Hiscox Ltd interim results

Hiscox Ltd

05 August 2026

 

Hiscox Ltd interim results

For the six-month period ended 30 June 2026

"The power of Hiscox: delivering growth and returns in complex markets."

	H1 2026	H1 2025
Insurance contract written premium[1]	$3,238.4m	$2,941.6m
Net insurance contract written premium1	$2,269.3m	$2,125.2m
Insurance service result	$255.4m	$196.2m
Investment result	$128.2m	$234.9m
Profit before tax	$240.5m	$276.6m
Earnings per share	82.3¢	67.2¢
Interim dividend per share	16.8¢	14.4¢
Net asset value per share1	1,234.9¢	1,133.3¢
Group combined ratio (undiscounted)1	90.4%	92.6%
Adjusted operating profit before tax1	$331.0m	$262.0m
Adjusted operating return on tangible equity (ROTE)1	20.2%	14.5%
Adjusted operating earnings per share1	105.2¢	63.9¢

Highlights

•     Insurance contract written premium (ICWP) grew by 10.1% to $3,238.4 million, with profitable growth in all three business segments.

•     Hiscox Retail's 2026 ICWP growth guidance upgraded from 8% to 9% for the full-year, as Retail grew 8.2% in constant currency in the first half, and momentum continues to accelerate.

•     Adjusted operating ROTE of 20.2% (H1 2025: 14.5%), above the through-the-cycle mid-teens target.

•     Undiscounted combined ratio of 90.4% (H1 2025: 92.6%) demonstrates the resilience of Hiscox as the Group's diversified business portfolio continues to deliver robust outcomes in a more unpredictable environment.

•     Investment result of $128.2 million (H1 2025: $234.9 million) reflects the earn-through of higher coupons, partly offset by unrealised fair value losses on fixed income securities which are expected to unwind as the bonds mature.

•     Change programme achieved P&L benefit of $45 million in the first half at a cost of $39 million, remaining on track to deliver $75 million in 2026 and $200 million in 2028.

•     Interim dividend of 16.8 cents per share, an increase of 16.7% year-on-year. $300 million buyback progressing well, with 32% completed as at 30 June 2026 and the remainder expected to be completed ahead of the full year 2026 results.

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

"Our diverse business portfolio, underpinned by our specialty underwriting ecosystem, entrepreneurial culture and a relentless focus on dynamic capital allocation and returns, has led to Hiscox again delivering robust outcomes in a more unpredictable and challenging market.

We are delivering on our commitments, achieving our targets and realising our strategic ambitions. I am pleased with the double-digit premium growth in the first half, as Retail continues its multi-year growth acceleration and we successfully navigate an evolving market in big-ticket through disciplined underwriting, innovation and proactive cycle management.

As we grow, we are becoming more efficient. Enhanced operational capabilities, increasingly powered by AI where it makes sense, are driving productivity gains and delivering greater operating leverage.

The adjusted operating ROTE of 20.2% reflects the benefit of the combined Group and is driven by profitable growth in all businesses, underwriting excellence and a growing investment portfolio.

The outlook remains positive. In Retail, strong growth in the first half, powered by a broad base of initiatives, gives us confidence to upgrade Hiscox Retail's constant currency 2026 growth guidance to 9% for the full-year."

ENDS

A conference call for investors and analysts will be held at 10:30 BST on Wednesday, 5 August 2026.

Participant dial-in numbers:

United Kingdom (local): + 44 (0) 20 3936 2999

All other locations: [phone]
Participant access code: 597268

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]

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 are 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.

CEO statement

Strategic execution

Hiscox is built to deliver profitable growth across the cycle. Our diversified business model, unique specialty retail platform, customer-centric approach and entrepreneurial culture help us capture profitable growth opportunities, while rigorous underwriting ensures we remain selective on risk and disciplined on price. In the first six months of 2026, we have again shown the collective power of Hiscox businesses, as the Group delivered high-quality growth of 10.1% in more variable market conditions. We are experiencing a more competitive environment in many classes of business in big-ticket; however, micro-cycles are persisting and we continue to see attractive opportunities to grow in some existing classes of businesses, as well as new adjacencies. The focus on risk selection, pricing and innovation helps sustain profitable growth in all three business segments. An undiscounted combined ratio of 90.4% and investment return of $128.2 million have resulted in an adjusted operating return on tangible equity of 20.2%. Continued strong capital generation has enabled the Board to increase the interim dividend per share by 16.7%, consistent with our policy of setting the interim to one-third of the prior year total and a result of the step-up of the final 2025 dividend per share.

We are making strong progress on our strategic growth agenda, with momentum continuing to build across the board. The Group's ambition to accelerate Hiscox Retail's growth to double-digits by 2028 is firmly on track, as we delivered Retail growth of 8.2% in constant currency in the first half and upgrade 2026 growth guidance from 8% to 9% for the full-year, in constant currency.

Our change programme is progressing well, with 75 initiatives already completed and over 100 initiatives underway at varying stages of completion. We have realised a P&L benefit of $45 million in the first six months of the year at a cost of $39 million, and remain on track to realise $75 million of benefit in 2026 and the full $200 million in 2028 and onwards.

Profitable growth through the cycle

In the first half of the year, Hiscox Retail increased gross premiums by $174.1 million, extending its 20-year unbroken record of compounding growth. Our multi-year growth acceleration continues. The decisive management actions that have created the momentum we see today continue at pace. We are executing our strategy, going deeper into existing markets, entering new adjacent specialist sectors, launching new products and expanding our distribution. True to our specialist expertise we are finding new niches, with product launches in the first half including rage rooms, podcasters and online tutors. To further increase our proposition and customer reach, we are expanding our digital platform in the USA to now offer our customers a commercial auto product, underwritten by one of our largest digital partners. Distribution expansion is also continuing at pace, including our largest ever distribution arrangement in the UK, which went live in April.

In big-ticket, our expertise and ability to innovate in specialist niches as well as our continuing focus on disciplined cycle management have resulted in selective, returns-focused growth. In Hiscox London Market, we are expanding into adjacent lines where we see the potential for attractive returns and we have expertise, such as downstream energy and US middle market property. In Hiscox Re, we are successfully growing our specialty and pro-rata portfolios with core clients. While finding opportunities for profitable growth, our underwriting discipline is unchanged, and we are walking away from business when expected returns are not sufficient for the risk we are taking. 

I am also pleased to welcome Aparna Sarin as Group Chief Marketing and Revenue Officer, a newly created role on the Group Executive Committee, based in the USA. Aparna brings more than two decades of experience across marketing, commercial growth, customer strategy and risk-led decision-making in global financial services. The appointment reflects the Group's focus on disciplined growth across the Group, and in particular, capturing the vast structural growth opportunity in Retail. Aparna will strengthen how the Group connects its specialist propositions to the right customers and distribution channels, and by building more consistent, scalable capability across markets.

Disciplined cycle management

Our 'market in transition' strategy has been in place across our big-ticket businesses over the last two and a half years, as we focus on the rate adequacy of the portfolio. In Hiscox London Market, as rates are softening across most lines, we are walking away from business where rate or terms are inadequate. In major property, rate has declined by 14% on business we have written; at the same time we have non-renewed 17% of risks, in instances where rate declines were often greater or terms and conditions presented were much wider. Double-digit rate decreases were also observed in areas such as power and renewables, where we have non-renewed 23% of the business. In Hiscox Re, we are managing net natural catastrophe exposures by focusing on high-quality cedants and walking away from more opportunistic business which is unattractive in a softening market environment.

Accelerated efficiency programme to unlock profitable growth and operating leverage

In the first half, we have made strong progress across a wide range of initiatives as part of our change programme. Our strategic resourcing approach continues, with capabilities in areas such as application development and claims handling insourced to reinforce our competitive advantages; while in other areas, such as finance, we have implemented wider use of lower cost locations and specialist partners to drive increased efficiency. In claims, the strengthening of our recoveries capabilities is starting to be recognised in our financial performance, with further benefits expected as we continue to industrialise our toolkits and deploy new AI capabilities. The progress we have made to date means we have realised a P&L benefit of $45 million in the first six months of the year, remaining on track to deliver $75 million in 2026 and the full $200 million in 2028. The cost to achieve in the first half was $39 million.

Technology/AI

Leveraging the latest technologies to unlock new opportunities and drive operational leverage has long been a key strategic objective of the Group.

In Retail, we are in the process of rolling out new front-end portals for our customers and brokers, equipped with self-serve capabilities, and extending our use of AI-enabled submission triage tools. These new capabilities will allow us to respond more quickly and empower our customers, while driving additional operational leverage.

To support our customer acquisition, we are now using AI to accelerate the development of bespoke higher-conversion advertisements. A new voice agent in the USA, 'Sarah', is supporting customers through the purchasing and claims first notice of loss journeys.

Our use of AI in customer acquisition is built on strong foundations, with each of our retail businesses already ranking highly for visibility and reputation across the major LLM platforms, including market-leading positions in the UK and Germany, and a top three position in the USA.

