Hiscox grew gross premiums by 9.5 per cent in the first nine months of 2026 as its retail business gained momentum, while rising bond yields weighed on investment returns.

The Bermudian-headquartered insurer and reinsurer reported insurance contract written premiums of $4.44 billion, up from $4.05 billion a year earlier. Growth was 8.1 per cent when currency movements were excluded.

The company’s investment result fell to $104.2 million from $350.8 million, reflecting $192.2 million in unrealised losses on fixed-income holdings as government bond rates rose.

Hiscox said those losses were expected to unwind as the bonds matured. Higher rates also lifted its reinvestment yield to 5.1 per cent, up from 4.4 per cent at the half-year.

At Hiscox Re, gross premiums increased by 4.5 per cent to $1.13 billion, while net premiums fell by 7.5 per cent to $486.1 million as the company reduced retained catastrophe exposure.

Net natural catastrophe exposure, particularly in retrocession, was 36 per cent below peak hard-market levels. Reinsurance rates declined by 14 per cent over the nine months, although they remained 55 per cent above 2018 levels.

Assets under management in its insurance-linked securities business reached a record $3.1 billion on October 1, up from $2.9 billion on July 1. Hiscox attributed the quarterly increase to retained earnings following benign loss experience.

Aki Hussain, Hiscox’s chief executive, said: “The pace and quality of our execution continues to drive growth and returns across the group.”

Retail premiums increased by 9.1 per cent at constant exchange rates to $2.25 billion, with double-digit growth during the third quarter. The company maintained its forecast for 9 per cent constant-currency retail growth for the full year.

Growth was driven principally by business volumes, with rates increasing by 1 per cent. The UK business grew by 11.1 per cent at constant exchange rates, Europe by 7.4 per cent and the US by 8.4 per cent.

“Our two big-ticket businesses are delivering growth while maintaining underwriting discipline in competitive market conditions,” Mr Hussain said.

“We are walking away from underpriced business while maintaining our position where economics are favourable and expanding into new specialty markets where conditions are attractive.”

London Market premiums rose by 9.9 per cent to $1.05 billion, although growth excluding prior-period premium adjustments was 3.9 per cent. Aggregate rates fell by 5 per cent.

Third-quarter claims were within expectations. Benign natural catastrophe losses more than offset marine losses arising from the Middle East conflict in the group’s big-ticket businesses.

Hiscox also said its change programme remained on course to deliver a $75 million benefit to profit and loss this year, with an equivalent cost to achieve it.

Technology initiatives included a new AI-native US direct portal and an AI-assisted submission-to-quote tool, which improved quoting speed by about 75 per cent in terrorism and architects and engineers business.

The company had completed 81 per cent of its $300 million share buyback by October 30, repurchasing 10.3 million shares for $241.9 million.