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Hiscox cuts London Market risk after rate falls, premiums rise 10.1%
For the first half of 2026, Hiscox posted a 90.4% undiscounted combined ratio and said higher interest rates drove $76 million of unrealised fixed income losses.
Hiscox Ltd reported insurance contract written premium of $3,238.4 million for the first half of 2026, up 10.1% from the same period in 2025, while it reduced its appetite in classes where pricing had become inadequate. The specialty insurer said it grew across all three business segments and improved its undiscounted combined ratio to 90.4% from 92.6% in H1 2025.
Profit before tax fell to $240.5 million from $276.6 million a year earlier, with the decline partly tied to a lower investment result. Hiscox reported an investment result of $128.2 million versus $234.9 million in H1 2025, reflecting $76 million in unrealised fair value losses on fixed income securities tied to higher interest rates, which it said are excluded from adjusted operating profit and are expected to unwind as bonds mature.
Chief executive Aki Hussain said the results reflected profitable growth across the portfolio. In Hiscox London Market, rates across the portfolio fell 5% in aggregate in H1 2026, and Hiscox said it non-renewed 17% of risks in major property and 23% of business in power and renewables where rate declines were double digit.
The insurer said London Market selective retreat cut back on segments where pricing moved faster than it considered adequate, and that broader market dynamics were in play, including Lloyd's flagging in late 2025 that property rate softening was problematic. Despite London Market ICWP increasing 9.8% to $733.2 million, Hiscox reported that underlying growth was 5.3% after prior-year premium adjustments and that the undiscounted combined ratio deteriorated to 93.8% from 87.9%, reflecting a prudent estimated net loss of $40 million.