In big-ticket, Hiscox London Market is an established underwriting and technology leader at Lloyd's, having pioneered AI-augmented underwriting, which we continue to expand across the business, with one or more capabilities deployed in seven lines of business. In addition to driving efficiencies across the existing portfolio, these capabilities are enabling us to access new markets, such as US middle market property, where the momentum established last year has become a key contributor to London Market growth. In collaboration with Google Cloud, we have now developed an agent-to-agent capability that enables AI agents to exchange information, clarify details and confirm appetite in a consistent and streamlined way. We are working to make this an open-source protocol, with the ambition of helping establish a common language across the marketplace for how AI agents interact, thereby reducing friction in risk placement and driving better outcomes for customers, distributors and carriers.

Hiscox Retail

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	$1,560.7 million (H1 2025: $1,386.6 million)
Net insurance contract written premium	$1,425.6 million (H1 2025: $1,265.4 million)
Insurance service result	$149.2 million (H1 2025: $128.0 million)
Profit before tax	$169.8 million (H1 2025: $180.7 million)
Adjusted operating profit before tax	$191.5 million (H1 2025: $165.7 million)
Combined ratio	88.1% (H1 2025: 88.6%)
Undiscounted combined ratio	92.1% (H1 2025: 92.7%)

Hiscox Retail ICWP increased by 8.2% in constant currency, continuing the multi-year trend of growth acceleration and margin expansion. Growth is volume-driven, with policy count growth outpacing premium increases and rate increasing modestly by 1%. Retail momentum is broad based and driven by the aggregate impact of a wide range of initiatives executed over the last few years, including going deeper into our existing markets, the launch of new products and distribution expansion, growing momentum in the digital direct channel in all markets and multiple large distribution deals now scaling up production. All this gives us confidence to upgrade our 2026 Retail growth guidance to 9% for the full-year in constant currency. We are progressing confidently towards delivering double-digit growth in 2028.

Hiscox Retail's undiscounted combined ratio was 92.1%, within the 89%-94% target range and marking a 60 basis points improvement year-on-year. The insurance service result of $149.2 million (H1 2025: $128.0 million) reflects accelerating growth and continued improvement in the undiscounted combined ratio.

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 market leading brand and customer service.

Hiscox UK grew ICWP by 10.2%, on a constant currency basis, to $530.2 million (H1 2025: $463.4 million), with growth underpinned by increased production from distribution deals, effective brand investment and deepening our sector specialisms.

Following the success and momentum generated from our award-winning brand campaign, this has now been expanded to television, returning Hiscox to UK living rooms for the first time in nine years.

Our art and private client (APC) business continued its strong double-digit growth for an eighth consecutive quarter. Momentum is fuelled by a ramp-up of recent distribution deals, and stronger production in the broker channel, as AI and technology investments drive productivity uplifts and faster access to more risks.

In direct commercial, our brand campaign, marketing investments and enhancements of our call centre are supporting strong momentum, with record growth delivered in the first half. In the broker commercial market, our sector strategy is delivering results in a competitive environment. We are continuing to expand into adjacencies, now underwriting forensic scientists and food technologists in our technology sector. Our affirmative AI cover, which is already in place for our technology professional indemnity proposition, has now been added to our media proposition. New professions, such as podcasters and web streamers, have been added to our marketing and media underwriting appetite, and we have expanded our training and tutors offering to include the fast-growth areas of online tuition and teaching. 

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 ICWP grew by 6.2% on a constant currency basis for the first six months of the year, with ICWP of $494.6 million (H1 2025: $427.2 million). Both Northern and Southern regions are achieving robust growth, with Germany and France leading the charge in their respective regions.

Momentum continues to build as expansion of our products, distribution and geographic footprint gain traction. Initially launched in France and then Germany, our award-winning cyber product has now been rolled out across all our European markets, offering SME customers a simplified purchasing journey and partner-delivered vulnerability scanning, preventative services and expert response support. A robust pipeline of further product launches is scheduled for the coming months, including a surety product for the European SME market and personal accident cover in France.

As production from distribution agreements secured in recent years continues to increase, we have won further new deals in each European market in 2026. These agreements are expected to support continued momentum through the second half of the year and into 2027. In addition, we have established a unified leadership and strategy for our European digital partnerships and direct (DPD) business, with immediate positive results as the growth for this nascent business has accelerated into double digits.

In Italy, following our entry into the market in 2025, we have now received a branch licence and strengthened the country leadership team by appointing a new Managing Director and a new Underwriting Director. Pleasingly, premium production has commenced.

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 customers and through a diverse range of partners and traditional brokers.

Hiscox USA ICWP grew by 8.1% to $535.9 million (H1 2025: $496.0 million), as growth accelerated on the prior year across both the DPD and broker channels, continuing the multi-year acceleration delivered since 2023.

US DPD ICWP grew by 9.9% to $333.8 million (H1 2025: $303.8 million), driven by continued double-digit growth in digital direct and improving production in digital partnerships. Digital direct delivered record premium in the first half of the year, including a record for new business in the second quarter. This was driven by strong new business growth from innovative lead generation partnerships, an expanded use of AI across marketing and distribution and increasing new business formation trends.

In addition, Hiscox USA has deployed an AI-powered voice agent, 'Sarah', in our US call centres to support customer service enquiries and first notice of loss registrations. By improving the triaging and routing of customer calls, 'Sarah' enhances agent productivity and enables our insurance experts to focus more time on customer acquisition and cross sell. In digital partnerships, growth momentum continues to build from new distribution arrangements and enhancements to the sales journey. The business added 11 new partners in the first half, including launching a new partnership with a top 15 US P&C carrier, the first such deal in seven years. The pipeline for further additions remains healthy.

As part of our strategy to expand our digital platform, we have partnered with a leading US motor insurer to offer their commercial auto product to our customers. This builds on the workers' compensation product added in 2023 with another highly reputable multi-line US insurer. This approach generates capital-light fee income and further increases our reach and relevance, as we strive to be the small business insurer of choice and serve all the insurance needs of our customers.

US broker ICWP has continued its positive trajectory, with ICWP of $202.1 million, an increase of 5.2% (H1 2025: $192.2 million), despite ongoing challenging market conditions in technology and cyber. Growth has been supported by broadening our distribution into life sciences and technology start-ups and strong new business in entertainment and media, as our specialisms differentiate in an increasingly competitive market. Initiatives to drive strong broker engagement and streamline both new business and renewal workflows have strengthened our retention levels and increased submission flows. In June, the business deployed an AI-augmented submission-to-bind solution for lower complexity business, initially in two lines, with early results showing a material reduction in turnaround time.

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	$733.2 million (H1 2025: $667.7 million)
Net insurance contract written premium	$462.6 million (H1 2025: $448.4 million)
Insurance service result	$44.1 million (H1 2025: $61.8 million)
Profit before tax	$71.8 million (H1 2025: $106.9 million)
Adjusted operating profit before tax	$85.7 million (H1 2025: $98.5 million)
Combined ratio	89.1% (H1 2025: 83.7%)
Undiscounted combined ratio	93.8% (H1 2025: 87.9%)

Hiscox London Market grew 9.8% to $733.2 million (H1 2025: $667.7 million) as the business captured new opportunities, more than offsetting the impact of proactive cycle management. London Market growth also benefitted from prior-year premium adjustments, primarily from property binders, which contribute 4.5 percentage points to ICWP growth in the first half of 2026 - thus underlying growth was 5.3% in the first half. Lower net ICWP growth of 3.2% to $462.6 million (H1 2025: $448.4 million) reflects an increase in outwards reinsurance cessions to manage volatility, as we benefit from lower reinsurance pricing. While rates in our London Market portfolio have fallen by 5% in aggregate, they remain up 59% since 2018 and 76% of the portfolio is rate adequate or better.

Micro-cycles are persisting, although the majority of lines are now experiencing rate pressure. We continue to find opportunities to grow in some existing classes where we see the potential for attractive returns, such as select opportunities in casualty, cargo and terrorism. We are also expanding into adjacencies, such as middle market property, downstream energy and technology E&O. At the same time, we are retrenching materially in classes where rates and terms are worsening, such as major property and power and renewables.

Earlier this year we carved out Hiscox Portfolio Solutions from our property division. It is delivering disciplined growth by applying our underwriting and portfolio management expertise in a changing distribution landscape.

In casualty, we are benefitting from our expansion into adjacencies, including technology E&O and financial institutions, as well as selective new business growth in general liability, cyber and D&O.

In property, the build-out of our middle market business and favourable conditions in flood, have offset targeted reductions, particularly in major property where rates have fallen by double digits.

In both crisis management and marine, energy and specialty, increased demand arising from the Middle East conflict, and expansion into new lines such as downstream energy, are partially offsetting the impact of cycle management, particularly within energy where we have non-renewed a significant amount of business in response to increased competition leading to material rate reductions.

The undiscounted combined ratio of 93.8% (H1 2025: 87.9%) reflects the impact of the conflict in the Middle East, resulting in an insurance service result of $44.1 million (H1 2025: $61.8 million). Hiscox London Market reserved a prudent estimated net loss of $40 million in relation to the Middle East conflict.

