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Hiscox says reinsurance retentions held despite softer contract terms
Hiscox Re reported net ICWP falling 7.4% to $381.1 million, helped by reduced property cat and retro exposure.
Hiscox said reinsurance retentions have held steady even as terms and conditions showed modest softening in the first half of 2026, according to comments from the group’s chief underwriting officer, Joanne Musselle, following the company’s strong results release.
Musselle said the firm discussed rate adequacy, premiums, and contract terms with analysts, noting Hiscox Re saw a 16% rate reduction through the first half of the year. The company also highlighted that net ICWP at Hiscox Re fell 7.4% to $381.1 million, driven by reduced exposure in property catastrophe and retro, which it said fell by 11% and 35%, respectively.
She outlined three parts of Hiscox’s reinsurance strategy, first managing the cycle by selectively deploying capital, then scaling non-catastrophe lines such as pro rata and specialty, and finally expanding Hiscox Capital Partners to use third party capital to build portfolios and generate fee income. The company said third party capital support remained strong, with insurance-linked securities assets under management rising by $1.4 billion to $2.9 billion as of July 1, 2026.
In a question and answer session, Musselle said the firm’s reinsurance contract terms have broadly held through the first six months, even though its ability to carve out differentiated terms has lessened as market conditions evolve. She added that Hiscox is moderating its position after significantly increasing net retained in a hard market.