Trading Statement

Hiscox Ltd
25 June 2007


                                   HISCOX LTD
                                 Trading update


Hiscox Ltd ('Hiscox'), the international specialist insurer, has today issued a
trading update for the five months to 31 May 2007.

Group Revenue
The Group has had a good start to the year with gross written premium to May
2007 increasing by 15% on 2006, to £590 million (2006: £515 million) despite
adverse exchange rates. The main driver of growth has been catastrophe
reinsurance with the specialist regional business showing steady progress.

Hiscox Global Markets
Gross written premium income is up 5% year on year to £352 million (2006: £335
million). (This would have been 12.5% at constant exchange rates.)

Rates are generally softening, but are still at a healthy level. The exception
is in areas of business exposed to natural catastrophes in the US where rates
remain strong. We have taken advantage of this and are pleased at the continued
growth of our catastrophe reinsurance business which has benefited from the
extra capacity from Panther Re, the sidecar reinsurer we set up at the end of
last year.

In line with our strategy of a disciplined reduction when rates soften, we
anticipate reducing the capacity of Syndicate 33 in 2008 to £700 million from
£875 million in 2007.

Hiscox UK and Europe
The UK business continues to grow steadily with a 5% increase in gross written
premium to £92 million (2006: £87 million). The TV advertising was a success and
we will be launching a new campaign later in the year.

Europe has benefited from the strengthened management team. A new focus on
specialty commercial business in addition to our high value household account
has led to a 20% increase in gross written premium to £36 million (2006: £30
million). New offices across France, Germany and Sweden have contributed to this
excellent growth.

Hiscox International
Our Bermudian business has again met the tough targets we set with a 100% gross
written premium increase on 2006, writing £82 million (2006:£41 million) of
external reinsurance business.

Hiscox USA is performing well, generating £8 million (2006:£1 million) of gross
written premium. The acquisition of American Live Stock Insurance Company brings
valuable licences to our US business. Having our own admitted carrier will allow
us to access new business and eventually roll out our products across the US.

Debt financing
We are currently evaluating means of refinancing our existing facilities in
order to extend facility duration and to increase our financial flexibility.

Robert Hiscox said:
'The year has started well. We are taking full advantage of the continuing
strong catastrophe rates, and business is still very healthy in our regional
specialist areas. Our long term focus on those specialist risks where we have
great expertise and a dominant position will really bear fruit if the rates
continue to soften. We are a balanced business with a wide geographical spread
and plenty of opportunity for profit. Our reduction in Syndicate 33 capacity
shows our determination to be disciplined, and our acquisition of American Live
Stock Insurance Company shows our commitment to regional expansion in our
specialist areas.'

                                     -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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