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	$944.5 million (H1 2025: $887.3 million)
Net insurance contract written premium	$381.1 million (H1 2025: $411.4 million)
Insurance service result	$62.5 million (H1 2025: $8.5 million)
Profit before tax	$94.6 million (H1 2025: $54.0 million)
Adjusted operating profit before tax	$105.3 million (H1 2025: $45.8 million)
Combined ratio	64.7% (H1 2025: 95.1%)
Undiscounted combined ratio	70.4% (H1 2025: 99.5%)

Hiscox Re ICWP increased by 6.4% to $944.5 million (H1 2025: $887.3 million), benefitting from new third-party capital inflows from both quota-share partners and institutional investors.

Rates fell 16% in the period, alongside some modest softening in terms and conditions. 83% of the portfolio remains rate adequate or better, with rates up 54% since 2018. Hiscox Re, in line with expectations, is managing net natural catastrophe exposures at this point in the cycle. Following multiple years of growth, net exposures are now reducing as we focus on supporting the growth of high-quality and long-term cedants through a combination of Hiscox and third-party capital, while reducing exposure to more opportunistic business written in better market conditions. Consequently, net ICWP reduced by 7.4% to $381.1 million (H1 2025: $411.4 million), with reductions in catastrophe exposures only partly offset by growth in pro-rata and specialty lines such as significant risk transfer and mortgage reinsurance.

The business continued to see strong third-party capital support across traditional quota-share partners and ILS. ILS assets under management (AUM) increased by $1.4 billion to $2.9 billion at 1 July 2026 (1 January 2026: $1.5 billion). Gross inflows totalled $1.4 billion, of which $1.0 billion was into catastrophe bond funds. Total fee income from third-party capital more than doubled to $53 million (H1 2025: $21 million), primarily due to the impact of the California wildfires on performance fees in the prior year.

The insurance service result of $62.5 million (H1 2025: $8.5 million) and undiscounted combined ratio of 70.4% (H1 2025: 99.5%) reflect the consistent track record of expert risk selection and portfolio construction.

Claims

In aggregate, the Group's loss experience was within expectations during the first half of the year. Loss experience from natural catastrophes has been largely benign. In relation to the conflict in the Middle East, the Group reserved an estimated net loss of $60 million, with $40 million in Hiscox London Market arising from lines such as war, terror and political violence (WTPV), marine war and kidnap and ransom, and $20 million reserved in Hiscox Re. The Group's reserved net loss is consistent with our expectations for an event of this nature and, as is customary, represents a prudent view of the estimated loss. This remains an ongoing event and the Group continues to support our clients in the region while writing new business that is priced appropriately reflecting the present level of risk and uncertainty.

Expenses

The Group continues to make strong progress on the change programme. In the first six months of 2026, we realised $45 million in savings and efficiencies, principally through outsourcing and more efficient procurement as well as improved recoveries within claims. The one-off costs to achieve of $39 million in H1 2026 included outsourcing-related costs, advisory fees and technology investments. 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 and onwards. The cost to achieve in 2026 is expected to be $75 million, as previously guided.

Acquisition costs increased by 13.6%, reflecting business growth and mix, as well as more competitive trading conditions in Hiscox London Market and Hiscox Re. The acquisition cost ratio increased by 150 basis points, reflecting these dynamics and the accounting geography of higher ceded premium in Hiscox Re.

Total admin expenses increased to $412.1 million (H1 2025: $367.3 million). This was driven by foreign exchange movements and the expected step-up in costs to achieve our change programme, which rose from $9 million in H1 2025 to $39 million in H1 2026. We also invested more in marketing to support accelerating growth in Retail digital direct business, alongside higher variable compensation costs, following strong business performance and the vesting of a group-wide share incentive scheme.

On an underlying constant currency basis, total admin expenses increased by 0.4%, representing positive operating jaws, with gross premiums increasing by 8.0%, in constant currency. The positive operating jaws has generated an improved admin expense ratio of 16.1% (H1 2025: 16.9%).

Balance sheet

The Group's longstanding and unbroken record of favourable reserve development continues, with net releases of $173.7 million (H1 2025: $132.1 million) driven by favourable development in all business segments and all markets. At the same time, we have maintained reserve confidence at 86% (FY 2025: 86%, H1 2025: 83%) in line with our conservative reserving philosophy and slightly above our normal operating range, with the risk adjustment above the best estimate of $354.5 million[2] (FY 2025: $344.9 million, H1 2025: $279.0 million).

The Group remains strongly capitalised from both a regulatory and ratings agency perspective, with an estimated BSCR ratio of 224% at 30 June 2026 (FY 2025: 232%) after payment of the final 2025 dividend and share buybacks of $95.2 million completed during the first six months of the year, reflecting the strong capital generation. The remainder of the $300 million announced with the full year 2025 results is expected to complete ahead of the 2026 full-year results.

In line with the policy announced at the Capital Markets Day in 2025, the Board has approved the payment of an interim dividend[3] of 16.8 cents per share, which represents one-third of the total dividend per share paid in respect of 2025, and an increase to shareholders of 16.7%, a result of the step-up to the final 2025 dividend per share.

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, and leverage as at 30 June 2026 of 17.3%[4], comfortably within the range that the Group chooses to operate in.

Investments

The investment result for the first half was $128.2 million (H1 2025: $234.9 million), or a year-to-date return of 1.4% (H1 2025: 2.9%). This includes $76.0 million of fair value losses (H1 2025: gains of $47.7 million) on fixed income securities reflecting higher interest rates. These fair value losses are excluded from adjusted operating profit and are expected to unwind over time as bonds mature. The investment result included in adjusted operating profit before tax is $204.2 million (H1 2025: $187.2 million).

Group invested assets as at 30 June 2026 were $9.2 billion (FY 2025: $9.2 billion, H1 2025: $8.9 billion). At 30 June 2026, the Group's bond portfolio reinvestment yield was 4.4% with a duration of 2.0 years. 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'.

Tax

Following the introduction of the global minimum tax, Hiscox is now subject to corporate income tax in Bermuda. The Group's tax expense for the period was offset by the recognition of a one-off $64.5 million deferred tax asset. During the period, the Group recognised value from historical tax losses that were previously not expected to be recoverable and now meet the criteria for recognition as a deferred tax asset. The deferred tax asset is expected to reduce future cash tax payments but is not expected to have a material impact on future P&L tax charges. This deferred tax asset contributed a one-off 2.2 percentage points, on a non-annualised basis, to the adjusted operating ROTE.

Outlook

Hiscox is built to deliver attractive growth and returns across the cycle. The outlook for Hiscox Retail is positive. We expect momentum to continue to build as actions across distribution, product and operations continue to gain traction. This gives us confidence to upgrade Hiscox Retail's 2026 growth guidance to 9% for the full-year in constant currency. New capabilities and operational leverage unlocked from our change programme underpin our confidence in achieving the target P&L benefits with an expectation that Hiscox Retail's undiscounted combined ratio will gradually improve within the 89% to 94% operating range.

In Hiscox London Market, we continue to execute our strategy of proactive cycle management, walking away from business when expected returns are not sufficient for the risk we are taking, and at the same time finding opportunities to expand into existing and new adjacent specialty business - the innovation is offsetting cycle management for the moment.

In Hiscox Re, the majority of this year's premium was written, as usual, in the first half, and a larger share will be earned in the second half, consistent with the risk profile of the business.

We go into the second half of the year with the energy, momentum and financial strength to continue executing upon our growth and change strategy, to deliver our strategic ambitions and capture the vast opportunities ahead of us.

Aki Hussain

Group Chief Executive Officer

4 August 2026

Hiscox Ltd interim results

Condensed consolidated interim income statement

For the six-month period ended 30 June 2026

		Six-months to 30 June 2026 (reviewed)	Six-months to 30 June 2025 (reviewed)
	Note	$m	$m
Insurance revenue	6	2,301.4	2,105.5
Insurance service expenses	6	(1,739.9)	(1,991.4)
Insurance service result before reinsurance contracts held		561.5	114.1
Allocation of reinsurance premiums	6	(503.8)	(457.8)
Amounts recoverable from reinsurers for incurred claims	6	197.7	539.9
Net (expenses)/income from reinsurance contracts held		(306.1)	82.1
Insurance service result	6	255.4	196.2
Investment result	9	128.2	234.9
Net finance expenses from insurance contracts		(58.5)	(123.4)
Net finance income from reinsurance contracts		15.8	40.4
Net insurance finance expenses	9	(42.7)	(83.0)
Net financial result	9	85.5	151.9
Other income	10	48.7	40.9
Other operational expenses	10	(114.1)	(78.8)
Net foreign exchange losses		(0.9)	(4.4)
Other finance costs	11	(34.1)	(29.2)
Profit before tax		240.5	276.6
Tax credit/(expense)	12	23.4	(49.5)
Profit for the period (all attributable to owners of the Company)		263.9	227.1
Earnings per share on profit attributable to owners of the Company
Basic	14	82.3¢	67.2¢
Diluted	14	79.9¢	65.5¢

