Hiscox premiums rise 9.5pc as retail growth accelerates

(Sharecast News) - Specialist insurer Hiscox reported a 9.5% increase in group insurance contract written premiums (ICWP) for the first nine months of the year, driven by accelerating retail growth.

Hiscox said on Tuesday that ICWP rose to $4.44bn from $4.05bn a year earlier, with retail premiums up 9.1% in constant currency to $2.25bn as growth strengthened across its UK, European and US operations.

Loss experience during the third quarter was in line with expectations, with benign natural catastrophe claims more than offsetting marine losses linked to the ongoing Middle East conflict.

In the London market, premiums increased 9.9% to $1.05bn, though underlying growth slowed to 3.9% as the group continued to reduce exposure to areas where pricing has weakened. Hiscox Re grew gross premiums by 4.5% but net premiums fell 7.5% as the company cut natural catastrophe exposure and deployed more third-party capital.

Hiscox's investment result fell to $104.2m from $350.8m a year earlier, reflecting a $192.2m unrealised mark-to-market loss on debt and fixed-income holdings as bond yields rose. However, Hiscox said these losses were expected to unwind as the securities mature, while adjusted operating profits benefited from a higher reinvestment yield of 5.1%.

The FTSE 100-listed firm reiterated guidance for 9% constant-currency retail growth for the full year and said its change programme remained on track to deliver a $75m profit and loss benefit in 2026.

Hiscox also noted that, as of 30 October, it had repurchased 10.3m shares for $241.9m under its ongoing buyback programme.

As of 0855 GMT, Hiscox shares were up 2.34% at 1,927p.





Reporting by Iain Gilbert at Sharecast.com

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