Full Year Results

Hiscox Ltd

25 February 2026

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Hiscox Ltd full year results

For the year ended 31 December 2025

"Record results, strategic execution and building momentum."

	2025	2024
Insurance contract written premium1,2	$4,979.0m	$4,703.7m
Net insurance contract written premium1	$3,865.8m	$3,622.4m
Insurance service result	$613.9m	$553.5m
Investment result	$442.7m	$383.9m
Profit before tax	$732.7m	$685.4m
Adjusted operating profit before tax1	$743.8m	$683.3m
Earnings per share	180.7¢	183.2¢
Adjusted operating earnings per share1	183.9¢	184.4¢
Total dividend per share	50.3¢	43.1¢
Net asset value per share1	1,220.0¢	1,086.4¢
Group combined ratio (undiscounted)1	87.8%	89.2%
Positive prior year development1	$292.7m	$145.5m
Bermuda solvency capital ratio (BSCR)3	233%	229%
Return on equity (ROE)1	17.1%	19.8%
Operating return on tangible equity (ROTE)1	20.9%	24.1%

Highlights

•     Insurance contract written premium (ICWP) increased by 5.9% or $275.3 million to $4,979.0 million (2024: $4,703.7 million), with profitable growth delivered in all three business segments.

•     Hiscox Retail ICWP increased by 6.3%, in constant currency, in line with guidance; volume-led growth is expected to continue this multi-year acceleration trend, building to 8.0% for full year 2026 and setting the course for double-digit growth in 2028.

•     Record underwriting profit, with an insurance service result (ISR) of $613.9 million (2024: $553.5 million).

•     Undiscounted combined ratio of 87.8% (2024: 89.2%), the best Group combined ratio in a decade, underpinned by continued margin expansion in Hiscox Retail, Hiscox London Market delivering a sixth consecutive year of an undiscounted combined ratio in the 80s, and Hiscox Re delivering a third consecutive year of an undiscounted combined ratio in the 60s.

•     A growing asset base, combined with earn-through of higher coupons and fair value gains, support a record investment result of $442.7 million (2024: $383.9 million).

•     Change programme delivers $29 million P&L benefit in 2025, remaining on track for $75 million in 2026 and $200 million in 2028 and onwards.

•     Third consecutive year of record profit before tax of $732.7 million (2024: $685.4 million) and adjusted operating profit before tax of $743.8 million (2024: $683.3 million).

•     Operating ROTE of 20.9% (2024: 24.1%). ROE of 17.1% (2024: 19.8%).

•     Final dividend increased by 20%, for the second consecutive year, to 35.9 cents per share (2024: 29.9 cents per share).

•     New share buyback of $300 million, taking total capital returns to shareholders, across dividends and buybacks, announced over the last three years to over $1.1 billion.

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

"2025 was a pivotal year for Hiscox as we delivered another strong performance and made excellent progress in executing our growth and change strategy. In Hiscox Retail, we have achieved multi-year growth and margin expansion through new products, deeper distribution, the deployment of new technologies and execution of our change programme. Our retail markets present a large and attractive opportunity with a long runway of growth on which we are executing at pace. In big-ticket, our specialist expertise and technology capabilities have enabled us to launch new business initiatives, more than offsetting the dynamics of our cycle management actions. We are executing on our strategic agenda, and our commitment to underwriting excellence remains at the core.

Innovation across the Group is accelerating, with more product launches this year than over the previous five years, and employee engagement remains at an all-time high. Our change programme is firmly on track, building capabilities to improve service and productivity.

This strong performance and strategic execution enable us to reward shareholders, with the final dividend per share increasing by 20% for a second consecutive year and a third consecutive share buyback launched, taking the combination of shareholder returns through dividends and buybacks announced over the last three years to over $1.1 billion.

We are a leading pure-play specialty insurer with a diverse and balanced business, uniquely positioned to seize the opportunities in front of us and deliver value to our shareholders. We are firmly on track to deliver our strategic initiatives and the guidance set out at our Capital Markets Day in May 2025, and I want to thank all my colleagues for their continued hard work in driving Hiscox forward."

ENDS

A conference call for investors and analysts will be held at 10:30 GMT on Wednesday, 25 February 2026.

Participant dial-in numbers:

United Kingdom (Local): [phone]

All other locations: [phone]
Participant access code: 110233

For further information

Investors and analysts

Yana O'Sullivan, Director of Investor Relations, London [phone]

Marc Wetherhill, Group Company Secretary, Bermuda [phone]

Media

Eleanor Orebi Gann, Chief Communications Officer, London [phone]

Simone Selzer, Brunswick [phone]

The person responsible for arranging and authorising the release of this announcement on behalf of the Company is Marc Wetherhill, Group Company Secretary.

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.

Chief Executive's report

Strategic execution

2025 has been another year of strong performance, as the pace, energy and innovation of my colleagues across our diverse business delivered continued growth momentum and excellent profitability. The Group achieved a third consecutive year of record profit before tax of $732.7 million and an operating ROTE of 20.9%, exceeding our through-the-cycle mid-teens target despite a 2.5 percentage point impact following the introduction of the Bermuda corporate income tax. This strong performance is driven by a record insurance service result of $613.9 million and a record investment result of $442.7 million. Continued strong capital generation has enabled the Board to approve a new $300 million buyback and ratify the second consecutive year of a 20% increase to the final dividend per share.

This has been a pivotal period in the journey of Hiscox. We made strong progress on executing our strategic growth and change initiatives, building on the momentum of prior years, to establish the foundations to progress at pace. The Group has set clear ambitions to accelerate Hiscox Retail's growth to double-digit and realise a P&L benefit of $200 million in 2028 and onwards from our change programme, while pioneering the use of cutting-edge technologies to access new markets and drive increased operating leverage. We are firmly on track to deliver against this strategy and ambition.

In 2025, growth accelerated as we entered adjacent specialist segments, launched more products and expanded our distribution and geographic footprint.

Profitable growth through the cycle

The pace and energy across the Group, underpinned by our specialist insurance expertise, is creating substantial momentum, launching more products in 2025 than over the previous five years. In Hiscox Retail, capitalising on our expertise to underwrite emerging professions, we have, among other things, expanded our appetite to include influencers in Europe and technology start-ups in the USA. As the world rapidly evolves, we are taking the lead through innovation. In Hiscox London Market, we are leveraging the latest advanced risk modelling to meet demand from Californian homeowners and, through the use of technology, opening up new market opportunities such as SME cargo solutions.  In Hiscox Re, we have developed a climate and resilience capability to support the growing demand from emerging markets.

Across the Group, we are expanding distribution with many sizeable new deals won, including our largest two deals in the UK in recent years and new cross-market deals as we leverage the power of the Group. In 2025 we entered Italy, our first new country in over a decade, through the bolt-on acquisition of a local digital broker.

Simplifying Hiscox to deliver operating leverage

Our change programme is enabling the business to unlock profitable growth, optimise efficiency and enhance operating leverage. We are building new capabilities that will enhance our proposition to customers and partners, help us become more agile and increase our capacity to innovate. Strong progress has been made in 2025, with the programme realising a P&L benefit of $29 million and remaining on track to deliver $75 million in 2026, ahead of the full $200 million in 2028.

Technology

In recent years, we have been building the core technology foundations for our business. Now, through the combination of new technologies and the rationalisation of applications, we are delivering better service to customers and partners, expanding distribution and connectivity, optimising marketing and improving productivity.

The accelerating pace of generative AI adoption provides Hiscox with a significant opportunity. We are deploying AI-enhanced tooling throughout the Group, often re-using tools and capabilities from one area of the business in another, delivering efficient implementation. The benefits from the Group's ecosystem are compounding as we execute on our initiatives.  

Our retail business is well positioned to win in the emerging age of agentic e-commerce, with a leading global retail digital partners and direct (DPD) platform, a recognised and trusted brand, market-leading claims service and a specialist underwriting ecosystem. We are optimising how AI chatbots both source and promote our brand and proposition and have commenced the deployment of agentic AI across both the customer sales and claims journey. The new business broker automation tools already deployed in our UK art and private client business, materially uplifting quote and conversion volumes, are being deployed across all UK business lines, ahead of broader deployment across all of Hiscox Retail.

In big-ticket, our London Market business has pioneered AI-augmented underwriting at Lloyd's and is now using these capabilities to expand into new markets of brokered small cargo risks and US middle market property. In Hiscox Re, we have rolled out a new digital workbench, enabling us to digitally ingest and process significantly more submissions at the January renewals and benefit from improved portfolio analysis, leading to more accurate risk and return assessments.

Procurement

In procurement, our new Group-wide platform has supported a further reduction in the number of suppliers by 8%. As a result, enhanced governance and transparency is enabling the Group to achieve lower supplier costs and develop strategic partnerships with core suppliers. Key milestones in the year have included: the selection of a new IT services provider, accelerating our journey to automate and streamline business processes; signing a multi-year collaboration with Google Cloud, deepening a relationship that pioneered an AI-enhanced lead underwriting solution in Hiscox London Market; and the optimisation of our real estate footprint, enhancing asset productivity.

Operational excellence

We have developed a more strategic approach to resourcing to ensure we have the skills for the future and the capacity to focus on market-facing activities. We are insourcing capabilities that reinforce our competitive advantages, and leveraging the use of lower cost locations and specialist partners to drive increased efficiency.

In Europe, we have organised our broker business into two regions, North and South, and established a pan-European digital partners and direct (DPD) operation to ensure our resources are focused as the business builds scale.

In technology, we have insourced areas such as application development at our Lisbon hub at a lower cost, while outsourcing activities like data centre support. In finance, we are transitioning certain activities to a third-party specialist. In the people function, we have created global centres of excellence, introduced data-driven recruitment and launched digital development tools to upskill our people for the future.

In claims, we have increased savings from fraud detection and recovery through the formation of a Group centre of excellence.

People and culture

This is an exciting time for Hiscox. As we execute our growth strategy and transform the way we operate our business, the energy and momentum across the Group is extremely positive. Colleagues are empowered to deliver change while nurturing what makes us Hiscox - our specialist insurance expertise, customer focus and service excellence, and our entrepreneurial culture of being business builders. Employee engagement remains at an all-time high, with a score in the 80s for the fourth consecutive year, demonstrating our collective commitment to delivering our ambitious growth and change strategy.

Hiscox Retail²

Hiscox Retail comprises our retail businesses around the world: Hiscox UK, Hiscox Europe and Hiscox USA. In this segment, our entrepreneurial culture, specialist sector and class of business knowledge, renowned brand, and market-leading distribution platforms reinforce our strong market position in an increasingly digital world.

Insurance contract written premium	$2,634.8 million (2024: $2,441.4 million)
Net insurance contract written premium	$2,446.2 million (2024: $2,243.4 million)
Insurance service result	$267.4 million (2024: $261.1 million)
Profit before tax	$352.1 million (2024: $317.2 million)
Undiscounted combined ratio	92.6% (2024: 92.9%)

Hiscox Retail premiums increased by 6.3% in constant currency, in line with our guidance, continuing our multi-year volume-driven growth acceleration and second consecutive year of margin expansion. Policies-in-force increased 7.5% in the year, while rate increased by 2% on average. The momentum we have generated across all markets through new products, entering adjacent segments and expanding distribution, gives us confidence that Hiscox Retail's acceleration will continue, with growth at 8.0% for full year 2026, in constant currency, as momentum continues to build towards double-digit growth in 2028.

Hiscox Retail's insurance service result of $267.4 million (2024: $261.1 million) increased 2.4% as a result of continued growth and earnings momentum, more than offsetting the impact of a lower discounting benefit.

The 30 basis points improvement in the undiscounted combined ratio of 92.6% (2024: 92.9%) is driven by early benefits from the change programme and increasing operating leverage.

Hiscox UK

Hiscox UK is a leading specialty insurer in its chosen markets of commercial and personal lines, offering a broad specialist range of covers primarily for nano- to medium-sized businesses and high-net-worth customers through deep broker relationships and a leading brand.

