Trading Statement

Hiscox PLC
18 October 2001


18 October 2001

                                  Hiscox plc

         Update of trading position following the US terrorist attack

  * Estimated loss arising from US terrorist attack revised to £30m (14p per
    share post tax) from £20m

  * Loss expected to be reduced by substantial subrogation recoveries

  * Rate rises positively impacting 2001 and future trading


In line with other insurers and reinsurers, Hiscox Syndicate 33 has received
further advices of potential losses from the tragic US terrorist attack on
September 11, 2001. Of particular note have been one significant property
insurance advice and new advices to the property reinsurance account.

The overall effect to Hiscox plc, based on current information, is an increase
in the estimated loss to £30 million from the £20 million advised previously.
This revised loss is equal to 14p per share after tax. This estimate includes
reinstatement costs and appropriate bad debt provisions, but before any
subrogation recoveries. Syndicate 33 has sufficient liquid assets backed by
bank facilities to pay these losses and meet US funding requirements and has
no need to make a cash call.

Hiscox's loss is primarily of a property nature. Property insurances benefit
from recovery through subrogation against liability insurers and other parties
responsible if a third party has caused the loss. Hiscox believes that there
will be substantial recoveries due and are pursuing these vigorously.

It must be emphasised that the loss from the US terrorist attack will be
balanced against profits made by the rest of the account in Syndicate 33 and
by profits from the non-Lloyd's activities in the Hiscox Group. Rates,
particularly in Syndicate 33's main trading areas, were already rising but are
now accelerating rapidly and the 2001 figures (excluding the losses from the
terrorist attack) are well ahead of target.

In order to take best advantage of the strong market conditions, Hiscox is
increasing Syndicate 33's capacity from £360m to £500m in 2002. Hiscox plc has
the resources to fund its share of this increase.

Robert Hiscox, Chairman Hiscox plc, commented:

'Whilst deeply regretting the tragic loss on September 11, we are now in the
strongest insurance market in living memory and we intend to take full
advantage of it.'




For further information:

Robert Hiscox, Chairman           Hiscox plc                    020 7448 6011

Bronek Masojada, CEO              Hiscox plc                    020 7448 6012

Alex Gordon Shute, Press office   Hiscox plc                    020 7448 6609

Suzanne Bartch                    The Maitland Consultancy      020 7379 5151