Hiscox units, parent retain AM Best ratings with stable outlook

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Hiscox stable AM Best ratings

Highlights

AM Best affirmed Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of 'a+' for major Hiscox subsidiaries, all with stable outlooks.
Hiscox's risk-adjusted capitalisation remains at the strongest level under Best's Capital Adequacy Ratio, with adjusted financial leverage ratio at 13.3% at 2025 year-end.
AM Best reported a four-year average net-net combined ratio of 87.6% (2022–2025) and expects ongoing strong underwriting performance, aided by diversified business mix.

Ratings affirmation across key entities

As reported by AM Best, the agency has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of "a+" (Excellent) for Hiscox Insurance Company (Bermuda) Limited, Hiscox Insurance Company Limited in the UK, Hiscox Insurance Company (Guernsey) Limited and Hiscox Insurance Company Inc. in Chicago. At the same time, it has affirmed the Long-Term Issuer Credit Rating of "bbb+" (Good) for Hiscox Ltd, the Bermuda-based ultimate non-operating holding company of the group, with all outlooks remaining stable.

AM Best says the ratings reflect Hiscox's very strong balance sheet strength, strong operating performance, neutral business profile and appropriate enterprise risk management. The agency also cites the strategic importance and integration of the rated operating subsidiaries within the wider group.

Capital strength and underwriting support outlook

Hiscox remains a well-established international insurer and reinsurer with a diversified book of business and a strong Lloyd's market presence through Syndicate 33, which AM Best says is among the top ten Lloyd's syndicates by 2025 gross written premium.

The agency says the group's balance sheet strength is supported by risk-adjusted capitalisation at the strongest level under Best's Capital Adequacy Ratio, alongside good financial flexibility, a liquid investment strategy and prudent reserving practices. Hiscox reported an adjusted financial leverage ratio of 13.3% at year-end 2025, including hybrid equity debt credit, while catastrophe exposure remains a material but managed risk through reinsurance and specialist exposure management.

AM Best also points to a track record of strong underwriting performance, helped by portfolio management and favourable market conditions. It cites a four-year average net-net combined ratio of 87.6% for 2022 through 2025 and expects performance to remain strong across the underwriting cycle, with retail operations helping offset pressure from large-ticket business exposed to rate softening and potential catastrophe losses.

Sovereign borrowing risks in a higher interest rate environment were the focus of our earlier coverage, as persistent geopolitical shocks and elevated fiscal spending squeeze governments’ refinancing capacity. We noted that emerging and frontier markets are especially exposed because debt-service costs often rise faster than revenues, while energy and food price volatility adds to inflation and credit pressure.

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