Hiscox UK ICWP grew by 8.4% in constant currency to $962.4 million (2024: $864.0 million) as the business delivered strong double-digit new business growth.

Art and private client (APC) has achieved six consecutive quarters of double-digit growth, driven by the ramp-up of recently won distribution deals and technology-enabled improvements in underwriting efficiency and productivity. To maintain momentum, the business has expanded its award-winning marketing campaign from its original commercial SME focus into high-net-worth.

Commercial is growing well, driven by policy count increases, as the business focuses on deepening and widening its specialist sectors. We continue to build out our sector-focused propositions, which has included launching direct landlords cover, expanding our cyber product into the charity sector and writing our first ever risk in the fast-growing e-sports market.

Hiscox Europe

Hiscox Europe provides specialty commercial and personal lines insurance across ten European markets. Through deep broker relationships and a leading pan-European digital platform, we offer a broad specialist range of covers for nano- to medium-sized businesses and high-net-worth customers.

Hiscox Europe grew ICWP by 6.1% in constant currency to $710.9 million (2024: $656.5 million) driven by strong growth across Germany and France, our two largest markets.

The business is continuing to launch new propositions tailored to the changing needs of our customers. Our German business won awards at the country's largest broker conference for our combined D&O, professional indemnity and cyber product and for our innovative freelancer personal accident cover. In France, our new cyber proposition has been well received, with strong broker feedback ahead of a wider roll-out in other European markets planned for the first half of 2026.

The business is also benefitting from recently signed distribution deals, such as our Iberian bancassurance deal which is gaining momentum. In 2025, we also signed two new distribution deals with German broker consolidators, which will support growth from 2026 onwards, with a strong pipeline of further deals developing.

Our strategy to enter more markets saw us establish a new operation in Italy in 2025 through the bolt-on acquisition of a small local player. With over four million small businesses, Italy represents an exciting opportunity for Hiscox Europe over the coming years.

Hiscox USA

Hiscox USA provides specialty commercial insurance for nano- to medium-sized businesses through a broad range of specialist covers. We serve our customers through a leading digital platform, offering access both directly to the customer and through a diverse range of partners and traditional brokers.

Hiscox USA grew by 4.4% to $961.5 million (2024: $920.9 million), as growth momentum continues to build from the breadth of management action taken over the last couple of years.

US DPD grew by 7.0% to $580.5 million (2024: $542.7 million), driven by continued double-digit growth in digital direct, benefitting from enhancements to the customer journey and improved lead generation. In partnerships, the mid-single digit growth trajectory has sustained but with a more positive pipeline, with 23 new partners added in 2025. In addition, one of our largest partners has recently opened our products to local agents and selected Hiscox as their preferred provider. These developments will support increasing new business production in 2026.

In US broker, we have reversed the trend and begun to grow the business again. ICWP increased by 0.7% to $381.0 million (2024: $378.2 million), benefitting from stronger broker relations, the implementation of initiatives to streamline workflows and improve service to brokers, and through the bolt-on acquisition of Corix, which accelerated our appetite expansion into life sciences and technology start-ups.

Hiscox London Market

Hiscox London Market offers a broad and diverse range of specialist insurance across property, casualty, crisis management and marine, energy and specialty risks. Through our flagship Syndicate 33, we use the global licences, distribution network and credit rating of Lloyd's to insure clients throughout the world.

Insurance contract written premium	$1,249.6 million (2024: $1,229.5 million)
Net insurance contract written premium	$880.9 million (2024: $879.7 million)
Insurance service result	$160.3 million (2024: $141.3 million)
Profit before tax	$235.3 million (2024: $215.0 million)
Undiscounted combined ratio	85.9% (2024: 88.6%)

Hiscox London Market has successfully navigated a competitive market, with ICWP increasing to $1,249.6 million (2024: $1,229.5 million). The diversity of the business and its ability to innovate has provided opportunities for new profitable growth while managing the cycle in lines of business where rates were under pressure. Though rates reduced by 4% on average over the year, cumulative rates are up 67% since 2018, with the overall portfolio being well rated.

Property growth was driven by new alternative risk portfolio deals, most notably in US high net worth, and expansion into US middle market property, leveraging existing AI-enabled capabilities to accelerate quoting. These initiatives have more than offset deliberate reductions where we are managing the cycle, such as in major property and commercial lines, as competition drives double-digit rate decreases.

In casualty, we continued to reduce exposures in D&O and cyber as rates fell by a further 8% and 7% respectively. Nonetheless, because of rate tailwinds in general liability, supplemented by the launch of our new financial institutions and technology E&O products, we have achieved modest growth in casualty.

In marine, energy and specialty we have achieved strong growth in power and renewables, as Hiscox London Market capitalised on recent investments in product and capability to win new construction business. These have included taking a lead position to insure a solar panel installer in the USA and insuring one of the world's largest battery construction projects currently underway in Europe. In crisis management, we are benefitting from our well-established position, maintaining strong retention in a competitive market, while in product recall we are managing the cycle as rates soften.

The undiscounted combined ratio of 85.9% (2024: 88.6%) marks the sixth consecutive year in the 80s, a reflection of our underwriting discipline, risk selection and pricing as we navigate the micro-cycles across the market. Hiscox London Market achieved an insurance service result of $160.3 million (2024: $141.3 million), benefitting from loss ratio improvement, driven by a more favourable loss experience than in 2024. 

Hiscox Re

Hiscox Re comprises the Group's reinsurance business and third-party capital platform. Reinsurance is written through both our Bermuda and London platforms, focusing on property and specialty risks, while Hiscox Capital Partners offers third-party capital providers access to our underwriting expertise and risk selection including through private insurance-linked securities and catastrophe bond funds, sidecars and quota-share partnerships.

Insurance contract written premium	$1,094.6 million (2024: $1,032.8 million)
Net insurance contract written premium	$538.7 million (2024: $499.3 million)
Insurance service result	$189.4 million (2024: $165.7 million)
Profit before tax	$286.7 million (2024: $267.5 million)
Undiscounted combined ratio	67.4% (2024: 69.0%)

Hiscox Re grew net ICWP by 7.9% to $538.7 million (2024: $499.3 million) driven by growth in pro-rata and specialty lines, including parametric climate resilience, mortgage and surety. ICWP increased by 6.0% to $1,094.6 million (2024: $1,032.8 million) benefitting from net growth and increased third-party capital support.

The insurance service result of $189.4 million (2024: $165.7 million) and an undiscounted combined ratio of 67.4% (2024: 69.0%) reflect the quality of risk selection, and a benign natural catastrophe loss experience in the second half of the year. 

Rates reduced by 5% over the year as competition increased, most notably in property catastrophe, while attachment points and terms and conditions remained broadly stable. At year-end, cumulative rate increases since 2018 were 83%. Despite the 2025 Atlantic hurricane season being only the second year on record to see more than two Category 5 hurricanes form, insured hurricane losses were relatively low. As such, competition from both incumbent reinsurers and alternative capital resulted in rates reducing by 13% at the January 2026 renewals. Despite this, the portfolio remains rate adequate following significant rate increases since 2018.

ILS assets under management were $1.5 billion at 1 January 2026 (1 January 2025: $1.4 billion) as the business attracted capital inflows of over $330 million from new and existing partners over the year, offsetting planned returns and increasing the level of deployable capital at the January renewals. The pipeline for further alternative capital inflows remains robust. In 2025, our third-party capital platform generated $109.4 million (2024: $128.2 million) of fee income from ILS and quota-share partners, the third consecutive year of fee income above $100 million, with the majority from fixed fees.

Claims

Loss activity for the year has been within expectations, as the significant California wildfire losses in the first half of the year were followed by more benign weather and lower large loss experience over the second half.

The undiscounted claims ratio was 40.4% (2024: 41.9%), with the year-on-year movement reflecting the benefit of higher prior-year releases.

The Group continues to prioritise the high-quality claims service for our customers and clients. This is reflected in our market-leading retail claims NPS of 76.

Strong foundations

Expenses

The Group has made a strong start to the change programme. In 2025, we realised $29 million in savings and efficiencies, principally through optimised procurement, streamlined processes, technology efficiencies and improved fraud detection and recovery. The one-off costs to achieve of $24 million in 2025 included investments in new technology, restructuring provisions and advisory fees. The progress to date provides confidence that the Group is on track to deliver $75 million of P&L benefit in 2026, and $200 million in 2028. The cost to achieve in 2026 is expected to be $75 million.

Total Group expenses4 increased to $1,991.1 million (2024: $1,850.2 million), reflecting expense growth and inflation, higher variable compensation following another year of record profit, our change programme, as well as some one-off non-attributable expenses from small bolt-on acquisitions and the disposal of DirectAsia. 

The admin expense ratio has improved by 30 basis points, reflecting more efficient premium growth as we begin to see the benefits from the change programme. This is partially offset by the impacts of higher variable compensation and a weaker US Dollar. The acquisition expense ratio increased by 40 basis points, reflecting slight changes in business mix.

Balance sheet

The Group has experienced another year of favourable reserve development, with net releases totalling $292.7 million (2024: $145.5 million). In line with our conservative reserving philosophy, net reserves are at a confidence level of 86% (2024: 83%) with the risk adjustment5 above best estimate of $344.9 million (2024: $267.5 million). This is above our target range, reflecting the strength of total reserves, and over time we expect the reserve confidence level to operate in the range between 75% and 85%.

The Group, at the holding company level, continues to retain a significant level of liquidity, with fungible assets in excess of $1 billion, comprised of liquid assets and undrawn borrowing facilities. The full year 2025 leverage is 17.4%6, comfortably within the range that the Group chooses to operate in.

The Group remains well capitalised, with an estimated BSCR ratio of 233% at 31 December 2025 after having returned $425 million over the course of 2025 through a combination of ordinary dividends and the upsized $275 million share buyback.

The Board has ratified a final dividend of 35.9 cents per share7 (2024: 29.9 cents per share), a 20% increase year-on-year, reflecting the changing shape of the Group and confidence in our strategy. In addition, excellent organic capital generation over the year has allowed the Group to announce a new $300 million buyback. In total, once completed, the Group will have returned $725 million through share buybacks since 2023, and over $1.1 billion including ordinary dividends.

Post the final dividend and the $300 million share buyback announced in respect of the 2025 results, the Group's estimated BSCR is 211%, above the 190%-200% target BSCR range at this point in the cycle. The Group benefits from a diversified business model, which allows it to dynamically allocate capital to the most attractive opportunities across the market.

Investments

The investment result for the year was $442.7 million (2024: $383.9 million), or a return of 5.1% (2024: 4.8%). This includes $59.8 million of unrealised fair value gains (2024: $46.4 million) on fixed income securities carried at fair value that are excluded from adjusted operating profit. Group invested assets as at 31 December 2025 were $9.2 billion (2024: $8.2 billion).

While early 2025 saw heightened volatility in the financial markets due to trade tariffs and inflationary concerns, markets more than recovered by year-end as inflation was contained and growth remained firm. Attention moved away from geopolitical uncertainty and onto the wider economic outlook being supported by easing from central banks. Government bond yields and corporate bond spreads both fell, supporting investment income.

With bond yields expected to fall over the near-to-medium term, the Group is optimising liquidity in the strategic asset allocation with a greater allocation to fixed income and a corresponding reduction in cash.

Overall, our portfolio remains conservatively positioned, with over 90% of our investments held in cash and cash equivalents or investment grade fixed income assets. The average credit rating of the fixed income assets is 'A' with a duration of 2.0 years. The reinvestment yield of the bond portfolio was 4.0% at 31 December 2025.

Tax

Bermuda's Corporate Income Tax (BCIT) came into effect on 1 January 2025, with a 15% tax rate, resulting in the Group's effective tax rate increasing to 17.6% (2024: 8.5%). In anticipation of this, the Group previously recognised a deferred tax asset (DTA) of $154.6 million, of which $15.2 million was amortised over the year, partially offsetting the aggregate cash tax payable.

