Syndicate 33

Hiscox PLC
01 September 2006

               Creation of Hiscox Syndicate 33 dedicated reinsurer

The board of Hiscox plc ('Hiscox') announces that, in order to take advantage of
expected underwriting conditions, Hiscox Syndicate 33, which it manages and in
which it has a 72.5% participation, is in discussions which could lead to the
creation of a new reinsurer which will only reinsure Hiscox Syndicate 33. If
the transaction proceeds investors will capitalise a newly established Bermuda
reinsurer which would enter into a quota share reinsurance arrangement with
Syndicate 33 in respect of its 2007 and possibly the 2008 Lloyd's years of
account. The reinsurance treaty is likely to be for a fixed share of Hiscox
Syndicate 33's own reinsurance account, though the final business mix has not
yet been finalised. The new vehicle will be capitalised by a mixture of debt and
equity. Hiscox will not be an investor in the new vehicle.

Hiscox Syndicate 33 will benefit by earning ceding and profit commissions
typical in quota share arrangements. If the reinsurance transaction is not
structured as a Lloyd's Qualifying Quota Share, then it is likely that Hiscox
Syndicate 33 will pre-empt its 2006 capacity of £833m by up to 10% for the 2007
year of account. Hiscox and Lloyd's are in ongoing discussions on the final
structure and the capital implications of the proposed quota share. Hiscox
Syndicate 33 will be required to enter into customary indemnity and hold
harmless arrangements with the various advisers to the new vehicle.

Further details will be announced in due course.

                                     -ends-

For further information:

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

Maitland
Suzanne Bartch                                          020 7379 5151


Notes to editors

Hiscox plc 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 offshore
operations in Bermuda and Guernsey and Hiscox USA.








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