Following a strong first-half of the year in which it raised new capital from investors Hiscox ILS, the insurance-linked securities (ILS) investment focused arm of Hiscox Group, saw its ILS assets under management dip to $1.3 billion in the third-quarter after planned returns of capital to its ongoing investors.
The majority of the $300 million of third-party capital raised by Hiscox ILS was deployed into the organisation’s property catastrophe exposed underwriting, the firm’s CFO had said at the time.
Now, ILS AUM has declined again, as Hiscox has continued to deliver capital back to investors to plan.
In a Q3 trading statement published this morning, Hiscox explained that planned returns of capital to ongoing investors meant its ILS AUM has dipped back to $1.3 billion as of September 30th 2025.
But, positively the company noted, “Looking ahead, there is a strong pipeline of future potential investors.”
Commenting on its reinsurance and ILS business, Hiscox Re & ILS, the company explained that during the first nine months this business unit and its London Market operations, “deployed capital judiciously, with each growing where market conditions are attractive, while managing the cycle in areas of increasing competition.”
Insurance contract written premiums rose 6% to $1.0842 billion for Hiscox Re & ILS during the year to September 30th, while net ICWP grew by 7.0% to $525.6 million.
While diversification into specialty lines was a key driver, the increased third-party capital support has also been key in enabling the ongoing growth of Hiscox Re & ILS, the company stated.
Commenting on reinsurance market conditions, the company explained, “While rates have reduced by 5% over the first nine months, reflecting increased competition in property, the portfolio remains well-rated, with cumulative rate increases of 83% since 2018.
“Attachment points and terms and conditions have broadly held firm during the year.”
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