Third‑party capital boosts Hiscox market relevance and capacity

His​cox Capital Partners now sits at the core of the His​cox Group’s reinsurance strategy, extending underwriting capacity beyond the limits of its own balance sheet.

Third‑party capital expands underwriting reach

Joanne Musselle, the group’s chief underwriting officer, said the Capital Partners division has become a key lever for market relevance. “Scaling His​cox Capital Partners, so third‑party capital gives us both relevance in the market, but it also enables us to deploy more of our underwriting capability than our own balance sheet would allow, and this builds attractive portfolios for our partners and fee income for ourselves,” she told analysts during a webcast on the first‑half 2026 results.

Launched earlier this year, the unit consolidates all capital partnership activity, covering external investors and insurance‑linked securities (ILS). By tapping third‑party funds, it can write more policies and diversify risk without stretching internal capital.

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CEO Aki Hussain highlighted that disciplined underwriting continues to attract capital. “In reinsurance, we have once again delivered an excellent combined ratio of 70%. This follows three years of achieving outstanding combined ratios in the 60s. Our disciplined underwriting and risk selecting continue to be recognised by third‑party capital providers, driving the top line in the first half,” he said.

Financial results reflect strong capital inflows

Chief financial officer Paul Cooper noted that insurance contract written premium rose 6.4% year‑on‑year to $944.5 million in the first half of 2026. The increase was largely driven by quota‑share partners and institutional investors joining the Capital Partners platform.

Net premiums fell 7.4% as the firm trimmed exposure in property catastrophe and retro lines, where returns fell short of profitability targets. Growth in specialty and pro rata lines partly offset the decline.

Cooper added that the insurance service result climbed to $62.5 million, reflecting solid underwriting performance and a relatively calm natural catastrophe environment. The undiscounted combined ratio stood at 70.4, reinforcing the earlier comment on disciplined risk selection.

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On the ILS side, assets under management rose to $2.9 billion, with $1 billion allocated to the company’s cat bond fund. Fee income from third‑party capital reached $53 million in the first half, highlighting the revenue potential of the platform.

These figures indicate that His​cox Capital Partners has significantly broadened its reach. The ILS assets grew from $1.5 billion at the start of the year to $2.9 billion by July 1, a 93% increase.

Overall, His​cox Re is delivering disciplined results and generating fee income through its Capital Partners platform. The growth in third‑party capital and ILS assets suggests the strategy is resonating with investors seeking exposure to reinsurance risk.