On 15 January 2025, the OECD published guidance, advising that 80% of the DTA granted under the BCIT will not be recognised for calculating global minimum tax (GMT). As a result, the Group is likely to be obligated to pay additional tax of up to 80% of the DTA, spread over eight years, from 2027. Under current IFRS requirements, the Bermuda DTA must be maintained while it provides a tax benefit in Bermuda, but no offsetting deferred tax liability can be recognised in anticipation of future GMT payable (instead this will be booked as current tax on an arising basis). 

On 21 November 2025, legislation to enact new substance-based tax credits (SBTC) was introduced, which provide tax credits against employee costs and other expenses incurred in Bermuda for eligible Bermudian companies. The benefit has been recognised as a reduction of the related expense and is not material. These credits reduce the tax cash impact of the new BCIT rules, in a way that should not be negated by additional GMT top-up tax.

The Group continues to expect the effective tax rate to be within the range of 15%-20%.

Outlook

In Hiscox Retail, we expect to see momentum continue to build through the year, with ICWP growth accelerating to 8.0% for the full year 2026, in constant currency, underpinned by growth in customer and policy count, supplemented by momentum from new products, new distribution deals and new markets. We are on track to deliver double-digit growth in 2028. As the business increasingly benefits from our ongoing change programme, we expect Hiscox Retail's undiscounted combined ratio to improve gradually within the 89%-94% operating range. As a result of the Group's change programme, we expect to realise a P&L benefit of $75 million in 2026, and remain on track for the full $200 million in 2028 in line with our capital markets day guidance. The cost to achieve in 2026 is expected to be $75 million.

In Hiscox London Market, we will continue to judiciously manage the micro-cycles as rates soften in certain areas, while leveraging our diverse portfolio and ability to innovate to find attractive new business in areas where we have complementary expertise and technological advantages.

In Hiscox Re, we have successfully captured the opportunities of the hard market, with net growth of 180% over the last five years, and three consecutive years of an undiscounted combined ratio in the 60s. The portfolio remains rate adequate and in 2026 we expect to maintain our net property catastrophe exposures at a similar level. Gross premium progression will be a function of the availability of third-party capital and growth in specialty lines.

These are exciting times at Hiscox. The momentum we have generated over recent years, together with the pace, energy and innovation of my colleagues, sets us up strongly to deliver our strategic ambitions and seize the vast specialty opportunities in front of us.

Aki Hussain

Group Chief Executive Officer

24 February 2026

Hiscox Ltd full year results

Consolidated income statement

For the year ended 31 December 2025

		2025	2024
	Note	$m	$m
Insurance revenue	6	4,883.7	4,672.5
Insurance service expenses	6	(3,704.5)	(3,331.0)
Insurance service result before reinsurance contracts held		1,179.2	1,341.5
Allocation of reinsurance premiums	6	(1,236.5)	(1,209.4)
Amounts recoverable from reinsurers for incurred claims	6	671.2	421.4
Net expenses from reinsurance contracts held		(565.3)	(788.0)
Insurance service result	6	613.9	553.5
Investment result	9	442.7	383.9
Net finance expenses from insurance contracts		(238.6)	(225.5)
Net finance income from reinsurance contracts		73.6	73.4
Net insurance finance expenses	9	(165.0)	(152.1)
Net financial result	9	277.7	231.8
Other income	10	99.6	113.5
Other operational expenses	10	(198.7)	(149.4)
Net foreign exchange gains/(losses)		7.1	(11.2)
Other finance costs	11	(66.8)	(53.1)
Share of (loss)/profit of associates after tax	6	(0.1)	0.3
Profit before tax		732.7	685.4
Tax expense	12	(128.6)	(58.2)
Profit for the year (all attributable to owners of the Company)		604.1	627.2
Earnings per share on profit attributable to owners of the Company
Basic	14	180.7¢	183.2¢
Diluted	14	175.0¢	178.1¢

The notes to the condensed consolidated financial statements are an integral part of this document.

Consolidated statement of comprehensive income

For the year ended 31 December 2025

		2025	2024
	Note	$m	$m
Profit for the period		604.1	627.2
Other comprehensive income/(expense)
Items that will not be reclassified to the income statement:
Remeasurements of the net defined benefit pension scheme	19	1.4	(4.8)
Income tax effect		(0.3)	1.5
		1.1	(3.3)
Items that may be reclassified subsequently to the income statement:
Exchange gains/(losses) on translation of foreign operations		54.9	(11.9)
Other comprehensive income/(expense) net of tax		56.0	(15.2)
Total comprehensive income for the period (all attributable to the owners of the Company)		660.1	612.0

The notes to the condensed consolidated financial statements are an integral part of this document.

Consolidated statement of financial position

As at 31 December 2025

		31 December 2025	31 December 2024
	Note	$m	$m
Assets
Employee retirement benefit asset	19	46.1	40.0
Goodwill and intangible assets		381.0	308.8
Property, plant and equipment		108.6	125.6
Investments in associates		0.4	0.8
Deferred tax assets	12	164.0	179.4
Assets included in disposal group classified as held for sale	10	-	52.5
Reinsurance contract assets	13	1,824.8	1,976.8
Financial assets carried at fair value	16	8,432.0	7,077.6
Trade and other receivables		349.7	249.0
Current tax assets		4.6	3.3
Cash and cash equivalents		878.0	1,227.0
Total assets		12,189.2	11,240.8
Equity and liabilities
Shareholders' equity
Share capital		36.8	38.1
Share premium		140.2	405.6
Contributed surplus		184.0	184.0
Currency translation reserve		(336.2)	(391.1)
Retained earnings		3,922.0	3,452.2
Equity attributable to owners of the Company		3,946.8	3,688.8
Non-controlling interest		1.1	1.1
Total equity		3,947.9	3,689.9
Deferred tax liabilities	12	64.4	75.8
Liabilities included in disposal group classified as held for sale	10	-	52.7
Insurance contract liabilities	13	6,877.5	6,396.3
Financial liabilities	16	840.4	663.5
Current tax liabilities		24.4	19.7
Other liabilities		434.6	342.9
Total liabilities		8,241.3	7,550.9
Total equity and liabilities		12,189.2	11,240.8

The notes to the condensed consolidated financial statements are an integral part of this document.

Consolidated statement of changes in equity

For the year ended 31 December 2025

	Share capital	Share premium	Contributed surplus	Currency translation reserve	Retained earnings	Equity attributable to owners of the Company	Non-controlling interest	Total equity
	$m	$m	$m	$m	$m	$m	$m	$m
Balance at 31 December 2024	38.1	405.6	184.0	(391.1)	3,452.2	3,688.8	1.1	3,689.9
Profit for the year	-	-	-	-	604.1	604.1	-	604.1
Other comprehensive income net of tax	-	-	-	54.9	1.1	56.0	-	56.0
Total comprehensive income	-	-	-	54.9	605.2	660.1	-	660.1
Employee share options:
Equity settled share-based payments	-	-	-	-	48.8	48.8	-	48.8
Proceeds from shares issued	0.1	5.0	-	-	-	5.1	-	5.1
Share buyback*	(1.4)	(274.3)	-	-	-	(275.7)	-	(275.7)
Deferred and current tax on employee share options	-	-	-	-	10.8	10.8	-	10.8
Shares purchased for employee trust	-	-	-	-	(45.6)	(45.6)	-	(45.6)
Shares issued in relation to Scrip Dividend	-	3.9	-	-	-	3.9	-	3.9
Dividends paid to owners of the Company	-	-	-	-	(149.4)	(149.4)	-	(149.4)
Balance at 31 December 2025	36.8	140.2	184.0	(336.2)	3,922.0	3,946.8	1.1	3,947.9

*In the year ended 31 December 2025, $275.7 million (2024: $149.1 million) of shares were purchased and shares with a nominal value of $1.4 million (2024: $0.8 million) have been cancelled as part of the share buyback programme.

The notes to the condensed consolidated financial statements are an integral part of this document.

Consolidated statement of changes in equity (continued)

For the year ended 31 December 2024 

	Share capital	Share premium	Contributed surplus	Currency translation reserve	Retained earnings	Equity attributable to owners of the Company	Non-controlling interest	Total equity
	$m	$m	$m	$m	$m	$m	$m	$m
Balance at 1 January 2024	38.8	528.8	184.0	(379.2)	2,923.2	3,295.6	1.1	3,296.7
Profit for the year	-	-	-	-	627.2	627.2	-	627.2
Other comprehensive income net of tax	-	-	-	(11.9)	(3.3)	(15.2)	-	(15.2)
Total comprehensive income	-	-	-	(11.9)	623.9	612.0	-	612.0
Employee share options:
Equity settled share-based payments	-	-	-	-	33.4	33.4	-	33.4
Proceeds from shares issued	0.1	21.3	-	-	-	21.4	-	21.4
Share buyback*	(0.8)	(148.3)	-	-	-	(149.1)	-	(149.1)
Deferred and current tax on employee share options	-	-	-	-	2.5	2.5	-	2.5
Shares issued in relation to Scrip Dividend	-	3.8	-	-	-	3.8	-	3.8
Dividends paid to owners of the Company	-	-	-	-	(130.8)	(130.8)	-	(130.8)
Balance at 31 December 2024	38.1	405.6	184.0	(391.1)	3,452.2	3,688.8	1.1	3,689.9

*In the year ended 31 December 2025, $275.7 million (2024: $149.1 million) of shares were purchased and shares with a nominal value of $1.4 million (2024: $0.8 million) have been cancelled as part of the share buyback programme.

The notes to the condensed consolidated financial statements are an integral part of this document.

Consolidated statement of cash flows

For the year ended 31 December 2025

		2025	2024
	Note	$m	$m
Profit before tax		732.7	685.4
Adjustments for:
Net foreign exchange (gains)/losses		(7.1)	11.2
Interest and equity dividend income	9	(326.1)	(316.4)
Interest expense	11	66.8	53.1
Net fair value gains on financial assets	9	(57.1)	(71.5)
Depreciation, amortisation and impairment	10	65.8	60.7
Charges in respect of share-based payments		48.8	49.1
Realised loss/(gain) on sale of subsidiary undertaking, intangible assets and property, plant and equipment		2.1	(0.5)
Changes in operational assets and liabilities:
Insurance and reinsurance contracts		476.1	(12.1)
Financial assets carried at fair value		(1,192.6)	(479.6)
Financial liabilities carried at fair value		0.6	(0.3)
Financial liabilities carried at amortised cost		0.9	0.7
Other assets and liabilities		115.7	(97.0)
Interest received		318.4	302.4
Equity dividends received		1.3	1.4
Interest paid		(64.7)	(51.9)
Tax paid		(108.8)	(20.3)
Net cash flows from operating activities		72.8	114.4
Acquisitions of subsidiaries, joint ventures and associates, net of cash acquired		(45.1)	-
Disposals of subsidiaries, joint ventures and associates, net of cash transferred		(24.7)	0.5
Purchase of property, plant and equipment		(1.3)	(5.1)
Proceeds from the sale of property, plant and equipment		2.8	0.1
Purchase of intangible assets		(45.1)	(34.0)
Net cash flows used in investing activities		(113.4)	(38.5)
Proceeds from the issue of ordinary shares		5.1	5.2
Proceeds from the issue of loan notes		496.8	-
Distributions made to owners of the Company		(145.5)	(127.0)
Repayments of borrowings		(373.6)	-
Shares repurchased		(275.7)	(149.1)
Purchase of shares for employee trust		(45.6)	-
Principal elements of lease payments		(18.7)	(11.7)
Net cash flows used in financing activities		(357.2)	(282.6)
Net decrease in cash and cash equivalents		(397.8)	(206.7)
Cash and cash equivalents at 1 January		1,227.0	1,437.0
Net decrease in cash and cash equivalents		(397.8)	(206.7)
Effect of exchange rate fluctuations on cash and cash equivalents		48.8	(3.3)
Cash and cash equivalents at 31 December	18	878.0	1,227.0

The notes to the condensed consolidated financial statements are an integral part of this document.

