Hiscox reported a 9.5% rise in insurance contract written premiums for the first nine months of 2026, as faster growth in its retail business offset softer pricing in reinsurance and parts of the London specialty market. Premiums reached $4.44 billion in the period to 30 September, up from $4.05 billion a year earlier, the Bermuda-headquartered, London-listed insurer said in a trading statement on Tuesday.
Shares in Hiscox rose almost 3% in early London trading, placing the company among the FTSE 100’s leading gainers and taking the stock close to its 52-week high, according to Investing.com and AskTraders.
The update offers a snapshot of a market in transition, with specialty and catastrophe reinsurance rates continuing to ease after several years of hard-market conditions, while small-business and personal lines continue to deliver steady volume growth.
Key Takeaways
- Hiscox’s insurance contract written premiums rose 9.5% to $4.44 billion in the nine months to 30 September.
- Retail premium growth accelerated to 11% in the third quarter, and full-year retail guidance of 9% was maintained.
- Risk-adjusted rates fell 14% in reinsurance and 5% in the London Market as pricing in specialty lines softened.
- Third-quarter claims were within expectations, with benign catastrophe activity offsetting marine losses linked to the Middle East conflict.
Retail Division Drives Growth
The retail division, which serves small businesses and high-net-worth individuals in the United Kingdom, Europe, the United States and Asia, was the main source of momentum. Premium growth in the unit accelerated to 11% in the third quarter, according to the company’s statement as reported by Investing.com and other outlets.
Hiscox said it remained on track to deliver full-year retail growth of 9% at constant currency, in line with earlier guidance. Rates in retail rose by about 1%, a modest increase that reflects a more competitive environment for smaller commercial risks than in previous years.
Group premium growth was broadly in line with the insurer’s strategy of shifting its business mix towards retail lines, which typically offer more stable margins and lower exposure to large catastrophe events than its wholesale and reinsurance operations.
Softer Pricing in Specialty Lines
In the London Market division, which writes larger and more complex specialty risks through Lloyd’s, premiums rose by close to 10% over the nine months. However, risk-adjusted rates in the division declined by 5%, the company said, indicating that pricing has moved past its peak in several classes.
The reinsurance arm, Hiscox Re and ILS, reported a sharper adjustment. Net premiums in the unit fell by about 7.5%, reflecting a more selective approach to the risks the business retains. Risk-adjusted reinsurance rates were down 14% over the first nine months of the year, according to the statement as reported by Artemis and AskTraders.
The company said it was walking away from business it considered underpriced, while maintaining its position in areas where the economics remain favourable, according to remarks by Chief Executive Aki Hussain reported by AskTraders. The approach mirrors comments from other London and Bermuda carriers, which have prioritised underwriting margins over top-line growth as the reinsurance cycle softens.
Claims and Capital Remain Stable
Claims experience in the third quarter was in line with expectations. Marine losses associated with the conflict in the Middle East were offset by benign natural catastrophe activity in the group’s large-ticket businesses, while retail losses were consistent with forecasts.
The investment return for the nine months was 1.2%, according to the trading update. Hiscox also reported progress on its $300 million share buyback programme, with about $242 million of shares repurchased by the end of October.
The insurer reiterated that its operational change programme is expected to deliver a $75 million benefit in 2026, part of a broader effort to improve efficiency and support margins as premium growth in wholesale lines slows.
Sector Faces a Softening Cycle
The results come as the global property and casualty market adjusts to falling reinsurance prices. Strong capital levels across the reinsurance sector, alongside growing participation by insurance-linked securities investors, have increased the supply of catastrophe capacity and placed downward pressure on rates at recent renewals.
At the same time, benign natural catastrophe activity in the third quarter has supported earnings across the sector, allowing insurers with diversified books to absorb pockets of loss such as marine and political risk claims.
Looking ahead, investors will focus on the January 2027 reinsurance renewals, where further rate reductions are widely expected, and on whether Hiscox can sustain double-digit retail growth as competition intensifies. The pace of buyback completion and the group’s full-year results, due early next year, will provide further evidence of how effectively the insurer is balancing growth against underwriting discipline in a softening market.
