Hiscox Ltd reported insurance contract written premium (ICWP) of $3,238.4 million for the first half of 2026, a 10.1% increase from the same period in 2025, as the group grew across all three business segments while actively reducing its appetite in classes where rates were no longer adequate.
The group's undiscounted combined ratio improved to 90.4% from 92.6% in H1 2025. Adjusted operating return on tangible equity (ROTE) rose to 20.2% from 14.5%, above the group's through-the-cycle mid-teens target. Profit before tax was $240.5 million, compared to $276.6 million in the first six months of 2025, with the decline driven partly by a lower investment result.
The investment result was $128.2 million for H1 2026, against $234.9 million for H1 2025, reflecting $76 million in unrealised fair value losses on fixed income securities caused by higher interest rates. These losses are excluded from adjusted operating profit and are expected to unwind as bonds mature.
Group chief executive Aki Hussain said the results reflected profitable growth across the portfolio. "We are delivering on our commitments, achieving our targets and realising our strategic ambitions," he said, pointing to double-digit premium growth in retail and what he described as disciplined navigation of an evolving market in big-ticket business.
The cycle management picture in Hiscox London Market is the most broker-relevant development in these results. Rates across the London Market portfolio fell 5% in aggregate in H1 2026, though they remain 59% above 2018 levels. In major property, rates declined 14% on business written and Hiscox non-renewed 17% of risks where rate declines were steeper or terms widened. In power and renewables, double-digit rate decreases led to the non-renewal of 23% of the business.
Hiscox London Market's selective retreat reflects a wider market dynamic. Lloyd's flagged in late 2025 that property rate softening was continuing at a speed the corporation considered problematic, with rates having fallen in both Q1 and Q2 2025 and further declines expected into 2026. For brokers placing major property and energy risks, Hiscox's reduced appetite is part of a broader tightening across the London market.
Hiscox London Market grew ICWP by 9.8% to $733.2 million, though underlying growth was 5.3% after stripping out prior-year premium adjustments. The undiscounted combined ratio deteriorated to 93.8% from 87.9% in H1 2025, reflecting a prudent estimated net loss of $40 million reserved in relation to the Middle East conflict across war, terror, political violence, marine war, and kidnap and ransom lines. Across the group, the total net Middle East loss reserve was $60 million, with the remaining $20 million held in Hiscox Re.
At the same time, Hiscox London Market is expanding into adjacent lines where returns are considered attractive, including downstream energy, US middle market property and technology errors and omissions.
Hiscox Retail grew ICWP by 8.2% in constant currency to $1,560.7 million, with the group upgrading its full-year 2026 retail growth guidance from 8% to 9% in constant currency. The segment's undiscounted combined ratio was 92.1%, within the 89% to 94% target range.
Hiscox UK grew ICWP by 10.2% in constant currency to $530.2 million. New underwriting appetite was added during the half, including forensic scientists, food technologists, podcasters, and online tutors. The group's affirmative AI cover, already in place for technology professional indemnity, was extended to the media proposition.
Hiscox Europe grew ICWP by 6.2% in constant currency to $494.6 million. The group's cyber product, launched initially in France and Germany, was rolled out across all European markets in H1 2026. Hiscox USA grew ICWP by 8.1% to US$535.9 million, with digital direct delivering record premium in the first half.
Hiscox Re grew ICWP by 6.4% to $944.5 million, though net ICWP fell 7.4% to $381.1 million as the segment reduced net catastrophe exposures in a softening market. ILS assets under management more than doubled to $2.9 billion at July 1 from $1.5 billion at January 1, driven by $1 billion of inflows into catastrophe bond funds. The undiscounted combined ratio improved sharply to 70.4% from 99.5% in H1 2025.
The group's change programme delivered a $45 million P&L benefit in H1 2026 at a cost of $39 million, remaining on track to deliver $75 million in 2026 and $200 million by 2028. The board declared an interim dividend of 16.8 cents per share, a 16.7% increase on H1 2025, payable on September 21 to shareholders on record as of August 14.