Notes to the condensed consolidated financial statements

1. General information

The Hiscox Group, which is headquartered in Hamilton, Bermuda, comprises Hiscox Ltd (the parent company, referred to herein as the 'Company') and its subsidiaries (collectively, the 'The Hiscox Group' or the 'Group'). For the current period the Group provided insurance and reinsurance services to its clients worldwide. It has operations in Bermuda, UK, Europe and USA and currently has over 3,000 staff.

The Company is registered and domiciled in Bermuda and its ordinary shares are listed on the London Stock Exchange. The address of its registered office is: Chesney House, 96 Pitts Bay Road, Pembroke HM 08, Bermuda.

2. Basis of preparation

The condensed financial statements of the Group have been prepared in accordance with UK-adopted International Accounting Standards, and Section 4.1 of the Disclosure Guidance and Transparency Rules and the Listing Rules, both issued by the Financial Conduct Authority (FCA).

The basis of preparation and summary of accounting policies applicable to the Group's condensed consolidated financial statements can be found in note 2 to the 2025 Annual Report and Accounts.

The Group's consolidated financial statements from which the condensed financial statements are extracted have been audited. The auditor's report on the consolidated financial statements is unqualified and does not contain an emphasis-of-matter paragraph.

The condensed consolidated financial statements have been prepared on a going concern basis. In adopting the going concern basis, the Board has reviewed the Group's current and forecast solvency and liquidity positions for the next 12 months and beyond. As part of the consideration of the appropriateness of adopting the going concern basis, the Directors use scenario analysis and stress testing to assess the robustness of the Group's solvency and liquidity positions.

In undertaking this analysis, no material uncertainty in relation to going concern has been identified, due to the Group's strong capital and liquidity positions providing resilience to shocks, underpinned by the Group's approach to risk management.

After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence over a period of at least 12 months from the date of this report. For this reason, the Group continues to adopt the going concern basis in preparing the condensed consolidated financial statements.

With effect from 1 July 2025, the functional currency of the Company, Hiscox plc and Hiscox Holdings Limited (subsidiaries of the Group) changed from Sterling to US Dollars. This change has been accounted for prospectively from 1 July 2025. Items included in the financial statements of each of the Group's entities are measured in the currency of the primary economic environment in which that entity operates (the functional currency). The condensed consolidated financial statements are presented in US Dollars millions ($m) and rounded to the nearest hundred thousand Dollars, unless otherwise stated.

These condensed consolidated financial statements were approved on behalf of the Board of Directors by the Group Chief Executive Officer, Aki Hussain and the Group Chief Financial Officer, Paul Cooper. Accordingly, the financial statements were approved for issue on 24 February 2026.

3. Use of significant accounting judgements, estimates and assumptions

In preparing these condensed consolidated financial statements, management make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Estimates and assumptions are continually evaluated and are based on management's knowledge of current facts and circumstances, and their expectations of future events.

Significant accounting judgements

The following accounting policies are the critical judgements, apart from those involving estimations (which are presented separately below), that the Directors have made in the process of applying the Group's accounting policies and that have the most significant impact on the amounts recognised in the consolidated financial statements.

•     Consolidation: assessment of whether the Group controls or has significant influence over an underlying entity, for example the treatment of insurance-linked securities funds including consideration of its decision-making authority and its rights to the variable returns from the entity.

•     Financial investments: classification and measurement of investments including the application of the fair value option.

•     Insurance contracts: determining the assumptions to arrive at the estimated ultimate cost of claims and the risk adjustment being the compensation that the Group requires for bearing the uncertainty about the amount and timing of the cash flows of groups of insurance contracts.

Significant accounting estimates

The following describes items considered particularly susceptible to changes in estimates and assumptions.

The most critical estimate included within the consolidated statement of financial position is the measurement of insurance contract liabilities and reinsurance contract assets, and in particular the estimate of the liability for incurred claims (LIC). The total gross estimate of LIC as at 31 December 2025 is $6,460.9 million (2024: $6,040.7 million). The total estimate for reinsurance asset for incurred claims as at 31 December 2025 is $1,966.8 million (2024: $2,046.5 million).

Insurance and reinsurance contracts

In applying IFRS 17 measurement requirements, the following inputs and methods were used that include significant estimates. The present value of future cash flows is estimated using deterministic scenarios. The assumptions used in the deterministic scenarios are derived to approximate the probability-weighted mean of a full range of scenarios. For the sensitivities with regard to the assumptions made that have the most significant impact on measurement under IFRS 17 please refer to note 3 management of risk of 2025 Annual Report and Accounts.

Fair value measurement

The Group carries its financial investments at fair value through profit or loss, with fair values determined using published price quotations in the most active financial markets in which the assets trade, where available. Where quoted market prices are not available, valuation techniques are used to value financial instruments. These include third-party valuation reports and models utilising both observable and unobservable market inputs. Valuation techniques involve judgement, including the use of valuation models and their inputs, which can lead to a range of plausible valuations for financial investments.

Employee benefit

The employee retirement benefit scheme obligations are calculated and valued with reference to a number of actuarial assumptions including mortality, inflation rates and discount rate, many of which have been subject to recent volatility. This complex set of economic variables can have a significant impact on the financial statements.

Deferred tax asset

A deferred tax asset can be recognised only to the extent that it is recoverable. The recoverability of deferred tax assets in respect of carry forward losses requires consideration of the future levels of taxable profit in the Group. In preparing the Group's financial statements, management estimates taxation assets and liabilities after taking appropriate professional advice. Significant estimates and assumptions used in the valuation of deferred tax relate to the forecast taxable profits, taking into account the Group's financial and strategic plans. Please refer to note 12 for details on the deferred tax assets.

4. Management of risk

The Group's overall appetite for accepting and managing varying classes of risk is defined by the Group's Board of Directors. The Board has developed a governance framework and has set Group-wide risk management policies and procedures which include risk identification, risk management and mitigation and risk reporting. The objective of these policies and procedures is to protect the Group's shareholders, policyholders and other stakeholders from negative events that could hinder the Group's delivery of its contractual obligations and its achievement of sustainable profitable economic and social performance.

The Board exercises oversight of the development and operational implementation of its risk management policies and procedures through the Risk Committee, and ongoing compliance through a dedicated internal audit function, which has operational independence, clear terms of reference influenced by the Board's Non Executive Directors and a clear upwards reporting structure back into the Board. The Group, in line with the non-life insurance industry generally, is fundamentally driven by a desire to originate, retain and service insurance contracts to maturity. The Group's cash flows are funded mainly through advance premium collections and the timing of such premium inflows is reasonably predictable. In addition, the majority of material cash outflows are typically triggered by the occurrence of insured events, although the timing, frequency and severity of claims can fluctuate.

The Group maintains explicit reserve uplifts to allow for the impact of high inflation in recent years. Loss ratios are also closely monitored to ensure they include an appropriate allowance for future inflation.

Losses from Covid-19 continue to settle within expectations. As time passes and legal cases are gradually settled, the outcome becomes more certain and so the level of risk adjustment above the best estimate can be reduced.

The principal sources of risk relevant to the Group's operations and its financial statements fall into three broad categories: operational risk, insurance risk and financial risk. Please refer to the 2025 Annual Report and Accounts for more information on risk management.

5. Related-party transactions

Transactions with related parties during the period are disclosed in note 31 of the Group's 2025 Annual Report and Accounts.

6. Operating segments

The Group's operating segment reporting follows the organisational structure and management's internal reporting systems, which form the basis for assessing the financial reporting performance of, and allocation of resources to, each business segment.

The Group's four primary business segments are identified as follows:

Hiscox Retail brings together the results of the Group's retail business divisions in the UK, Europe and the USA. Hiscox UK and Hiscox Europe underwrite personal and commercial lines of business through Hiscox Insurance Company Limited, Hiscox Société Anonyme, Syndicate 33 and Syndicate 3624. Hiscox USA comprises commercial, property and specialty business written by Hiscox Insurance Company Inc., Syndicate 33 and Syndicate 3624;

Hiscox London Market comprises the internationally traded insurance business written by the Group's London-based underwriters via Syndicate 33, including lines in property, marine and energy, casualty and other specialty insurance lines;

Hiscox Re comprises the Group's reinsurance business and third-party capital platform. The reinsurance business comprises the reinsurance contracts written by Hiscox Insurance Company (Bermuda) Limited (HIB), including the open market placed reinsurance arrangements with other Hiscox Group entities, and the reinsurance contracts written by Syndicate 33. The third-party capital platform comprises the results of Hiscox Capital Partners which offers third-party capital providers access to our underwriting expertise and risk selection through both insurance-linked securities (ILS) and quota-share partnerships;

Other segment comprises other income and costs that are not directly attributable to the Group's principal operating segments, including finance costs and administrative costs associated with Group management activities and intragroup borrowings, foreign exchange gains and losses, as well as consolidation adjustments to eliminate the results relating to open market placed intragroup reinsurance arrangements.

In July 2025, the Group completed the sale of Direct Asia Singapore. The remaining Asia business which is classified as a disposal group is no longer considered part of the core Hiscox Retail segment and is now disclosed within the 'other' segment. The comparative period has been restated to present on a consistent basis. The fine art business previously reported in London Market is now reported within the Retail segment. Additionally, following an increase in the level of HIB's participation in the business placed by Hiscox Retail and Hiscox London Market in the open market, the results of Hiscox Retail, Hiscox London Market and Hiscox Re now include the results of such open market placed intragroup reinsurance arrangements, with the related consolidation adjustments being presented within the 'other' segment.

All amounts reported on the following pages in respect of these segments represent transactions with external parties, as well as various open market placed intragroup reinsurance arrangements, which they enter into in the normal course of business. The related results of these transactions are eliminated on consolidation, and the consolidation adjustments are included within the 'other' segment. This is consistent with the information used by the chief operating decision-maker when evaluating the results of the Group. Performance is measured based on each reportable segment's profit or loss before tax and combined ratio.

6. Operating segments (continued)

Year ended 31 December 2025	Hiscox Retail†	Hiscox London Market†	Hiscox Re	Other	Total
	$m	$m	$m	$m	$m
Insurance revenue	2,581.2	1,191.3	1,087.5	23.7	4,883.7
Insurance service expenses	(2,157.5)	(828.8)	(695.5)	(22.7)	(3,704.5)
Incurred claims and changes to liabilities for incurred claims	(979.7)	(444.3)	(472.4)	(11.6)	(1,908.0)
Amortisation of insurance acquisition cash flows*	(744.3)	(260.5)	(135.5)	(5.1)	(1,145.4)
Other attributable expenses*	(429.4)	(124.0)	(87.6)	(6.0)	(647.0)
Losses on onerous contracts and reversals	(4.1)	-	-	-	(4.1)
Insurance service result before reinsurance contracts held	423.7	362.5	392.0	1.0	1,179.2
Allocation of reinsurance premiums	(260.8)	(379.3)	(600.9)	4.5	(1,236.5)
Amounts recoverable from reinsurers for incurred claims	104.5	177.1	398.3	(8.7)	671.2
Net expense from reinsurance contracts held	(156.3)	(202.2)	(202.6)	(4.2)	(565.3)
Insurance service result	267.4	160.3	189.4	(3.2)	613.9
Investment result	241.2	116.7	84.2	0.6	442.7
Net finance expense from insurance contracts	(113.2)	(78.9)	(45.8)	(0.7)	(238.6)
Net finance income from reinsurance contracts	13.6	30.9	28.9	0.2	73.6
Net insurance finance expense	(99.6)	(48.0)	(16.9)	(0.5)	(165.0)
Net financial result	141.6	68.7	67.3	0.1	277.7
Other income	16.6	29.5	49.9	3.6	99.6
Other operational expenses*	(71.8)	(22.7)	(18.8)	(85.4)	(198.7)
Net foreign exchange gains	-	-	-	7.1	7.1
Other finance costs	(1.8)	(0.5)	(1.1)	(63.4)	(66.8)
Share of profits of associates	0.1	-	-	(0.2)	(0.1)
Profit/(loss) before tax	352.1	235.3	286.7	(141.4)	732.7
Ratio analysis
Claims ratio (%)	39.5	36.1	20.0	-	36.3
Acquisition cost ratio (%)	31.2	30.6	26.3	-	30.3
Administrative expense ratio (%)	18.0	14.5	17.0	-	17.1
Combined ratio (%)	88.7	81.2	63.3	-	83.7

*Total marketing expenditure for the year was  $109.2 million(2024: $101.1 million).

