Hiscox plc Preliminary results for the year ended 31 December 2005

1. Hiscox plcPreliminary results for the year ended 31 December 2005 March 2006

2. Good results for a tough year Profit before tax (£m) Combined Ratio (%) 89.5 70.2 92.6 96.0 2005 2005 2004 2004 2

3. Disciplined underwriting Gross Written Premium (£m) Net Premium Earned (£m) 861.2 816.6 797.4 714.9 693.3 676.7 548.9 547.5 385.1 344.2 3

4. Delivering on a per share basis EPS (p) Net Asset Value per share (p) Dividend 21.3 15.6 125.7 147.7 5p 7p 31 Dec 2004 31 Dec 2005 2004 2005 2004 2005 4

5. Strategy delivering balance • Hiscox UK • Great results • Hiscox Global Markets • Good underwriting results • Hiscox Europe • Second year of profit • Regional expansion • Creation of Hiscox Bermuda • Creation of Hiscox USA 5

6. Financial performance 6

7. Hiscox plc results * Post tax, based on adjusted opening shareholders’ funds 7

8. Segmental analysis For the year ended 31 December 2005 2004 Global Markets & Corporate Centre £000 Global Markets &Corporate Centre £000 UK & Europe £000 Total £000 UK & Europe £000 Total £000 International £000 International £000 Gross Premiums Written 555,183 262,271 43,720 861,174 511,491 267,801 37,317 816,609 Net Premiums Written 417,128 235,276 28,832 681,236 451,517 233,103 19,465 704,085 Net Premiums Earned 241,603 23,362 693,299 483,958 212,368 18,526 714,852 428,334 Profit before tax 20,716 43,350 6,155 70,221 67,810 18,855 2,857 89,522 Combined Ratio 99.9% 86.9% 91.3% 96.0% 90.9% 98.0% 92.0% 92.6% Global Markets & Corporate Centre: Hiscox plc’s share of the results of Syndicate 33, excluding Syndicate 33’sspecie, fine art and non-US household business. It also includes the investment return and administrative costs associated with the parent company and other group management activities. UK & Europe: The results of Hiscox Insurance Company Limited, Hiscox plc’s share of Syndicate 33’s specie, fine art and non-US household business, together with the income and expenses arising from the group’s retail agency activities in the UK and in continental Europe. International: The results ofHiscox Insurance Company (Guernsey) Limited, Hiscox Insurance Company (Bermuda) Limited, and the US agency, Hiscox Inc. 8

9. Investment performance * As at 31 December 9

10. Financial activity • £170m rights issue at 183p - Nov 2005 • 45% gearing at 31 December 2005 • £137.5m letter of credit • $225m term and revolving loan facilities • Further gearing from third party capital • Syndicate 33 • 73% ownership • 41% capital ratio • Strong internal capital modelling 10

11. Hiscox Global Markets 11

12. London Market Reinsurance Specialty Rating Syndicate 33 Rating Index Index level % 12

13. Hurricane impact • Reserving process led by Jeremy Pinchin, new Head of Claims • Total estimated loss to plc: • Bottom line impact of £85m, an increase of £25m since rights issue • Limited reinsurance cover left for these events 13

14. Business areas 14

15. Business areas 15

16. Expanding business reach • Representation in New York, San Francisco and Paris • E-commerce initiatives. Homeowners generated c.US$600K in January, increasing significantly month on month • Leading peer to peer trading 16

17. The opportunity • Hardening catastrophe market • Changes to reduce volatility • Quota share reinsurance • Reduction in property aggregate and line size • Marine reinsurance book re-focused • Strong underlying specialty book • Established name, experienced team 17

18. Hiscox UK & Hiscox Europe 18

19. Hiscox Insurance Company Gross Written Premium: £m Combined Ratio: % 232.8 231.3 118.0 218.7 107.9 102.6 97.8 97.9 97.7 93.6 176.4 92.6 88.5 163.9 127.3 97.8 90.0 74.7 Non-Core Core 19

20. 212.1 55.7 42.4 170.0 17.5 1.4 96.8% 103.2% Performance 2005 (£m) 2004 (£m) Europe UK UK Europe GWP 207.3 55.0 47.1 194.5 Net Premiums Earned Profit before tax 40.4 3.0 Combined Ratio 84.1% 99.7% 20

