Hiscox nearly doubles third-party capital to $2.9bn through mid-year renewals

Hiscox nearly doubled third-party capital under management in the first half of 2026, as strong investor demand, led by catastrophe bond funds, boosted fee-generating capital.

Third-party capital across traditional quota-share partners and ILS assets under management increased to $2.9 billion at July 1, up from $2.4 billion end-Q1 and $1.5 billion just after the 1/1 renewals. 

Management put gross inflows at $1.4 billion for the first half, of which $1.0 billion was into catastrophe bond funds. That puts the earnings impact into fees, ahead of underwriting earnings funded by other ILS vehicles. 

Total fee income from third-party capital more than doubled to $53 million, albeit in large part as prior year tallies had been suppressed by the impact of the California wildfires. 

The view to just Q2 flows was blurred: Hiscox had claimed “around $1 billion of capital raised from new investors” in its Q1 statement, but had not specified if that sum included the previously released sums embedded in the prior AuM tally from after the 1/1 renewals. 

Growth in 2026 is a handy turnaround from the prior trend. Full year 2025 gross capital inflows had been pegged at $300 million, ahead of returns to investors, versus a prior year take that had been listed at $460 million, not enough to counterbalance that year’s outflows. Management had admitted to a drop in AuM in H1 from scheduled maturities/returns and a hit – be it to flows or valuations - from California wildfires.

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