^† The fine art business previously reported in Hiscox London Market is now reported within the Hiscox Retail segment.

The claims ratio is calculated as incurred claims and losses on onerous contracts net of reinsurance recoveries, as a proportion of insurance revenue net of allocation of reinsurance premiums. The acquisition cost ratio is calculated as amortisation of insurance acquisition cash flows, as a proportion of insurance revenue net of allocation of reinsurance premiums. The administrative expense ratio is calculated as other attributable expenses, as a proportion of insurance revenue net of allocation of reinsurance premiums. The combined ratio is the total of the claims, acquisition cost and administrative expense ratios. All ratios are on an own share basis, which reflects the Group's share in Syndicate 33, and includes a reclassification of LPT premium from allocation of reinsurance premium into amounts recoverable from reinsurers as detailed below.

Non-attributable expenses and other costs allocated to the 'other' segment are not included within the combined ratio. Consolidation adjustments for open market placed intragroup reinsurance arrangements are included within the Group's combined ratio.

6. Operating segments (continued)

As noted above, the claims ratio, acquisition cost, administrative expense ratio and combined ratio include a reclassification of LPT premium from allocation of reinsurance premiums into amounts recoverable from reinsurers for incurred claims. The subsequent impacts of LPTs within reinsurance expenses and reinsurance income are analysed on a net basis within the net claims to provide a view of the underlying development on these contracts, against the corresponding development of the gross reserves, consistent with the focus on net performance when assessing underwriting performance. The impact on profit is neutral, however this reclassification for the ratios removes any volatility on a year-on-year comparison.

Year ended 31 December 2025	Hiscox Retail	Hiscox London Market	Hiscox Re	Other	Total
	$m	$m	$m	$m	$m
Insurance revenue	2,581.2	1,191.3	1,087.5	23.7	4,883.7
Allocation of reinsurance premiums	(260.8)	(379.3)	(600.9)	4.5	(1,236.5)
LPT premium	62.6	40.4	29.3	-	132.3
Allocation of reinsurance premiums after reclassifying LPT premium	(198.2)	(338.9)	(571.6)	4.5	(1,104.2)
Adjusted net insurance revenue	2,383.0	852.4	515.9	28.2	3,779.5
Incurred claims and changes to liabilities for incurred claims	(979.7)	(444.3)	(472.4)	(11.6)	(1,908.0)
Amounts recoverable from reinsurers for incurred claims	104.5	177.1	398.3	(8.7)	671.2
LPT premium	(62.6)	(40.4)	(29.3)	-	(132.3)
Amounts recoverable from reinsurers for incurred claims after reclassifying LPT premium	41.9	136.7	369.0	(8.7)	538.9
Adjusted net incurred claims	(937.8)	(307.6)	(103.4)	(20.3)	(1,369.1)
Remove benefit from discounting of claims	(91.3)	(40.6)	(21.0)	(0.7)	(153.6)
Undiscounted adjusted net incurred claims	(1,029.1)	(348.2)	(124.4)	(21.0)	(1,522.7)
The following ratios reflect the reclassification of LPT premium and remove the impact of discounting.
Ratio analysis (undiscounted)
Claims ratio (%)	43.4	40.8	24.1		40.4
Acquisition cost ratio (%)	31.2	30.6	26.3		30.3
Administrative expense ratio (%)	18.0	14.5	17.0		17.1
Combined ratio (%)	92.6	85.9	67.4		87.8

The impact on profit before tax of a 1% change in each component of the segmental combined ratios is shown in the following table. Any further ratio change is linear in nature.

		Year ended 31 December 2025
		Hiscox Retail	Hiscox London Market	Hiscox Re
		$m	$m	$m
1% change in claims or expense ratio		23.8	8.5	5.2

6. Operating segments (continued)

Year ended 31 December 2024 (restated)	Hiscox Retail	Hiscox London Market	Hiscox Re	Other	Total
	$m	$m	$m	$m	$m
Insurance revenue	2,381.5	1,201.4	1,028.2	61.4	4,672.5
Insurance service expenses	(2,006.7)	(1,004.2)	(245.1)	(75.0)	(3,331.0)
Incurred claims and changes to liabilities for incurred claims	(918.1)	(619.5)	(37.8)	(42.5)	(1,617.9)
Amortisation of insurance acquisition cash flows	(674.5)	(262.5)	(124.5)	(14.1)	(1,075.6)
Other attributable expenses	(401.8)	(122.2)	(82.8)	(18.4)	(625.2)
Losses on onerous contracts and reversals	(12.3)	-	-	-	(12.3)
Insurance service result before reinsurance contracts held	374.8	197.2	783.1	(13.6)	1,341.5
Allocation of reinsurance premiums	(249.8)	(364.9)	(585.3)	(9.4)	(1,209.4)
Amounts recoverable from reinsurers for incurred claims	136.1	309.0	(32.1)	8.4	421.4
Net expense from reinsurance contracts held	(113.7)	(55.9)	(617.4)	(1.0)	(788.0)
Insurance service result	261.1	141.3	165.7	(14.6)	553.5
Investment result	199.3	113.3	70.5	0.8	383.9
Net finance expense from insurance contracts	(115.5)	(66.1)	(43.0)	(0.9)	(225.5)
Net finance income from reinsurance contracts	18.2	25.2	29.8	0.2	73.4
Net insurance finance expense	(97.3)	(40.9)	(13.2)	(0.7)	(152.1)
Net financial result	102.0	72.4	57.3	0.1	231.8
Other income	18.0	26.3	64.6	4.6	113.5
Other operational expenses	(62.9)	(24.7)	(18.5)	(43.3)	(149.4)
Net foreign exchange losses	-	-	-	(11.2)	(11.2)
Other finance costs	(1.0)	(0.3)	(1.6)	(50.2)	(53.1)
Share of profits of associates	-	-	-	0.3	0.3
Profit/(loss) before tax	317.2	215.0	267.5	(114.3)	685.4
Ratio analysis
Claims ratio (%)	38.9	40.1	22.8		37.4
Acquisition cost ratio (%)	30.8	29.9	25.8		29.9
Administrative expense ratio (%)	18.4	13.9	17.1		17.4
Combined ratio (%)	88.1	83.9	65.7		84.7

6. Operating segments (continued)

The impact of the reclassification of LPT premium is shown in the following table.

Year ended 31 December 2024 (restated)	Hiscox Retail	Hiscox London Market	Hiscox Re	Other	Total
	$m	$m	$m	$m	$m
Insurance revenue	2,381.5	1,201.4	1,028.2	61.4	4,672.5
Allocation of reinsurance premiums	(249.8)	(364.9)	(585.3)	(9.4)	(1,209.4)
LPT premium	57.5	41.6	40.1	-	139.2
Allocation of reinsurance premiums after reclassifying LPT premium	(192.3)	(323.3)	(545.2)	(9.4)	(1,070.2)
Adjusted net insurance revenue	2,189.2	878.1	483.0	52.0	3,602.3
Incurred claims and changes to liabilities for incurred claims	(918.1)	(619.5)	(37.8)	(42.5)	(1,617.9)
Amounts recoverable from reinsurers for incurred claims	136.1	309.0	(32.1)	8.4	421.4
LPT premium	(57.5)	(41.6)	(40.1)	-	(139.2)
Amounts recoverable from reinsurers for incurred claims after reclassifying LPT premium	78.6	267.4	(72.2)	8.4	282.2
Adjusted net incurred claims	(839.5)	(352.1)	(110.0)	(34.1)	(1,335.7)
Remove benefit from discounting of claims	(104.6)	(41.1)	(15.9)	(0.3)	(161.9)
Undiscounted adjusted net incurred claims	(944.1)	(393.2)	(125.9)	(34.4)	(1,497.6)
The following ratios reflect the reclassification of LPT premium and remove the impact of discounting.
Ratio analysis (undiscounted)
Claims ratio (%)	43.7	44.8	26.1		41.9
Acquisition cost ratio (%)	30.8	29.9	25.8		29.9
Administrative expense ratio (%)	18.4	13.9	17.1		17.4
Combined ratio (%)	92.9	88.6	69.0		89.2

The impact on profit before tax of a 1% change in each component of the segmental combined ratios is shown in the following table. Any further ratio change is linear in nature.

		Year ended 31 December 2024 (restated)
		Hiscox Retail	Hiscox London Market	Hiscox Re
		$m	$m	$m
1% change in claims or expense ratio		21.9	8.8	4.8

7. Net asset value (NAV) per share and net tangible asset value per share

	31 December 2025		31 December 2024
	Net asset value (total equity)	Net asset value per share	Net asset value (total equity)	Net asset value per share
	$m	cents	$m	cents
Net asset value	3,947.9	1,220.0	3,689.9	1,086.4
Net tangible asset value	3,566.9	1,102.2	3,381.1	995.5

The NAV per share is based on 323,603,134 shares (2024: 339,636,268), being the shares in issue at 31 December 2025, less those held in treasury and those held by the Group Employee Benefit Trust. Net tangible assets comprise total equity excluding intangible assets.

8. Return on equity (ROE)

	2025	2024
	$m	$m
Profit for the year (all attributable to the owners of the Company)	604.1	627.2
Opening total equity	3,689.9	3,296.7
Adjusted for the time-weighted impact of capital distributions, share buyback and issuance of shares	(160.8)	(136.8)
Adjusted opening total equity	3,529.1	3,159.9
Return on equity (%)	17.1	19.8

The return on equity (ROE) is calculated by using profit or loss for the period divided by the adjusted opening total equity. The adjusted opening total equity represents the equity on 1 January of the relevant year as adjusted for time-weighted aspects of capital distributions, share buyback and issuing of shares or treasury share purchases during the period. The time-weighted positions are calculated on a daily basis with reference to the proportion of time from the transaction to the end of the period.

9. Net investment and insurance finance result

	2025	2024
	$m	$m
Investment income including interest receivable	326.1	316.4
Net realised gains/(losses) on financial investments at fair value through profit or loss	69.4	1.5
Net fair value gains on financial investments at fair value through profit or loss	57.1	71.5
Investment return - financial assets	452.6	389.4
Net fair value (losses)/gains on derivative financial instruments	(1.7)	0.4
Investment expenses	(8.2)	(5.9)
Total investment result	442.7	383.9
Net finance (expense)/income from insurance contracts:
Interest accreted	(208.4)	(241.6)
Effects of changes in interest rates and other financial assumptions	(30.2)	16.1
Total net finance (expense)/income from insurance contracts	(238.6)	(225.5)
Net finance income/(expenses) from reinsurance contracts:
Interest accreted	62.3	81.4
Effects of changes in interest rates and other financial assumptions	11.3	(8.0)
Total net finance income/(expenses) from reinsurance contracts	73.6	73.4
Net insurance finance (expense)/income	(165.0)	(152.1)
Net financial result	277.7	231.8

10. Other income and operational expenses

	2025	2024 (restated)
	$m	$m
Other income	99.6	113.5
Staff costs	399.5	386.6
Depreciation, amortisation and impairment	65.8	60.7
Restructuring, integration and other one-off project costs*	32.2	7.3
Other expenses*	348.2	320.0
Operational expenses	845.7	774.6

*One-off project costs incurred in 2024 of $7.3 million have been reclassified from other expenses to restructuring, integration and one-off project costs.

Other income includes management fees and is recognised when the investment management services are rendered to the ILS funds and commissions paid to the Group-owned Syndicate managing agent by third-party Names.

Operational expenses comprise attributable expenses amounting to $647.0 million (2024: $625.2 million) included within insurance service expense, and non-attributable expenses amounting to $198.7 million (2024: $149.4 million) included within other operational expenses.

