1. www.hiscox.com Aerospace Bloodstock Classic Cars Employers’ Liability Energy Financial Institutions Fine Art High Value Household Kidnap & Ransom Marine Media Personal Accident Political Risks Professional Indemnity Property Reinsurance Specie Technology Terrorism War Hiscox plc Preliminary results for the year ended 31 December 2004 Robert Hiscox, Chairman Bronek Masojada, Chief Executive Stuart Bridges, Finance Director Robert Childs, Director of Underwriting March 2005

2. Strong Results 20032004 Combined Ratio (%) 93.0 Profit before Tax (£m) 20032004 77.083.4 2 Operating Profit* (£m) 2003 2004 86.377.187.2 *Based on longer term investment return

3. 3 548.9 676.7 797.4 778.9 Gross Written Premium (£m) Net Premium Earned (£m) 344.2 385.1 547.5 642.4 Strong Results

4. 31 Dec 200331 Dec 2004 Strong Results Net Asset Value per Share (p)* 119.1132.8 (*before equalisation provision) EPS (p) (on operating profit after tax) 20032004 21.0 19.3 4 EPS (p) (on profit after tax) 20032004 18.7 20.9

5. Highlights  Strong underwriting result  Dividend growth  Net tangible asset growth  Strategy continues to deliver –Balance and focus 5

6. Financial Performance Stuart Bridges Group Finance Director 6

7. Hiscox plc Results Full Year 2004 £000 Full Year 2003 £000 Gross Written Premium778,893797,380 Operating profit based on longer term investment return86,33777,122 Short term fluctuations in investment return(7,800)8,792 Movement in equalisation provision(1,503)(2,506) Profit on ordinary activities before tax77,03483,408 Profit on ordinary activities after tax54,57460,491 Earnings per share (p) Operating profit after tax Profit after tax 21.0p 18.7p 19.3p 20.9p Final Dividend (p)3.5p2.9p Full Year Dividend (p)5.0p4.2p Net Asset Value (before equalisation provision) £m390346 p per share132.8119.1 Return on Equity (PAT/NAV)16.5%21.7% 7

8. Segmental Analysis For the year ended 31 December 2004 8 2004 London Market /Group £000 UK Retail £000 International Retail £000 Group Total £000 Gross Premiums Written Net Premiums Earned Operating Profit Profit before tax 511,874 444,407 778,893 642,429 86,337 91,320 60,090 3,990 175,699 137,932 Combined Ratio 92.9%93.0%97.9%89.8% 63,56118,786 London Market/Group: Hiscox plc share of Syndicate 33, Managing Agent, Hiscox Investment Management and central Group costs. UK Retail: UK retail within Hiscox Insurance Company and Hiscox Connect International Retail: Guernsey Insurance Company and European retail business within Hiscox Insurance Company. 77,0343,17053,35620,508 Net Premiums Written462,325681,56667,892151,349 541,442 366,810 797,380 547,451 77,122 81,387 48,452 562 174,551 132,189 85.8%87.2%98.2%90.3% 61,54515,015 83,40842764,45818,523 458,463660,96656,777145,726 2003 London Market /Group £000 UK Retail £000 International Retail £000 Group Total £000

9. 31 December 200431 December 2003 Asset Allocation % Return % Return £000 Asset Allocation % Return % Return £000 Bonds72.52.618,07270.23.817,417 Equities7.910.28,44813.618.116,932 Deposits/Cash19.62.95,47916.23.25,026 Actual Return31,99939,375 Longer Term Rate of Return (39,799)(30,583) Short Term Fluctuations (7,800)8,792 Investment Performance 9 Longer term rate of return:4% Bonds & Cash, 6% Equities Total Average Funds for Group £957m£712m

10. IFRS: Adoption  Opening balance sheet for IFRS is January 2004  2004 results restated for IFRS announced summer 2005  Results for the half year 2005 will be under IFRS  Comparatives will also be restated in the half year and annual report for 2005 10

11. IFRS: Estimated impact on the balance sheet 2004 £m 2003 £m Net assets at 31 December under UK GAAP371.6329.8 Significant changes in accounting policies : Share-based payments (IFRS 2)(2.0)(0.8) Pensions (IAS 19)(41.6)(38.6) Dividends (IAS 10)10.38.4 Deferred tax (IAS 12)12.611.3 Equalisation provision (IFRS 4)17.916.4 Other(1.1)(2.6) Net assets at 31 December under IFRS367.7323.9 Net Asset Value UK GAAP126.7p113.5p IFRS125.4p111.5p 11

12. IFRS: Estimated impact on profit 2004 £m Profit before tax reported under UK GAAP77.0 Significant changes in accounting policies : Share based payments (IFRS 2)(1.2) Pensions (IAS 19)(0.8) Equalisation provision (IFRS 4)1.5 Goodwill and capacity amortisation (IAS 38)1.5 Other0.1 Profit before tax under IFRS 78.1 Adjusted basic earnings per share (based on profit after tax) UK GAAP18.7p IFRS19.5p 12

