Hiscox posts 88% combined ratio and record profit

Hiscox Group has released its results for the year ended 31 December 2025.

Highlights are as follows:

The group says that this is the best underwriting result (by reference to the combined ratio) in a decade.

CEO Aki Hussain said “2025 was a pivotal year for Hiscox as we delivered another strong performance and made excellent progress in executing our growth and change strategy. In Hiscox Retail, we have achieved multi-year growth and margin expansion through new products, deeper distribution, the deployment of new technologies and execution of our change programme. Our retail markets present a large and attractive opportunity with a long runway of growth on which we are executing at pace. In big-ticket, our specialist expertise and technology capabilities have enabled us to launch new business initiatives, more than offsetting the dynamics of our cycle management actions. We are executing on our strategic agenda, and our commitment to underwriting excellence remains at the core.

“Innovation across the Group is accelerating, with more product launches this year than over the previous five years, and employee engagement remains at an all-time high. Our change programme is firmly on track, building capabilities to improve service and productivity.

“This strong performance and strategic execution enable us to reward shareholders, with the final dividend per share increasing by 20% for a second consecutive year and a third consecutive share buyback launched, taking the combination of shareholder returns through dividends and buybacks announced over the last three years to over $1.1 billion.

“We are a leading pure-play specialty insurer with a diverse and balanced business, uniquely positioned to seize the opportunities in front of us and deliver value to our shareholders. We are firmly on track to deliver our strategic initiatives and the guidance set out at our Capital Markets Day in May 2025, and I want to thank all my colleagues for their continued hard work in driving Hiscox forward.”

Hiscox operates both in Lloyd’s and through a number of insurance and reinsurance companies outside Lloyd’s. It operates under several operating units including Retail, US, UK, Europe, London Market and reinsurance. Syndicate 33 is largely a combination of London market and reinsurance business, while SPA 6104 is part of the reinsurance operation.

The combined ratio for Hiscox London Market was 85.9% (an improvement on 88.6% achieved in 2024). The group increased premiums despite the return of some competitive pressures. On average, rates on renewal business fell by 4% in 2025, although this should be seen in the context of cumulative increases estimated at 67% since 2018, with the portfolio continuing to be attractively rated.

The combined ratio at Hiscox Re, which consists of business  written both in London and in Bermuda, was 67.4% (again better than in 2024 when it was 69.0%). This was the third consecutive sub-70% combined ratio for the team. The most significant event of the year was the series of wildfires that swept across Greater Los Angeles in January last year. Despite an active hurricane season in the North Atlantic, there was little loss activity. Rates in reinsurance also fell in 2025, Hiscox puts this softening at 5%. Again, this needs to be seen in the context of an overall increase in rates of 83% since 2018.

The full year results are available here and the analysts’ presentation pack here.

We expect to receive results for the 2023 year of Syndicate 33 and SPA 6104 in the next few days alongside an update on the 2024 year and a preliminary indication for the 2025 underwriting year.