Q3 2025 Trading Statement
Hiscox Ltd trading statement
Hamilton, Bermuda (6 November 2025) - Hiscox Ltd (LSE:HSX), the international specialist insurer, today issues its trading statement for the first nine months of the year to 30 September 2025.
Highlights:
· Group insurance contract written premiums (ICWP) increased by 5.9% to $4,052.9 million (9M 2024: $3,825.9 million1), with Hiscox Retail growth continuing to accelerate as all three business segments grew.
· Hiscox Retail is on track to deliver growth in excess of 6% in constant currency in 2025.
· Investment result of $350.8 million or a return of 4.2% year-to-date.
· Change programme on track.
· Upsized share buyback progressing well with 10.5 million shares repurchased at a consideration of $179.4 million, as at 5 November 2025.
Aki Hussain, Chief Executive Officer, Hiscox Ltd, commented:
"Our diversified business model and distribution platforms provide access to growing markets in Retail and attractive high-quality growth opportunities in big-ticket. The Hiscox Group continues to successfully execute its strategy, capturing these opportunities with market-leading products and excellence in customer service, underpinned by our specialist expertise.
In big-ticket, we are managing the cycle with our customary discipline as competition increases in some classes of business. In Retail, our multi-year growth and margin expansion continues, as we deliver compounding growth through the cycle.
We are on track to deliver accelerated Retail growth in excess of 6% for the year. Capital generation remains strong in the third quarter, driven by the Group's diverse earnings profile, underwriting excellence and further benefiting from a benign weather and large loss experience."
Hiscox Group
The Group achieved ICWP growth of 5.9% in the first nine months of the year, as its diversified business captured high-quality opportunities across each of the segments.
Hiscox Retail is on track to deliver constant currency growth in excess of 6% for the year, as distribution momentum builds across Retail, investment in customer proposition development and brand fuel growth and the implementation of new technology improves productivity and access to market.
In big-ticket, both Hiscox London Market and Hiscox Re & ILS deployed capital judiciously, with each growing where market conditions are attractive, while managing the cycle in areas of increasing competition.
Insurance contract written premiums for the period:
|
|
Insurance contract written premiums to 30 September 2025 |
Insurance contract written premiums |
Growth in USD
|
Growth in constant currency
|
|
|
US$m |
US$m |
% |
% |
|
Hiscox Retail |
$2,013.0 |
$1,876.0 |
7.3% |
6.1% |
|
Hiscox London Market |
$955.7 |
$932.3 |
2.5% |
2.5% |
|
Hiscox Re & ILS |
$1,084.2 |
$1,017.6 |
6.5% |
6.5% |
|
Total |
$4,052.9 |
$3,825.9 |
5.9% |
5.3% |
Hiscox Retail1
Hiscox Retail grew by $137.0 million or 6.1% in constant currency to $2,013.0 million (9M 2024: $1,876.0 million), continuing a three-year trend of accelerating growth, in line with expectations. An indicator of our continuing build-up of momentum is new business increasing at a double-digit rate supported by growing distribution momentum and complemented by new broker deals, as the business delivers on its Retail growth strategy. Retail rates, in aggregate, increased 2% over the period.
Insurance contract written premiums for the period:
|
|
Insurance contract written premiums to |
Insurance contract |
Growth
in USD |
Growth in constant currency |
||||
|
|
|
|
|
|
||||
|
|
£m/€m |
US$m |
£m/€m |
US$m |
% |
% |
||
|
Hiscox Retail |
|
|
|
|
|
|
||
|
- Hiscox UK |
£543.1 |
$714.0 |
£504.2 |
$642.5 |
11.1% |
8.0% |
||
|
- Hiscox Europe |
€520.0 |
$569.0 |
€485.4 |
$528.3 |
7.7% |
7.1% |
||
|
- Hiscox USA |
|
$730.0 |
|
$705.2 |
3.5% |
3.5% |
||
|
Hiscox Retail total |
|
$2,013.0 |
|
$1,876.0 |
7.3% |
6.1% |
||
Hiscox UK
Hiscox UK grew ICWP by 8.0% in constant currency to $714.0 million (9M 2024: $642.5 million) as positive momentum continued. The business is benefitting from the effectiveness of marketing investments, productivity improvements, and the impact of several distribution deals signed in 2024 and earlier this year. There is a strong pipeline of business building into 2026.
