Reinsurance Arrangement

Hiscox PLC
4 January 2001



HISCOX SECURES AAA and AA+ REINSURERS TO SUPPORT PART OF ITS LLOYD'S OPERATION



Hiscox plc today announces that it has concluded an arrangement with two major
European reinsurers, security rated by Standard and Poor's as AAA and AA+. The
reinsurers will provide part of the capital supporting Hiscox's Lloyd's
operation, Syndicate 33.


Following the recent auctions Hiscox plc owns 60% of the capacity of Syndicate
33. The two European reinsurers will support 11.6% (£25million) of this Hiscox
capacity for the 2001 and 2002 years of account. This arrangement does not
affect the balance of the Syndicate's capacity (40%) which is owned by third
parties.


Stuart Bridges, Finance Director of Hiscox plc commented:


    'This arrangement is excellent news for Hiscox. It gives us additional
    flexibility to take advantage of the upturn in the market and is a
    powerful endorsement of Syndicate 33'.



For more information:

Stuart Bridges                 Hiscox plc                     020 7448 6603
[e-mail]

Alex Gordon Shute              Hiscox plc                     020 7448 6609
[e-mail]

Suzanne Bartch                 The Maitland Consultancy       020 7379 5151
[e-mail]