Hiscox Re ILS

According to Hiscox Chief Financial Officer (CFO) Paul Cooper, the majority of the $300 million of third-party capital raised by Hiscox ILS, the insurance-linked securities (ILS) investment focused arm of Hiscox Group, during the first half of 2025, has gone into the organisation’s property catastrophe exposed business.

Hiscox ILS, the insurance-linked securities (ILS) investment focused arm of the Hiscox Group, raised $300 million in capital from new and existing investors through the first-half of 2025, which has lifted its ILS assets under management (AUM) back to $1.4 billion at June 30th.

Hiscox CFO Paul Cooper said today there remains “healthy interest” in catastrophe bonds at higher layers of the reinsurance tower, but also noted that the effect of the California wildfires could weigh on ILS fund performance fee income in both the organisation’s H1’25 and FY’25 results.

Hiscox Group has reported that assets under management (AUM) at Hiscox ILS, the dedicated insurance-linked securities (ILS) management arm of the global re/insurer, dipped by $100 million to $1.3 billion in the first-quarter on the effects of the California wildfires.

Hiscox ILS, the dedicated insurance-linked securities (ILS) management arm of the global re/insurer, generated a record level of third-party reinsurance capital related fee income in 2024, helped by strong performance fees and significant new inflows during the year.

Hiscox is expecting property catastrophe reinsurance to remain a “very attractive” market in 2025, according to group CFO Paul Cooper, who speaking this morning said the firm expects to continue incrementally deploying capital to that space.

Hiscox ILS, the dedicated insurance-linked securities (ILS) management arm of the global re/insurer, saw its ILS assets under management (AUM) recover back to $1.5 billion in the third-quarter of the year and the company is seeing growing interest from investors.

At Hiscox Group, as the mix of third-party capital adjusts with new inflows into insurance-linked securities (ILS) structures and continued planned outflows as money gets returned to investors, Hiscox CEO Aki Hussain said today that this won’t affect the firm’s underwriting risk appetite.

Hiscox ILS, the dedicated insurance-linked securities (ILS) management arm of the global re/insurer, has successfully raised gross inflows amounting to $300 million in the first-half of 2024, with capital from new and existing investors flowing to its collateralized reinsurance sidecar and ILS funds.

Investor and issuer interest in the catastrophe bond product remains strong amid healthy market dynamics, and the expectation is that 2024 will be another record year for the space, according to Vincent Prabis, Managing Principal, ILS at Hiscox Re & ILS.