Covid caught Hiscox off guard, as the group had expanded aggressively over the previous two decades while failing - as became clear at the time - to set aside adequate reserves for its risk. It therefore turned to a highly dilutive capital increase at the worst possible moment.

At the same time, Hiscox drew sharp criticism from its professional clients for initially refusing to cover closure costs - on the grounds that these were not mandated for small consulting firms, which make up the vast majority of the insurer's commercial portfolio.

The company was ultimately ordered to compensate the claimants, albeit on terms far more favourable than investors had feared. The affair nonetheless cost charismatic Bronek Masojada his job, the South African executive who transformed Hiscox from a third-tier player into a global insurer.

Putting these setbacks aside, it should be acknowledged that premiums have risen uninterruptedly - even after the group's pandemic troubles - at a satisfactory pace for ten years, and by another 11% in 2025. Over the full decade, premium volume has more than doubled, and operating profit has almost quadrupled.

Hiscox is reaping the rewards of an aggressive growth strategy - which for a time raised doubts about its ability to truly meet its commitments - and, above all, the strong performance of the US property insurance market. Even the new chief executive, Aki Hussain, the group's former CFO, has publicly voiced concern about such a trend.

In any case, this has enabled Hiscox to offset its loss of market share in specialty lines - notably professional indemnity and cyber risk - where the London group was once a pioneer. For FY 2025, it is posting pre-tax profit of $733m, a record high.

The market, which once valued Hiscox at a very clear premium to its peers, had seen these developments coming, as reflected in the share price this year, which is enjoying a rally similar to the rest of the insurance sector - valued at record levels.

In this context, Hiscox's decision to launch a $300m share buyback program rather than pay a dividend raises some questions.