21. UK Personal Lines UK PI France Germany Rates 160% 150% 140% 130% 120% Rolling 12 Month Index of Rates 110% 100% 90% 80% Jul-01 to Jun-02 Jul-02 to Jun-03 Jul-04 to Jun-05 Jul-00 to Jun-01 Jul-03 to Jun-04 Jan-04 to Dec-04 Jan-05 to Dec-05 Jan-02 to Dec-02 Jan-03 to Dec-03 Jan-01 t0 Dec-01 21

22. Hiscox UK 22

23. Europe 23

24. 2006: Accelerated marketing • Build Hiscox as a consumer brand • Accelerate growth across direct and broker channels Objective • A-B households Target Market • TV debut (May) • Invest behind proven growth drivers (digital, direct mail, press advertising) • Contemporary arts sponsorship Plans 24

25. UK HNW opportunity is enormous • 2.8 million HNW households in UK • 16% of UK total • 39% of all sums insured • Highly fragmented UK Contents >£75K Policy Volume £75K £1m+ Contents Sums Insured Source: Hiscox, Datamonitor, ABI 25

26. Hiscox International 26

27. Performance 2004 (£m) 2005 (£m) GWP 43.7 37.3 18.5 23.4 Net Premiums Earned Profit before tax 6.2 2.9 Combined Ratio 91.3% 92.0% 27

28. Business areas 28

29. 2006 Bermuda business plan Expected 2006 business mix100% = US$325m Kidnap & Ransom and Fine Art 27% 52% 8% 5% 8% UK USA Reinsurance Syndicate 33 Q.S. External Internal 29

30. Already performing • Committed to a total of US$155m of business • At 1 March 2006 48% of our budget • US$46m is new reinsurance business • At 1 March 2006 26% of our budget • On target to meet business plan 30

31. Summary and outlook 31

32. Summary • Satisfying results • Good profits • Growth in net asset value per share • Dividend growth • Disciplined underwriting • Distribution extended • Hiscox Global Markets • Hiscox Bermuda • Hiscox USA 32

33. Reinsurance & Major Property Clear strategic focus • Build distribution to access new markets • Grow regional to balance London Market volatility • Retain specialist focus 100% = £1,105m Total group controlled income for 2005 Art & Private Client London Market Professions & Specialty Commercial 15% 29% 9% 15% 27% 5% Specialty TMT Regional London Market Syndicate 33 & Hiscox Bermuda Syndicate 33, Hiscox Insurance Company, Hiscox Guernsey & Hiscox USA 33

34. Hiscox International Hiscox UK & Europe Hiscox UK Hiscox Europe Hiscox Bermuda Hiscox Guernsey Hiscox USA • Art & Private Client • PI & Specialty Commercial • Regional Media & Technology • Direct • Art & Private Client • PI & Specialty Commercial • Regional Media & Technology • Reinsurance • Group Capital Support • Art & Private Client • Kidnap & Ransom • Art & Private Client • PI & Specialty Commercial • Regional Media & Technology Clear geographic and product focus Hiscox plc Hiscox Global Markets • Reinsurance & Major Property • London Market • Marine & Energy • Specialty • Technology & Media 34

35. Outlook • Attractive rating environment • Strategy of balance will continue • Regional business in UK, Europe, USA and Guernsey • Global business in London and Bermuda • Seasoned leaders and staff in place 35

36. Appendices • Realistic disaster scenarios • Geographical & currency split • Loss ratios as a % of Syndicate premiums • Syndicate 33 capacity and Hiscox plc ownership • Reinsurance • Company background • Glossary of terms 36

37. Realistic disaster scenarios Syndicate 33 - Losses shown as a percentage of 2006 capacity Industry Loss Return Period US$54Bn 1 in 250 yr US$80Bn 1 in 200 yr US$30Bn 1 in 500 yr US$50Bn 1 in 500 yr US$40Bn 1 in 500 yr US$60Bn 1 in 250 yr 37

