Hiscox (HSX) H1 2026 earnings summary

Executive summary

• Insurance contract written premium (ICWP) grew 10.1% year-over-year to over $3.24bn/GBP 3.2bn, with profitable growth across all segments.

• Adjusted operating profit before tax increased 26.3% to $331m, and operating return on tangible equity (ROTE) reached 20.2%, exceeding the mid-teens target.

• Interim dividend increased by 16.7% to 16.8¢ per share, with GBP 460 million/$300m returned to shareholders over 12 months and a $300m share buyback 32% complete by June 2026.

• Retail segment achieved three years of accelerating growth and margin expansion; 2026 Retail growth guidance upgraded to 9%, with double-digit growth targeted for 2028.

• Change program delivered GBP 45 million/$45m P&L benefit in H1, on track for GBP 75 million/$75m in 2026 and GBP 200 million/$200m by 2028.

Financial highlights

• Net ICWP up 6.8% to $2.27bn/GBP 2.3bn; insurance service result up 30.2% to $255.4m.

• Undiscounted combined ratio improved to 90.4%, down 220 bps year-on-year.

• Adjusted operating profit before tax was $331m, up 26.3% year-on-year; adjusted operating EPS rose to 105.2¢.

• Investment result was $128.2m, impacted by mark-to-market on fixed income, expected to unwind as bonds mature.

• Profit before tax declined 13.1% to $240.5m, but net income rose to $263.9m, aided by a one-off deferred tax asset.

Outlook and guidance

• Upgraded 2026 Retail growth guidance to 9% in constant currency, with double-digit growth targeted for 2028.

• Retail combined ratio expected to improve within the 89%-94% range.

• Change programme on track to deliver $200m P&L benefit by 2028.

• Positive outlook supported by strong capital generation and ongoing change program benefits.

• Progressive dividend policy and continued capital returns anticipated.