Pen Underwriting has assembled a new household insurance consortium with capacity from Zurich and Hiscox, in a deal designed to expand its reach in the non-standard and mid-net-worth home insurance market.
The multi-year arrangement will see the two A-rated insurers back Pen Underwriting's household book, which covers properties with unusual features or occupancy – from listed buildings to homes affected by subsidence, flood risk or non-standard construction.
It will also cover the mid-net-worth portfolio, typically covering homes with rebuild values from around £750,000 up to £3 million and contents sums well beyond standard policy limits. The consortium also includes Flood Re capability.
The deal arrives against a backdrop of mounting claims costs in UK household insurance. The Association of British Insurers reported that insurers paid out a record £6.1 billion in property claims in 2025, the highest annual total on record.
Within that, home insurance claims alone topped £3.4 billion across more than 560,000 claims, with the average payout rising 15% year-on-year to £6,000. Flood payouts to homeowners surged 60% to an average of £30,000.
Research from Mintel estimates that UK home insurance GWP grew by 9.8% in 2024 and is on track to reach £9.4 billion by 2029. For non-standard properties specifically, the cost of cover has risen sharply in recent years, with some categories seeing premiums increase by several hundred percent.
Andrew Booth (pictured above), Managing Director of Property & Personal at Pen Underwriting, said: "We are absolutely delighted to be expanding our decades-long capacity collaboration with Zurich into non-standard household risks and excited to be joining forces with Hiscox in its first strategic partnership with Pen. Their collective backing, and trust in Pen's proven expertise in underwriting, means we have significant scope to grow our already large portfolio and meet the rising demand for specialist property insurance as well as from customers with standard homes but specialist needs.
"In recent years, the non-standard household market has restructured itself, tapering to providers with long-standing, data-led expertise and a track record in writing these risks sustainably and profitably – while other insurers have chosen to move away from such risks. Our own commitment remains resolute, and we look forward to continuing to help brokers deliver great customer outcomes in more complex risk scenarios."
Gareth Hemming, Chief Distribution Officer at Hiscox UK, said the deal allows Hiscox to expand into "adjacent niches" through Pen Underwriting's established distribution network. The partnership marks a first strategic tie-up between Hiscox and Pen in household lines.
Zurich, which already has a relationship with Pen Underwriting spanning more than three decades across fleet and other specialist lines, will provide lead capacity for the consortium. In December 2025, the two firms agreed a separate £350 million fleet capacity deal.
Pen Underwriting manages roughly £1 billion in gross written premium across multiple classes. The agency, a subsidiary of broking giant Gallagher, has set out a "2030 Vision" to grow into a £1.75 billion GWP business.
The consortium's coverage extends to the Channel Islands and Isle of Man, Crown Dependencies with distinct regulatory environments and typically higher property values where specialist household capacity has historically been limited.
