The optimistic outlook for the 2025 year of account is complemented by the strategic expansion of Syndicate 6104, with capacity increasing to £79 million in 2025, marking a four-fold increase from the £19 million deployed in 2023.

Hiscox also upgraded its 2024 projections, lifting the estimated range for Syndicate 33 by a full percentage point to 3.4%–15.4%. Similarly, Syndicate 6104 saw its forecast nudge higher, with the upper bound rising from 25% to 25.3%.

The update concluded with the final closing results for the 2023 account, which saw Syndicate 33 finish the year with a strong 19.1% return on capacity.

However, it was Syndicate 6104 that delivered the standout performance, closing at a massive 51.7% profit, eclipsing the top end of its previous guidance.

In related news, Hiscox Re, the reinsurance business and third-party capital platform of the specialist insurer, recently disclosed that it generated profit before tax of $286.7 million in 2025, an increase of 7% on the prior year, as the segment’s undiscounted combined ratio strengthened to 67.4%.

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Hiscox held an earnings call after reporting strong financial results for 2025, with Hiscox Re generating a profit before tax of $286.7 million, up 7% year over year, and an improved undiscounted combined ratio of 67.4%.

During the call, Musselle described data centres as a structural growth opportunity that underpins the digital economy.

“We’re curious, we’ve deployed some capacity in both our primary, in our London Market business, and in our reinsurance business. But at the moment, we’re thoughtful, because one of the significant areas that we need to get ahead around is accumulation,” said Musselle.

She continued, “And we’re also invested, at the same time, deploying a little bit of capacity, we’re also investing in building our own accumulation modelling so we’re really clear around where these accumulations lie, and we can actually manage them ourselves. So, yes, watching it, deploying some capacity, but also thoughtful in terms of accumulation.”

Brokers see data centres as a significant opportunity, with Marsh executives describing it as “the single biggest new business opportunity in 2026” during its Q4’25 earnings call. Lockton recently said the industry has been increasingly focused on risk engineering as data centres evolve into large, complex, multi-billion-dollar campuses. Meanwhile, Aon CEO Greg Case noted that demand in this area could generate more than $10 billion in new premium in 2026 alone.

Musselle also addressed product demand stemming from AI errors/hallucinations, stating that this is an emerging risk.

“There’s going to be some areas of risk that actually improve, because some of it is still driven by fat finger, and actually with AI, there is more consistency in terms of decision making. Maybe some of those errors and emissions actually improve. But there’s definitely new areas of risk, and we’re being really thoughtful about that,” she said.

“Certainly, from our point of view, we’re not going down the route of blanket exclusions. We’re being really thoughtful around the risks that they present, understanding those risks then, indeed, accommodating those risks, either pricing for them or providing affirmative coverage. A good example would be in our UK portfolio and our technology, we were one of the first to confirm affirmative AI coverage within that policy.”

Musselle stated that the other area that Hiscox thinks about is not just risk, but the opportunity.

She noted, “There’s a lot of people, there’s a lot of investment in AI and data centres, that’s attached to this digital world that all need insurance, and we’re really well placed to be able to provide insurance for the consultant who happens to be in that AI world. So, we’re also thinking about it from an opportunity point of view. How do we understand the risk? How do we develop our own products and services to help our customers with that risk? And, then also, how do we broaden our appetite to capture some of this more new economy in terms of their own insurance needs?”

During the call, Musselle also discussed the firm’s underwriting edge in reinsurance, stating that this is driven by a blend of external and internal data, as well as the use of technology in the underwriting process.

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After releasing a strong set of results for 2025, including a robust performance at Hiscox Re, the firm’s reinsurance business and third-party capital platform, Hiscox executives took questions from analysts on a range of topics.

One of the questions focused on the firm’s underwriting edge in reinsurance and what drives this, in light of Hiscox Re generating profit of $286.7 million for the year, up 7% on 2024’s figure, with yet another strong combined ratio of 67.4%, despite the softening environment and another year of more than $100 billion in nat cat losses.

