Trading Statement

Hiscox Ltd
10 December 2007


                                   HISCOX Ltd

                                 Trading update

Hamilton, Bermuda - Hiscox Ltd ('Hiscox'), the international specialist insurer,
has today issued a trading statement for the 11 months to 30 November 2007.

Overview

Gross premium income to the end of November has increased 10% to £1,142.1
million (2006: £1,038.0 million).

Trading has been good with favourable rating, albeit becoming more competitive.
After Hurricane Kyrill in January and UK floods in the summer, Mother Nature has
since been kind to us and the hurricanes and typhoons have avoided the heavily
insured areas of the world.

The full year result should be better than last year's record.

Capital Management

The board has agreed to a £100 million capital management programme. In
September we commenced a £50 million share buy-back. To date £11.3 million has
been spent to acquire 4,365,305 shares at an average price of 259.4p per share.
A further £50 million will be spent repaying debt.

The Sub-prime Crisis

We have negligible exposure in our investments to sub-prime bonds. In our
underwriting, we have a very modest and well reserved exposure to some small
financial services companies in the US. We do not insure major financial
institutions for such risks.

The investment return this year is on track to exceed last year's total of £78.5
million.

The Future

The world insurance market is highly competitive with continued downward
pressure on rates, particularly on larger risks. Smaller risks, the core of our
retail strategy, are seeing slightly less competition and we have gently
increased rates in the UK household account.

Robert Hiscox said:
'This downward part of the insurance cycle is what our strategy is designed to
combat. We will continue to build the profitable stable retail accounts
worldwide to counteract the necessary reduction in the catastrophe and
big-ticket accounts.'

                                     -ends-


For further information:

Hiscox Ltd

Robin Mehta, Company Secretary                     [phone]
Kylie O'Connor, Head of Communications, London     [phone]

Maitland

Philip Gawith                                      [phone]
Richard Farnsworth                                 [phone]


Notes to editors

About Hiscox

Hiscox, headquartered in Bermuda, is a specialist insurance group listed on the
London Stock Exchange. There are three main underwriting parts of the Group -
Hiscox Global Markets, Hiscox UK and Europe, and Hiscox International.  Hiscox
Global Markets 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. Hiscox UK and Hiscox
Europe offer a range of specialist insurance for professionals and business
customers, as well as high net worth individuals. Hiscox International includes
operations in Bermuda, Guernsey and the USA. Hiscox Insurance Company Ltd,
Hiscox Underwriting Ltd and Hiscox Syndicates Ltd are authorised and regulated
by the Financial Services Authority.

For further information, visit www.hiscox.com








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