REG - Hiscox Ltd - Q1 2026 Trading Statement

HiscoxAnnouncement

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RNS Number : 3138D  Hiscox Ltd  07 May 2026

Hiscox Ltd trading statement

Hamilton, Bermuda (7 May 2026) - Hiscox Ltd (LSE:HSX), the international
specialist insurer, today issues its trading statement for the first three
months of the year to 31 March 2026 (Q1 2026).

Highlights:

·      Group insurance contract written premiums (ICWP) increased by
10.2% to $1,717.1 million (Q1 2025: $1,558.0 million), driven by accelerating
momentum in Retail and disciplined growth in big-ticket.

·      Hiscox Retail ICWP increased by 15.1% or 8.0%, in constant
currency, in line with our full year guidance. Growth has stepped up in each
of the businesses.

·      Investment result of $34.1 million or a return of 0.4%
year-to-date. This includes $69.6 million of unrealised fair value losses on
fixed income securities that are excluded from adjusted operating profit due
to the higher rate environment which are expected to unwind as the bonds
mature.

·      The change programme is on track with solid progress in
outsourcing certain financial processes and consolidation of IT services under
a single provider.

·      Loss experience in the first quarter has been within expectations
as a benign natural catastrophe environment offset the impact of the Middle
East conflict in the period.

·      Share buyback announced on 25 February 2026 progressing well with
2.6 million shares repurchased at a cost of $54.5 million as at 6 May 2026.

Aki Hussain, Chief Executive Officer, Hiscox Ltd, commented:

 

"Hiscox is building on strong momentum delivered in 2025, through capturing
diverse, high-quality growth opportunities across each of our businesses.
Hiscox Retail growth accelerated to 8.0%, as initiatives to broaden
distribution, increase penetration in specialist niches, and expand specialty
expertise into new markets continue to gain strong momentum. In big-ticket, we
are proactively managing the softening cycle, while achieving growth through
new business initiatives and in selected existing lines where conditions are
more favourable. With our sharp focus on profitable growth and good progress
on the change programme objectives, the outlook for 2026 is positive."

Hiscox Group

Hiscox's diversified business model enables the Group to deliver profitable
growth and capture opportunities in evolving market conditions. All three of
the business segments are delivering top line growth, while we are navigating
competitive market conditions in certain big-ticket property and specialty
lines. Hiscox Retail is our fastest‑growing segment, supported by lower rate
volatility and driven by strong new business formation and increasing market
penetration, as our product and distribution initiatives gain momentum.

Maintenance of our strict profitability hurdles is central to the Hiscox
growth strategy. Business performance is assessed at a granular level
including monitoring rate adequacy of around 100 individual classes of
business that we write across the Group. Our underwriters pursue new business
opportunities, primarily focusing on expansion into existing areas of
expertise and adjacencies, leveraging the underwriting ecosystem we have built
over decades.

Driving efficiencies and operational leverage has long been a key strategic
objective. We are continuing to execute on this through our change programme,
with 175 initiatives currently in-flight. In addition, we are continuing to
deploy AI where appropriate to advance our business. In the first quarter, we
rolled out a group-wide AI literacy programme to equip colleagues with the
knowledge and confidence to unlock the full potential of these new tools at
pace. In London Market, we continue to enhance the capabilities of our AI lead
underwriting tool, increasing the volume of data ingested for middle market
and sabotage and terrorism risks. In addition, we connected the sabotage and
terrorism tool to a broker's platform to further expand distribution.

In our US contact centre, an AI agent is now monitoring inbound calls,
delivering quote to bind and retention improvements through real-time feedback
to our front-line colleagues. In addition, we have launched an AI voice agent
to support the purchasing and claims first notification of loss journeys,
delivering strong customer satisfaction and a 30% reduction in interactions
requiring an advisor.

Over the next few months, we are rolling out significant new capabilities,
including automated triage and AI-powered coverage assessments in claims, a
new Retail customer portal in US DPD and a new pricing engine in the UK that
will increase the range of business eligible for auto-underwriting.

