Hiscox says fewer natural catastrophes offset Middle East ship losses

Hiscox Ltd on Tuesday reported a nearly 10% increase in insurance contract written premiums in the first nine months of 2026, while saying insurance claims were within expectations in the third quarter, as few natural catastrophes offset shipping losses in the war-torn Middle East.

The Bermuda-based insurance company said it remains on course for 9% constant currency growth in the full year. For 2025, Hiscox reported insurance revenue up 4.5% to USD4.88 billion from USD4.67 billion in 2024. Profit before tax rose 6.9% to USD732.7 million from USD685.4 million.

For the first nine months of 2026, Hiscox said total insurance contract written premiums were USD4.44 billion, up 9.5% from USD4.05 billion a year before, or up 8.1% at constant currency.

Hiscox operates via three underwriting divisions. In the Retail arm, ICWPs were USD2.25 billion, up 12% from USD2.01 billion, or 9.1% at constant currency. In the London Market division, they were USD1.05 billion, up 9.9% from USD955.7 million, and in Hiscox Re, the reinsurance arm, they were USD1.13 billion, up 4.5% from USD1.08 billion. The increase for London Market and Re were the same at constant currency.

Hiscox said insurance claims were within expectations in the third quarter alone. "In big-ticket, benign natural catastrophe loss experience in the third quarter more than offset marine losses from the ongoing Middle East conflict," Hiscox said.

The investment result for the nine months was USD104.2 million for a 1.2% return, down from USD350.8 million for a 4.2% return a year before. Hiscox said the recent fall in government bond prices resulted in a higher reinvestment yield, while the unrealised fair value losses on existing holdings are expected to unwind as the bonds mature.

As a result, the investment result included in adjusted operating profit before tax for the nine months was USD296.4 million, Hiscox said, up from USD287.4 million a year before.

Hiscox had USD9.3 billion in invested assets as of September 30, up from USD9.2 billion on December 31 but down from USD9.4 billion a year before.

As of Friday, Hiscox said it had completed USD241.0 million of its USD300 million share buyback programme.

Hiscox shares were up 2.4% to 1,929.00 pence early Tuesday in London, outperforming the wider FTSE 100 index, which was down 0.4%. The company has a market capitalisation of £6.09 billion.

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