Syndicate 33 Forecasts

Hiscox PLC
18 August 2004


                            Hiscox plc Announcement
      Second Quarter 2004 Syndicate 33 Forecasts and 2005 Account Capacity

Hiscox plc, the leading specialist insurer, issues second quarter 2004 forecasts
for Syndicate 33 for the 2001, 2002 and 2003 years of account. The company also
announces its proposed capacity in the Lloyd's market for the 2005 year of
account.

Second quarter 2004 forecast results and capacity

The syndicate forecasts remain unchanged from those announced at the end of the
first quarter. These years of account continue to develop in line with
expectations. The syndicate forecasts, expressed as a percentage of capacity,
are as follows:

Year of            Current estimate     Previous estimate   Capacity  Hiscox plc
account            August 2004              June 2004                    share
                 
2001            (17.5%) to (22.5%)       (17.5%) to (22.5%)   £360m       53%
2002            22.5% to 27.5%           22.5% to 27.5%       £504m       55%
2003            12.5% to 17.5%           12.5% to 17.5%       £842m       65%
2004            N/A                      N/A                  £847m       65%
2005(estimate)  N/A                      N/A                  £725m       65%

Lloyd's market commentary

Rates remain at a profitable level in all the classes of business that we
underwrite. As previously highlighted, there are some reductions in the property
area, in particular amongst the Fortune 500 assureds. Also, very surprisingly,
there are some reductions in Directors and Officer's insurances in the US, but
this is a very small business for us and will become smaller.  Reinsurance rates
are on the whole staying firmer than insurance rates which is good news as it
should restrain those who would use cheap reinsurance to subsidise poor gross
underwriting.

It is still too early to have a complete picture of our exposure to Hurricane
Charley. However, on the basis of information available to date, our current
assessment is that it is within our budgeted loss ratios.

Capacity for 2005 account

Hiscox plc has indicated to Lloyd's that the company is forecasting a total
capacity of £725 million for Syndicate 33's 2005 account. This capacity, 65 per
cent owned by Hiscox, is subject to approval by the Lloyd's Franchise
Performance Directorate as part of the business planning process.

The main reason for the reduction for 2005 is the weakness of the dollar as
approximately 70 per cent of the Syndicate's business is written in US dollars.
Otherwise, in the normal course of disciplined underwriting, there is trimming
of the account as some rates settle back from their very high levels.

Bronek Masojada, Chief Executive of Hiscox plc, said:

'The underwriting business continues to show good profits. Our focus will remain
on quality not quantity. When rates surged unnaturally high, a rapid increase of
our capacity was right. Now, as some rates reduce from a very high peak, we
believe it is the right time for us to maintain discipline. We are determined to
make good returns throughout the cycle.'

                                    - ends -

For further information:
Hiscox plc
Bronek Masojada             Chief Executive                   020 7448 6012
Stuart Bridges              Finance Director                  020 7448 6013
Fiona Fong                  Director of Communications        020 7448 6447

The Maitland Consultancy
Suzanne Bartch                                                020 7379 5151


Notes to editors

1. The Syndicate forecasts are after standard personal expenses, such as
Managing Agent fees and profit commission and all charges levied directly on
syndicates by Lloyd's, but before Members Agents' charges.

2. Hiscox plc is a specialist insurance group listed on the London Stock
Exchange where it has a market capitalisation of circa £500 million. There are
three main underwriting parts of the Group - Syndicate 33 at Lloyd's, UK Retail
and International Retail business. 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 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, Glasgow, Leeds,
Maidenhead and Colchester. The International Retail business has offices in
Paris, Amsterdam, Munich, Brussels and Guernsey. The European offices write
mainly high value household business and some specialist professional indemnity
business. The Guernsey office underwrites kidnap and ransom business and fine
art. For further information, go to www.hiscox.com





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