Syndicate33 Capacity Increase

Hiscox PLC
19 December 2002


HISCOX PLC

QUOTA SHARE REINSURANCE ARRANGEMENT TO INCREASE SYNDICATE 33 CAPACITY TO £705
MILLION FOR 2002


Hiscox plc announced today that in order to take further advantage of very
strong trading conditions in the Lloyd's market, it has secured a qualifying
quota share ('QQS') reinsurance arrangement for the 2002 account for up to £50
million with an affiliate of the Berkshire Hathaway Group. This is in addition
to the existing £151 million of QQS. The QQS reinsurance arrangements will
increase the capacity of Syndicate 33 for 2002 from £504 million to £705
million.


The syndicate capacity for 2003 has been increased to £844 million before
utilisation of QQS reinsurance arrangements which could increase capacity in
2003 by a further 40%.

Robert Hiscox, Chairman of Hiscox plc said:


'We are very pleased to have the support of such a distinguished industry
participant as Berkshire Hathaway. This is an excellent arrangement for Hiscox
shareholders allowing us to increase our exposure to the strongest market in
many years.'




For further information:

Hiscox plc                                                    020 7448 6000
Robert Hiscox, Chairman
Bronek Masojada, Chief Executive
Stuart Bridges, Finance Director
The Maitland Consultancy                                      020 7379 5151
Suzanne Bartch




Notes to editors:


    1. Hiscox plc is the managing agent for Syndicate 33 and owns 64.5% of its
    capacity.


    2. Hiscox plc is a specialist insurance group fully listed on the London
    Stock Exchange where it has a market capitalisation of circa £400 million
    (December 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. 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 France, Holland, Germany,
    Belgium, Ireland and Guernsey. The head office is in London. For more
    information please see www.hiscox.com.



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