Hiscox Ltd reported its interim results for the six months ended June 30, recording insurance contract written premium (ICWP) growth of 5.7% to $2,941.6 million, compared with $2,781.9 million in the same period last year.
All three business segments recorded growth, with the retail division contributing the largest share.
The undiscounted combined ratio stood at 92.6%, compared with 90.4% a year earlier. Hiscox Retail posted margin expansion, while the London Market division achieved a fifth consecutive undiscounted combined ratio in the 80s. The Re & ILS unit continued to generate underwriting profits despite losses from the California wildfires.
In the first quarter of 2025, the group reported ICWP growth of 2.4% to $1.56 billion, with Retail premiums rising 6.1% in constant currency. The London Market segment also delivered growth, supported by stable trading conditions in key classes.
The Re & ILS division absorbed the impact of the California wildfires loss reserve, which remained unchanged at $170 million, while overall loss experience for the quarter stayed within expectations. This early‑year performance contributed to the momentum seen in the half‑year results.
The group also benefited from positive prior‑year reserve developments amounting to $145.5 million in 2024, up from $122.8 million in 2023. These reserve releases were recorded across multiple lines and supported underwriting results.
“We have delivered a strong performance in the first half with profitable growth in each of our businesses. In Retail, growth momentum has continued in line with our expectations and we are expanding margins. The benefits of our diversified business model and the quality of our underwriting ecosystem are reflected in our Group results,” chief executive Aki Hussain (pictured above) said.
Investment income was $234.9 million, up from $152.4 million in the first half of 2024, supported by higher coupon earnings and fair value gains. Adjusted operating profit before tax was $262.0 million, down from $288.1 million, while operating return on tangible equity (ROTE) was 14.5% compared to 20.3% in the prior year.
The board declared an interim dividend of 14.4 cents per share, equal to one‑third of the previous year’s total dividend per share and representing a 9.1% year‑on‑year increase.
The company increased its ongoing share buyback program by $100 million to $275 million, citing capital generation and management actions in the first half. The first tranche of the buyback will rise from $87.5 million to $137.5 million and is expected to be completed around the end of the third quarter of 2025.
Hiscox also announced an agreement to acquire Corix Insurance Services, LLC and Vouch Insurance Company from Vouch, Inc. The acquisition is aimed at enhancing Hiscox USA’s offering for small businesses in sectors such as technology start‑ups, life sciences, and professional services.
The deal will also add US broker technology to accelerate the digitization of Hiscox’s US broker platform.
Hiscox USA serves more than 600,000 customers through multiple channels and wrote over $900 million in premiums in 2024. The division has grown organically for nearly two decades and is a leading digital provider of small business specialty insurance.
Following completion of the deal, Vouch, Inc. will operate solely as an independent insurance broker, focusing on risk management services for clients in its core sectors. Hiscox and Vouch have agreed to a multi‑year distribution arrangement.
What are your thoughts on this story? Please feel free to share your comments below.