 

ICWP for the period:

 

                       Q1 2026   Q1 2025   Growth %
                       US $m     US $m     USD    CCY
 Hiscox Retail         $847.2    $736.1    15.1%  8.0%
 Hiscox London Market  $342.8    $329.7    4.0%   4.0%
 Hiscox Re             $527.1    $492.2    7.1%   7.1%
 Total                 $1,717.1  $1,558.0  10.2%  6.9%

 

Hiscox Retail

Hiscox Retail grew by 8.0%, in constant currency, to $847.2 million (Q1 2025:
$736.1 million) with growth accelerating in all businesses. The wide range of
growth initiatives implemented across each of the businesses over the last few
years underpinned the continuing acceleration in momentum from 6.3% for full
year 2025. Growth is broad-based and volume-driven, with rate increases of 2%
in the first quarter, reflecting the quality of our customer proposition in a
competitive market.

ICWP for the period:

                      Q1 2026           Q1 2025           Growth %
                      £m/€m     US $m   £m/€m     US $m   US $   CCY
 Hiscox Retail
 Hiscox UK            £181.2    $244.3  £166.3    $209.4  16.7%  8.9%
 Hiscox Europe        €280.1    $328.2  €262.4    $273.5  20.0%  6.8%
 Hiscox USA                     $274.7            $253.2  8.5%   8.5%
 Hiscox Retail total            $847.2            $736.1  15.1%  8.0%

Hiscox UK

Hiscox UK grew by 8.9% in the quarter, in constant currency, to $244.3 million
(Q1 2025: $209.4 million) underpinned by increased production from
distribution deals, brand investment and deepening our sector specialisms.

Our art and private client (APC) franchise maintained strong double‑digit
growth for the seventh consecutive quarter, driven by the ramp‑up of the
recent distribution deals and stronger production in the broker channel, as
investments in AI-driven automation and continued market leading claims
service are translating into premium growth.

In commercial, our sector-focused strategy is delivering results in a
competitive market environment. Focused appetite expansion and increases in
capability have driven strong growth in sectors such as dentists and vets,
specialist and independent retail as well as sports and leisure.

Since our award-winning brand relaunch in 2023, Hiscox has reinforced its
place as one of the most recognised insurers in the UK. In 2026, we are
building on this momentum with a new television campaign going live in the
second quarter, further broadening our reach.

Anish Jadav joined our business during the first quarter as UK Chief
Underwriting Officer having performed similar roles at AXA and Zurich.

Hiscox Europe

Hiscox Europe grew by 6.8%, in constant currency, with ICWP of $328.2 million
(Q1 2025: $273.5 million) with sustained strong growth in Germany and France,
our two largest markets. We continue to enhance our products, responding to
evolving customer needs and market conditions. Following the successful launch
of our new cyber product in France in 2025, this has now been rolled out in
Germany and Ireland with Benelux to follow shortly. The product delivers a
simplified, end-to-end user journey for SME customers, providing access to
vulnerability scanning, preventative services, and partner-delivered IT
support.

We are increasing production from the distribution deals signed in the recent
past, notably the Iberian bancassurance deal. Further, new deals were launched
in the first quarter, including an art and private client distribution
partnership in Ireland. There is a strong pipeline of further opportunities
developing across the region.

Following our entry into Italy in 2025 through a bolt-on acquisition, we have
now received a branch licence and strengthened the country leadership team by
appointing a new Managing Director and premium production has commenced.

Hiscox USA

Hiscox USA's ICWP increased by 8.5% to $274.7 million (Q1 2025: $253.2
million), as momentum builds across both the DPD and broker businesses.

US DPD grew ICWP by 9.6% in the first quarter to $171.0 million (Q1 2025:
$156.0 million), driven by continued double-digit growth in digital direct and
improving production in digital partnerships. In March, digital direct
delivered its highest ever monthly premium through expanding its platform to
include new lead generation arrangements and wider use of social media
platforms. In digital partnerships, growth continues to build from new
distribution agreements, increased engagement and enhancements to the sales
journey.