38. Geographical & currency split 2006 Geographical split 2006 Currency split USD UK North America 23% 55.9% 34.6% 23% 26.5% 28.4% 13.2% 9.4% Worldwide 0.6% Middle East EUR GBP CAD Western Europe (excl. UK) 2.5% 0.2% Northern Africa 1.1% East Asia 0.4% South America 0.2% Central Asia 0.9% Caribbean 0.2% South Asia 0.5% Central America 0.5% Central & Eastern Europe 1.2% Oceania 0.7% Central & Southern Africa 38

39. Loss ratios as a % of Syndicate premiums Syndicate 33 incurred losses as a percentage of signed premium 39

40. Capacity Hiscox plc Ownership QQS Syndicate 33 capacity & Hiscox plc ownership 900 25 48 833 800 774 846 842 60573% 700 55065% 55071% 547 65% 201 600 £ m 500 504 360 360 400 277 55% 300 191 53% 191 53% 200 100 0 2000 2001 2002 2003 2004 2006 2005 40

41. Group reinsurance security 2006 Programme Receivables at 31/12/05 of £467.8m AAA 6% AA 26% Other 11% AAA A 4% AA 56% 40% A 57% 41

42. Reinsurance Reinsurance as a % of GWP (ex. QQS) Reinsurance receivables as a % of total assets 35.3% 26.9% 27.3% 26.0% 18.2% 20.9% 17.0% % % 15.4% 17.3% 11.8% 10.8% 13.7% 42

43. Building a balanced business London Market Syndicate 33 Regional Syndicate 33 Regional Hiscox Insurance Company 43 * London Market/Regional split estimated for these years

44. Glossary of terms Annual Venture The system used for running a Lloyd’s syndicate under which each “year of account” is treated separately. Members own capacity on a syndicate for a “year of account” and the results are declared when the year is closed by the RITC mechanism, usually after three years. Claims ratio Net claims incurred, including IBNR, as a percentage of net earned premiums. Combined ratio The total of the claims and expenses ratios. Equalisation provision This a provision made to cover future catastrophe losses and is calculated in accordance with a set sector formula, which has the effect of smoothing the profit cycle. Expenses ratio Expenses as a percentage of net written premiums. Funds at Lloyd’s The amount of assets, which can be cash, investments or letters of credit, that a syndicate member has to deposit with Lloyd’s to support his share of the capacity on a syndicate. The minimum amount is 40% of the capacity owned by the member. Gross written premium Premiums contracted for before any deductions. Group controlled The total gross written premium controlled by the group including the 35% of the syndicate capacity not owned by Hiscox in 2004 (29% in 2005). IBNR Incurred but not reported. An estimate made at the end of each accounting period to cover the expected cost of losses that have occurred but have not yet been reported to the insurer or reinsurer. Incurred loss ratio Paid and outstanding losses as a percentage of premiums. Gross incurred loss ratio is before deducting any reinsurance and net is after deducting reinsurance. gross written premium 44

45. Glossary of terms Long-tail A term used to describe an insurance risk that has the potential for claims development or new claims to be reported a number of years after expiry of the term of the policy. Member or Name The companies or individuals who own the capacity of a syndicate and who belong to the membership of the Society of Lloyd’s. Net premiums earned Premiums received after the cost of reinsurance and adjustment for unearned premium. Unearned premium covers the future period of risk of an insurance policy. Net premiums written Premiums contracted for after deduction of reinsurance. Open year A Year of Account of a syndicate which has not been closed by Reinsurance To Close (RITC). RITC usually occurs at the end of the third year. A Year of Account can be left open beyond the third year if the extent of the future liability cannot be accurately quantified. Qualifying quota share These are quota share reinsurance policies, which Lloyd’s allow in certain circumstances, that enable a syndicate to write gross premium in excess of its capacity. Reinsurance to close – RITC The reinsurance to close comprises a premium payable by the closing year to the members on the next open year of account and a contract which transfers the liability for all claims in respect of the closing year to the next open year. Run-off account At Lloyd’s, a year of account which is kept open after the date on which it would normally have been closed. Subrogation The right of the underwriter to “stand in the shoes of the insured” and take over the Insured's rights, following payment of a claim, to recover the payment of an incurred loss from a third party responsible for the loss. It is limited to the amount of loss paid by the insurance policy. Syndicate Capacity Also referred to as the ‘stamp’. The maximum amount of business that a syndicate in Lloyd’s can write per year, aggregated from all its members. reinsurance 45