The firm’s underwriting edge in reinsurance “is a combination” explained Musselle. “So, what we rely on… in that reinsurance world, is the best external models. As an example, we take what’s available, but then we blend and we put overlay what we call a Hiscox view of risk, and we do that across both our reinsurance and indeed, all of our other insurances. And that is really important, and that is proprietary, where we are utilising our own proprietary information, our own bespoke data sets, building in things like that forward looking view of inflation. It was really important for us to get ahead of some of these sub trends and price forward.”

As well as the blend of external and internal data, the CUO highlighted the use of technology in the underwriting process to do a number of things, including making Hiscox Re easier to do business with.

“So, take the reinsurance example, how can we consume submissions quicker? Clearly, the advance of technology enables us to consume more submission in a much shorter time. So, be much better in terms of response time back to, in that instance, brokers, or indeed, more broadly, customers. We’re utilising it there,” she said.

Adding: “And absolutely utilising it to make better decisions. So, whether that is ingesting third party data to make better underwriting decisions, pricing decisions. That’s the second area that we’re utilising it, and clearly making us more efficient. So, I’d say it’s a combination. It definitely is looking outside and taking the best external information that exists, and then blend into that our own proprietary data sets.”

At the January 1st, 2026, reinsurance renewals, elevated competition from incumbent reinsurers and alternative capital saw rates decrease 13% for Hiscox Re, but despite softening, the company feels that 83% of its portfolio is adequate or adequate plus, while reduced outwards reinsurance costs also served as a positive tailwind for the business.

Further, in 2025, Hiscox Re saw rates decline by 5% amid heightened competition, but at year-end, cumulative rate increases since 2018 were 83% for the business. Importantly, terms and conditions remained broadly stable in 2025 and at January 1st, 2026, following the significant adjustments made in 2022 and 2023.

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The global specialty insurer’s reinsurance arm delivered insurance contract written premium (ICWP) of $1.094 billion in 2025, an increase of 6% on the prior year’s $1.032 billion, driven by net growth and increased third-party capital support. Net ICWP rose by 8% year-on-year to $538.7 million, with growth in pro-rata and specialty lines, including parametric climate resilience, mortgage and surety.

Hiscox Re’s insurance service result increased to $189.4 million in 2025 from $165.7 million in 2024, as the undiscounted combined ratio strengthened by 1.6 percentage points, aided by a benign second half of the year in terms of natural catastrophe losses.

Throughout 2025, Hiscox Re saw rates decline by 5% amid heightened competition, notably in property catastrophe, although importantly, “attachment points and terms and conditions remained broadly stable.” At year-end 2025, cumulative rate increases since 2018 were 83%.

At the January 1st, 2026, reinsurance renewal, Hiscox Re says that rates declined by 13% on the back of competition from both incumbent reinsurers and alternative capital, but the firm notes that “the portfolio remains rate adequate following significant rate increases since 2018.”

Insurance-linked securities (ILS) assets under management increased from $1.4 billion at January 1st, 2025, to $1.5 billion at January 1st, 2026, with the business attracting inflows of more than $300 million from new and existing partners over the course of the year, which Hiscox says offset planned returns and increased the level of deployable capital at the January renewals. During 2025, the firm’s third-party capital platform generated $109.4 million of fee income from ILS and quota-share partners, compared with $128.2 million in 2024.

Turning to Hiscox London Market, ICWP increased to $1.249 billion in 2025 from $1.229 billion in 2024, as net ICWP rose to $880.9 million from $879.7 million. The business generated an insurance service result of $160.3 million in 2025, up on the prior year’s $141.3 million. Profit before tax rose to $255.3 million from $215 million, as the undiscounted combined ratio came down from 88.6% to 85.9%.

At Hiscox Retail, ICWP increased to $2.634 billion in 2025 from $2.441 billion in 2024, while net ICWP rose to $2.446 billion from $2.434 billion. The segment’s insurance service result increased to $267.4 million for 2025 from the prior year’s $261.1 million. Profit before tax hit $352.1 million, an increase on the prior year’s $317.2 million, with an undiscounted combined ratio of 92.6%, down slightly on 2024’s 92.9%.

