Hiscox ILS assets increase 93% in H1 2026 to $2.9bn, fee income soars to $53m

Hiscox Capital Partners, the division of Hiscox Re that encompasses insurance-linked securities (ILS) investments and quota-share partnerships, continued to attract new capital from third-party investors in recent months, with its overall ILS assets under management (AUM) increasing to $2.9 billion at July 1st 2026.

When we last reported on Hiscox’s third-party capital assets under its range of ILS offerings, the figure stood at $2.4 billion as of April 1st this year.

Considering this figure had only stood at $1.5 billion of ILS assets at the beginning of this year, Hiscox Capital Partners ILS assets under management have now increased by an impressive 93% in 2026 so far.

Earlier this year, Hiscox Re, the reinsurance division of Hiscox Group, announced the launch of Hiscox Capital Partners as a dedicated business unit to consolidate all its capital partnership activity, including third-party capital and insurance-linked securities (ILS).

We also reported in May that Hiscox Capital Partners won a significant US $1 billion mandate from giant Australian investor TCorp, the sovereign investment manager for the New South Wales (NSW) public sector.

That large investment has been a significant driver of success for the Hiscox ILS strategies, which alongside other inflows is now translating into much higher third-party capital and ILS fee income being earned.

In Hiscox’s half-year results statement this morning, CEO Aki Hussain said that over the first-half of 2026 gross inflows to its ILS strategies totalled $1.4 billion, of which $1 billion flowed into its catastrophe bond funds.

Total fee income earned under the Hiscox ILS strategies soared to $53 million for the first-half of this year, a significant increase on the $21 million of fee income that was earned in H1 2025. However, the company did note that the California wildfires had depressed ILS fee income in the prior year.

CEO Hussain said that third-party capital inflows to quota share arrangements and ILS funds helped in boosting Hiscox Re’s insurance contract written premium by 6.4% in the first-half of the year, as it grew the reinsurance business.

However, the softening reinsurance market also had an effect, on which the CEO said, “Rates fell 16% in the period, alongside some modest softening in terms and conditions. 83% of the portfolio remains rate adequate or better, with rates up 54% since 2018. Hiscox Re, in line with expectations, is managing net natural catastrophe exposures at this point in the cycle. Following multiple years of growth, net exposures are now reducing as we focus on supporting the growth of high-quality and long-term cedants through a combination of Hiscox and third-party capital, while reducing exposure to more opportunistic business written in better market conditions.”

Hussain further explained that, “In Hiscox Re, we are managing net natural catastrophe exposures by focusing on high-quality cedants and walking away from more opportunistic business which is unattractive in a softening market environment.”

Hiscox’s CEO said that the company is employing disciplined and proactive cycle management, given the softened market conditions across reinsurance and other big ticket business lines.

The increased third-party capital available to Hiscox through its range of ILS funds, sidecars and quota share arrangements can be a key lever as it navigates the softened environment and its larger size will provide greater optionality for how the company deploys its own capital and distributes the risk it underwrites.

Hiscox Capital Partners is just one of the specialist managers of catastrophe bond and ILS funds listed in our Insurance Linked Securities (ILS) Investment Managers & Funds Directory.