Impact of Hurricane Season

Hiscox PLC
07 October 2005


7 October 2005
For immediate release

                            HISCOX PLC ANNOUNCEMENT

                        Impact of 2005 hurricane season

Hiscox plc ('Hiscox') has updated its estimate of losses arising from Hurricane
Katrina and undertaken an initial review of the estimate of losses arising from
Hurricane Rita.

We continue to work at quantifying more accurately the losses from Hurricanes
Katrina and Rita. Very few loss advices have been received to date, so current
estimates remain uncertain. Using information available today, Hiscox plc's
share of the net loss from Katrina is estimated to have increased to $110
million from the $100 million previously advised. This is based on case by case
reserves where possible, or otherwise on an industry loss of $45 billion.

The loss from Rita is currently estimated to be $70 million. The size of this
loss reflects retentions which Syndicate 33 has before the reinsurance programme
is effective. The loss should not materially impact the programmes so there is a
good measure of reinsurance left for the rest of the year.

Based on these estimates we currently anticipate Hiscox plc's pre-tax profit for
the year ending 31 December 2005 will be reduced by £25 million. This update is
being given before the end of the Hurricane season and our full year result will
depend on further hurricane activity and other potential claims in the remainder
of the year.

Following Hurricanes Katrina and Rita, Hiscox Global Markets, the international
business trading through Lloyd's, is seeing good rate rises in many of its core
classes of business. In particular the energy and reinsurance accounts have the
potential for substantial increases. As a result Hiscox has decided to increase
the 2006 premium limit for Syndicate 33 from £775 million to £833 million (2005:
£775 million) subject to Lloyd's approval. Prior to the hurricane season Hiscox
had announced it intended to reduce the 2006 premium limit for Syndicate 33 to
£650 million.

Hiscox UK continues to trade well and the progress of Hiscox Europe seen in the
first half of the year continues.

Robert Hiscox, Chairman of Hiscox plc, said:

'The strong first half of the year has been followed by a second half of well
documented hurricane losses. Feast generally follows famine in the insurance
world and we believe that rates will increase substantially in the reinsurance,
marine and energy areas, and will remain firm in other areas. Our experienced
teams intend to take full advantage.'

                                    - ends -
For further information:
Hiscox plc
Robert Hiscox                    Chairman                  020 7448 6001
Bronek Masojada                  Chief Executive           020 7448 6012
Stuart Bridges                   Finance Director          020 7448 6013

The Maitland Consultancy
Suzanne Bartch                                             020 7379 5151

Notes to editors
Hiscox plc is a specialist insurance group listed on the London Stock Exchange
where it has a market capitalisation of circa £600 million. There are three main
underwriting parts of the Group - Global Markets, UK Retail and International
Retail. Global Markets underwrites, via Syndicate 33, 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 UK Retail business offers a wide range of specialist insurance for
professionals and business customers, as well as high net worth individuals. It
has regional offices in Birmingham, Colchester, Glasgow, Leeds and Maidenhead.
The International Retail business has offices in Amsterdam, Brussels, Guernsey,
Munich and Paris. The European offices write mainly fine art, high value
household business and some specialist professional indemnity business. The
Guernsey office underwrites fine art business and kidnap and ransom. Hiscox is
the largest specialist fine art and high net worth insurer in Europe. For
further information, go to www.hiscox.com



                      This information is provided by RNS
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