Syndicate 33 Forecasts

Hiscox PLC
21 August 2003



OPEN YEAR FORECASTS FOR SYNDICATE 33 MANAGED BY HISCOX SYNDICATES LTD

The board of Hiscox plc announces the updated forecasts for Syndicate 33
results, as reported to Lloyd's.  The Syndicate forecasts below are after
standard personal expenses but before Members Agents charges.  Standard personal
expenses comprise managing agent fees and profit commission and all charges
levied directly on members by Lloyd's.

Syndicate forecasts as % of capacity.

Year    Current estimate     Previous         Capacity           Hiscox plc
                             estimate                            share

2001    (17.5%) to (22.5%)   (5%) to (10%)        £360m             53%

2002    22.5% to 27.5%       17.5% to 22.5%       £504m             55%
                             
2003    no estimate given                         £842m             65%
        yet

The increased forecast loss for 2001 follows our decision to increase the
reserves for the World Trade Centre (WTC) loss to the current level of
notifications, $588 million, from the previous reserves of $475 million.  This
increases Hiscox plc's reserves for WTC to £80 million.  Claims continue to
settle lower than the notifications level, however they are taking longer to
settle than we anticipated and we wish to rid ourselves of any perceived
uncertainty as to the level of WTC reserves.  We continue to take no account of
subrogation though we believe that this will produce a significant pay-back in
the future.

The 2002 account forecast profit has increased to a mid-point of 25%.  The gross
incurred loss ratio at the end of June was 19.5%. This is the best the Syndicate
has had since 1946, the earliest year for which we have records.

In 2003 trading conditions for the whole group remain strong.

Market expectations for the half-year results for Hiscox plc will still be
achieved despite the strengthening of WTC reserves.

Robert Hiscox said 'The Syndicate has some exceptional figures in the pipeline,
both the UK Retail and International businesses are making great strides in
profitability and we now have stronger reserves.  The future looks good.'


For further information:

Hiscox plc
Bronek Masojada        Chief Executive             020 7448 6012
Stuart Bridges         Finance Director            020 7448 6013

The Maitland Consultancy
Suzanne Bartch                                     020 7379 5151


Notes to editors

 1. •Hiscox plc is a specialist insurance group listed on the London Stock
    Exchange where it has a market capitalisation of circa £450 million. There
    are three main underwriting parts of the Group - Syndicate 33 at Lloyd's, UK
    Retail and International Retail business. Syndicate 33 had a premium income
    of £726 million in 2002. It 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 UK Retail business had a premium income of £148 million in
    2002. It offers a wide range of specialist insurance for professionals and
    business customers, as well as high net worth individuals. It has regional
    offices in Birmingham, Glasgow, Leeds and Maidenhead. The International
    Retail business had a premium income of £67 million in 2002. It has offices
    in Paris, Amsterdam, Munich and Guernsey. The European offices write mainly
    high value household business and some specialist professional indemnity
    business. The Guernsey office underwrites kidnap and ransom business and
    fine art.



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