In July 2025, the Group completed the sale of Direct Asia Insurance (Singapore) Pte Ltd to Auto & General (SEA) Holdings Pte Ltd. The $3.9 million loss on disposal is included within other expenses. The remaining Asia entities which include Hiscox Asia Holdings Pte Ltd and Hiscox Asia Management Services Pte Ltd continue to be classified as a disposal group. No impairment charge for the disposal group has been recognised in 2025 (2024: $nil).

Restructuring, integration and one-off project costs consist of expenses incurred in connection with the Group's restructuring initiatives, integration of acquired business and other one-off project costs. They include $24.0 million of costs in relation to an accelerated change programme which commenced in 2025.

11. Other finance costs

	2025	2024
	$m	$m
Interest charge associated with borrowings	50.6	40.7
Other interest expenses	16.2	12.4
Other finance costs	66.8	53.1

12. Tax expense

The Company and its subsidiaries are subject to enacted tax laws in the jurisdictions in which they are incorporated and domiciled.

The amounts charged in the consolidated income statement comprise the following:

	2025	2024
	$m	$m
Current tax expense
Expense for the year	117.1	44.2
Adjustments in respect of prior years	0.3	(9.2)
Total current tax expense	117.4	35.0

Deferred tax expense
Expense for the year	10.5	33.1
Adjustments in respect of prior years	1.5	(9.9)
Effect of rate change	(0.8)	-
Total deferred tax expense	11.2	23.2
Total tax expense to the income statement	128.6	58.2

13. Insurance contract liabilities and reinsurance contract assets

13.1 Net insurance contract liabilities

Net insurance contracts - analysis by remaining coverage and incurred claims

Year to 31 December 2025	Net liabilities for remaining coverage		Net liabilities for incurred claims
	Excluding loss component	Loss component	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	Total
	$m	$m	$m	$m	$m
Opening assets	69.7*	-	(1,726.2)	(320.3)	(1,976.8)
Opening liabilities	346.2	9.4	5,427.5	613.2	6,396.3
Net opening balance	415.9	9.4	3,701.3	292.9	4,419.5
Changes in the consolidated income statement
Insurance revenue, net of allocation of reinsurance premiums†	(3,647.2)	-	-	-	(3,647.2)
Insurance service expenses, net of amounts recoverable from reinsurers
Incurred claims and other attributable expenses	-	(11.5)	2,185.4	160.9	2,334.8
Amortisation of insurance acquisition cash flows	1,145.4	-	-	-	1,145.4
Adjustments to liabilities for incurred claims relating to past service	-	-	(353.8)	(96.5)	(450.3)
Losses and reversals of losses on onerous contracts	-	4.1	-	-	4.1
Effect of changes in non-performance risk of reinsurers	-	-	(0.7)	-	(0.7)
Total net insurance service expenses	1,145.4	(7.4)	1,830.9	64.4	3,033.3
Insurance service result	(2,501.8)	(7.4)	1,830.9	64.4	(613.9)
Net finance (income)/expenses from insurance contracts	(6.8)	-	171.8	-	165.0
Net foreign exchange losses	37.7	0.1	110.4	8.9	157.1
Total change recognised in comprehensive income	(2,470.9)	(7.3)	2,113.1	73.3	(291.8)
Investment components	39.7	-	(39.7)	-	-
Transfer to other items in statement of financial position	(281.0)	-	(711.4)	0.1	(992.3)
Net cash flows
Net premium received	3,757.1	-	-	-	3,757.1
Net claims and other insurance service expenses paid	-	-	(935.5)	-	(935.5)
Insurance acquisition cash flows	(904.3)	-	-	-	(904.3)
Total cash flows	2,852.8	-	(935.5)	-	1,917.3
Closing assets	142.0*	-	(1,613.7)	(353.1)	(1,824.8)
Closing liabilities	414.5	2.1	5,741.5	719.4	6,877.5
Net closing balance	556.5	2.1	4,127.8	366.3	5,052.7

*The net liabilities for remaining coverage, excluding loss component, includes LPT ARC gross of premium payables of $407.0 million at 31 December 2024 and $288.4 million at 31 December 2025.

^†Includes allocation of LPT premium of $132.3 million.

13. Insurance contract liabilities and reinsurance contract assets (continued)

13.1 Net insurance contract liabilities (continued)

Net insurance contracts - analysis by remaining coverage and incurred claims (continued)

Year to 31 December 2024	Net liabilities for remaining coverage		Net liabilities for incurred claims
	Excluding loss component	Loss component	Estimates of present value of future cash flows	Risk adjustment for non-financial risk	Total
	$m	$m	$m	$m	$m
Opening assets	118.8*	-	(1,696.3)	(520.8)	(2,098.3)
Opening liabilities	346.9	7.5	5,427.8	821.8	6,604.0
Net opening balance	465.7	7.5	3,731.5	301.0	4,505.7
Changes in the consolidated income statement
Insurance revenue, net of allocation of reinsurance premiums†	(3,463.1)	-	-	-	(3,463.1)
Insurance service expenses, net of amounts recoverable from reinsurers
Incurred claims and other attributable expenses	-	(10.4)	2,089.9	57.6	2,137.1
Amortisation of insurance acquisition cash flows	1,075.6	-	-	-	1,075.6
Adjustments to liabilities for incurred claims relating to past service	-	-	(255.4)	(59.4)	(314.8)
Losses and reversals of losses on onerous contracts	-	12.3	-	-	12.3
Effect of changes in non-performance risk of reinsurers	-	-	(0.6)	-	(0.6)
Total net insurance service expenses	1,075.6	1.9	1,833.9	(1.8)	2,909.6
Insurance service result	(2,387.5)	1.9	1,833.9	(1.8)	(553.5)
Net finance (income)/expenses from insurance contracts	(10.0)	-	162.1	-	152.1
Net foreign exchange gains	(24.1)	-	(44.4)	(5.6)	(74.1)
Total change recognised in comprehensive income	(2,421.6)	1.9	1,951.6	(7.4)	(475.5)
Investment components	36.3	-	(36.3)	-	-
Transfer to other items in statement of financial position	(271.8)	-	(702.1)	(0.7)	(974.6)
Net cash flows
Net premium received	3,440.6	-	-	-	3,440.6
Net claims and other insurance service expenses paid	-	-	(1,243.4)	-	(1,243.4)
Insurance acquisition cash flows	(833.3)	-	-	-	(833.3)
Total cash flows	2,607.3	-	(1,243.4)	-	1,363.9
Closing assets	69.7*	-	(1,726.2)	(320.3)	(1,976.8)
Closing liabilities	346.2	9.4	5,427.5	613.2	6,396.3
Net closing balance	415.9	9.4	3,701.3	292.9	4,419.5

*Includes LPT ARC gross of premium receivable $532.3 million at 31 December 2023 and $407.0 million at 31 December 2024.

^†Includes allocation of LPT premium of $139.2 million.

13. Insurance contract liabilities and reinsurance contract assets (continued)

13.2 Claims development tables

The development of insurance contract liabilities provides a measure of the Group's ability to estimate the ultimate cost of claims. The Group analyses actual claims development compared with previous estimates on an accident year basis.

Insurance contract liability for incurred claims - net of reinsurance

	2021	2022	2023	2024	2025	Total
Accident year	$m	$m	$m	$m	$m	$m
Estimate of ultimate claims costs as adjusted for foreign exchange*
at end of accident year:	1,616.1	1,552.8	1,528.6	1,668.7	1,803.5	8,169.7
one period later	1,522.6	1,557.2	1,485.2	1,585.6		6,150.6
two periods later	1,466.4	1,454.1	1,412.4			4,332.9
three periods later	1,439.8	1,375.4				2,815.2
four periods later	1,407.4					1,407.4
Current estimate of cumulative claims	1,407.4	1,375.4	1,412.4	1,585.6	1,803.5	7,584.3
Cumulative payments to date	(1,041.3)	(951.6)	(879.9)	(637.9)	(467.3)	(3,978.0)
Net cumulative liability for incurred claims - accident years from 2021 to 2025	366.1	423.8	532.5	947.7	1,336.2	3,606.3
Net cumulative liability for incurred claims in respect of accident years before 2021						1,191.4
Effect of discounting						(303.6)
Total Group liability for incurred claims to external parties included in balance sheet - net						4,494.1

*The foreign exchange adjustment arises from the retranslation of the estimates at each date using the exchange rate ruling at 31 December 2025.

The table above excludes reinsurance recoveries related to the retroactive reinsurance contracts, for example legacy portfolio transfer arrangements where the financial effect of the underlying claims is still uncertain. These are included in reinsurance contract asset for remaining coverage.

14. Earnings per share

Basic

Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period, excluding ordinary shares purchased by the Group and held in treasury as own shares.

	2025	2024
Profit for the period attributable to owners of the Company ($m)	604.1	627.2
Weighted average number of ordinary shares in issue (thousands)	334,304	342,273
Basic earnings per share (cents per share)	180.7	183.2

Diluted

Diluted earnings per share is calculated by adjusting the assumed conversion of all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary shares, share options and awards. For the share options, a calculation is made to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.

	2025	2024
Profit for the period attributable to owners of the Company ($m)	604.1	627.2
Weighted average number of ordinary shares in issue (thousands)	334,304	342,273
Adjustment for share options (thousands)	10,985	9,841
Weighted average number of ordinary shares for diluted earnings per share (thousands)	345,289	352,114
Diluted earnings per share (cents per share)	175.0	178.1

Diluted earnings per share has been calculated after taking account of 6,902,028 (2024: 6,263,301) Performance Share Plan (PSP) awards, 385,846 (2024: 371,118) options under SAYE schemes and 3,696,935 (2024: 3,206,786)employee share awards.

 15. Dividends paid to owners of the Company

	2025	2024
	$m	$m
Final dividend for the year ended:
31 December 2024 of 29.9¢ (net) per share	100.8	-
31 December 2023 of 25.0¢ (net) per share	-	86.0
Interim dividend for the year ended:
31 December 2025 of 14.4¢ (net) per share	48.6	-
31 December 2024 of 13.2¢ (net) per share	-	44.8
	149.4	130.8

The interim and final dividend for 2024 was paid either in cash or issued as a Scrip Dividend at the option of the shareholder. The interim dividend for the year ended 31 December 2024 was paid in cash of $42.6 million and 144,509 shares for a Scrip Dividend. The final dividend for the year ended 31 December 2024 of 29.9¢ was paid in cash of $98.4 million and 146,706 shares for the Scrip Dividend.

The interim dividend for 2025 was paid either in cash or issued as a Scrip Dividend at the option of the shareholder. The amounts were $47.0 million in cash and 88,711 shares for a Scrip Dividend.

The Board recommended a final dividend of 35.9¢ per share to be paid, subject to shareholder approval, on 8 June 2026 to shareholders registered on 24 April 2026. Dividends will be paid in Sterling unless shareholders elect to be paid in US Dollars. The foreign exchange rate to convert the dividends declared in US Dollars into Sterling will be based on the average exchange rate between 19 May 2026 and 26 May 2026 inclusive.

When determining the level of dividend each year, the Board considers the ability of the Group to generate cash and the availability of that cash in the Group, while considering constraints such as regulatory capital requirements and the level required to invest in the business. This is a progressive policy and is expected to be maintained for the foreseeable future.