Group-wide, Hiscox generated ICWP of $4.979 billion in 2025, up on the prior year’s $4.703 billion, as net ICWP increased to $3.865 billion from $3.622 billion.

The underwriting performance was strong for the year with an insurance service result of $613.9 million for 2025, compared with $553.5 million in 2024. The Group undiscounted combined ratio strengthened to 87.8% from 89.2%, while the insurer also benefitted from positive prior year reserve development of $292.7 million, compared with $145.5 million in 2024. The Group investment result also improved year-on-year, to $442.7 million from $383.9 million.

All in all, Hiscox generated profit before tax of $732.7 million in 2025, an increase on 2024’s $685.4 million.

“2025 was a pivotal year for Hiscox as we delivered another strong performance and made excellent progress in executing our growth and change strategy. In Hiscox Retail, we have achieved multi-year growth and margin expansion through new products, deeper distribution, the deployment of new technologies and execution of our change programme. Our retail markets present a large and attractive opportunity with a long runway of growth on which we are executing at pace. In big-ticket, our specialist expertise and technology capabilities have enabled us to launch new business initiatives, more than offsetting the dynamics of our cycle management actions. We are executing on our strategic agenda, and our commitment to underwriting excellence remains at the core,” said Aki Hussain, Group Chief Executive Office, Hiscox.

“Innovation across the Group is accelerating, with more product launches this year than over the previous five years, and employee engagement remains at an all-time high. Our change programme is firmly on track, building capabilities to improve service and productivity.

“This strong performance and strategic execution enable us to reward shareholders, with the final dividend per share increasing by 20% for a second consecutive year and a third consecutive share buyback launched, taking the combination of shareholder returns through dividends and buybacks announced over the last three years to over $1.1 billion.

“We are a leading pure-play specialty insurer with a diverse and balanced business, uniquely positioned to seize the opportunities in front of us and deliver value to our shareholders. We are firmly on track to deliver our strategic initiatives and the guidance set out at our Capital Markets Day in May 2025, and I want to thank all my colleagues for their continued hard work in driving Hiscox forward,” he added.

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The business has also launched Hiscox Capital Partners, bringing together under a single structure the capital activity it has managed for nearly two decades.

“We have a long track record of working with capital partners and this formalised approach makes it easier for them to access Hiscox Re’s underwriting expertise through tailored, transparent solutions, while continuing to support our cedants and brokers, enabling us to offer expanded solutions and meaningful capacity in a streamlined way,” Hiscox Re explained.

Liz Breeze, who was appointed last year to lead the Hiscox Capital Partners team, holds more than 20 years of experience in insurance and over 14 years at Hiscox, including roles across Group and Retail, and as CFO of Hiscox Re.

“Liz brings deep capital-markets insight, reinsurance expertise and strategic leadership to guide the continued development of Hiscox Capital Partners and strengthen our relationships with capital partners,” Hiscox Re said.

Meanwhile, Vincent Prabis will continue in his senior leadership role as Managing Principal of Hiscox Capital Partners, bringing extensive experience in capital solutions and long-standing relationships across the investor community.

“Together with Hiscox Re’s CEO Kathleen Reardon, and the wider Hiscox Re leadership team, they remain focused on developing our capabilities and offering more solutions to cedants, brokers, institutional investors and re/insurance partners,” Hiscox Re concluded.

Hiscox Re comprises Hiscox Group’s reinsurance business and capital partner platform. Reinsurance is written through both Bermuda and London, with a focus on property and specialty risks.

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The division will consist of four distinct but complementary teams: Alternative Risk, Beta-Follow, Global MGA, and Structured Solutions.

Alternative Risk, written within Hiscox London Market since 2015, selectively backs world-class underwriting expertise targeting the most profitable market segments.

Beta-Follow supports select broker cross-class facilities to create a diversified portfolio of risk, with high indexation.

Global MGA engages with MGAs to provide strategic support and create a diversified portfolio of risk. This involves a limited number of significant MGA relationships, utilising both Hiscox London Market and Hiscox’s Retail division.

