Syndicate 33

Hiscox PLC
4 July 2002


HISCOX PLC

SYNDICATE 33 CAPACITY INCREASE

HIGHLIGHTS

  • 2002 capacity of Syndicate 33 increased by £151m through qualifying quota
    share ('QQS') reinsurance, from £504m to £655m

  • 2003 capacity for Syndicate 33 planned at £850m (2002: £655m) including
    QQS reinsurance


CAPACITY 2002

Trading conditions for Hiscox plc's Lloyd's business through Syndicate 33 remain
very strong. Syndicate 33's 12 month rolling average pricing index shows rates
having doubled in the last year for the London Market division's business,
matching the doubling which the Syndicate's Reinsurance division showed at
Hiscox plc's 2001 annual results.


In order to take further advantage of these conditions, Hiscox has secured a
qualifying quota share ('QQS') reinsurance arrangement for £151m to increase the
capacity of Syndicate 33 for 2002 from £504m to £655m. The QQS is placed 57%
with AA rated reinsurers and 43% with single A rated reinsurers. A leading and
substantial line has been placed with Chubb Re.


CAPACITY 2003

Hiscox believes that the excellent trading conditions of the current market will
continue into 2003, and has sought consent from Lloyd's and capital providers to
pre-empt Syndicate 33's capacity in 2003. This pre-emption would increase the
Syndicate's capacity from £504m (£655m with the QQS described above) in 2002 to
£706m in 2003. The Syndicate's capacity in 2003 may be further increased by QQS
arrangements, taking the likely final capacity to approximately £850m.


FOR FURTHER INFORMATION:

Robert Hiscox, Chairman                         Hiscox plc                               020 7448 6011

Bronek Masojada, Chief Executive                Hiscox plc                               020 7448 6012

Suzanne Bartch                                  The Maitland Consultancy                 020 7379 5151


                      This information is provided by RNS
            The company news service from the London Stock Exchange