US broker ICWP growth accelerated to 6.7% from 0.7% in 2025, with ICWP for the
quarter of $103.7 million (Q1 2025: $97.2 million) driven by strong broker
engagement, streamlined workflows improving retention, and broadening our
distribution into life sciences and technology start-ups.

Hiscox London Market

Hiscox London Market grew by 4.0%, to $342.8 million (Q1 2025: $329.7 million)
as the business captured diverse opportunities in a competitive market.
Micro-cycles persist but with more lines now experiencing rate pressure. While
we saw double-digit rate reductions in major property, commercial property and
household, rates increased in general liability and alternative risk. Overall,
rates fell by 4% on average and remain up 60% since 2018, with 75% of our
business rated adequate or better at 1(st) January, as disclosed at the 2025
full year results.

In property, we are walking away from underpriced risk, particularly in
D&F and major property, as we apply our market in transition frameworks
developed during the hard market. Where rates remain adequate, we are stepping
forward and supporting clients. The effect of these actions is offset by our
tech‑enabled expansion into the US middle market.

In casualty, we are growing the existing general liability book as rate
increased by 5% in the quarter and benefiting from last year's new product
launches, including our financial institutions offering.

In both crisis management and marine, energy and specialty, geopolitical
uncertainty is driving demand as clients seek to manage the risks arising from
conflict. With risks priced appropriately, we are continuing to write new
business in the Middle East and have launched a sidecar to supplement our
balance sheet and provide increased capacity and fee income for Hiscox, while
managing the net exposure. Where lines are less directly impacted by the
events in the Middle East, competition is strong and we are managing the cycle
accordingly.

In the first quarter, we launched the Hiscox Portfolio Solutions (HPS)
division. The division brings together our existing alternative risk business,
which selectively backs high-calibre third-party underwriting, with three new
diversifying lines in beta-follow, global MGAs and structured solutions. HPS
allows the Group to access a broader client base, deepen relationships with
partners and write new specialist risks. This new division will leverage our
well-established third-party distribution expertise to deliver high-quality
risk solutions for clients and brokers and unlock new distribution
opportunities for the Group's products.

Hiscox Re

Hiscox Re ICWP increased by 7.1% to $527.1 million (Q1 2025: $492.2 million)
in the first quarter, driven by new third-party capital inflows ahead of the
January renewals. As guided at the 2025 full‑year results, net ICWP fell
5.6% to $209.7 million (Q1 2025: $222.1 million), reflecting decreasing
property catastrophe rates and our decision not to increase net natural
catastrophe exposure at this stage of the cycle, partially offset by growth in
pro‑rata and specialty lines.

 

Rates have seen continued pressure, down 13% in the first quarter, with a
further slight decline at the April renewals and some modest softening of
terms and conditions. Nonetheless business remains well rated overall, with
83% rated adequate or better at 1(st) January, as disclosed at the 2025 full
year results, following a 65% cumulative rate increase since 2018.

 

ILS assets under management increased to $2.4 billion at 1 April 2026 (1
January 2026: $1.5 billion), benefitting from around $1 billion of capital
raised from new investors. The new AUM will support modest growth in ICWP, as
the majority is flowing into our catastrophe bond fund. Investments into our
catastrophe bond fund are expected to generate modest additional fee income in
2026 but do not support written premiums. The pipeline for further alternative
capital inflows remains robust.

Change programme

Our change programme continues at pace. Since the start of the year, we have
successfully transferred the first finance processes to our outsourcing
partner and transitioned to a single strategic provider for our data centre
and cloud support services.

 

The Group is making good progress across all three key workstreams of the
change programme - operational excellence, technology and procurement. We
remain on track to deliver the $75 million P&L benefit in 2026, a major
step towards the target of realising the $200 million annual P&L benefit
in 2028 and beyond.

Claims

Loss experience in the first quarter has been within expectations as a benign
natural catastrophe environment offset the estimated impact of the Middle East
conflict in the period. As a leading specialty insurer, the Group has exposure
to the Middle East conflict through its marine war, kidnap and ransom, and
war, terror and political violence (WTPV) portfolios in Hiscox London Market,
as well as modest exposure through its WTPV, marine and aviation books in
Hiscox Re.

