Hiscox Ltd lifted group insurance contract written premiums by 10.2% to US$1.72 billion in the first quarter, with retail leading the results as the London-listed specialist insurer pushes towards a double-digit retail growth target by 2028.

Retail premiums jumped 15.1% to US$847.2 million in the three months ended March 31, or 8.0% in constant currency. The constant-currency figure marks an acceleration of nearly 200 basis points from 6.7% a year earlier and matches full-year guidance.

Hiscox London Market premiums rose 4.0% to US$342.8 million. Hiscox Re advanced 7.1% to US$527.1 million. Group growth in constant currency was 6.9%.

Chief executive Aki Hussain (pictured above) said the company was "capturing diverse, high-quality growth opportunities" through broader distribution and deeper specialist niches.

The big-ticket performance comes against a weakening rate backdrop. Moody's associate managing director Salman Siddiqui has said the global reinsurance sector is past its pricing peak, with rates set to soften further into 2026.

Hiscox disclosed at its 2025 full-year results that London Market rates fell 5% last year, with a similar decline expected this year.

Middle East losses contained

Loss experience was within expectations. A quiet natural catastrophe period offset the cost of the Middle East conflict, which escalated in mid-March after a major flare-up between regional powers.

Exposure runs through marine war, kidnap and ransom, and war, terror and political violence portfolios in Hiscox London Market, with smaller lines in Hiscox Re. Claims have been concentrated in the London Market kidnap and ransom and political violence books.

Research from Marsh shows marine war risk premiums in the Gulf have risen several times over since hostilities began. S&P Global Ratings has assessed that exposed Lloyd's syndicates and global reinsurers face manageable, earnings-level rather than capital-level losses.

Political violence and terrorism covers typically run for fixed annual terms, unlike marine war policies that can be cancelled at short notice. The structure concentrates in-force exposure on writers such as Hiscox.

The investment result was US$34.1 million, a year-to-date return of 0.4%. The figure includes US$69.6 million of unrealised fair-value losses on fixed income, which are expected to unwind as bonds mature.

A buyback announced on February 25 has progressed, with 2.6 million shares repurchased for US$54.5 million as of May 6.

The trading update arrives as the London-listed specialty insurance peer set is being reshaped, after Beazley shareholders earlier approved Zurich's £8.1 billion takeover. The deal has sharpened investor focus on Hiscox's standalone retail-led strategy.