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12 September 2005

Hiscox plc Interim results for the six months ended 30 June 2005 Robert Hiscox, Chairman Bronek Masojada, Chief Executive Stuart Bridges, Finance Director Robert Childs, Director of Underwriting. 12 September 2005. A Strong Performance. Profit before tax (£m). Combined ratio* (%).

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12 September 2005

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  1. Hiscox plcInterim results for the six months ended 30 June 2005 Robert Hiscox, ChairmanBronek Masojada, Chief ExecutiveStuart Bridges, Finance DirectorRobert Childs, Director of Underwriting 12 September 2005

  2. A Strong Performance Profit before tax (£m) Combined ratio* (%) Return on equity** (%) 89.5 29.2 92.6 84.6 83.5 60.3 88.1 20.6 29.4 35.9 HY 2004 HY 2005 FY 2004 FY 2004 HY 2004 FY 2004 HY 2005 HY 2005 ** annualised, based on adjusted opening shareholder’s funds * based on net earned premium H1 H2 2

  3. A Strong Performance EPS (p) Net Asset Value per share (p) Dividend per share (p) 21.9 7.0 5.0 3.5 14.9 20.8 120.2 125.7 143.3 2.25 1.5 30 Jun 2005 30 Jun 2004 31 Dec 2004 FY 2004 HY 2005 2004 HY 2005 H1 H2 3

  4. Highlights • Record profits • Underwriting discipline • Growing distribution • Retail expansion working • UK profits doubled • International strongly ahead • Strong additions to senior management 4

  5. Financial Performance 5

  6. Hiscox plc Results *annualised, based on adjusted opening shareholder’s funds 6

  7. Segmental Analysis IFRS (unaudited) Six months to 30 June 2005 Six months to 30 June 2004 London Market/Group £m London Market/Group £m Group Total £m Group Total£m International £m UK £m UK £m International £m Gross Premiums Written 306.2 84.1 46.9 437.2 364.4 79.0 45.6 489.0 233.3 75.0 36.7 345.0 295.3 68.1 33.0 396.5 Net Premiums Written Net Premiums Earned 235.7 77.7 32.3 345.7 256.4 64.1 29.2 349.7 Profit before tax 64.0 21.1 3.0 88.1 49.5 10.3 0.5 60.3 Combined Ratio* 82.8% 81.6% 95.4% 83.5% 82.4% 89.3% 103.8% 84.6% * Based on Net Earned Premium London Market/Group: Hiscox plc share of Syndicate 33, Managing Agent, Hiscox Investment Management and central Group costs. UK : UK within Hiscox Insurance Company and Connect International : Guernsey Insurance Company and European business within Hiscox Insurance Company. 7

  8. Investment Performance * Includes investments, cash and cash equivalents 8

  9. Summary Consolidated Balance Sheet 9

  10. Hiscox Global Markets 10

  11. 1999 2000 2001 2002 2003 2004 2005 Rates vs Exposure 240 239 217 191 126 106 100 100 94 78 71 70 67 60 Exposure Premium Rolling 12 Month Index to June 11

  12. Syndicate 33 12 month rolling rate and index since 1998 Rating 12

  13. Hurricane Katrina Hiscox plc Net Loss = $100m estimate Marine Reinsurance $25m Non Marine Reinsurance $30m Marine Insurance $15m Non Marine Insurance $30m £1 = UDS$ 1.84 13 This analysis is without prejudice to the interpretation of any contract and the handling or outcome of any claim.

  14. Reinsurance Underwriting Reinsurance Account: Gross Incurred Loss Ratio Average 58% 14

  15. Claims Breakdown Budgeted Breakdown of Claims for 2005 Catastrophe 11% Attritional 42% Risk 47% 15

  16. Extending Geographic Reach 2004 London Business Development • Distribution • Global brokers • Major wholesale broker -London wholesale brokers • All other risks – London wholesale broker 16

  17. Extending Geographic Reach 2005 Creation of local underwriting centre • Ed Donnelly - Establishment of office in Armonk, NY Regional business development • Bruno Ritchie – Europe • Nick Ward – New York • David Chavez – West Coast 17

  18. Experienced underwriting team - maintain discipline Extend geographic coverage Focus on known business areas Global Markets Summary 18

  19. Hiscox UK and Europe 19

  20. Hiscox Insurance Company Gross Written Premium: £m Combined Ratio: % 229.8 218.7 118.0 107.9 176.4 102.6 93.6 91.8 94.6 93.9 163.9 97.8 97.7 97.9 85.2 127.3 110.6 105.5 98.8 97.8 90.0 74.7 HY FY HY FY 2003 and prior years not restated 20

