Hiscox Re H1 Profit Jumps to $94.6m as Cat Exposures Shrink

The insurance service result there fell to $44.1 million from $61.8 million. Profit before tax dropped to $71.8 million from $106.9 million. The combined ratio rose to 89.1% from 83.7%, reflecting a $40 million net loss from the Middle East conflict in lines such as war, terror and political violence, marine war, and kidnap and ransom.

Hiscox Retail, which includes the UK, Europe and USA businesses, generated ICWP of $1.56 billion, up from $1.39 billion. Net ICWP rose to $1.43 billion. Growth was volume-driven, the firm said, with policy count outpacing premium increases and rates up only 1%.

The insurance service result at Retail improved to $149.2 million from $128 million. Profit before tax edged down to $169.8 million from $180.7 million. Adjusted operating profit before tax rose to $191.5 million. The combined ratio improved slightly to 88.1% from 88.6%.

Group-wide claims from natural catastrophes were benign. The total net loss reserved for the Middle East conflict was $60 million.

Group Performance and Guidance

Group ICWP reached $3.24 billion, up from $2.94 billion. Net ICWP hit $2.27 billion. The insurance service result rose to $255.4 million from $196.2 million. The investment result fell to $128.2 million from $234.9 million. Profit before tax came in at $240.5 million, down from $276.6 million. The combined ratio strengthened to 90.4% from 92.6%.

CEO Aki Hussain said the adjusted operating ROTE of 20.2% reflected the benefit of the combined group. He pointed to profitable growth across all businesses, underwriting excellence and a growing investment portfolio.

“The outlook remains positive,” Hussain said. “In Retail, strong growth in the first half, powered by a broad base of initiatives, gives us confidence to upgrade Hiscox Retail’s constant currency 2026 growth guidance to 9% for the full-year.”