Hiscox reports $192M unrealized bond loss as reinvestment yield hits 5.1%

Hiscox's investment result fell to $104.2 million in the first nine months of 2026 from $350.8 million a year earlier, after $192.2 million of unrealized losses on fixed-income holdings as government bond yields rose. The Bermudian insurer and reinsurer reported the result on Nov. 3.

Hiscox's insurance contract written premiums rose 9.5% to $4.44 billion, or 8.1% at constant currency. Hiscox said the fixed-income losses should unwind as the bonds mature, and its reinvestment yield rose to 5.1% from 4.4% at the half-year, a gain of 70 basis points in three months.

For general-account allocators, the $192.2 million mark-to-market loss is a timing item that reverses at maturity, while the 5.1% reinvestment yield flows into future net investment income as bonds roll over.

At Hiscox Re, gross premiums rose 4.5% to $1.13 billion while net premiums fell 7.5% to $486.1 million as the company cut retained catastrophe exposure. Net natural catastrophe exposure, particularly in retrocession, was 36% below peak hard-market levels, and reinsurance rates fell 14% over the nine months, though they remained 55% above 2018 levels.

Assets in the group's insurance-linked securities business reached a record $3.1 billion on Oct. 1, up from $2.9 billion on July 1. Hiscox attributed the increase to retained earnings after benign loss experience. Retail premiums rose 9.1% at constant currency to $2.25 billion, and London Market premiums rose 9.9% to $1.05 billion.