16. Financial assets and liabilities

i.    Analysis of financial assets carried at fair value

	2025	2024
	$m	$m
Debt and fixed income holdings	7,919.3	6,660.9
Equities and investment funds	170.8	210.2
Private credit funds	274.4	148.2
Total investments	8,364.5	7,019.3
Insurance-linked funds	67.0	58.3
Derivative financial instruments	0.5	-
Total financial assets carried at fair value	8,432.0	7,077.6

Equities and investment funds includes a $60.7 million (2024: $nil) prepayment in relation to a forward contract held by the Group Employee Benefit Trust to purchase a variable number of Hiscox shares. The shares are expected to be delivered by February 2026.

ii.   Analysis of financial liabilities carried at fair value

	2025	2024
	$m	$m
Derivative financial instruments	0.6	0.0
Financial liabilities carried at fair value	0.6	0.0

iii.  Analysis of financial liabilities carried at amortised cost

	2025	2024
	$m	$m
Borrowings	832.3	656.2
Accrued interest on borrowings	7.5	7.3
Financial liabilities carried at amortised cost	839.8	663.5
Total financial liabilities	840.4	663.5

16. Financial assets and liabilities (continued)

iii.  Analysis of financial liabilities carried at amortised cost (continued)

On 24 November 2015, the Group issued £275.0 million 6.125% fixed-to-floating rate callable subordinated notes due 2045, with a first call date of 24 November 2025. On 2 June 2025, the Group announced an invitation to note holders to tender their notes for cash. The aggregate principal amount of the notes purchased and cancelled by the Group under this offer was £261.2 million. The remaining outstanding notes were redeemed at their principal amount on the first call date. 

On 22 September 2022, the Group issued £250.0 million 6% fixed-rate senior notes due September 2027.

On 11 June 2025, the Group issued $500.0 million 7% fixed-to-floating rate callable subordinated notes due 2036, with a first call date of 2035.

The fair value of the borrowings is estimated at $889.1 million (2024: $672.0 million). The fair value measurement is classified within Level 1 of the fair value hierarchy. The fair value is estimated by reference to the actively traded value on the stock exchanges.

The increase in the carrying value of the borrowings and accrued interest during the year comprises the new issue of subordinated notes of $500 million ($496.8 million net of fees) (2024: $nil), the repayment of the £275.0 million fixed-to-floating rate callable subordinated notes of $373.6 million (2024: $nil), the amortisation of the difference between the net proceeds received and the redemption amounts of $0.9 million (2024: $0.7 million), the decrease in accrued interest of  $0.8 million (2024: decrease of $0.7 million), plus exchange movements of $53.0 million (2024: less exchange movements of $10.9 million).

iv.  Investments at 31 December are denominated in the following currencies at their fair value:

	2025	2024
	$m	$m
Debt and fixed income holdings
US Dollars	5,838.2	4,998.4
Sterling	986.1	835.8
Euro and other currencies	1,095.0	826.7
	7,919.3	6,660.9
Equities and investment funds
US Dollars	39.1	95.5
Sterling	93.7	80.6
Euro and other currencies	38.0	34.1
	170.8	210.2
Private credit funds
US Dollars	221.4	117.5
Sterling	26.8	16.5
Euro and other currencies	26.2	14.2
	274.4	148.2
Total investments	8,364.5	7,019.3

17. Fair value measurements

In accordance with IFRS 13 Fair Value Measurement, the fair value of financial instruments, based on a three-level fair value hierarchy that reflects the significance of the inputs used in measuring the fair value, is set out below.

	Level 1	Level 2	Level 3	Total
31 December 2025	$m	$m	$m	$m
Financial assets
Debt and fixed income holdings	1,342.9	6,565.7	10.7	7,919.3
Equities and investment funds	-	160.4	10.4	170.8
Private credit funds	-	-	274.4	274.4
Insurance-linked funds	-	-	67.0	67.0
Derivative financial instruments	-	0.5	-	0.5
Total	1,342.9	6,726.6	362.5	8,432.0
Financial liabilities
Derivative financial instruments	-	0.6	-	0.6
Total	-	0.6	-	0.6

	Level 1	Level 2	Level 3	Total
31 December 2024	$m	$m	$m	$m
Financial assets
Debt and fixed income holdings	1,127.5	5,523.4	10.0	6,660.9
Equities and investment funds	-	179.3	30.9	210.2
Private credit funds	-	-	148.2	148.2
Insurance-linked funds	-	-	58.3	58.3
Derivative financial instruments	-	-	-	-
Total	1,127.5	5,702.7	247.4	7,077.6
Financial liabilities
Derivative financial instruments	-	-	-	-
Total	-	-	-	-

The levels of the fair value hierarchy are defined by the standard as follows:

•     Level 1 - fair values measured using quoted prices (unadjusted) in active markets for identical instruments;

•     Level 2 - fair values measured using directly or indirectly observable inputs or other similar valuation techniques for which all significant inputs are based on market-observable data;

•     Level 3 - fair values measured using valuation techniques for which significant inputs are not based on market-observable data.

The fair values of the Group's financial assets are typically based on prices from numerous independent pricing services. The pricing services used by the investment manager obtain actual transaction prices for securities that have quoted prices in active markets. For those securities which are not actively traded, the pricing services use common market valuation pricing models.

Observable inputs used in common market valuation pricing models include, but are not limited to, broker quotes, credit ratings, interest rates and yield curves, prepayment speeds, default rates and other such inputs which are available from market sources.

Investments in mutual funds comprise a portfolio of stock investments in trading entities which are invested in various quoted and unquoted investments. The fair value of these investment funds is based on the net asset value of the fund as reported by independent pricing sources or the fund manager.

Included within Level 1 of the fair value hierarchy are certain government bonds, treasury bills, corporate bonds having a quoted price in active markets, and exchange-traded funds which are measured based on quoted prices in active markets. 

The fair value of the borrowings carried at amortised cost is estimated at $889.1 million (2024: $672.0 million) and is considered as Level 1 in the fair value hierarchy.

17. Fair value measurements (continued)

Level 2 of the hierarchy contains certain government bonds, US government agencies, corporate securities, asset-backed securities, mortgage-backed securities and certain commingled funds. The fair value of these assets is based on the prices obtained from independent pricing sources, investment managers and investment custodians as discussed above. The Group records the unadjusted price provided and validates the price through a number of methods including a comparison of the prices provided by the investment managers with the investment custodians and the valuation used by external parties to derive fair value. Quoted prices for US government agencies and corporate securities are based on a limited number of transactions for those securities and as such the Group considers these instruments to have similar characteristics to those instruments classified as Level 2. Also included within Level 2 are units held in collective investment vehicles investing in traditional and alternative investment strategies and over-the-counter derivatives. In 2025, Level 2 also included a non-derivative forward contract asset

Level 3 contains investments in limited partnerships, unquoted equity securities, private credit funds and insurance-linked funds which have limited observable inputs on which to measure fair value. Unquoted equities, including equity instruments in limited partnerships, are carried at fair value. Fair value is determined to be net asset value for the limited partnerships, and for the equity holdings it is determined to be the latest available traded price. The effect of changing one or more inputs used in the measurement of fair value of these instruments to another reasonably possible assumption would not be significant.

Private credit funds comprise holdings in funds which, in turn, hold debt investments in private companies that are not quoted on an active market. The fair value of the private credit funds is determined based on the net asset values reported by the investment managers. The underlying loan values, on which the investments are based, are valued by the investment managers using a discounted cash flow model. The inputs to the valuation are cash flows, risk-free rate and a credit spread. The cash flow projections are determined by the loan terms and the risk-free rate is the overnight rate for the issuing currency; these are all observable inputs. The credit spread applied is based on synthetic rating analysis, whereby an equivalent corporate bond rating is assigned to a private loan based on structural analysis of the issuer's statement of financial position and performance since investment. This is an unobservable input but is not deemed to be significant. Given the Group's knowledge of the underlying investments and the size of the Group's investment therein, the Group would not anticipate any material variance between the statements and the final net asset values reported by the investment managers.

At 31 December 2025, the insurance-linked funds of $67.0 million represent the Group's investment in the unconsolidated Kiskadee funds (2024: $58.3 million).

The fair value of the Kiskadee funds is estimated to be the net asset value as at the end of the reporting period. The net asset value is based on the fair value of the assets and liabilities in the fund. The majority of the assets of the funds are cash and cash equivalents. Significant inputs and assumptions in calculating the fair value of the assets and liabilities associated with reinsurance contracts written by the Kiskadee funds include the amount and timing of claims payable in respect of claims incurred and periods of unexpired risk. The Group has considered changes in the net asset valuation of the Kiskadee funds if reasonably different inputs and assumptions were used and has found that a 12% change to the fair value of the liabilities would increase or decrease the fair value of funds by $2.2 million.

In certain cases, the inputs used to measure the fair value of a financial instrument may fall into more than one level within the fair value hierarchy. In this instance, the fair value of the instrument in its entirety is classified based on the lowest level of input that is significant to the fair value measurement.

The table below sets forth a reconciliation of opening and closing balances for financial instruments classified under Level 3 of the fair value hierarchy:

	2025	2024
	$m	$m
Balance At 1 January	247.4	130.3
Fair value gains/(losses) through profit or loss	17.5	(4.5)
Foreign exchange gains/(losses)	6.0	(0.8)
Purchases	134.5	136.6
Disposals	(42.9)	(14.2)
Transfers	-	-
Closing balance	362.5	247.4
Net unrealised gains/(losses) in the period on securities held at the end of the period	14.2	(4.0)

The closing balance at year end comprised $10.7 million debt and fixed income holdings (2024: $10.0 million), $10.4 million equities and investment funds (2024: $30.9 million), $274.4 million private credit funds (2024: $148.2 million) and $67.0 million insurance-linked funds (2024: $58.3 million).

18. Consolidated cash flow statement

The purchase, maturity and disposal of financial assets and liabilities, including derivatives, is part of the Group's insurance activities and is therefore classified as an operating cash flow.

Included within cash and cash equivalents held by the Group are balances totalling $105.0 million (2024: $156.0 million) not available for immediate use by the Group outside of the Lloyd's syndicate within which they are held. Additionally, $13.0 million (2024: $32.6 million) is pledged cash held against Funds at Lloyd's, and $29.2 million (2024: $19.5 million) is held within trust funds against reinsurance arrangements.

19. Employee retirement benefit obligations

The table below provides a reconciliation of the movement in the Group's net defined benefit surplus recognised in the Group's statement of financial position:

	2025	2024
	$m	$m
Group defined benefit surplus at beginning of year	(40.0)	(44.4)
Third-party Names' share at beginning of year	(5.6)	(5.0)
Net defined benefit surplus at beginning of year	(45.6)	(49.4)
Defined benefit income included in the income statement	(1.4)	(2.1)
Total remeasurements included in other comprehensive income	(1.4)	4.8
Other movements	(3.1)	1.1
Net defined benefit surplus at end of year	(51.5)	(45.6)
Third-party Names' share at end of year	5.4	5.6
Group defined benefit surplus at end of year	(46.1)	(40.0)

Remeasurements include changes in actuarial assumptions, predominantly the application of a higher discount rate (2024: higher discount rate) being applied to the scheme liabilities and the increase (2024: decrease) in the fair value of the scheme assets. The contributions paid by the company were $nil in 2025 (2024: $nil).

Other movements include the defined benefit cost recognised in operating expenses and exchange gains/losses.

A triennial valuation was carried out as at 31 December 2023 and resulted in a surplus position of £3.7 million ($4.7 million) on a technical provisions basis. The previous recovery plan has therefore now fallen away and no further deficit recovery contributions are due.

While management believes that the actuarial assumptions are appropriate, any significant changes to those could affect the statement of financial position and income statement. For example, an additional one year of life expectancy for all scheme members would increase the scheme obligations by £5.0 million ($6.7 million) at 31 December 2025 (2024: £4.2 million ($5.3 million)), and would increase/reduce the recorded net deficit/surplus on the statement of financial position by the same amounts.

A Court of Appeal legal ruling in July 2024 (Virgin Media Limited v NTL Pension Trustees II Limited) decided that certain pension scheme amendments were invalid if they were not accompanied by the correct actuarial confirmation. In September 2025, the Government published draft legislation which provides for the retrospective validation of such scheme amendments where certain conditions are met. The Group continues to believe that the pension scheme deed, including relevant amendments, remains valid and has set the IAS19 Employee Benefits assumptions accordingly.

