Insurance-linked securities and third-party capital assets under management at Hiscox Capital Partners, the division of Hiscox Re that encompasses ILS fund investments and quota-share partnerships, rose $200 million in the third-quarter of 2026 on strong retained earnings, reaching a new high of $3.1 billion.
Impressively, ILS assets under management (AUM) are now up by a significant 139% in just one year, as Hiscox had reported the figure at $1.3 billion as of September 30th 2025.
With the latest ILS AUM total of $3.1 billion as of October 1st 2026, growth has been significant over the first nine months as the figure had only stood at $1.5 billion of ILS assets at the beginning of this year, meaning Hiscox Capital Partners ILS assets under management have now increased by an impressive 107% in 2026 so far.
This morning, in its third-quarter trading statement, Hiscox reported record high ILS AUM of $3.1 billion as at October 1st 2026, an increase of $200 million since July 1st.
The company explained that of the $3.1 billion in ILS AUM, around two-thirds sits in private ILS strategies (so somewhere over $2 billion) and the remainder in the firm’s catastrophe bond funds (likely just over $1 billion at this stage).
The Hiscox Capital Partners ILS funds have benefited from the benign natural catastrophe loss environment, with returns generated by strategies driving the assets under management higher.
The company explained that , “Increases in AUM during the quarter were due to strong retained earnings following benign loss experience.”
The ILS market has seen its capital base expand through the benign hurricane season so far, as returns have been strong and retained earnings boosted the sector’s capital levels higher.
Hiscox added, “We continue to see robust demand from third-party capital providers, most notably from quota share partners, underpinned by confidence in our underwriting strategy, strong portfolio performance, and long-term partnership approach.”
Earlier this year it was reported that Hiscox won a US $1 billion mandate from Australian institutional investor TCorp, the sovereign investment manager for the New South Wales (NSW) public sector, which meaningfully boosted ILS AUM for the firm.
That aligned with the company reporting $1 billion of inflows, mainly to its cat bond fund strategies, in the first-quarter of 2026 in its trading statement for that period.
The fundraising success dates further back as well, as Hiscox had reported $330 million of ILS inflows through 2025.
Aki Hussain, Chief Executive Officer, Hiscox Ltd, commented in the trading statement today that Hiscox’s big-ticket businesses, which includes the reinsurance arm Hiscox Re within which the ILS management activity is undertaken,are “maintaining underwriting discipline in competitive market conditions. We are walking away from underpriced business while maintaining our position where economics are favourable and expanding into new specialty markets where conditions are attractive.”
Hussain further explained that, “Hiscox Re deployed additional third-party capital at mid-year renewals, and reduced net exposures to natural catastrophe risks, including retro.”
Hiscox reported that within the reinsurance business, gross insurance contract written premium (ICWP) increased 4.5% in the third-quarter but net reduced by 7.5% “reflecting deliberate cycle management.”
“We have actively reduced net natural catastrophe exposure, particularly in retro, which is now 36% below peak hard-market levels. At the same time, we have continued to support core cedants and selectively written new business in pro-rata property and specialty lines,” the company reported.
Also on reinsurance Hiscox noted that, “Rates declined by 14% over the first nine months, although they remain 55% above 2018 levels, and 83% of the portfolio was rated adequate or better at half-year.”
The growing assets under management in the ILS fund and quota share business, which includes sidecars, benefits Hiscox as it manages the cycle and provides added optionality in terms of capital deployment.
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.
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