Hiscox Ltd said it attracted about $1 billion in fresh third-party capital during the first quarter as the island’s insurance-linked securities and alternative capital market keeps expanding despite softening catastrophe reinsurance rates.

The company said assets under management in its ILS operations increased to $2.4 billion as of April 1, up from $1.5 billion at the start of the year, driven by new investors ahead of January renewals.

Most of the new capital flowed into catastrophe bond strategies, though Hiscox also launched a sidecar vehicle tied to Middle East-related business written through its London Market operations.

The Bermudian-headquartered speciality insurer and reinsurer said the broader pipeline for additional alternative capital inflows remained “robust”.

The update comes as Bermuda reinsurers navigate a softer property-catastrophe market while shifting attention towards casualty and speciality lines with stronger pricing.

Hiscox Re reported gross insurance contract written premiums of $527.1 million for the quarter, up 7.1 per cent year-over-year. However, net premiums fell 5.6 per cent as the company deliberately avoided increasing cat exposure amid declining rates.

The company said reinsurance rates declined 13 per cent during the quarter, with further light softening seen during April renewals.

At the same time, Hiscox said casualty business remained attractive, with general liability rates rising 5 per cent during the period.

In its London market division, the insurer said double-digit rate reductions were seen in major property and household business, while demand for speciality coverages tied to geopolitical instability rose.

Aki Hussain, chief executive of Hiscox Ltd, said the group was “proactively managing the softening cycle” while pursuing growth in areas where market conditions remained favourable.

He added: “With our sharp focus on profitable growth and good progress on the change programme objectives, the outlook for 2026 is positive.”

Group-wide insurance contract written premiums rose 10.2 per cent to $1.72 billion in the first quarter.