13. Hiscox Syndicate 33 Robert Childs Director of Underwriting 13

14. Rates Holding 19992000200120022003 100 95 78 69 100 104 126 193 241 ExposurePremium Rolling 12 Month Index to December 14 244 2004 67 61

15. Syndicate 33 v Competitors: Incurred Loss Ratio 15 Syndicate 33 Moody’s Composite 2002 YOA Net Comparison Quarters from Inception 2002 YOA Gross Comparison Quarters from Inception 2003 YOA Net Comparison Quarters from Inception 2003 YOA Gross Comparison Quarters from Inception

16. Rating 16 Syndicate 33 Rating Index 500 300 200 100 0 % 400 London Market Reinsurance Specialty

17. D&O - Relationship between Income and Rates 17 199819992000200120022003 E2004 E2005 E

18. Property Insurance Business Mix 18 Relationship Between Big Ticket and Small Ticket Business & Rates 199819992000200120022003 E2004 E2005 E

19. Business Areas Reinsurance and Major Property Non Marine Reinsurance; Marine & Aviation Reinsurance; Whole Account Reinsurance; Commercial Property; Onshore Energy  Reinsurance strongly profitable despite hurricanes in 2004.  Reinsurance rates still offer good margins.  Avoided other substantial losses through selective underwriting.  Rates declined in 2004; particular pressure on big ticket property. London Market Insurance Marine Hull & Liability; Offshore Energy; Terrorism; Professional Indemnity; D&O; Political Risks; Financial Institutions  Marine hull and liability rates stable. Profitable results.  Marine benefited from Marlborough renewal rights.  Controlled PI growth in 2004 – focus on smaller risks in 2005.  Growing demand for terrorism product.  Opportunities in political and enterprise risks. 19

20. Business Areas Specialty K&R; Contingency; MGAs; Homeowners; SMEs; Bloodstock; Personal Accident  Rates stable.  MGAs/ homeowners impacted by hurricanes; rate increases expected.  Good rates in high value household in USA.  Opportunities from Insurex - events, conference and exhibitions insurance provider. ATMT Aerospace; Technology; Media; Telecoms  Firm trading environment.  Successful expansion outside London to rest of UK and France.  Increased business flow from North America.  Excellent risk management and claims service. 20

21. Adjusting to the market cycle  Analysis, agility, action –discipline –renewals v. new business –selective underwriting  Specialty focus –opportunities in smaller risks  Global business, local presence –Europe –US 21

22. Retail: UK and International Bronek Masojada Chief Executive, Hiscox plc Acting Managing Director - Retail 22

23. Hiscox Insurance Company 23 Gross Written Premium: £m Combined Ratio: % 93.6 97.8 97.7 102.6 107.9 118.0 218.7 163.9 127.3 97.8 90.0 74.7 176.4 97.9 231.4 92.6 Core Non-Core

24. 174.6 37.2 15.02.3 90.3% 90.6% 18.9 132.2 44.2 (1.7) 107.4% 29.6 Retail Performance 2004 (£m)2003 (£m) UK Guernsey UKEurope GWP175.7 35.6 Operating Profit 18.82.8 Combined Ratio 89.8% 91.1% 17.6 Net Premiums Earned 137.9 Europe 55.7 1.2 102.1% 42.5 Guernsey 24

25. 50% 70% 90% 110% 130% 150% 170% 190% Jul-00 to Jun-01 Jan-01 t0 Dec-01 Jul-01 to Jun-02 Jan-02 to Dec-02 Jul-02 to Jun-03 Jan-03 to Dec-03 Jul-03 to Jun-04 Jan-04 to Dec-04 Month Rolling 12 Month Index of Rates Retail: Rates 25 UK Personal Lines UK PI FranceGermany

26. Business Areas Art and Private Clients High Value Household and Contents; Fine Art; Classic Cars; Specie; Executive Household  Relaunched Fine Art product across Europe.  HVH competitive in London, so targeting UK regions and Europe.  Successful completion of transfer of Chubb European HVH business.  Profitable growth in direct channel.  Signed up more distribution partners.  Supporting business with marketing spend. Professions & Specialty Commercial Professional Indemnity; Directors & Officers; Commercial Office; Internet & Email  Focus on the professional Professional.  Cross sell of full portfolio working.  Developing smaller emerging professions using Colchester.  Launched new product for smallest PI risks.  Forgoing traditional professions business due to pricing and new capacity.  Continued European expansion. 26

27. Europe  Further progress  Strong premium growth  Product expansion –Large high net worth –Professional insurances –Distribution for TMT 27

28. Summary and Outlook Bronek Masojada Chief Executive, Hiscox plc 28

29. Summary  Solid progress on strategy –Syndicate 33, operating profit up to £63.5m, 92.9% combined ratio –UK Retail, operating profit up to £18.8m, 89.8% combined ratio –International operations, operating profit up to £4.0m, 97.9% combined ratio  Sustainable profits  Net asset growth 29

