Impact of Hurricane Season

Hiscox PLC
31 October 2005

31 October 2005

For immediate release

                            HISCOX PLC ANNOUNCEMENT

            Impact of Hurricane Wilma and update on Katrina and Rita

Hiscox plc (Hiscox) has undertaken a first model-based estimate of the impact of
Hurricane Wilma and is updating its estimated losses from Hurricanes Katrina and
Rita.

The estimated loss from Hurricane Wilma is based on model storm track releases
from modelling companies augmented by underwriter review. Our view is these
models will provide a realistic assessment of the impact of a classic hurricane
like Wilma. On this basis Hiscox plc's estimate of the net impact of Hurricane
Wilma is $45 million.

Loss advices from Hurricanes Katrina and Rita are being received. Hiscox
underwriters have also now had the opportunity to have in-depth discussions with
insureds and re-insureds at industry meetings such as Baden Baden. Based on
information from these sources Hiscox plc's loss from Hurricane Katrina is
estimated to have increased by $15 million to $125 million. Hurricane Rita
estimated losses remain unchanged at $70 million.

The effect of the estimated losses from Hurricane Wilma and the additional loss
from Katrina will be to reduce Hiscox's pre-tax profit for the year ending 31
December 2005 by £35 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. The Group
still has reinsurance cover remaining for a substantial event.

Following the most expensive hurricane year in history, Hiscox continues to see
signs of rates increasing not only in areas which were directly impacted, but
also in broader markets. For example we have seen energy rates for Gulf of
Mexico exposures going up by 200% to 300% and rates for other risks around the 
world increasing by 10% to 40%. Hiscox is gearing up to take advantage of these
market changes in the forthcoming renewal season.

Robert Hiscox, Chairman of Hiscox plc, said:

'The market has turned. Reinsurance, which we write as well as insurance, will
be much more expensive. This affects almost all insurance writers who will be
forced to increase their rates. Specific classes of business hit directly by the
hurricanes, such as energy, will have the greatest rises as some participants
will have to withdraw. Sad as it is that such damage has to be inflicted to
cause rates to rise, it was ever thus. Next year promises to be extremely
interesting. We do not underestimate the power of mother nature, but we will
underwrite assuming she will test us again and I see considerable opportunities
for profit.'

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
            The company news service from the London Stock Exchange