Hiscox (LSE:HSX), the Bermuda-based specialty insurer, grew insurance contract written premium by 10.1% to $3,238.4 million in the six months to 30 June, with all three business segments delivering profitable growth.
Adjusted operating return on tangible equity reached 20.2%, up from 14.5% a year earlier and comfortably above the group's mid-teens through-the-cycle target.
The undiscounted combined ratio improved to 90.4% from 92.6%, while the investment result fell to $128.2 million from $234.9 million, reflecting higher bond coupons offset by unrealised fair value losses expected to unwind as securities mature.
Hiscox Retail grew 8.2% in constant currency, prompting management to raise full-year growth guidance for the division from 8% to 9%, with policy count gains outpacing a modest 1% rate increase.
"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," said Aki Hussain, Group Chief Executive Officer.
The company's change programme delivered a $45 million profit and loss benefit in the first half at a cost of $39 million, keeping it on track for $75 million in 2026 and $200 million by 2028.
The interim dividend rose 16.7% to 16.8 cents per share, while the $300 million share buyback was 32% complete at 30 June, with the remainder expected to finish ahead of the full-year 2026 results.
News Intelligence what this means for the company
Hiscox lifted Retail growth guidance to 9% for 2026 after first-half premium growth of 10.1% and a return on tangible equity of 20.2%—well above its mid-teens through-the-cycle target. The combined ratio improved to 90.4% from 92.6%, and the change programme delivered $45 million in profit benefit against $39 million cost, tracking toward $200 million by 2028, signalling both near-term momentum and confidence in structural margin expansion.
The upgrade reflects genuine operational traction: Retail policy count gains are outpacing pricing (1% rate increase), the group is generating returns 450+ basis points above its through-the-cycle target, and the change programme is on track to deliver $200 million cumulative benefit by 2028. The interim dividend rose 16.7% and the buyback is 32% complete, indicating management confidence in cash generation and capital flexibility.
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