Global Financials Fund

Hiscox PLC
05 October 2005



                                                                   PRESS RELEASE
                                                                  5 October 2005

HISCOX TO LAUNCH A GLOBAL FINANCIALS FUND

Hiscox Investment Management is to launch the Hiscox Global Financials Fund
pooling the expertise of fund managers David Astor and Alec Foster. The new
fund, scheduled to launch on 24 October (launch period 24 - 28 October), will be
a focused portfolio, investing in the most attractive opportunities within the
banking and insurance industries worldwide. Robin Evans of Fox-Pitt, Kelton, the
leading specialist investment bank in the financials sector, will provide
research and asset allocation advice to the managers and will work together with
Hiscox in the initial marketing.

The Hiscox Global Financials Fund will be managed with an absolute return bias.
It is expected to be a concentrated portfolio initially comprising a core group
of 25-30 stocks. A satellite group of up to five stocks will be added on an
opportunistic basis as shorter term trading ideas. The portfolio will hold
equities, bonds, and cash as appropriate, with the flexibility to range from
being fully invested to holding up to 50% in cash in the event of short term
market difficulties. A neutral position would see the fund 80% invested. The
fund will distribute the underlying income of the portfolio which is estimated
at around 2.5% per annum (expenses will be deducted from capital). The new fund
is structured as a sub-fund within the existing Hiscox OEIC alongside the Hiscox
Insurance Portfolio Fund.

Since 1st February 2005 Hiscox plc has funded a segregated portfolio with around
£3 million employing the proposed strategy. It has returned around 10.3% over
the period to the end of September. Hiscox plc has indicated that it will invest
£20 million in the new fund at launch.

David Astor said: 'The prospects for financials look very strong over the next
12-18 months, with several factors suggesting that the financials sector could
outperform the broader market. With interest rates peaking or indeed falling, in
a number of major markets, financials will be expected to be leading
beneficiaries.'

Alec Foster said: 'The tragic events of Hurricane Katrina have dramatically
impacted the outlook for the insurance industry. The scale of the loss will take
time to evaluate and indeed may cause some reinsurance companies difficulties
but the pricing environment will improve materially not just in the related
areas but more generally across the property/casualty sector. Well managed
insurance companies with strong balance sheets will see significant
opportunities.'

David Astor and Alec Foster will be supported by Nick Martin as investment
analyst, together with Robin Evans of Fox-Pitt, Kelton who will advise on asset
allocation.

Ends

All media enquiries:


Hiscox Investment Management 020 7448 6000    Mainland PR 020 7072 2340
Mark Stacpoole                                Neil Mainland

Editors' notes:
Hiscox Investment Management
In 1998, Hiscox Investment Management launched the Hiscox Insurance Portfolio
Fund, which is designed to take advantage of the special knowledge of the
insurance industry which the managers are able to bring to the portfolio. The
£46 million fund is the only fund dedicated to investment in the global
insurance industry available in Europe. 2 other sub-funds of the London-based
OEIC, the Hiscox UK Opportunities Fund and the Hiscox International Growth Fund,
are managed for Hiscox and third party investors by external fund managers.

In December 2002, Hiscox Investment Management acquired the management contracts
of the financial funds managed by Eldon Capital, a subsidiary of Fox-Pitt,
Kelton. These funds were renamed in November 2003 to the Hiscox Financial Funds.
Two of the funds are sub-funds of Hiscox Financial Funds, a Dublin-based OEIC -
Hiscox US Financial Fund and Hiscox European Financial Fund . The Hiscox Far
Eastern Financial Fund is a Dublin listed OEIC, registered in the Cayman
Islands. These three funds currently total approximately £60 million.

Hiscox Investment Management is responsible for overseeing the funds which
support the underwriting activity and the technical funds of Hiscox plc.
Currently these amount to around £1.7 billion and are supervised by the Group
Investment Director, Alec Foster.

   • Hiscox US Financial Fund ($)
     Launched 3 November 1994                 Manager: David Astor

   • Hiscox Far Eastern Financial Fund ($)
     Launched 5 December 1996                 Manager: David Astor

   • Hiscox European Financial Fund (€)
     Launched 11 March 1993                   Manager: David Astor

   • Hiscox Insurance Portfolio Fund (£)
     Launched 19 October 1998                 Manager: Alec Foster

Hiscox plc
Hiscox plc is a leading specialist insurance group listed on the London Stock
Exchange and is currently capitalised at around £600 million. With origins in
the Lloyds market going back 100 years it is now a diversified provider of
insurance services to the international market place. It is well known for the
provision of retail and personal lines including high-value household insurance
through its Hiscox Insurance Company subsidiary. It provides cover for a range
of international risks through the London insurance market at Lloyds where
Syndicate 33 has traded successfully for many years.

Hiscox Global Financials Fund Team

David Astor - Fund Manager
David has worked in the financial services industry since 1982. He started his
career in the Capital Markets Division of Kleinwort Benson Limited. Joined
Fox-Pitt, Kelton Limited in 1993 at the inception of its investment management
subsidiary, Eldon Capital Management. He moved to Hiscox Investment Management
in 2002 when they acquired Eldon's fund management business and he manages the
three financial funds.

Alec Foster - Fund Manager
Alec has worked in the insurance business since 1967, firstly as an insurance
broker in the London market before he joined Hiscox in 1976. He is the Group
Investment Officer for Hiscox plc and is also the fund manager of the Hiscox
Insurance Portfolio Fund. Alec has over 37 years experience of the insurance
market and 28 years of managing investments at Hiscox.

Nick Martin - Analyst
Nick is a qualified chartered accountant and obtained a first class honours
degree in Econometrics and Mathematical Economics at the London School of
Economics. Prior to joining Hiscox he spent three years at the chartered
accountants, Mazars Neville Russell, specialising in audit and consultancy work
for insurance companies, insurance brokers and Lloyd's syndicates. He analyses
insurance stocks as well as managing a UK smaller companies fund for Hiscox plc.

Robin Evans - Fox-Pitt, Kelton
Robin began his career with Phoenix Assurance Group in 1980 and subsequently
moved to BZW Investment Management. In 1991, he joined Flemings and became the
manager of a number of their international funds, including Save & Prosper's
Financial Securities Fund and Growth Fund and, in 1998, was awarded the Business
Week Fund Manager of the year award for diversified funds. He joined Eldon in
1998 and was the CIO from 1999 until 2002. After the successful transfer of the
FPK funds to Hiscox, he became Global Strategist for FPK, and is responsible for
coordinating the relationship with Hiscox.





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