In art and private client (APC), the business maintained a strong double-digit growth rate, benefitting from new deals and technology-enabled distribution. To build on the strong market position, the UK brand campaign has now been extended, from an initial focus on commercial customers, into the high-net-worth segment. Since the launch of the campaign two years ago, Hiscox UK has seen a significant improvement in brand recognition, with spontaneous awareness up by more than 50%.
In commercial, policy growth is accelerating ahead of rate, as the business capitalises on new distribution deals. To further build momentum, the business is executing on its strategy to go deeper in our specialist sectors. For example, in the health, beauty and wellbeing sector, where we are growing double-digit, we will soon launch a new digitally distributed product for dentists via e-trade, leveraging our existing expertise and technological capabilities to capture new opportunities.
Hiscox Europe
Hiscox Europe grew ICWP by 7.1% in constant currency to $569.0 million (9M 2024: $528.3 million). France and Germany, the two largest markets which represent over 60% of our European business, in aggregate increased premiums at a double-digit rate. In the Netherlands, growth has been subdued following tax changes affecting the self-employed, which has resulted in a drop in the number of registered self-employed. This is expected to be a temporary effect and likely to ameliorate in 2026.
Hiscox Europe remains focused on expanding distribution and products. A new cyber offering has been launched in France, building upon Hiscox Europe's strong market position in the sector. This innovative offering streamlines the buying process and provides customers with real-time access to cyber support, through a partnership with a leading cyber security provider. To further expand distribution, Hiscox Europe has signed a new deal with one of the largest German broker consolidators, which will support growth in 2026. This is the latest example of how Hiscox Europe is well positioned to benefit from the consolidation of brokers across Europe, given our pan-European model, breadth of specialist offering and deep underwriting expertise.
In Italy, following our acquisition of a small local player in the first half of the year, we are continuing to build and scale our position, forming an important foundation for future growth.
Hiscox USA
Hiscox USA ICWP increased by 3.5% to $730.0 million (9M 2024: $705.2 million).
US DPD grew 6.7% to $446.2 million (9M 2024: $418.0 million), underpinned by continued double-digit growth in digital direct, which benefited from targeted marketing, investments in new lead generation and enhancements to the customer experience. US digital partnerships maintained mid-single digit growth as we continue to work with new and existing partners to build momentum including through targeted incentives and further enhancements to the sales journey.
US broker premiums reduced by 1.2% to $283.8 million (9M 2024: $287.2 million) due to a slower rate of new business growth in some classes of business. This trend is expected to reverse in the fourth quarter, as a strong pipeline of growth opportunities is developing.
Hiscox London Market
Hiscox London Market ICWP increased by 2.5% to $955.7 million (9M 2024: $932.3 million). The market is becoming increasingly competitive, particularly in property. However, micro-cycles persist leading to attractive opportunities for good quality growth, which combined with product innovation is leading to further expansion.
Notwithstanding the competitive dynamics and a 4% rate reduction year-to-date, the overall portfolio remains well-rated, with cumulative rate up 67% since 2018. However, with rates declining more rapidly in some property classes in particular, the business is maintaining discipline and managing the cycle.
Property delivered double-digit growth, driven by new portfolio deals, most notably in US high-net-worth, and an expansion into US middle market property, leveraging the capabilities of Hiscox Artificial Intelligence Laboratories (HAILO) to accelerate quoting. In major property and commercial lines, we are managing the cycle, as competition has continued to drive double-digit rate reductions.
In casualty, modest growth was underpinned by rate increases in general liability, offsetting a continued reduction in D&O and cyber exposures, where rates fell by 8% and 7% respectively, continuing a multi-year trend. D&O continued to be impacted by a subdued IPO market.
In marine, energy and specialty, Hiscox London Market won new energy construction business in a competitive environment, for example, insuring one of the world's largest battery construction projects, a testament to the recent investments in product and capabilities.