30. Strategy 30 100% = £1,051m Total group controlled income for 2004 ATMT London Market Specialty Professions & Specialty Commercial Reinsurance & Major Property Art & Private Clients 34% 24% 17% 9% 10% 6% London Market Retail Syndicate 33 Syndicate 33, Hiscox Insurance Company & Hiscox Guernsey  Grow Retail to balance London Market volatility  Successful to date –25% to 42% of group in 10 years –Larger than entire group GWP in 1994  Use all group locations and legal entities to reach customers  Focus for 2005 and beyond

31. Outlook  Competitive trading environment  Opportunities –Selective underwriting in London market –Increase ownership of Syndicate 33 –Continue Retail expansion: UK, Europe and globally via Lloyd’s –Extend distribution  Good start to 2005 31

32. Q & A 32

33. Appendices 33  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

34. Realistic Disaster Scenarios 34 Syndicate 33 - Losses shown as a percentage of 2005 capacity

35. Geographical & Currency Split 35 CAD USD EUR GBP 11.9% 43.5% 42.8% 1.8% 2005 Geographical Split2005 Currency Split USA 39.2% EU Europe (exc. UK) 11.4% 31.4% UK 3.4% Canada 1.5% Australia 2.0% Asia (exc. Japan & China) 1.0% China & Japan 1.4% Central & South America 4.4% Other 0.3% Israel 0.4% Middle East (exc. Israel) 1.0% Africa 1.2% Caribbean 1.4% Non-EU Europe & Russia

36. Loss Ratios as a % of Syndicate Premiums 36 GILRNILR YOA 20012002200320042001200220032004 12 mths 26.5%13.4%11.6%30.0%49.7%20.0%14.1%30.8% 24 mths 43.6%27.9%30.0%57.5%36.6%35.3% 36 mths 50.2%37.2%59.0%45.3% 48 mths 57.6%61.6% Syndicate 33 incurred losses as a percentage of signed premium (excluding WTC)

37. Syndicate 33 Capacity & Hiscox plc Ownership 37 0 100 200 300 400 500 600 700 800 900 20002001200220032004 CapacityHiscox plc OwnershipQQS £ m 2005 E 360 191 53% 360 191 53% 504 277 55% 201 842 547 65% 48 846 550 65% 25 550 71% 775

38. Group Reinsurance Security 38 AAA 1% AA 36% A 49% Other 14%  Successful commutations  Bad debt provision: £7.5m  Reinsurance receivables 10.6% of total assets 2005 Programme A 51% AAA AA 38% 11%  25% self-insurance on large proportion of reinsurance bought Receivables at 31/12/04 of £196m

39. Reinsurance 39 35.3% 27.3% 26.0% 17.3% 13.7% Reinsurance as a % of GWP (ex. QQS) Reinsurance Receivables as a % of Total Assets 18.2% 26.9% 15.4% 11.8% 10.6% % %

40.  Established in 1901  Hiscox Syndicate 33 has been a leading underwriter at Lloyd’s for many years. Now a top 3 syndicate in the market. Rating; A from AM Best, A from Standard & Poor’s  Hiscox Insurance Company acquired in 1996. Rating: A- from A M Best, A- from Standard & Poor’s  We have built up a sound reputation in the US, UK and internationally  Involved at senior levels at Lloyd’s –RRS Hiscox, Deputy Chairman, 1993-95 –B E Masojada, Currently Deputy Chairman –R S Childs, Currently Chairman, Lloyd’s Market Association Background - Hiscox Pedigree 40

41.  Build a successful European based insurer known for its specialist policies, customer focus and financial performance  Build a retail business to complement the Lloyd’s business  Allocate capital between Syndicate 33 and retail business according to prevailing market opportunities Background - Group Strategy 41

42. Hiscox Syndicates Ltd 71% of Syndicate 33 Hiscox Corporate Names Colchester Birmingham Glasgow Leeds London Maidenhead Hiscox Direct Belgium France Germany Guernsey Ireland Netherlands Hiscox plc Lloyd’s business UK Retail business International business 42 Background - Hiscox Structure

43. Controlled Gross Written Premium £m 422 603 403 413 480 514 Grow Lloyd’s 101 132 190 244 370 379378 Grow Insurance Company Maintain Lloyd’s Grow Lloyd’s Develop Insurance Company 780 941 198819891990199119921993199419951996199719981999200020012002 Lloyd's Hiscox Insurance Company 1083 2003 43 Background - Building a Balanced Business 1051 2004

44. Glossary of Terms 44 Annual VentureThe 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 ratioNet claims incurred, including IBNR, as a percentage of net earned premiums. Combined ratioThe 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 ratioExpenses as a percentage of net written premiums. Funds at Lloyd’sThe 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 premiumPremiums 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). IBNRIncurred 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

45. Glossary of Terms 45 Long-tailA 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 NameThe companies or individuals who own the capacity of a syndicate and who belong to the membership of the Society of Lloyd’s. Net premiums earnedPremiums 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 writtenPremiums 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 shareThese 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 – RITCThe 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 accountAt Lloyd’s, a year of account which is kept open after the date on which it would normally have been closed. SubrogationThe 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 CapacityAlso 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