AM Best Affirms Hiscox Credit Ratings
Rating agency AM Best has affirmed the credit ratings of Hiscox Ltd and several of its insurance subsidiaries, with stable outlooks.
Updated on Nov. 6, 2026 in Corporate Finance
AM Best affirmed the Financial Strength Rating of A (Excellent) for Hiscox Insurance Company (Bermuda) Limited and Long-Term Issuer Credit Ratings of "a+" (Excellent) for four operating subsidiaries, plus "bbb+" (Good) for Hiscox Ltd. All outlooks are stable.
Why it matters
The affirmations reflect the group's very strong balance sheet, strong operating performance and appropriate enterprise risk management, signaling continued financial stability for policyholders and counterparties. The ratings also recognize the strategic importance of the subsidiaries to the wider group.
AM Best assigned an A (Excellent) Financial Strength Rating and a+ (Excellent) Long-Term Issuer Credit Ratings to several Hiscox entities, with the group's adjusted financial leverage at 13.3% at year-end 2025. The four-year average net-net combined ratio for 2022-2025 was 87.6%, though the source does not address how these figures may shift going forward.
The players
AM Best
AM Best is a credit rating agency specializing in the insurance industry, known for its Financial Strength Ratings and Long-Term Issuer Credit Ratings.
Hiscox Ltd
Hiscox Ltd is a Bermuda-based specialist insurance group operating through Lloyd's and other subsidiaries across several jurisdictions.
The details
AM Best affirmed the ratings for Hiscox Insurance Company (Bermuda) Limited, Hiscox Insurance Company Limited (United Kingdom), Hiscox Insurance Company (Guernsey) Limited, Hiscox Insurance Company Inc. (Chicago) and Hiscox Ltd, which is the ultimate non-operating holding company of the Hiscox group. The agency said the group receives equity credit for subordinated debt in its capital adequacy assessment.
Timeline
2022-2025: Four-year period over which the 87.6% average net-net combined ratio was calculated.
Year-end 2025: Adjusted financial leverage ratio of 13.3% recorded.
2025: Syndicate 33 ranked among the top ten Lloyd's syndicates by gross written premium.
November 6, 2026: AM Best published the affirmations.
Market Dynamics
The affirmations rest on AM Best's Best's Capital Adequacy Ratio, which measures consolidated risk-adjusted capitalisation and credits subordinated debt as equity. Hiscox's strongest-level result under that framework places the group among insurers judged to have very strong balance sheets within the Lloyd's and specialty insurance market.
For policyholders and counterparties, the stable outlooks and strong ratings indicate that Hiscox entities are assessed as financially sound. Investors tracking Hiscox securities can read the affirmed ratings as an independent assessment of balance sheet strength, though the source does not indicate any change to their investment terms.
The takeaway
Independent credit ratings provide a standardized way to compare insurer financial strength, and the stable outlooks here suggest AM Best sees no near-term pressure on Hiscox's position. Readers evaluating insurance counterparties can use such ratings alongside a company's own disclosures.
Further reading
For more on how insurers and holding companies are evaluated, see Corporate Finance coverage.