20. Business combinations

On 18 June 2025, Hiscox Europe Holdings Ltd (HEH), a fully owned subsidiary of Hiscox Ltd, acquired 100% of the ordinary share capital of Lokky S.r.l (Lokky), an online insurance broker in Italy, as part of its entry strategy for the Italian market for $6.2 million.

On 11 August 2025, Hiscox Holdings Inc. (HHI), a fully owned subsidiary of the Company, acquired 100% of the ordinary share capital of Corix Insurance Services LLC (Corix), a US-based managing general agent, from Vouch US Insurance Services Holdings LLC for a total consideration of $59.0 million. The transaction includes the acquisition of US broker technology to accelerate the ongoing digitisation of Hiscox's US broker platform. The acquisition of Corix supports Hiscox USA's expansion into new specialist customer segments.

Further details of the business combinations are disclosed in note 25 of the 2025 Annual Report and Accounts.

21. Events after the reporting period

There are no material events that have occurred after the reporting date.

 Alternative performance measures 

The Group uses, throughout its financial publications, alternative performance measures (APMs) in addition to the figures that are prepared in accordance with UK-adopted international accounting standards. The Group believes that these measures provide useful information to enhance the understanding of its financial performance. The APMs are: adjusted operating earnings per share, return on tangible equity, net asset value per share and net tangible asset value per share, insurance contract written premium, net insurance contract written premium, combined, claims and expense ratios and prior-year developments. Most of these are common measures used across the industry, and allow the reader of the report to compare across peer companies. The APMs should be viewed as complementary to, rather than a substitute for, the figures prepared in accordance with accounting standards.

Adjusted operating profit (AOP) before tax and AOP after tax

During the year, Hiscox introduced AOP before tax and AOP after tax as new APMs. Hiscox uses AOP before tax and AOP after tax to evaluate the performance of its operating segments, as well as of the Hiscox Group as a whole.

AOP before tax represents the pre-tax profit that the Group's ongoing core operating activities generate, including insurance and investment activity, adjusted to remove the impact of market volatility and other non-operating variables. We consider the presentation of AOP before tax to be useful and meaningful to investors because it enhances the understanding of the Group's underlying operating performance and the comparability of its operating performance over time. As such, it is used internally for decision making and performance management of our operating segments.

AOP before tax excludes the impact of the following items which are a source of market volatility and do not reflect the underlying performance of the business:

•       unrealised fair value gains and losses arising on fixed income securities carried at fair value;

•       impact on discounting from changes in the yield curve included in insurance finance income and expenses;

•       net foreign exchange gains or losses.

AOP before tax also excludes the impact of accelerated change costs relating to a well-defined programme that materially changes the scope of the Group's business or the manner in which it is conducted. This includes restructuring provisions associated with this programme.

AOP before tax also excludes the impact of the following items which are not considered to reflect ongoing core operating activities:

•       one-off gains or losses arising on undertaking legacy portfolio transactions (LPTs);

•       gains or losses arising from significant acquisitions or disposals;

•       impairment of goodwill and acquired intangible assets;

•       pension administration cost including the impact of scheme amendments and buyout;

•       profit or loss arising from discontinued and non-core operations;

•       integration, restructuring or other significant one-off project costs impacting the income statement; and

•       share of profit or loss of associates after tax.

The Group discloses AOP before tax as defined above. The Group also discloses AOP after tax, which reflects the AOP after taking into account the effective tax impact of the adjustments made to arrive at the AOP. The effective tax rate applied to these adjustments is consistent with the Group's effective tax rate.

The Group AOP before tax should be viewed as complementary to IFRS measures. It is important to consider the Group AOP and profit before tax together to understand the performance of the business in the period.

	Note	2025	2024
Profit before tax		732.7	685.4
Adjusted for:
Unrealised fair value (gains) or losses on fixed income securities carried at fair value		(59.8)	(46.4)
Impact on discounting from changes in yield curve included in insurance finance income and expenses	9	18.9	(8.1)
Net foreign exchange (gains) or losses		(7.1)	11.2
Accelerated change costs		24.0	-
One-off (gains) or losses and non-core operations		35.1	41.2
Adjusted operating profit before tax		743.8	683.3
Income tax (expense)/credit on adjusted operating profit		(128.9)	(52.1)
Adjusted operating profit after tax		614.9	631.2

Adjusted operating earnings per share (EPS)

During the year, Hiscox introduced adjusted operating earnings per share as a new APM. Adjusted operating EPS is considered meaningful to stakeholders because it enhances the understanding of the Group's operating performance over time by adjusting for the effects of non-operating items. The adjusted basic operating EPS is calculated by dividing the Group AOP by the weighted average number of ordinary shares in issue during the period, excluding ordinary shares purchased by the Group and held in treasury as own shares.

The adjusted diluted operating EPS is calculated by adjusting the assumed conversion of all dilutive potential ordinary shares.

Please refer to note 14 for details for the calculation of the weighted average number of ordinary shares.

	Note	2025	2024
Adjusted operating profit after tax ($m)		614.9	631.2
Weighted average number of ordinary shares in issue (thousands)	14	334,304	342,273
Adjusted basic operating earnings per share (cents per share)		183.9	184.4
Adjusted operating profit after tax ($m)		614.9	631.2
Weighted average number of ordinary shares for diluted earnings per share (thousands)	14	345,289	352,114
Adjusted diluted operating earnings per share (cents per share)		178.1	179.3

Return on equity

The ROE is shown in note 8, along with an explanation of the calculation. Use of ROE is common within the financial services industry, and the Group uses ROE as one of its key performance indicators. While the measure enables the Group to compare itself against other peer companies in the insurance industry, it is also a key measure internally where it is used to compare the profitability of business segments, and underpins the performance-related pay and pre-2018 share-based payment structures.

Operating return on tangible equity (ROTE)

During the year, Hiscox introduced operating ROTE as a new APM. Operating ROTE is considered meaningful to stakeholders because it measures the profitability of the Group's ongoing core operating activities against tangible equity and is a key driver of valuation multiples in the insurance industry. The operating ROTE is calculated by using the Group AOP, divided by the adjusted opening total tangible equity. The adjusted opening total equity represents the equity on 1 January of the relevant year as adjusted for:

•       time-weighted aspects of capital distributions, share buyback, issuing of shares or treasury share purchases during the period. The time-weighted positions are calculated on a daily basis with reference to the proportion of time from the transaction to the end of the period;

•       cumulative impact of opening unrealised fair value gains or losses on fixed income securities carried at fair value;

•       cumulative impact of opening discounting of insurance contract liabilities and reinsurance contract assets; and

•       opening goodwill and intangible assets.

		2025	2024
	Note	$m	$m
Adjusted operating profit after tax		614.9	631.2
Opening total equity	8	3,689.9	3,296.7
Time-weighted impact of capital distributions, share buyback and issuance of shares	8	(160.8)	(136.8)
Cumulative impact of opening unrealised fair value (gains) or losses on fixed income securities carried at fair value		(0.1)	55.0
Cumulative impact of opening discounting of insurance contract liabilities and reinsurance contract assets		(280.5)	(268.2)
Opening goodwill and intangible assets		(308.8)	(323.9)
Adjusted opening total equity		2,939.7	2,622.8
Operating return on tangible equity (%)		20.9	24.1

Net asset value (NAV) per share and net tangible asset value per share

NAV per share and net tangible asset value per share are shown in note 7, along with an explanation of the calculation. Net tangible asset value comprises total equity excluding intangible assets. The Group uses NAV per share as one of its key performance indicators, including using the movement of NAV per share in the calculation of the options vesting of awards granted under PSPs from 2018 onwards. This is a widely used key measure for management and also for users of the financial statements to provide comparability across peers in the market.

Insurance contract written premium (ICWP) and net insurance contract written premium (NICWP)

ICWP is the Group's top-line key performance indicator, comprising premiums on business incepting in the financial year, adjusted for estimates of premiums written in prior accounting periods, reinstatement premium and non-claim dependent commissions.

NICWP comprises premiums on business incepting in the financial year, net of reinsurers' share of premiums, and adjusted for reinstatement premium and non-claim dependent commissions, net of reinsurance commissions.

The tables below reconcile the ICWP back to insurance revenue and NICWP back to net insurance revenue.

Writing insurance policies is the Group's primary function and this measure allows a written premium measure alongside the earned premium basis adopted by the Group under the premium allocation approach for insurance revenue under IFRS 17.

	2025	2024 (restated)
	$m	$m
Insurance contract written premium	4,979.0	4,703.7
Change in unearned premium included in the liability for remaining coverage	(131.8)	(92.6)
Insurance revenue from other operations*	36.5	61.4
Insurance revenue	4,883.7	4,672.5

*Insurance revenue from other operations comprises insurance revenue from 'other' segment. Following the completion of the sale of DirectAsia in July 2025, DirectAsia has been included in the 'other' segment, and comparatives have been restated to report on a consistent basis.

	2025	2024 (restated)
	$m	$m
Net insurance contract written premium	3,865.8	3,622.4
Change in unearned premium included in the liability for remaining coverage	(131.8)	(92.6)
Change in reinsurance provision for unearned premium included in asset for remaining coverage	(117.0)	(118.7)
Net insurance revenue from other operations*	30.2	52.0
Net insurance revenue (Insurance revenue less allocation of reinsurance premiums)	3,647.2	3,463.1

*Net insurance revenue from other operations comprises net insurance revenue from 'other' segment. Following the completion of the sale of DirectAsia in July 2025, DirectAsia has been included in the 'other' segment, and comparatives have been restated to report on a consistent basis.

Combined, claims and expense ratios

The combined ratio is calculated as the sum of the claims ratio and the expense ratio. Claims are discounted under IFRS 17 which can introduce volatility to the ratios if interest rates move significantly during a period, therefore ratios are also presented on an undiscounted basis. The combined, claims and expense ratios are common measures enabling comparability across the insurance industry, and are used by the Group to measure the relative underwriting profitability of the business by reference to its costs as a proportion of the insurance revenue net of allocation of reinsurance premiums. The calculation is discussed further in note 6, operating segments.

Prior-year developments

Prior-year developments are a measure of favourable or adverse development on claims reserves, net of reinsurance, that existed at the end of the prior year.

The prior-year development is calculated as the positive or negative movement in ultimate losses on prior accident years during the year on an undiscounted basis adjusted for LPT premium.

Prior-year developments are a useful measure as they enable users of the financial statements to compare and  contrast the Group's performance relative to peer companies and to understand the consistency of the Group's conservative approach to reserving.

The LPT premium reclassification captures the LPT reinsurance recoveries due to changes in ultimate losses related to the covered business which is recognised in the reinsurance asset held for remaining coverage.

Prior-year development recognised for the year amounts to $292.7 million (2024: $145.5 million) and comprises:

	2025	2024
	$m	$m
Adjustment to liabilities for incurred claims relating to past service, net of reinsurance recoveries (on a present value basis)	450.3	314.8
Adjustment for discounting impact	(25.4)	(30.1)
Adjustment for LPT premium and experience adjustment	(132.2)	(139.2)
	292.7	145.5

---

¹ Alternative performance measure definitions used by the Group are included within the consolidated financial statements.

2Following the completion of the sale of DirectAsia in July 2025, DirectAsia is no longer included within Hiscox Retail, instead being included in the 'other' segment from 1 January 2025. 2024 financials have been restated to report on a consistent basis.

3Estimated for 2025.

4Sum of acquisition costs, other attributable expenses and other operational expenses.

5Allows for the reclassification of LPT recoveries into claims.

6Leverage defined as borrowings over borrowings and shareholder equity.

7The record date for the dividend will be 24 April 2026 and the payment date will be 8 June 2026. The Company's Scrip Dividend Scheme has been suspended and so no Scrip Dividend alternative will be offered in respect of the final dividend. However, a Dividend Reinvestment Plan (DRIP) will be provided by Equiniti Financial Services Limited, which enables shareholders to elect to have their cash dividend payments used to purchase the Company's shares. Further details can be found on https://www.hiscoxgroup.com/investors/dividend-information/dividend-history-calculator and the last date for receipt of DRIP elections will be 18 May 2026.

 

END