  21. Retail Performance 30 June 2005 (£m) 30 June 2004 (£m) UK Europe Guernsey UK Europe Guernsey 84.1 26.5 20.4 79.0 26.5 19.1 Gross Premiums Written 77.7 22.4 9.9 64.1 20.1 9.2 Net Premiums Earned 21.1 1.7 1.3 10.3 0.2 0.3 Operating Profit 81.6% 97.6% 90.6% 93.4% Combined Ratio 89.3% 108.6% 21

  22. 190% 170% 150% 130% Rolling 12 Month Index of Rates 110% 90% 70% 50% 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-02 to Dec-02 Jan-03 to Dec-03 Jan-04 to Dec-04 Jan-01 t0 Dec-01 Month UK Personal Lines UK PI France Germany UK & Europe: Rates 22

  23. Business Areas 23

  24. Summary and Outlook 24

  25. London Market - Syndicate 33 Retail - Syndicate 33 Retail - Hiscox Insurance Company Developing balance by growing retail 1200 1000 800 Gross Written Premium 600 400 200 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 25

  26. Closer to UK brokers via regional offices Create local presence in Europe and Guernsey Open direct channels via internet and telephone Expand Distribution Expand Create local presence in USA and regional business development for Global Markets 26

  27. Outlook • Capitalise in London Market on opportunities post Katrina • Grow retail through distribution initiatives • UK Retail locations • UK Partnerships & Direct • Europe & Guernsey • USA underwriting & marketing • Market will become more disciplined • Profit outlook remains strong 27

  28. Questions and Answers 28

  29. Appendix 29

  30. Hiscox Business Mix:2004 Controlled GWP 100% = £1,051m • Art & Private Clients • Fine Art • Jewellery • Specie • Home & Contents • Reinsurance & Major Property • Major Property • Marine RI • Non-Marine RI • Whole Account RI 17% 25% • Professions & Speciality Commercial • Traditional PI • Emerging PI • UK SME Commercial 9% 10% 33% 6% • Speciality • Kidnap & Ransom • Personal Accident • Bloodstock • US SME Commercial • London Market Insurance • Energy • Marine • Terrorism • E&O and D&O • ATMT • Aerospace • Technology • Media • Telecommunications London Market Retail Syndicate 33, Hiscox Insurance Company & Hiscox Guernsey Syndicate 33 30

  31. Management Structure Hiscox plc Currently under development; will initially be part of Global Markets Hiscox Global Markets Hiscox UK & Europe Other activities Hiscox USA • RAMP • London Market • Speciality • ATMT • Art & Private Clients • PI & Speciality Commercial • Regional TMT • Executive Household • Hiscox Guernsey • Hiscox Investment Management • Art • Regional TMT • Small ticket terrorism 31

  32. Capacity Hiscox plc Ownership QQS Syndicate 33 Capacity & Hiscox plc Ownership 900 48 800 847 775 775 842 700 551(65%) 550(71%) 550(71%) 547(65%) 600 201 £ m 500 504 400 277(55%) 360 300 360 191 (53%) 191(53%) 200 100 0 2006 estimate 2005 2000 2001 2002 2003 2004 32

  33. Geographical & Currency Split 2005 Geographical Split 2005 Currency Split 1.4% Non-EU Europe & Russia CAD EUEurope (exc. UK) 1.8% EUR USA 11.9% 11.4% 39.2% 43.5% 31.4% 42.8% UK 3.4% Canada GBP USD 4.4% Other 1.5% Australia 0.3% Israel 2.0% Asia (exc. Japan & China) 1.2% Caribbean 0.4% Middle East (exc. Israel) 1.4% Central & South America 1.0% China & Japan 1.0% Africa 33

  34. Loss Ratios as a % of Syndicate Premiums Syndicate 33 incurred losses as a percentage of signed premium 34

  35. Realistic Disaster Scenarios Syndicate 33 – potential losses shown as a percentage of 2005 capacity 34.3 31.8 28.1 Gross Loss 24.4 24.4 Net Loss 22.0 11.3 11.3 10.1 8.1 7.7 5.1 35

  36. AAA A 11% 51% AA 38% Group Reinsurance Security 2005 Programme Receivables at 30/06/05 of £222m AAA 1% Other 14% AA 36% A 49% 36

  37. 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% % % 15.4% 17.3% 11.8% 15.4% 11.0% 10.6% 13.7% HALF YEAR TO 30TH JUNE 37

  38. 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 3 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 earned 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 their 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 29% of the syndicate capacity not owned by Hiscox in 2005 (35% in 2004). 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 38

  39. 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 39

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