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

Condensed consolidated interim statement of comprehensive income

For the six-month period ended 30 June 2026

		Six-months to 30 June 2026 (reviewed)	Six-months to 30 June 2025 (reviewed)
	Note	$m	$m
Profit for the period		263.9	227.1
Other comprehensive income/(expense)
Items that will not be reclassified to the income statement:
Remeasurements of the net defined benefit pension scheme		(3.2)	(1.1)
Income tax effect		0.8	0.3
		(2.4)	(0.8)
Items that may be reclassified subsequently to the income statement:
Exchange (losses)/gains on translation of foreign operations		(12.6)	52.1
Movement in net investment hedge reserve		4.5	-
Other comprehensive income/(expense) net of tax		(10.5)	51.3
Total comprehensive income for the period (all attributable to the owners of the Company)		253.4	278.4

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

Condensed consolidated interim statement of financial position

As at 30 June 2026

		30 June 2026 (reviewed)	31 December 2025  (audited)
	Note	$m	$m
Assets
Employee retirement benefit asset		41.1	46.1
Goodwill and intangible assets		407.2	381.0
Property, plant and equipment		107.1	108.6
Investments in associates		0.4	0.4
Deferred tax assets		214.4	164.0
Reinsurance contract assets	13	1,850.6	1,824.8
Financial assets carried at fair value	17	7,936.5	8,432.0
Trade and other receivables		418.7	349.7
Current tax assets		4.8	4.6
Cash and cash equivalents		1,326.9	878.0
Total assets		12,307.7	12,189.2
Equity and liabilities
Shareholders' equity
Share capital		36.5	36.8
Share premium		77.7	140.2
Contributed surplus		184.0	184.0
Other reserves	15	(344.3)	(336.2)
Retained earnings		3,999.6	3,922.0
Equity attributable to owners of the Company		3,953.5	3,946.8
Non-controlling interest		1.1	1.1
Total equity		3,954.6	3,947.9
Deferred tax liabilities		18.9	64.4
Insurance contract liabilities	13	7,050.5	6,877.5
Financial liabilities	17	845.4	840.4
Current tax liabilities		26.4	24.4
Other liabilities		411.9	434.6
Total liabilities		8,353.1	8,241.3
Total equity and liabilities		12,307.7	12,189.2

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

Condensed consolidated interim statement of changes in equity

For the six-month period ended 30 June 2026

	Share capital	Share premium	Contributed surplus	Other reserves	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 2026	36.8	140.2	184.0	(336.2)	3,922.0	3,946.8	1.1	3,947.9
Profit for the period	-	-	-	-	263.9	263.9	-	263.9
Other comprehensive income net of tax	-	-	-	(8.1)	(2.4)	(10.5)	-	(10.5)
Total comprehensive income	-	-	-	(8.1)	261.5	253.4	-	253.4
Employee share options:
Equity settled share-based payments	-	-	-	-	30.6	30.6	-	30.6
Proceeds from shares issued	-	3.0	-	-	-	3.0	-	3.0
Share buyback*	(0.3)	(79.4)	-	-	-	(79.7)	-	(79.7)
Sale of treasury shares	-	13.9	-	-	4.8	18.7	-	18.7
Deferred and current tax on employee share options	-	-	-	-	19.2	19.2	-	19.2
Shares purchased for employee trust	-	-	-	-	(123.1)	(123.1)	-	(123.1)
Shares issued in relation to Scrip Dividend	-	-	-	-	-	-	-	-
Dividends paid to owners of the Company	-	-	-	-	(115.4)	(115.4)	-	(115.4)
Balance at 30 June 2026	36.5	77.7	184.0	(344.3)	3,999.6	3,953.5	1.1	3,954.6

*This represents the buyback of ordinary shares by the Company as part of the buyback programme commenced on 25 February 2026.

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

Condensed consolidated interim statement of changes in equity (continued)

For the six-month period ended 30 June 2025

	Share capital	Share premium	Contributed surplus	Other reserves	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 2025	38.1	405.6	184.0	(391.1)	3,452.2	3,688.8	1.1	3,689.9
Profit for the period	-	-	-	-	227.1	227.1	-	227.1
Other comprehensive income net of tax	-	-	-	52.1	(0.8)	51.3	-	51.3
Total comprehensive income	-	-	-	52.1	226.3	278.4	-	278.4
Employee share options:
Equity settled share-based payments	-	-	-	-	15.0	15.0	-	15.0
Proceeds from shares issued	0.1	3.3	-	-	-	3.4	-	3.4
Share buyback*	(0.3)	(56.4)	-	-	-	(56.7)	-	(56.7)
Deferred and current tax on employee share options	-	-	-	-	8.5	8.5	-	8.5
Shares purchased for employee trust	-	-	-	-	(32.1)	(32.1)	-	(32.1)
Shares issued in relation to Scrip Dividend	-	2.4	-	-	-	2.4	-	2.4
Dividends paid to owners of the Company	-	-	-	-	(100.8)	(100.8)	-	(100.8)
Balance at 30 June 2025	37.9	354.9	184.0	(339.0)	3,569.1	3,806.9	1.1	3,808.0

*This represents the buyback of ordinary shares by the Company as part of the buyback programme commenced on 27 February 2025.

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

Condensed consolidated interim statement of cash flows

For the six-month period ended 30 June 2026

		Six-months to 30 June 2026 (reviewed)	Six-months to 30 June 2025 (reviewed)
	Note	$m	$m
Profit before tax		240.5	276.6
Adjustments for:
Net foreign exchange losses		0.9	4.4
Interest and equity dividend income	9	(167.5)	(157.7)
Interest expense	11	34.1	29.2
Net fair value losses/(gains) on financial assets	9	78.4	(61.1)
Depreciation, amortisation and impairment	10	33.2	31.8
Charges in respect of share-based payments		30.6	15.0
Realised gain on sale of subsidiary undertaking, intangible assets and property, plant and equipment		(5.7)	(1.8)
Changes in operational assets and liabilities:
Insurance and reinsurance contracts		176.3	112.1
Financial assets carried at fair value		404.4	(283.6)
Financial liabilities carried at fair value		(0.6)	0.5
Financial liabilities carried at amortised cost		0.3	0.4
Other assets and liabilities		(147.7)	35.9
Interest received		160.8	155.9
Equity dividends received		0.2	0.8
Interest paid		(22.2)	(18.5)
Tax paid		(43.6)	(30.5)
Net cash flows from operating activities		772.4	109.4
Acquisitions of subsidiaries, joint ventures and associates, net of cash acquired	20	(41.6)	-
Disposals of subsidiaries, joint ventures and associates, net of cash transferred		5.7	-
Purchase of property, plant and equipment		(3.0)	(1.0)
Proceeds from the sale of property, plant and equipment		-	1.8
Purchase of intangible assets		(13.7)	(22.2)
Net cash flows used in investing activities		(52.6)	(21.4)
Proceeds from the issue of ordinary shares		3.0	3.4
Proceeds from the issue of loan notes		-	496.8
Distributions made to owners of the Company		(115.4)	(98.4)
Repayments of borrowings		-	(355.4)
Shares repurchased		(79.7)	(56.7)
Purchase of shares for employee trust		(62.8)	(32.1)
Principal elements of lease payments		(10.9)	(11.3)
Net cash flows used in financing activities		(265.8)	(53.7)
Net increase in cash and cash equivalents		454.0	34.3
Cash and cash equivalents at 1 January		878.0	1,227.0
Net increase in cash and cash equivalents		454.0	34.3
Effect of exchange rate fluctuations on cash and cash equivalents		(5.1)	51.9
Cash and cash equivalents at end of period		1,326.9	1,313.2

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

Notes to the condensed consolidated interim financial statements

1. General information

Hiscox Ltd (the 'Company') is a public limited company registered and domiciled in Bermuda. The condensed consolidated interim financial statements for the Company as at, and for the six months ended, 30 June 2026 comprise the Company and its subsidiaries (together referred to as the 'Group') and the Group's interest in associates. The CEO's statement accompanying these condensed consolidated interim financial statements forms the Interim Statement for the half year ended 30 June 2026.

The Directors of Hiscox Ltd are listed in the Group's 2025 Report and Accounts. A list of current Directors is maintained and available for inspection at the registered office of the Company located at Chesney House, 96 Pitts Bay Road, Pembroke HM 08, Bermuda.

2. Basis of preparation

These condensed consolidated interim financial statements for the six months to 30 June 2026 have been prepared in accordance with IAS 34 - Interim Financial Reporting, the UK-adopted international accounting standards, and the Disclosure Guidance and Transparency Rules sourcebook issued by the Financial Conduct Authority.

The accounting policies applied, the significant judgements made, and the key sources of estimation uncertainty in the condensed consolidated interim financial statements are the same as those applied in Hiscox Ltd's 2025 consolidated financial statements.

The Group has applied the exception under the IAS 12 amendment to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.

These condensed consolidated interim financial statements are unaudited but have been reviewed by the auditor, PricewaterhouseCoopers LLP. The comparative results for the year ended 31 December 2025 and six months to 30 June 2025 have been taken from the Group's 2025 Report and Accounts, and the 2025 Interim Statement. They should be read in conjunction with the audited consolidated financial statements of the Group as at, and for the year ended, 31 December 2025.

The condensed consolidated interim 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 this consideration, management uses scenario analysis and stress testing to assess the robustness of the Group's solvency and liquidity positions.

The Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence over a period of at least 12 months from the date of approval of the condensed consolidated interim financial statements. For this reason, they continue to adopt the going concern basis in preparing the condensed consolidated interim financial statements.

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 interim financial statements are stated in US Dollars which is the Group's presentation currency. Except where otherwise indicated, all amounts presented in the financial statements are in US Dollar millions ($m) rounded to the nearest hundred thousand US Dollar.

During the period, the Group put in place a number of forward currency contracts which have been formally designated and documented as hedging instruments in order to effect fair value hedges of the Group's Canadian Dollar financial assets and Sterling, receivables.

To reduce its exposure to foreign currency risk, the Group has also formally designated and documented its £250.0 million 6% fixed-rate senior notes as a hedging instrument to hedge the currency components of its net investment in foreign operations.

These condensed consolidated interim financial statements were approved by the Board for issue on 4 August 2026.

2.1 New and amended accounting standards adopted by the Group

The Group has not early adopted any new standards, interpretations or amendments that have been issued but are not yet effective. The following amendments applied for the first time from 1 January 2026:

-       Amendments to IFRS 9 - Financial Instruments and IFRS 7 Financial Instruments: Disclosures -  Classification and Measurement of Financial Instruments

Amendments to the classification and measurement of financial instruments which address:

-       derecognition of financial liabilities settled through electronic transfers;

-       classification of financial assets; and

-       disclosures.

-       Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity

Targeted amendments for better reporting of the financial effects of nature-dependent electricity contracts, which are often structured as power purchase agreements (PPAs).

-       Annual improvements to IFRS Accounting Standards - Volume 11: Amendments to:

-       IFRS 1 - First-time Adoption of International Financial Reporting Standards;

-       IFRS 7 - Financial Instruments: Disclosures and its accompanying Guidance;

-       IFRS 10 - Consolidated Financial Statements;

-       IAS 7 - Statement of Cash Flows.

These amendments do not have a material impact on the condensed consolidated interim financial statements of the Group.

2.2 Significant accounting judgements and estimates

In preparing these condensed consolidated interim financial statements, management makes judgements, estimates and assumptions that affect the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are consistent with those that applied and were disclosed in the Group's 2025 Report and Accounts.

3. Management of risk

The Group's principal risks and uncertainties are disclosed within the Group's 2025 Report and Accounts on pages 43 to 46. Updates on the principal risks and uncertainties are set out below.

Operational risk

The Group demonstrates continued operational resilience, underscoring the benefits of its business model, disciplined risk management and ongoing investment in technology and infrastructure.

Insurance risk

The insurance risks are consistent with those disclosed within the 2025 Report and Accounts on pages 175 to 178. The Group continues to assess, review and monitor its underwriting and reserving risk.

Financial risk

The Group continues to monitor all aspects of its financial risk appetite and the resultant exposure is taken with caution.

Reliability of fair value

As detailed in note 17, the Group's investment allocation is broadly comparable to that as at 31 December 2025. In order to assist users, the Group has disclosed the measurement attributes of its investment portfolio in a fair value hierarchy in note 18 in accordance with IFRS 13 - Fair Value Measurement.

Price risk

The price risks are consistent with those disclosed within the 2025 Report and Accounts on page 179. The Group's equity and investment fund holdings are limited to a relatively small and controlled proportion of the overall investment portfolio and are diversified over a number of companies and industries.

Interest rate risk

The interest rate risks are broadly consistent with those disclosed within the 2025 Report and Accounts on page 179.

The Group has used a duration-convexity-based sensitivity analysis for the debt and fixed income holdings, and recalculated the discounting impact for the reinsurance contract assets and insurance contract liabilities, to estimate that a movement in interest rates may affect the Group equity and profit after tax for the period/year as follows:

Period end/year end	30 June 2026	31 December 2025
	1% increase/decrease in interest rates	1% increase/decrease in interest rates
	Equity/profit after tax	Equity/profit after tax
	$m	$m
Reinsurance contract assets	(26)/26	(28)/28
Insurance contract liabilities	87/(87)	88/(88)
Debt and fixed income holdings	(132)/132	(135)/135
Private credit funds	0/0	0/0

The liability for incurred claims, reinsurance assets for incurred claims and certain reinsurance assets for remaining coverage are calculated by discounting expected future cash flows at a risk-free rate, plus an illiquidity premium where applicable. The following discount rates were applied for the currencies and periods presented below:

	Period end 30 June 2026			Year end 31 December 2025
	1 year	3 year	5 year	1 year	3 year	5 year
	%	%	%	%	%	%
USD	4.07	4.09	4.12	3.51	3.47	3.64
GBP	4.22	4.33	4.45	3.81	3.90	4.06
EUR	2.63	2.77	2.90	2.19	2.43	2.71
CAD	2.56	2.89	3.06	2.42	2.75	3.00

Credit risk

The credit risks are consistent with those disclosed within the 2025 Report and Accounts on pages 180 to 181.

As at 30 June 2026, 99.1% (31 December 2025: 99.8%) of the Group's reinsurance assets are rated BBB or higher, or are fully collateralised.

As at 30 June 2026, 91.4% (31 December 2025: 92.6%) of the Group's debt and fixed income instruments and private credit funds are rated BBB or higher.

Liquidity risk

The liquidity risks are consistent with those disclosed within the 2025 Report and Accounts on pages 182 to 183.

The Group's liquidity risk appetite is designed to ensure that appropriate cash resources are maintained to meet obligations as they fall due, both in business-as-usual and stressed circumstances. This is measured using a liquidity coverage ratio, which compares liquidity sources to stress-tested liquidity requirements.

Currency risk

The currency risk is consistent with the disclosures in the 2025 Report and Accounts on pages 183 to 184. The Group remains susceptible to fluctuations in rates of foreign exchange, in particular between US Dollars, Euros and Sterling. During the period, the Group designated its £250.0 million 6% fixed rate senior notes as a net investment hedge of its foreign operations to manage its foreign currency risk exposures. At inception, the nature of the economic relationship is such that the net investment hedge is expected to be highly effective. Hedge ineffectiveness or discontinuation of the hedging relationship may arise should a disposal of a foreign subsidiary included in the net investment hedge occur during the period. The application of hedge accounting does not change the underlying risk management strategy of the Group.

Capital risk management

The Group's capital risk management approach is consistent with the disclosures described within the 2025 Report and Accounts on pages 184 to 186. As at 30 June 2026, the Group remains strongly capitalised against both our regulatory and rating agency requirements. The Group's available capital was $4,047.4 million (31 December 2025: $4,066.9 million), comprising net tangible asset value of $3,547.4 million (31 December 2025: $3,566.9 million) and subordinated debt of $500.0 million (31 December 2025: $500.0 million).

4. Seasonality and weather

The Group's material exposure to catastrophe losses on certain lines of business, such as reinsurance inwards and marine and major property risk mainly in the Hiscox Re segment, is greater during the second half of the calendar year, broadly in line with the most active period of the North Atlantic windstorm season.

In contrast, a majority of the premiums written in these lines of business occurs during the first half of the calendar year. The Group actively participates in many regions and, if any catastrophic events do occur, it is likely that the Group will share some of the market's losses. Consequently, the potential for significant volatility in expected returns remains during the second half of the year.

5. Related-party transactions

Transactions with related parties during the period are consistent in nature and scope with those disclosed in note 31 of the Group's 2025 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. Also included within the 'other' segment are the results of the non-core Hiscox Asia business.

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)

Six-months ended 30 June 2026 (reviewed)	Hiscox Retail	Hiscox London Market	Hiscox Re	Other	Total
	$m	$m	$m	$m	$m
Insurance revenue	1,353.7	588.0	369.5	(9.8)	2,301.4
Insurance service expenses	(1,151.8)	(512.4)	(84.9)	9.2	(1,739.9)
Incurred claims and changes to liabilities for incurred claims	(534.6)	(334.8)	(6.4)	8.3	(867.5)
Amortisation of insurance acquisition cash flows*	(396.7)	(127.9)	(48.7)	0.9	(572.4)
Other attributable expenses*	(218.5)	(49.7)	(29.8)	-	(298.0)
Losses on onerous contracts and reversals	(2.0)	-	-	-	(2.0)
Insurance service result before reinsurance contracts held	201.9	75.6	284.6	(0.6)	561.5
Allocation of reinsurance premiums	(111.5)	(199.7)	(202.1)	9.5	(503.8)
Amounts recoverable from reinsurers for incurred claims	58.8	168.2	(20.0)	(9.3)	197.7
Net (expense)/income from reinsurance contracts held	(52.7)	(31.5)	(222.1)	0.2	(306.1)
Insurance service result	149.2	44.1	62.5	(0.4)	255.4
Investment result	69.6	35.4	23.1	0.1	128.2
Net finance expense from insurance contracts	(31.1)	(17.3)	(10.1)	-	(58.5)
Net finance income from reinsurance contracts	4.2	6.2	5.5	(0.1)	15.8
Net insurance finance expense	(26.9)	(11.1)	(4.6)	(0.1)	(42.7)
Net financial result	42.7	24.3	18.5	-	85.5
Other income	14.4	12.2	21.5	0.6	48.7
Other operational expenses*	(35.7)	(8.6)	(7.2)	(62.6)	(114.1)
Net foreign exchange gains	-	-	-	(0.9)	(0.9)
Other finance costs	(0.8)	(0.2)	(0.7)	(32.4)	(34.1)
Profit/(loss) before tax	169.8	71.8	94.6	(95.7)	240.5
Ratio analysis
Claims ratio (%)	39.4	45.3	20.2		38.9
Acquisition cost ratio (%)	31.4	31.6	27.6		31.1
Administrative expense ratio (%)	17.3	12.2	16.9		16.1
Combined ratio (%)	88.1	89.1	64.7		86.1

*Total marketing expenditure for the year was $62.7 million (H1 2025: $55.0 million).

