscox's top-line evolution and, along with its cost-efficiency change programme, group operating leverage should also continue improving into outer years. Moreover, Hiscox has room to increase its financial leverage and improve its cost of capital, although this is likely a consideration for next year," analysts said in a note published Monday. "We believe the shares do not reflect this growth potential and optionality, trading on c10x two-year blended forward P/E, a c10% discount to the sector." As such, net income and adjusted EPS projections for 2026 were lifted by 2.4% and 2.2%, respectively. For 2027 and 2028, the estimates for both metrics were also increased. The research firm also noted that it expects the insurer to achieve its 2028 double-digit growth rate target at its retail business one year ahead, supported by continued new product launches, distribution deals and partnerships, and growth opportunities in the US. The stock's buy rating was left unchanged, along with the price target of 21.50 pounds sterling.