Acquisition

Hiscox PLC
18 November 2002

Press release

18 November 2002


                  Hiscox grows professions insurance business
                      following a deal with Denham Direct


Hiscox plc announces that its retail insurance business have reached an
agreement with XL London Market (XLLM) to acquire the renewal rights of the
Denham Direct book of professional liability business for a commitment based on
the sum renewed.

Bronek Masojada Chief Executive, Hiscox commented:

'This acquisition builds on our objective to grow our retail business.
Professional liability is a core area within our product offering and the
agreement provides Hiscox with access to a significant book of PI business for
smaller accountants and other professionals.'


For further information, please contact:

Bronek Masojada                    Chief Executive       Hiscox plc                   020 7448 6012
[e-mail]

Suzanne Bartch                                           The Maitland Consultancy     020 7379 5151
[e-mail]

Kylie O'Connor, Hiscox:                                                               020 7448 6000
[e-mail]



Notes to editors

 1. Hiscox plc is a specialist insurance group fully listed on the London Stock
    Exchange where it has a market capitalisation of circa £365 million
    (November 2002). There are two main underwriting parts of the Group namely
    Syndicate 33 and the Hiscox Insurance Company. Hiscox's Syndicate 33
    underwrites its business at Lloyd's. The syndicate has grown from a single
    underwriter at Lloyd's to a substantial leading syndicate with a premium
    income of £590 million in 2001. Syndicate 33 underwrites mainly
    internationally traded business in the London market - generally large or
    complex business which needs to be shared with other insurers or needs the
    international licences of Lloyd's. The Hiscox Insurance Company had a
    premium income of £164 million in 2001. It offers a wide range of specialist
    insurance for professionals and business customers, as well as high net
    worth individuals. Hiscox has regional offices in Leeds, Glasgow and
    Birmingham, and overseas offices in Paris, Amsterdam, Munich, Belgium and
    Guernsey. The head office is in London. For more information see
    www.hiscox.com

 2. XL London Market Ltd ('XLLM') is one of the leading Managing Agencies at
    Lloyd's of London, managing Syndicate 1209 with capacity to accept premium
    of over $500 million. The XLLM Syndicate offers underwriting expertise and
    market leadership in various lines of business, particularly the marine
    disciplines of Hull, Liabilities, Offshore Energy and Cargo; Specie,
    Bloodstock; International Aviation and War and Political Risk.

    The ultimate parent company of XLLM is XL Capital Ltd (NYSE: XL)('XL'),
    Through its operating subsidiaries, XL is a leading provider of insurance
    and reinsurance coverages and financial products to industrial, commercial
    and professional service firms, insurance companies and other enterprises on
    a worldwide basis. As of September 30, 2002, XL had consolidated assets of
    approximately $34.1 billion and consolidated shareholders' equity of
    approximately $5.9 billion. More information about XL is available at
    www.xlcapital.com http://www.xlcapital.com.



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