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 ratio, 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.

Six-months ended 30 June 2026 (reviewed)	Hiscox Retail	Hiscox London Market	Hiscox Re	Other	Total
	$m	$m	$m	$m	$m
Insurance revenue	1,353.7	588.0	369.5	(9.8)	2,301.4
Allocation of reinsurance premiums	(111.5)	(199.7)	(202.1)	9.5	(503.8)
LPT premium	19.4	17.0	9.3	-	45.7
Allocation of reinsurance premiums after reclassifying LPT premium	(92.1)	(182.7)	(192.8)	9.5	(458.1)
Adjusted net insurance revenue	1,261.6	405.3	176.7	(0.3)	1,843.3
Incurred claims and changes to liabilities for incurred claims	(534.6)	(334.8)	(6.4)	8.3	(867.5)
Amounts recoverable from reinsurers for incurred claims	58.8	168.2	(20.0)	(9.3)	197.7
LPT premium	(19.4)	(17.0)	(9.3)	-	(45.7)
Amounts recoverable from reinsurers for incurred claims after reclassifying LPT premium	39.4	151.2	(29.3)	(9.3)	152.0
Adjusted net incurred claims	(495.2)	(183.6)	(35.7)	(1.0)	(715.5)
Remove benefit from discounting of claims	(50.2)	(19.2)	(10.1)	0.1	(79.4)
Undiscounted adjusted net incurred claims	(545.4)	(202.8)	(45.8)	(0.9)	(794.9)
The following ratios reflect the reclassification of LPT premium and remove the impact of discounting.
Ratio analysis (undiscounted)
Claims ratio (%)	43.4	50.0	25.9		43.2
Acquisition cost ratio (%)	31.4	31.6	27.6		31.1
Administrative expense ratio (%)	17.3	12.2	16.9		16.1
Combined ratio (%)	92.1	93.8	70.4		90.4

6. Operating segments (continued)

Six-months ended 30 June 2025 (reviewed)	Hiscox Retail	Hiscox London Market	Hiscox Re	Other	Total
	$m	$m	$m	$m	$m
Insurance revenue	1,223.3	520.6	343.4	18.2	2,105.5
Insurance service expenses	(1,039.7)	(377.7)	(555.7)	(18.3)	(1,991.4)
Incurred claims and changes to liabilities for incurred claims	(498.4)	(204.1)	(484.2)	(9.6)	(1,196.3)
Amortisation of insurance acquisition cash flows	(345.0)	(112.7)	(41.5)	(4.7)	(503.9)
Other attributable expenses	(193.6)	(60.9)	(30.0)	(4.0)	(288.5)
Losses on onerous contracts and reversals	(2.7)	-	-	-	(2.7)
Insurance service result before reinsurance contracts held	183.6	142.9	(212.3)	(0.1)	114.1
Allocation of reinsurance premiums	(113.0)	(158.9)	(185.8)	(0.1)	(457.8)
Amounts recoverable from reinsurers for incurred claims	57.4	77.8	406.6	(1.9)	539.9
Net (expense)/income from reinsurance contracts held	(55.6)	(81.1)	220.8	(2.0)	82.1
Insurance service result	128.0	61.8	8.5	(2.1)	196.2
Investment result	129.1	61.3	44.1	0.4	234.9
Net finance expense from insurance contracts	(59.5)	(38.5)	(24.6)	(0.8)	(123.4)
Net finance income from reinsurance contracts	7.5	15.9	16.6	0.4	40.4
Net insurance finance expense	(52.0)	(22.6)	(8.0)	(0.4)	(83.0)
Net financial result	77.1	38.7	36.1	-	151.9
Other income	7.5	15.8	17.0	0.6	40.9
Other operational expenses	(31.1)	(9.2)	(7.3)	(31.2)	(78.8)
Net foreign exchange losses	-	-	-	(4.4)	(4.4)
Other finance costs	(0.8)	(0.2)	(0.3)	(27.9)	(29.2)
Profit/(loss) before tax	180.7	106.9	54.0	(65.0)	276.6
Ratio analysis
Claims ratio (%)	41.0	37.8	54.8		42.0
Acquisition cost ratio (%)	30.5	29.8	23.4		29.6
Administrative expense ratio (%)	17.1	16.1	16.9		16.9
Combined ratio (%)	88.6	83.7	95.1		88.5

6. Operating segments (continued)

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

Six-months ended 30 June 2025 (reviewed)	Hiscox Retail	Hiscox London Market	Hiscox Re	Other	Total
	$m	$m	$m	$m	$m
Insurance revenue	1,223.3	520.6	343.4	18.2	2,105.5
Allocation of reinsurance premiums	(113.0)	(158.9)	(185.8)	(0.1)	(457.8)
LPT premium	20.0	17.0	19.4	-	56.4
Allocation of reinsurance premiums after reclassifying LPT premium	(93.0)	(141.9)	(166.4)	(0.1)	(401.4)
Adjusted net insurance revenue	1,130.3	378.7	177.0	18.1	1,704.1
Incurred claims and changes to liabilities for incurred claims	(498.4)	(204.1)	(484.2)	(9.6)	(1,196.3)
Amounts recoverable from reinsurers for incurred claims	57.4	77.8	406.6	(1.9)	539.9
LPT premium	(20.0)	(17.0)	(19.4)	-	(56.4)
Amounts recoverable from reinsurers for incurred claims after reclassifying LPT premium	37.4	60.8	387.2	(1.9)	483.5
Adjusted net incurred claims	(461.0)	(143.3)	(97.0)	(11.5)	(712.8)
Remove benefit from discounting of claims	(46.0)	(15.7)	(7.7)	(0.4)	(69.8)
Undiscounted adjusted net incurred claims	(507.0)	(159.0)	(104.7)	(11.9)	(782.6)
The following ratios reflect the reclassification of LPT premium and remove the impact of discounting.
Ratio analysis (undiscounted)
Claims ratio (%)	45.1	42.0	59.2		46.1
Acquisition cost ratio (%)	30.5	29.8	23.4		29.6
Administrative expense ratio (%)	17.1	16.1	16.9		16.9
Combined ratio (%)	92.7	87.9	99.5		92.6

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

	Reviewed 30 June 2026		Audited 31 December 2025
	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	3,954.6	1,234.9	3,947.9	1,220.0
Net tangible asset value	3,547.4	1,107.8	3,566.9	1,102.2

The NAV per share is based on 320,229,157 shares (31 December 2025: 323,603,134), being the shares in issue at 30 June 2026, 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)

	Reviewed Six-months to 30 June 2026	Reviewed Six-months to 30 June 2025
	$m	$m
Profit for the period	263.9	227.1
Opening total equity	3,947.9	3,689.9
Adjusted for the time-weighted impact of capital distributions, share buybacks, issuance of shares and treasury share purchases and sales	(59.1)	(26.8)
Adjusted opening total equity	3,888.8	3,663.1
Annualised* return on equity (%)	12.3	12.8

*Prior year tax credit of $64.5m has not been annualised. See note 12.

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 buybacks, issuing of shares and treasury share purchases and sales 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

	Reviewed Six-months to 30 June 2026	Reviewed Six-months to 30 June 2025
	$m	$m
Investment income including interest receivable	167.5	157.7
Net realised gains on financial investments at fair value through profit or loss	42.2	22.1
Net fair value (losses)/ gains on financial investments at fair value through profit or loss	(78.4)	61.1
Investment return - financial assets	131.3	240.9
Net fair value gains/(losses) on derivative financial instruments	1.1	(2.3)
Investment expenses	(4.2)	(3.7)
Total investment result	128.2	234.9
Net finance (expense)/income from insurance contracts:
Interest accreted	(93.1)	(110.3)
Effects of changes in interest rates and other financial assumptions	34.6	(13.1)
Total net finance expense from insurance contracts	(58.5)	(123.4)
Net finance income/(expenses) from reinsurance contracts:
Interest accreted	26.4	35.4
Effects of changes in interest rates and other financial assumptions	(10.6)	5.0
Total net finance income from reinsurance contracts	15.8	40.4
Net insurance finance expense	(42.7)	(83.0)
Net financial result	85.5	151.9

10. Other income and operational expenses

	Reviewed Six-months to 30 June 2026	Reviewed Six-months to 30 June 2025 (restated)*
	$m	$m
Other income	48.7	40.9
Staff costs	186.3	165.3
Depreciation, amortisation and impairment	33.2	31.8
Restructuring, integration and other one-off project costs*	39.4	8.8
Other expenses*	153.2	161.4
Operational expenses	412.1	367.3

*Accelerated change costs incurred for the six month period up to 30 June 2025  of $8.8 million have been reclassified from other expenses to restructuring, integration and one-off project costs.

