Hiscox (LON:HSX) reported a 9.5% increase in insurance contract written premiums for the first nine months of 2026, surpassing $4.4 billion, as momentum accelerated across its retail operations and growth initiatives offset active underwriting discipline in big-ticket insurance and reinsurance.
Chief Financial Officer Paul Cooper said retail premiums reached $2.25 billion, up 9.1% at constant currency, with double-digit growth during the third quarter. He said the performance left the insurer “well-positioned” to meet its upgraded full-year guidance, while supporting its target for double-digit retail growth by 2028.
Retail Growth Broad-Based Across Markets
- U.K. premiums rose 11.1% at constant currency to £811 million. Direct commercial new business increased about 40% year over year, while APC recorded its ninth consecutive quarter of double-digit growth.
- European premiums rose 7.4% at constant currency, supported by execution improvements in the DPD business, deeper broker penetration, product development and distribution agreements.
- U.S. premiums increased 8.4% to $792 million. U.S. DPD premiums rose 10.1% to $491 million, while U.S. broker premiums rose 5.8% to $300 million.
Cooper said Hiscox had nearly doubled the number of U.S. partnership-channel partners since replatforming the business in 2023. Several longstanding partners delivered double-digit new-business growth during the third quarter, he added.
The company said it was pursuing growth in targeted customer segments and products, including online streamers, podcasters and online tutors, as well as a revamped cyber product being rolled out in Europe. In the U.S. broker market, higher retention, expansion in life sciences and technology startups, and investments in allied-healthcare underwriting talent supported growth.
Cooper described the U.S. broker operation as the more competitive part of Hiscox’s U.S. business. However, he said the company’s main focus is small and micro businesses, typically with five or fewer employees, a segment he characterized as fragmented and underserved.
Cycle Management Weighs on Big-Ticket Premiums
London Market premiums increased 9.9%, approaching $1.1 billion. Underlying growth excluding prior-period premium adjustments was 3.9%. Rates across the portfolio fell 5% in the first nine months, though they remained 59% above 2018 levels.
Proactive cycle management in major property, upstream energy, power and renewables reduced London Market premium growth by 9 percentage points. Hiscox said this was more than offset by selective growth in existing operations, expansion into adjacent specialty classes and the development of Hiscox Portfolio Solutions.
Cooper said the company was seeing opportunities in areas including middle-market property, downstream energy, financial institutions, credit and political risk. Growth also came from general liability and flood, though he said the contribution from Middle East-related new business was “pretty modest.”
In reinsurance, written premiums rose 4.5% to £1.1 billion, while net written premiums declined 7.5% to £486 million amid softer pricing and active cycle management. Reinsurance rates declined 14% during the period but remained 55% above 2018 levels. Insurance-linked securities assets under management reached a record £3.1 billion as of Oct. 1, with roughly two-thirds in private ILS strategies.
Cooper said reinsurance was the group’s most capital-intensive business, followed by London Market, with retail the least capital intensive. If the rate environment remains similar, he said the company could continue reducing natural-catastrophe exposures in reinsurance, while retail and London Market growth would also require capital.
Claims, Reserves and Change Program
Third-quarter loss experience was within expectations across the group. In big-ticket operations, benign natural-catastrophe experience more than offset marine losses related to the ongoing Middle East conflict, Cooper said.
The company’s Middle East reserve was unchanged from the first half, although the proportion classified as incurred-but-not-reported claims had declined from about 75% to roughly two-thirds. Cooper said Hiscox remains open for business in the region while pricing risks commensurately.
On casualty exposures, Cooper said general liability represented a relatively small share of the London Market portfolio. He pointed to an 86% reserve-strength percentile at the half year, 19 consecutive years of positive reserve development and loss portfolio transfers covering certain 2019 and prior liabilities.
Hiscox remains on track to generate a £75 million profit-and-loss benefit from its change program in 2026, with retail expected to receive the largest benefit. The program includes operating-model redesign, cost discipline and changes to sourcing and location strategy. The company began rolling out a new U.S. direct customer portal during the quarter and is launching a European broker portal while developing a U.K. pricing engine.
Cooper reiterated retail combined-ratio guidance of 89% to 94%, saying the company expects to move toward the lower end of the range as the change program is implemented.
Investment Income and Capital Position
The group reported a £104 million investment result for the first nine months. Its reinvestment yield rose to 5.1% from 4.4% at the half year as government bond yields increased. Hiscox recorded a £192 million unrealized fair-value loss on bonds and fixed-income holdings, which Cooper said is expected to unwind as the securities mature.
More than 90% of the investment portfolio was held in cash equivalents or investment-grade fixed-income securities, with an average credit rating of A and duration of two years.
Hiscox also refinanced maturing senior debt through a £300 million issuance with a 5.875% coupon. The notes are not eligible as BSCR capital and will be used for general corporate purposes. Cooper said the issuance refinanced existing senior debt, rather than addressing a capital need, and that the company had approximately a 210% pro forma solvency position at the half year.
The company said its share buyback was more than 80% complete as of Oct. 30. Cooper said Hiscox would review capital management following its full-year reporting period, with priorities including profitable growth, balance-sheet strength, a progressive dividend and potential shareholder distributions.
About Hiscox (LON:HSX)
Hiscox is a global, specialty insurer, listed on the London Stock Exchange and headquartered in Bermuda. We have grown from
our roots as a niche Lloyd’s of London underwriter into a diversified international insurance group operating across direct‑to‑consumer, broker and partner‑distributed retail insurance; large and complex commercial insurance; reinsurance and insurance‑linked strategies.
We currently employ over 3,000 people worldwide across 13 countries and 31 offices. We have a distinctive brand, energised and ambitious teams, a strong balance sheet, and plenty of room to grow in each of our chosen markets and lines of business.