In crisis management, personal accident premiums grew as the market remained buoyant and presented opportunities. The business reduced product recall exposures, responding to softening rate and elevated market losses. In kidnap and ransom, our experienced team and market-leading offering delivered excellent retention despite strong competition and reduced demand from US NGOs.
Hiscox Re & ILS
Hiscox Re & ILS grew net ICWP by 7.0% to $525.6 million (9M 2024: $491.0 million) driven by growth in specialty lines as we execute our strategy to diversify our portfolio in a transitioning market. ICWP increased by 6.5% to $1,084.2 million (9M 2024: $1,017.6 million) benefiting from net growth and increased third-party capital support.
While rates have reduced by 5% over the first nine months, reflecting increased competition in property, the portfolio remains well-rated, with cumulative rate increases of 83% since 2018. Attachment points and terms and conditions have broadly held firm during the year.
ILS assets under management were $1.3 billion at 30 September 2025 (30 June 2025: $1.4 billion), following planned returns of capital to ongoing investors. Looking ahead, there is a strong pipeline of future potential investors.
Claims
Claims experience in the third quarter of 2025 has been well within expectations, underpinned by our underwriting excellence in risk selection and disciplined pricing. This has been complemented by a largely benign loss experience from natural catastrophes and large man-made losses in the quarter.
Investments
The investment result for the first nine months was $350.8 million (9M 2024: $346.6 million), or a year-to-date return of 4.2% (9M 2024: 4.3%), driven by the earn through of coupon and cash income. Both government bond yields and credit spreads tightened in the third quarter, leading to some mark-to-market gains on the fixed income portfolio.
The Group's high-quality fixed income portfolio had an average credit rating of 'A', a reinvestment yield of 4.2% and a relatively short duration of 2.0 years as at 30 September 2025. Group invested assets as at 30 September 2025 were $9.4 billion (FY 2024: $8.2 billion).
Change programme
The Group remains on track to deliver a $25 million P&L benefit in 2025, making good progress within the three key workstreams of operational excellence, technology and procurement and towards the target of realising a $200 million annual P&L benefit from 2028 onwards.
During the third quarter we continued to consolidate the number of suppliers and develop strategic partnerships. This includes the selection of a new IT services provider, opening access to an advanced service management platform that will automate and streamline business processes. We have signed a multi-year collaboration with Google Cloud, deepening a relationship that pioneered an AI-enhanced lead underwriting solution in Hiscox London Market.
To drive further operational excellence, we are investing in claims fraud detection and recoveries, and in other key developments we have launched the Hiscox Data Navigator, creating a group-wide repository of data and data management tools.
Capital management
The Group remains strongly capitalised on both a regulatory and rating agencies basis, as strong capital generation continued in the third quarter driven by the Group's diverse earnings profile and supported by a benign weather experience.
The upsized $275 million buyback is on track to complete ahead of the full-year 2025 results announcement, with 65% completed as at 5 November 2025.
As previously announced at the Capital Markets Day in May 2025, subject to final Board ratification ahead of the full-year 2025 results, the Group will increase its final 2025 dividend per share by 20% with a progressive dividend per share thereafter. This reflects the changing shape of the Group, with Retail becoming a greater part, and confidence in our strategy.
The Board considers surplus capital returns annually ahead of the full year results.
ENDS
A conference call for investors and analysts will be held at 09:00 GMT on Thursday, 6 November 2025.
Participant dial-in numbers:
United Kingdom (Local): +44 20 3936 2999
All other locations: +44 808 189 0158
Participant Access Code: 695224
Investors and analysts
Yana O'Sullivan, Director of Investor Relations, London +44 (0)20 3321 5598
Marc Wetherhill, Group Company Secretary, Bermuda +1 441 278 8300
Media
Eleanor Orebi Gann, Group Director of Communications, London +44 (0)20 7081 4815
Simone Selzer, Brunswick +44 (0)20 7404 5959
Freya Semken, Brunswick +44 (0)20 7404 5959
Notes to editors
About The Hiscox Group
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to continue to be a respected specialist insurer 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 the retail businesses in the USA, UK and Europe, we offer a range of specialist insurance products in commercial and personal lines. Internationally-traded, bigger-ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.
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.
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