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  $39.4 million (30 June 2025: $8.8 million) of costs in relation to an accelerated change programme which commenced in 2025.

On 28 April, the Group disposed of an investment in associate, Construction Guarantee Underwriters Limited, for $5.7 million, resulting in a gain of $5.7 million presented in other income.

11. Other finance costs

	Reviewed Six-months to 30 June 2026	Reviewed Six-months to 30 June 2025
	$m	$m
Interest charge associated with borrowings	27.8	21.2
Other interest expenses	6.3	8.0
Other finance costs	34.1	29.2

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 interim income statement comprise the following:

	Reviewed Six-months to 30 June 2026	Reviewed Six-months to 30 June 2025
	$m	$m
Current tax expense	51.9	40.4
Deferred tax (credit)/expense	(75.3)	9.1
Total tax (credited)/charged to the income statement	(23.4)	49.5

The current tax credit of $23.4 million arises on taxable profits (i.e. after adjusting for non-deductible expenses) based on a forecast effective tax rate for the full year, and includes the adjustments in respect of prior year. A prior year credit of $64.5 million has been recognised relating to deferred tax assets on brought-forward losses and unutilised tax credits in overseas entities, as business projections indicate it is probable that sufficient future taxable income will be available against which to offset.

13. Insurance contract liabilities and reinsurance contract assets

	Reviewed 30 June 2026	Audited 31 December 2025
	$m	$m
Insurance contract liabilities	7,050.5	6,877.5
Liabilities for remaining coverage	637.4	416.6
Liabilities for incurred claims	6,413.1	6,460.9
Reinsurance contract assets	(1,850.6)	(1,824.8)
Asset for remaining coverage	13.9	142.0
Asset for incurred claims	(1,864.5)	(1,966.7)
Net insurance contract liabilities	5,199.9	5,052.7
Net liabilities for remaining coverage	651.3	558.6
Net liabilities for incurred claims	4,548.6	4,494.2

Risk adjustment

For the incurred claim liabilities measurement purposes, the Group calculates the risk adjustment at each insurance undertaking entity in accordance with its risk profile, using a combination of value at risk method and scenario analysis targeting an overall confidence level for the aggregate risk distribution. Scenario analysis is used to determine the level of compensation that the Group requires for bearing uncertainty about the large event-driven claims, for example natural catastrophe. This element of the compensation for risk takes into consideration the range of potential outcomes from an event and the sensitivities of the loss positions in any modelled scenarios. Given the nature of the underlying business and losses, it is normal for new risks to become apparent or for the magnitude of existing risks to change over time.

Group diversification benefit is not considered at the individual insurance undertaking entity level but is considered in determining the confidence level at a consolidated level for disclosure purposes. At 30 June 2026, the risk adjustment in respect of the liability for incurred claims (LIC) net of reinsurance is at the 86^th percentile (31 December 2025: 86^th percentile).

Detailed reconciliations of changes in insurance contract balances during the year are included below.

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

Net insurance contract liabilities

Net insurance contracts - analysis by remaining coverage and incurred claims

Six-months to 30 June 2026 (reviewed)	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	142.0*	-	(1,613.7)	(353.1)	(1,824.8)
Opening liabilities	414.5	2.1	5,741.5	719.4	6,877.5
Net opening balance	556.5	2.1	4,127.8	366.3	5,052.7
Changes in condensed income statement
Insurance revenue, net of allocation of reinsurance premiums†	(1,797.6)	-	-	-	(1,797.6)
Insurance service expenses, net of amounts recoverable from reinsurers
Incurred claims and other attributable expenses	-	(1.5)	1,171.5	25.6	1,195.6
Amortisation of insurance acquisition cash flows	572.4	-	-	-	572.4
Adjustments to liabilities for incurred claims relating to past service	-	-	(213.9)	(13.8)	(227.7)
Losses and reversals of losses on onerous contracts	-	2.0	-	-	2.0
Effect of changes in non-performance risk of reinsurers	-	-	(0.1)	-	(0.1)
Total net insurance service expenses	572.4	0.5	957.5	11.8	1,542.2
Insurance service result	(1,225.2)	0.5	957.5	11.8	(255.4)
Net finance (income)/expenses from insurance contracts	(1.1)	-	43.8	-	42.7
Net foreign exchange losses	(18.0)	-	(8.7)	(2.4)	(29.1)
Total change recognised in comprehensive income	(1,244.3)	0.5	992.6	9.4	(241.8)
Investment components	14.2	-	(14.2)	-	-
Transfer to other items in statement of financial position	(166.8)	-	(334.0)	-	(500.8)
Net cash flows	1,489.2	(0.1)	(599.3)	-	889.8
Net closing balance	648.8	2.5	4,172.9	375.7	5,199.9

*The net liabilities for remaining coverage, excluding loss component, includes LPT asset for remaining coverage (ARC) gross of premium payables of $288.4 million at 31 December 2025 and $244.4 million at 30 June 2026.

^†Includes allocation of LPT premium of $45.7 million.

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

Net insurance contract liabilities (continued)

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

Year to 31 December 2025 (audited)	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 condensed 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 gains	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

*Includes LPT ARC gross of premium receivable $407.0 million at 31 December 2024 and $288.4 million at 31 December 2025.

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

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 and those held by the Group Employee Benefit Trust.

	Six-months to 30 June 2026 (reviewed)	Six-months to 30 June 2025 (reviewed)
Profit for the period attributable to owners of the Company ($m)	263.9	227.1
Weighted average number of ordinary shares in issue (thousands)	320,772	337,918
Basic earnings per share (cents per share)	82.3	67.2

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.

	Six-months to 30 June 2026 (reviewed)	Six-months to 30 June 2025 (reviewed)
Profit for the period attributable to owners of the Company ($m)	263.9	227.1
Weighted average number of ordinary shares in issue (thousands)	320,772	337,918
Adjustment for share options (thousands)	9,420	9,014
Weighted average number of ordinary shares for diluted earnings per share (thousands)	330,192	346,932
Diluted earnings per share (cents per share)	79.9	65.5

Diluted earnings per share has been calculated after taking account of Performance Share Plan (PSP) awards, options under SAYE schemes and employee share awards.

15. Other reserves

This note gives details of the other reserves forming part of the Group's consolidated equity and shows the movements during the year:

	Currency translation reserve $m	Net investment hedge reserve $m	Total other reserves $m
At 1 January 2026	(336.2)	-	(336.2)
Foreign exchange movements	(12.6)	4.5	(8.1)
Total comprehensive (expense)/income for the period	(12.6)	4.5	(8.1)
At 30 June 2026	(348.8)	4.5	(344.3)

	Currency translation reserve $m	Net investment hedge reserve $m	Total other reserves $m
At 1 January 2025	(391.1)	-	(391.1)
Foreign exchange movements	52.1	-	52.1
Total comprehensive income for the period	52.1	-	52.1
At 30 June 2025	(339.0)	-	(339.0)

16. Dividends paid to owners of the Company

The Board has declared an interim dividend of 16.8¢ per share (30 June 2025: 14.4¢ per share) payable on 21 September 2026 to shareholders registered on 14 August 2026 in respect of the six months to 30 June 2026. The 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 in the five business days prior to the drip dividend price being determined. On this occasion, the period will be between 1 September 2026 and 7 September 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.

17. Financial assets and liabilities

i.    Analysis of financial assets carried at fair value

	30 June 2026 (reviewed)	31 December 2025  (audited)
	$m	$m
Debt and fixed income holdings	7,405.2	7,919.3
Equities and investment funds	116.8	170.8
Private credit funds	350.1	274.4
Total investments	7,872.1	8,364.5
Insurance-linked funds	61.1	67.0
Derivative financial instruments	3.3	0.5
Total financial assets carried at fair value	7,936.5	8,432.0

ii.   Analysis of financial liabilities carried at fair value

	30 June 2026 (reviewed)	31 December 2025  (audited)
	$m	$m
Derivative financial instruments	0.0	0.6
Financial liabilities carried at fair value	0.0	0.6

iii.  Analysis of financial liabilities carried at amortised cost

	30 June 2026 (reviewed)	31 December 2025  (audited)
	$m	$m
Borrowings	828.2	832.3
Accrued interest on borrowings	17.2	7.5
Financial liabilities carried at amortised cost	845.4	839.8
Total financial liabilities	845.4	840.4

18. 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
As at 30 June 2026 (reviewed)	$m	$m	$m	$m
Financial assets
Debt and fixed income holdings	1,385.2	6,009.4	10.6	7,405.2
Equities and investment funds	-	106.5	10.3	116.8
Private credit funds	-	-	350.1	350.1
Insurance-linked funds	-	-	61.1	61.1
Derivative financial instruments	-	3.3	-	3.3
Total	1,385.2	6,119.2	432.1	7,936.5
Financial liabilities
Derivative financial instruments	-	-	-	-
Total	-	-	-	-

	Level 1	Level 2	Level 3	Total
As at 31 December 2025 (audited)	$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

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 and 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 $881.3 million (2025: $889.1 million) and is considered as Level 1 in the fair value hierarchy.

