Hiscox (HSX) Q1 2026 TU earnings summary

Executive summary

• Group insurance contract written premiums (ICWP) rose 10.2% year-over-year to over $1.7 billion, with strong momentum in Retail and disciplined growth in big-ticket segments.

• Retail ICWP increased by 15.1% (8.0% in constant currency), with growth accelerating across all businesses, supported by management actions, distribution, and specialty initiatives.

• Big ticket growth was selective, focusing on favorable lines and new business initiatives amid a softening market.

• Loss experience was within expectations, with benign natural catastrophe activity offsetting Middle East conflict impacts.

• Operational efficiencies advanced through a change programme, including outsourcing financial processes and consolidating IT services.

Financial highlights

• Investment result for Q1 2026 was $34.1 million (0.4% return), impacted by $69.6 million in unrealised fair value losses on fixed income securities.

• Group invested assets totaled $9.3 billion at March 31, with a reinvestment yield of 4.4% and a two-year duration.

• 94% of the investment portfolio is in cash and fixed income, with an average credit rating of 'A'.

• Retail premiums grew 8% in constant currency, in line with full-year guidance, with modest 2% rate increases.

• U.K. retail grew 8.9%, with art and private client achieving double-digit growth for the seventh consecutive quarter.

Outlook and guidance

• Positive outlook for 2026, with focus on profitable growth and continued progress on operational change objectives.

• Guidance maintained for full-year Retail ICWP growth, supported by ongoing distribution and specialty initiatives.

• Combined ratio guidance for retail is 89%-94%, with expectations for margin improvement as the change program delivers.

• Change programme expected to deliver $75 million P&L benefit in 2026 and $200 million annually by 2028.