Structured Solutions focuses on multi-year and/or multi-line policies where traditional insurance solutions may not fully meet a client’s individual needs.

The division builds on established skills within the business, particularly in alternative risk, where Hiscox has been marketing a developed proposition for a decade.

As data and advanced analytics blend with more traditional underwriting skills, significant opportunities arise to deliver innovative insurance solutions in areas where clients seek alternatives to traditional risk transfer, as well as to support data-led delegated authorities where Hiscox can provide significant insurance capacity.

Hiscox is building the Hiscox Portfolio Solutions teams with a blend of seasoned underwriters experienced across multiple lines of business and commercial actuaries offering the analytical expertise needed to deliver deep portfolio insights. This hybrid approach harnesses a diverse skillset to produce market-leading results over the long term.

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For the 2023 year of account, Hiscox now estimates that Syndicate 33 will generate a return of 12% to 22% on its capacity of £1.699 billion, of which Hiscox holds a 73% share.

This estimate remains consistent with its previous projection, which also ranged between 12% to 22%.

For the 2024 year of account, Syndicate 33 is expected to generate a return of 2.4% to 14.4%, higher when compared to the previous estimated range of 1.7% to 13.7% on its capacity of £1.699 billion, of which Hiscox holds a 73% share.

Syndicate 6104 saw notable improvements in its profit projection for both years. It is important to note that Hiscox, as a company, does not hold any ownership of this Syndicate.

For the 2023 year of account, Syndicate 6104 is now estimated to generate a return of 41.0% to 51.0% on its capacity of £19 million, compared to the previous range of 38.5% to 48.5%.

Meanwhile, for the 2024 year of account, Syndicate 6104 is expected to produce a return in the range of 7.5% to 25.0% on the capacity of £57 million. This compares to the earlier estimated range of 5.3% to 22.8%.

All Syndicates’ estimates, Hiscox clarified, are calculated after standard personal expenses, such as Managing Agent fees and profit commission, and all charges levied directly on syndicates by Lloyd’s, but before Members Agents’ charges.

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According to Hiscox, nearly three-quarters of small businesses worldwide are unnecessarily exposed to risk due to insufficient insurance coverage.

SMEs account for around 50% of global economic activity, making their protection critical. Hiscox’s research, which surveyed 6,250 small business owners across the UK, USA, France, Germany, Spain, and Portugal, found that concerns about risk are widespread.

Most business owners (92%) reported being kept awake by potential threats, with theft or damage to property, cyber attacks, and workplace incidents identified as the leading insurance concerns.

Despite this, many SMEs lack essential coverage. According to Hiscox, 55% of respondents did not have core protections such as professional indemnity, public liability, property, or employers liability insurance. This leaves businesses exposed to claims involving bodily injury, property damage, client lawsuits, or employee complaints.

Hiscox also notes that misunderstandings about insurance are common: nearly two-thirds of small business owners could not accurately describe public liability coverage, while comprehension of cyber insurance and professional indemnity was even lower.

In addition, Hiscox found that around a third of SMEs had not reviewed their insurance policies in the past three years, potentially leaving coverage out of step with changes in revenue, staff, products, or operations. Some businesses delay securing insurance entirely, with almost a quarter of respondents waiting until the business was profitable and 23% waiting until they were working full-time.

Joanne Musselle, Hiscox’s Group Chief Underwriting Officer, said: “As the business environment continues to evolve at pace, so too do the challenges that can impact the fundamental wellbeing of a small business. From cyber threats and supply chain disruption, to environmental events and shifting regulatory requirements, the landscape is shifting fast and it’s easy for it to feel overwhelming. The intention of this report is to help SMEs focus on some of those risks, and what they can do to minimise their exposure, and to help give them easier access to the resources that are out there to help and support them.”

Hiscox emphasises that gaps in understanding insurance leave businesses vulnerable to avoidable financial and operational shocks. Professional indemnity is often misunderstood despite being critical in covering claims of negligent service delivery, while cyber insurance is frequently misinterpreted, leaving businesses exposed to data breaches, security failures, financial scams, and cyber attacks.