18. 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, over-the-counter derivatives and non-derivative forward contract assets.

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 30 June 2026, the insurance-linked funds of $61.1 million represent the Group's investment in the unconsolidated Kiskadee funds (2025: $67.0 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 funds. 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% (31 December 2025: 12%) change to the fair value of the liabilities would increase or decrease the fair value of funds by $1.4 million (31 December 2025: $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:

	30 June 2026 (reviewed)	31 December 2025  (audited)
	$m	$m
Balance at 1 January	362.5	247.4
Fair value gains through profit or loss	14.4	17.5
Foreign exchange gains	0.5	6.0
Purchases	71.4	134.5
Disposals	(17.0)	(42.9)
Transfers	0.3	-
Closing balance	432.1	362.5
Net unrealised gains in the period on securities held at the end of the period	11.7	14.2

19. Condensed 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 $165 million (30 June 2025: $196 million) not available for immediate use by the Group outside of the Lloyd's syndicate within which they are held. Additionally, $11 million (30 June 2025: $32 million) is pledged cash held against Funds at Lloyd's, and $59.0 million (30 June 2025: $20.7 million) is held within trust funds against reinsurance arrangements.

20. Business combinations

Acquisition of Vouch

On 1 April 2026, Hiscox Insurance Company Inc., a fully owned subsidiary of the Company, acquired Vouch Insurance Company from Vouch US Insurance Carrier Holdings LLC for a total consideration of $21.4 million, including contingent consideration of $2.1 million. Net assets of $21.4 million were recognised at acquisition.

Acquisition of Raincoat

On 2 June 2026, Hiscox Ltd acquired Raincoat Insurance, Inc. and its subsidiaries for a total consideration of $45.0 million. The consideration comprised cash of $26.1million, Hiscox Ltd shares transferred from treasury of $18.6 million and contingent consideration of $0.3m. Net assets of $1.4m and goodwill of $43.6m were recognised at acquisition.

21. Events after the reporting period

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

Directors' responsibilities statement

The Directors confirm that, to the best of our knowledge, these condensed consolidated interim financial statements have been prepared in accordance with UK-adopted international accounting standard (IAS) 34 - Interim Financial Reporting and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and that the Interim Statement includes a fair review of the information required by DTR 4.2.7 and 4.2.8, namely:

•       an indication of important events that have occurred during the first six months and their impact on the condensed set of consolidated interim financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year;

•       material related-party transactions in the first six months and any material changes in the related-party transactions described in the last report and accounts.

The Interim Statement 2026 was approved by the Board for issue on 4 August 2026.

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 profit, adjusted operating earnings per share, return on equity, adjusted operating 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 ratio, 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

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.

Six-months ended 30 June 2026 (reviewed)		Hiscox Retail	Hiscox London Market	Hiscox Re	Other	Total
	Note	$m	$m	$m	$m	$m
Profit before tax		169.8	71.8	94.6	(95.7)	240.5
Adjusted for:
Unrealised fair value losses on fixed income securities carried at fair value		41.3	21.0	13.7	-	76.0
Impact on discounting from changes in yield curve included in insurance finance income and expenses	9	(13.9)	(7.1)	(3.0)	-	(24.0)
Net foreign exchange losses		-	-	-	0.9	0.9
Accelerated change costs	10	-	-	-	39.4	39.4
One-off (gains) or losses and non-core operations		(5.7)	-	-	3.9	(1.8)
Adjusted operating profit before tax		191.5	85.7	105.3	(51.5)	331.0
Income tax credit on adjusted operating profit						6.5
Adjusted operating profit after tax						337.5

Six-months ended 30 June 2025 (reviewed)		Hiscox Retail	Hiscox London Market	Hiscox Re	Other	Total
	Note	$m	$m	$m	$m	$m
Profit before tax		180.7	106.9	54.0	(65.0)	276.6
Adjusted for:
Unrealised fair value gains on fixed income securities carried at fair value		(26.2)	(12.4)	(9.0)	(0.1)	(47.7)
Impact on discounting from changes in yield curve included in insurance finance income and expenses	9	5.5	2.3	0.8	(0.5)	8.1
Net foreign exchange losses		-	-	-	4.4	4.4
Accelerated change costs	10	-	-	-	8.8	8.8
One-off losses and non-core operations		5.7	1.7	-	4.4	11.8
Adjusted operating profit before tax		165.7	98.5	45.8	(48.0)	262.0
Income tax expense on adjusted operating profit						(46.2)
Adjusted operating profit after tax						215.8

-       Adjusted operating earnings per share (EPS)

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 of the calculation of the weighted average number of ordinary shares.

	Note	Six-months to 30 June 2026	Six-months to 30 June 2025
Adjusted operating profit after tax ($m)		337.5	215.8
Weighted average number of ordinary shares in issue (thousands)	14	320,772	337,918
Adjusted basic operating earnings per share (cents per share)		105.2	63.9
Adjusted operating profit after tax ($m)		337.5	215.8
Weighted average number of ordinary shares for diluted earnings per share (thousands)	14	330,192	346,932
Adjusted diluted operating earnings per share (cents per share)		102.2	62.2

-       Return on equity (ROE)

Use of return on equity is common within the financial services industry, and the Group uses ROE as one of its key performance metrics. While the measure enables the Group to compare itself against other peer companies in the immediate 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. The ROE is shown in note 8, along with an explanation of the calculation.

-       Adjusted operating return on tangible equity (ROTE)

Adjusted operating ROTE is considered meaningful to stakeholders because it measures the profitability of the Group's on-going core operating activities against tangible equity and is a key driver of valuation multiples in the insurance industry. The adjusted 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.

		Six-months to 30 June 2026	Six-months to 30 June 2025
	Note	$m	$m
Adjusted operating profit after tax		337.5	215.8
Opening total equity	8	3,947.9	3,689.9
Time-weighted impact of capital distributions, share buyback and issuance of shares	8	(59.1)	(26.8)
Cumulative impact of opening unrealised fair value (gains) or losses on fixed income securities carried at fair value		(58.4)	(0.1)
Cumulative impact of opening discounting of insurance contract liabilities and reinsurance contract assets		(281.8)	(280.5)
Opening goodwill and intangible assets		(381.0)	(308.8)
Adjusted opening total equity		3,167.6	3,073.7
Annualised* adjusted operating return on tangible equity (%)		20.2	14.5

*Prior year tax credit of $64.5m has not been annualised. See note 12.

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

The Group uses NAV per share as one of its key performance metrics, including using the movement of NAV per share in the calculation of the options vesting of awards granted under performance share plans (PSP). 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. Net tangible asset value comprises total equity excluding intangible assets. NAV per share and net tangible asset value per share are shown in note 7, along with an explanation of the calculation.

-       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.

	Six-months to 30 June 2026	Six-months to 30 June 2025 (restated)
	$m	$m
Insurance contract written premium	3,238.4	2,941.6
Change in unearned premium included in the liability for remaining coverage	(939.0)	(860.5)
Insurance revenue from other operations*	2.0	24.4
Insurance revenue	2,301.4	2,105.5

*Insurance revenue from other operations comprises insurance revenue from 'other' segment.

	Six-months to 30 June 2026	Six-months to 30 June 2025 (restated)
	$m	$m
Net insurance contract written premium	2,269.3	2,125.2
Change in unearned premium included in the liability for remaining coverage	(939.0)	(860.5)
Change in reinsurance provision for unearned premium included in asset for remaining coverage	465.3	363.9
Net insurance revenue from other operations*	2.0	19.1
Net insurance revenue (Insurance revenue less allocation of reinsurance premiums)	1,797.6	1,647.7

*Net insurance revenue from other operations comprises net insurance revenue from 'other' segment.

-       Combined, claims, acquisition cost and administrative expense ratios

The combined, claims, acquisition cost and administrative expense ratios are common measures, enabling comparability across the insurance industry, that measure the relevant underwriting profitability of the business by reference to its costs as a proportion of the insurance revenue net of allocation of reinsurance premiums. 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 calculation is discussed in more detail 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 it enables 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 period is favorable and amounts to $173.7 million (2025: $292.7 million) and comprises:

	Six-months to 30 June 2026	31 December 2025  (audited)
	$m	$m
Adjustment to liabilities for incurred claims relating to past service, net of reinsurance recoveries (on a present value basis)	227.7	450.3
Adjustment for discounting impact	(8.3)	(25.4)
Adjustment for LPT premium and experience adjustment	(45.7)	(132.2)
	173.7	292.7

---

[1]Alternative performance measure definitions used by the Group are included within the condensed consolidated interim financial statements. ROTE is annualised.

[2]Allows for the reclassification of legacy portfolio transactions (LPT) recoveries into claims.

[3]The record date for the dividend will be 14 August 2026 and the payment date will be 21 September 2026. 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 28 August 2026.

[4]Leverage defined as borrowings over borrowings and shareholder equity.

 

END