Hiscox upgrades retail growth target as discipline drives profits for HY26

Hiscox has upgraded its retail growth guidance for 2026 after reporting strong half-year results, with the insurer citing accelerating momentum across its retail operations and disciplined underwriting in softer commercial insurance markets.

The specialist insurer increased its full-year retail growth target from 8% to 9% after retail premium growth reached 8.2% across the first six months of the year, adding that it remained on track to achieve double-digit retail growth by 2028.

Insurance contract written premium (ICWP) increased by 10.1% to £2.4bn ($3.24bn) in the six months ending 30 June 2026, while adjusted operating profit before tax rose 26.3% to £245m ($331m). The insurer’s undiscounted combined ratio also improved from 92.6% to 90.4%.

Speaking to Insurance Times this morning (5 August), Jo Musselle, chief underwriting officer at Hiscox, said the results reflected the group’s longstanding strategy of combining retail expansion and underwriting discipline on the one hand with cycle management in big ticket lines on the other.

“We’ve had that sort of dual engine strategy actually for a very long time,” she said. “We’re building Hiscox to deliver through a variety of different market cycles.”

Hiscox UK grew premium by 10.2%, supported by distribution agreements, sector-focused underwriting and expansion into specialist professions, Musselle added.

Cycle management

The results come as rates continue to soften across parts of the London market. Hiscox reported that rates in its London market portfolio fell by 5% during the first half of the year, although 76% of the portfolio remained rate adequate or better.

In response, Musselle said the insurer had reduced exposure to classes where pricing no longer justified the risk.

“Rates are down double digit in major property business, for example, and that is an area where we’re actively shrinking,” she said. Hiscox non-renewed around 17% of risks in that portfolio during the first half.

The insurer also reduced participation in renewables business, non-renewing around 23% of risks, while expanding in areas including technology errors and omissions (E&O), cargo, flood and US mid-market property.

Musselle added: “It is not all one market. There’s lots of different microcycles and whilst we’re managing some markets and reducing, there are definitely other parts of the market where we’re still seeing attractive opportunities.”