Hiscox Ltd (LSE:HSX) reported a 9.5% increase in insurance contract written premiums to $4.44 billion for the nine months ended 30 September 2026, supported by accelerating growth across its Retail operations and expansion into specialist insurance markets.
The international insurer recorded Retail premium growth of 9.1% in constant currency, while its London Market and reinsurance businesses also reported higher gross premiums despite increasingly competitive pricing conditions.
Hiscox maintained its full-year Retail growth guidance of 9% in constant currency and confirmed that its operational change programme remains on track to deliver $75 million in profit and loss benefits during 2026.
Retail Premiums Rise 9.1% in Constant Currency
Hiscox Retail generated insurance contract written premiums of $2.25 billion during the first nine months, compared with $2.01 billion a year earlier.
This represented reported growth of 11.9%, or 9.1% at constant exchange rates, with double-digit constant currency growth achieved during the third quarter.
The UK business recorded premiums of $811.1 million, up 11.1% in constant currency, supported by new distribution agreements, digital sales and demand from smaller businesses.
Hiscox Europe’s premiums increased by 7.4% in constant currency to $650.6 million, reflecting growth in digital partnerships and broker distribution.
In the United States, premiums rose 8.4% to $791.6 million. The digital partnerships and direct business grew 10.1% to $491.4 million, while the US broker business increased 5.8% to $300.2 million.
The company said Retail growth was primarily driven by higher volumes, with premium rates increasing by approximately 1%.
Chief Executive Officer Aki Hussain said the division continued to benefit from product development and distribution initiatives.
“In Retail, momentum continues to build, supported by targeted management actions as well as strong new business formation trends,” Hussain said.
London Market Premiums Increase Despite Pricing Pressure
Hiscox London Market reported a 9.9% increase in written premiums to $1.05 billion, compared with $955.7 million in the corresponding period last year.
Underlying growth, excluding prior-period premium adjustments, was 3.9%.
The insurer continued reducing exposure to business where pricing was considered insufficient, particularly in major property, upstream energy, power and renewables.
These underwriting decisions reduced growth by nine percentage points but were offset by expansion into adjacent specialist classes, growth in Hiscox Portfolio Solutions and selective new business opportunities.
Premium rates across London Market declined by 5% during the first nine months, although they remained 59% above 2018 levels.
Reinsurance Premiums Grow as Net Catastrophe Exposure Declines
Hiscox Re reported gross written premiums of $1.13 billion, an increase of 4.5% from $1.08 billion a year earlier.
However, net written premiums declined by 7.5% to $486.1 million, reflecting deliberate reductions in exposure to natural catastrophe risks.
The company said its retrocession exposure was 36% below peak levels reached during the stronger pricing environment.
Reinsurance rates declined by 14% during the reporting period but remained 55% above 2018 levels.
Insurance-linked securities assets under management reached a record $3.1 billion at 1 October 2026, compared with $2.9 billion at the beginning of July.
The increase was supported by retained earnings following relatively benign catastrophe losses and continued demand from third-party capital providers.
Investment Result Falls to $104.2 Million
Hiscox reported an investment result of $104.2 million for the first nine months, compared with $350.8 million in the corresponding period of 2025.
The year-to-date investment return declined to 1.2% from 4.2%, reflecting the impact of rising government bond yields on the valuation of fixed-income holdings.
The company recorded unrealised fair value losses of $192.2 million on debt and fixed-income investments, compared with gains of $63.4 million a year earlier.
Hiscox expects these unrealised losses to unwind as the underlying bonds mature.
Excluding the relevant fair value movements, the investment result included in adjusted operating profit before tax was $296.4 million, compared with $287.4 million in the previous year.
Higher interest rates also increased the portfolio’s reinvestment yield to 5.1%, from 4.4% at the half-year stage.
Group invested assets totalled $9.3 billion at 30 September 2026.
Cost Reduction Programme Remains on Track
Hiscox confirmed that its transformation programme is expected to deliver $75 million in profit and loss benefits during 2026, with an associated implementation cost of $75 million.
The programme includes operational restructuring, sourcing improvements, location optimisation and technology investment, with Retail expected to receive the largest share of the benefits.
The company is introducing additional artificial intelligence and digital capabilities across its operations, including a new US direct customer portal, automated broker quotation tools and a new pricing engine in the UK.
In the US broker business, an AI-supported submission-to-quote system has improved quotation speed by approximately 75% in selected insurance classes.
Hiscox also confirmed the appointment of Phil Withey as Group Chief Information Officer.
Share Buyback Reaches 81% Completion
Hiscox said its $300 million share repurchase programme, announced in February 2026, was approximately 81% complete as of 30 October.
The company had repurchased 10.3 million shares for total consideration of $241.9 million.
Separately, Hiscox issued £300 million of senior unsecured notes carrying a fixed interest rate of 5.875%, maturing in October 2031.
The refinancing was accompanied by the repurchase of its outstanding 6% notes due in 2027.
The insurer said its capital position remained strong, with sufficient liquidity to support investment opportunities and shareholder distributions.
Outlook
Hiscox maintained its expectation of 9% constant currency growth in Retail premiums for the full year, supported by continued expansion across its UK, European and US businesses.
The company also reiterated its target of $75 million in benefits from its operational change programme during 2026.
Third-quarter claims experience remained within expectations, with relatively limited natural catastrophe losses offsetting losses associated with the Middle East conflict.
Hiscox continues to prioritise underwriting profitability over premium volume in its London Market and reinsurance divisions as pricing conditions become more competitive.
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