Hiscox Re, the reinsurance operation and third-party capital platform of Hiscox Ltd, delivered higher profit before tax of $94.6 million and an improved combined ratio of 64.7% in the first half of 2026, as net exposures reduced as the firm focuses on “supporting the growth of high-quality and long-term cedants”.
Hiscox Re insurance contract written premium (ICWP) rose by 6.4% year-on-year to $944.5 million in H1’26, supported by new third-party capital inflows from quota-share partners and institutional investors.
However, rates fell 16% in the six month period, while Hiscox Re also notes some modest softening in terms and conditions. That said, the reinsurer states that 83% of the portfolio remains rate adequate or better, with rates up 54% since 2018.
“Hiscox Re, in line with expectations, is managing net natural catastrophe exposures at this point in the cycle. Following multiple years of growth, net exposures are now reducing as we focus on supporting the growth of high-quality and long-term cedants through a combination of Hiscox and third-party capital, while reducing exposure to more opportunistic business written in better market conditions,” said the firm.
As a result, net ICWP at Hiscox Re decreased by 7.4% to $381.1 million, as reductions in catastrophe exposures only partly offset growth in pro-rata and specialty lines.
Hiscox Re’s insurance service result increased to $62.5 million in H1’26 from $8.5 million in H1’25, as profit before tax increased by $40.6 million, and adjusted operating profit before tax rose to $105.3 million from $45.8 million. Hiscox Re reserved an estimated net loss of $20 million in relation to the Middle East conflict.
The business once again saw strong third-party capital support across traditional quota-share partners and ILS, with ILS assets under management up by $1.4 billion to $2.9 billion at July 1st, 2026.
At Hiscox London Market, which offers a broad and diverse range of specialist insurance, ICWP increased by 9.8% to $733.2 million, as net ICWP increased slightly to $462.6 million. The firm highlights the capture of new business opportunities, which more than offset the impact of proactive cycle management.
The segment’s insurance service result fell to $44.1 million in H1’26 from $61.8 million in H1’25, as profit before tax decreased to $71.8 million from $106.9 million, and adjusted operating profit before tax decreased to $85.7 million from $98.5 million. The combined ratio rose to 89.1% from 83.7%, which reflects the impact of the conflict in the Middle East. Hiscox London Market reserved an estimated net loss of $40 million in relation to the Middle East conflict, driven by lines such as war, terror and political violence (WTPV), marine war and kidnap and ransom.
In terms of Group claims, Hiscox says that the loss experience was in line with expectations during the first half of the year. While losses from natural catastrophes had been largely benign, the Group reserved an estimated net loss of $60 million for the conflict in the Middle East.
Turning to Hiscox Retail, which includes the Hiscox UK, Hiscox Europe and Hiscox USA retail businesses, ICWP rose to $1.56 billion in H1’26 from $1.39 billion in H1’25, as net ICWP increased to $1.43 billion from $1.27 billion. Hiscox notes that growth is volume-driven, with policy count growth outpacing premium increases and rate increasing modestly by 1%.
Hiscox Retail’s insurance service result increased to $149.2 million from $128 million, as profit before tax fell to $169.8 million from $180.7 million, and adjusted operating profit before tax increased to $191.5 million from $165.7 million. The combined ratio improved slightly to 88.1% from 88.6%.
Group-wide, Hiscox generated ICWP of $3.24 billion in H1’26, an increase on the prior year’s $2.94 billion, as net ICWP hit $2.27 billion, an increase on the prior year’s $2.13 billion.
The insurance service result moved from $196.2 million in H1’25 to $255.4 million in H1’26, while the investment result fell to $128.2 million from $234.9 million, with profit before tax of $240.5 million in H1’26, down on the previous year’s $276.6 million. The Group combined ratio strengthened to 90.4% in H1’26 compared with 92.6% in H1’25.
Aki Hussain, Group Chief Executive Officer, Hiscox, said: “Our diverse business portfolio, underpinned by our specialty underwriting ecosystem, entrepreneurial culture and a relentless focus on dynamic capital allocation and returns, has led to Hiscox again delivering robust outcomes in a more unpredictable and challenging market.
“We are delivering on our commitments, achieving our targets and realising our strategic ambitions. I am pleased with the double-digit premium growth in the first half, as Retail continues its multi-year growth acceleration and we successfully navigate an evolving market in big-ticket through disciplined underwriting, innovation and proactive cycle management.
“As we grow, we are becoming more efficient. Enhanced operational capabilities, increasingly powered by AI where it makes sense, are driving productivity gains and delivering greater operating leverage.
“The adjusted operating ROTE of 20.2% reflects the benefit of the combined Group and is driven by profitable growth in all businesses, underwriting excellence and a growing investment portfolio.
“The outlook remains positive. In Retail, strong growth in the first half, powered by a broad base of initiatives, gives us confidence to upgrade Hiscox Retail’s constant currency 2026 growth guidance to 9% for the full-year.”