 

To date we have seen a small number of claims primarily in Hiscox London's
K&R and WTPV books, and to a lesser extent in marine war lines. The Group
benefits from comprehensive reinsurance arrangements. We continue to support
our clients in the region. The new business we are writing is priced
appropriately to the elevated risk and the level of uncertainty.

Investments

The investment result for the first quarter was $34.1 million (Q1 2025: $114.1
million), or a year-to-date return of 0.4% (Q1 2025: 1.4%). This includes
$69.6 million of unrealised fair value losses (Q1 2025: gains of $26.9
million) on fixed income securities carried at fair value, reflecting the
higher rate environment, that are excluded from adjusted operating profit.

 

As disclosed in the 2025 full year results, a 100 basis points increase in
interest rates would result in a $164 million loss on investments, partially
offset by $75 million of income through insurance finance expense (IFIE).

The portfolio was impacted by shifts in global market dynamics driven by the
conflict in the Middle East, which pushed inflation expectations higher. This
lifted government bond yields, resulting in mark‑to‑market losses on our
fixed income holdings. Credit spreads have widened but continue to reflect
stable fundamentals. Importantly, our exposure to Middle Eastern corporates
and government bonds is minimal, so direct impact has been negligible.

Group invested assets as at 31 March 2026 were $9.3 billion (FY 2025: $9.2
billion). At 31 March 2026, the Group's bond portfolio reinvestment yield was
4.4% with a duration of 2.0 years. 94% of the portfolio is in cash and cash
equivalents and fixed income securities which are conservatively positioned,
with an average credit rating of 'A'. Hiscox maintains a small allocation to
private credit which is well diversified across managers, vintages and market
sectors.

Capital management

The Group remains well-capitalised on both a regulatory and rating agencies
basis, with high levels of liquidity and strong capital generation.

We have the flexibility to deploy capital into each of our business units
where we see attractive growth opportunities, while maintaining balance sheet
strength and financial flexibility in line with our strategy.

As at 6 May 2026, the Group had repurchased 2.6 million shares for a total
consideration of approximately $54.5 million as part of the $300 million share
buyback programme announced on 25 February 2026.

ENDS

A conference call for investors and analysts will be held at 09:00 BST on
Thursday, 7 May 2026.

Participant dial-in numbers:

United Kingdom (Local): +44 20 3936 2999

All other locations: +44 808 189 0158

Participant Access Code: 298972

Investors and analysts

Yana O'Sullivan, Director of Investor Relations, London +44 (0)20 3321 5598

Marc Wetherhill, Group Company Secretary, Bermuda +1 441 278 8300

 

Media

Eleanor Orebi Gann, Group Communications Officer, London +44 (0)20 7081 4815

Simone Selzer, Brunswick +44 (0)20 7404 5959

Notes to editors

About The Hiscox Group

Hiscox is a global specialty insurer, headquartered in Bermuda and listed on
the London Stock Exchange (LSE:HSX). With roots dating back to 1901, 2026
marks 125 years of Hiscox and we are proud of our long heritage in insuring
specialist and complex risks. Our ambition is to continue to be among the
world's most respected specialist insurers, with a diverse portfolio by
product and geography. We believe that building balance between
catastrophe-exposed business and less volatile local specialty business gives
us opportunities for profitable growth throughout the insurance cycle.

The Hiscox Group employs over 3,000 people in 13 countries and has customers
worldwide. Through our retail businesses in the USA, UK and Europe, we offer a
range of specialist insurance products in commercial and personal lines.
Internationally traded, bigger-ticket business and reinsurance is underwritten
through Hiscox London Market and Hiscox Re.

Our values define our business, with a focus on people, courage, ownership and
integrity. We pride ourselves on being true to our word and our award-winning
claims service is testament to that. For more information, visit
www.hiscoxgroup.com (http://www.hiscoxgroup.com) .

 

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