Musselle added: “Small business owners invest years of hard work, resources and passion into building their dream business. They wear lots of different hats while they’re doing it; and not everyone has the capacity to be a risk manager as well. That’s why we’re sharing the results of this research, and our top tips for small business owners to help them fill that gap. Of course insurance has a role to play as a critical safety net, but it’s not a substitute for proactive risk management, and we want to do what we can to help make that process easier.”

Hiscox advises small businesses to assess potential risks, stay informed about developments affecting their sector, and review insurance coverage regularly to ensure it reflects the scale and scope of their operations.

This includes reviewing policy limits and adapting coverage as the business grows, as well as seeking guidance from brokers or insurers to secure appropriate protection. Many SMEs cap their insurance at £/$/€1 million, which Hiscox warns may not be sufficient in the event of significant property damage or legal claims.

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Speaking about the firm’s AI adoption, Cooper highlighted that the partnership is delivering transformative results, most notably in accelerating the submissions process and unlocking new market opportunities.

The most immediate effect of the AI adoption has been in augmented lead underwriting for sabotage an terrorism insurance.

“What we’ve seen is the benefits in that sort of augmented lead underwriting arrangement on sabotage and terrorism, where we drove submissions in terms of timing, from a turnaround time of about three days to certainly around three minutes,” Cooper stated.

Adding: “That’s something that we are certainly looking to accelerate into other parts of the business, and take components of that where we can deploy it into other lines.”

He confirmed that this proof of concept has been industrialised, with around two-thirds of the sabotage and terrorism business now subject to the augmented underwriting process.

Cooper framed the Google collaboration as having two main drivers: acting as a growth enabler and driving efficiency.

“One is a growth enabler, similar to the sabotage and terrorism and the rollout in mid market property, and then just generally, looking at their technological expertise to drive efficiency into the business,” he stated.

Hiscox has been quick to export its technological capability in retail, deploying components of the AI framework into other lines, such as the middle market property sector, recently accessed in the London Market.

“One part of our ability to do so has been partnering with Google to cleanse data using AI, and again, accelerate the submissions process as a consequence from that,” Cooper noted, underscoring the speed advantage it gives Hiscox over competitors using purely manual processes.

Marine cargo is another line where technology has allowed Hiscox to access business. The executive said: “In marine cargo, where we’re using APIs to basically digitally underwrite, quote and bind the risk near instantaneously.

“Because of the size of the average premium, in that small marine cargo end, we wouldn’t have typically seen that business come to Lloyd’s. And certainly there’s a question mark about whether we could have underwritten it economically.”

He concluded: “I do expect us to continue to innovate more broadly, not only in the London Market, but across the group. If you look at what we’ve done in terms of the AI submissions process, that’s an area that improved productivity in the UK by 40% in December last year, and we’re rolling that out to Europe, and the US and the US broker.”

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The collaboration aims to create one of the largest providers of specialist HNW products in the Irish market, leveraging the combined strengths of both firms.

The new partnership will see DUAL take the lead on the day-to-day management, underwriting, and servicing of the joint HNW business.

This will be backed by Hiscox’s deep expertise and capacity, a collaboration that is expected to speed decision-making for brokers and clients while providing access to market-leading products and services.

Barry O’Dwyer, commented: “This partnership marks a transformative moment for HNW insurance in Ireland. Combining DUAL’s specialist focus, personalised service, and deep broker relationships with Hiscox’s expertise and reputation allows us to better serve Ireland’s growing base of high-net-worth individuals.”

For DUAL, this move also paves the way for the company to accelerate its ambition of becoming Ireland’s number one provider of HNW insurance.

Richard O’Dwyer, Managing Director of Hiscox Ireland, added: “The high-net-worth market is growing, and we are excited to continue to play our part in a new way with DUAL. Our combined expertise and shared customer focus sets a new standard for high-net-worth insurance in Ireland, which is good news for clients and brokers alike.”

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