BUZZ-Hiscox: retreats amid cautious comments on capital returns

** Speciality insurer Hiscox falls back from a record hit last week, down as much as 2.3 pct, after robust H1 earnings get masked by caution on capital returns, slighty dull interim dividend

** H1 PBT of £135 mln (vs £127 mln consensus flagged by a broker)

** Hiscox says too early to anticipate capital returns as the hurricane season has just started and earthquakes can happen at any time

** Also, the impact of Solvency II, continued desire to invest in the brand, & ongoing growth mean its capital requirements increasing; these affect its assessment of what constitutes excess capital at the end of the year

** Co to pay interim dividend of 8 pence (compared with 7.5 pence last year) -- in line with most analysts' expectations but below consensus expectations, RBC Capital Markets say

** Stock hit all-time high last week on expectations of prospective M&A in the Lloyd's of London market (aashika.jain.thomsonreuters.com@reuters.net)