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 2005 March 2006

2. Good results for a tough year 2 Profit before tax (£m) 2004 2005 70.289.5 Combined Ratio (%) 2004 2005 96.092.6

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

4. 31 Dec 200431 Dec 2005 Delivering on a per share basis Net Asset Value per share (p) 125.7147.7 4 EPS (p) 20042005 15.621.3 20042005 Dividend 5p7p

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 Full Year 2005 £000 Full Year 2004 £000 Gross Premiums Written861,174816,609 Net Premiums Written681,236704,085 Net Premiums Earned693,299714,852 Profit before tax70,22189,522 Profit after tax48,63063,948 Basic Earnings per share (p)15.6p21.3p Final Dividend (p)4.75p3.5p Full Year Dividend (p)7.0p5.0p Net Asset Value £m578.0368.8 p per share147.7125.7 Return on equity after tax*12.8%20.6% 7 * Post tax, based on adjusted opening shareholders’ funds

8. Segmental analysis For the year ended 31 December 8 2005 Global Markets & Corporate Centre £000 UK & Europe £000 International £000 Total £000 Gross Premiums Written Net Premiums Earned Profit before tax 555,183 428,334 861,174 693,299 43,720 23,362 262,271 241,603 Combined Ratio 99.9%96.0%91.3%86.9% Global Markets & Corporate Centre: Hiscox plc’s share of the results of Syndicate 33, excluding Syndicate 33’s specie, 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 of Hiscox Insurance Company (Guernsey) Limited, Hiscox Insurance Company (Bermuda) Limited, and the US agency, Hiscox Inc. 70,2216,15520,71643,350 Net Premiums Written417,128681,23628,832235,276 511,491 483,958 816,609 714,852 37,317 18,526 267,801 212,368 90.9%92.6%92.0%98.0% 89,5222,85767,81018,855 451,517704,08519,465233,103 2004 Global Markets & Corporate Centre £000 UK & Europe £000 International £000 Total £000

9. 31 December 200531 December 2004 Asset Allocation % Return % Return £000 Asset Allocation % Return % Return £000 Bonds62.33.126,73375.92.920,716 Equities7.213.112,2787.910.38,571 Deposits/Cash30.53.711,27616.23.05,711 Actual Return4.050,2873.634,458 Investment performance 9 Group Invested Assets* £1,651.5m£1,100.3m * As at 31 December

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

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 Gross loss (US$m) Net loss (US$m) Katrina485.0156.9 Rita166.181.2 Wilma81.345.6 Total732.4283.7 13

14. Business areas Reinsurance and Major Property Non-marine reinsurance; marine & aviation reinsurance; whole account reinsurance; commercial property; onshore energy  USA cat rates up 50% across the book  Retro pricing at an all-time high  European rates up 5% on average  Property insurance rates rising London Market Insurance Terrorism; professional indemnity; directors & officers; political risks; financial institutions  Demand for terrorism product remains high  Terrorism - worldwide spread  Professional indemnity profitable, rates stable  Withdrawal from directors and officers indemnity 14

15. Business areas Specialty Kidnap & ransom; contingency; MGAs; homeowners; SMEs; bloodstock; personal accident  Profitable despite hurricane activity  Stable rating environment on non-catastrophe exposed business  Catastrophe exposed risks rates up – between 25% and 100%  Increased catastrophe deductible Technology, Media, Telecoms Technology, media, telecoms errors & omissions  Risk management and claims service remains highly valued  Continued expansion into Europe  San Francisco office now open 15 Marine and Energy Marine hull; cargo; offshore energy; marine & energy liability;  Offshore energy rates up strongly, especially Gulf of Mexico  Offshore energy coverage reduced and more restrictive  Quota share for Gulf of Mexico  Liability and hull rates increasing

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 19 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 97.9 231.3 92.6 Core Non-Core 232.8 88.5

20. 212.1 17.5 96.8% 170.0 55.7 1.4 103.2% 42.4 Performance 2005 (£m)2004 (£m) UK Europe GWP207.3 Profit before tax 40.4 Combined Ratio 84.1% Net Premiums Earned 194.5 Europe 55.0 3.0 99.7% 47.1 20

21. Rolling 12 Month Index of Rates Rates 21 UK Personal Lines UK PI FranceGermany 80% 90% 100% 110% 120% 130% 140% 150% 160% 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 Jul-04 to Jun-05 Jan-05 to Dec-05

22. Hiscox UK Art and Private Client High value household and contents; fine art; classic cars; specie; executive household  Successful launch of broker e-trading  Purchase of $8m of fine art renewal rights from AIG  UK Household products rated market leader by Defaqto  Strong growth in Direct Professions & Specialty Commercial Professional indemnity; directors & officers; commercial office; internet & email  Successful launch of broker e-trading  Strong underwriting growth/discipline  Cross-selling success  Launch of Direct Commercial 22

23. Europe 23 Art and Private Client High value household and contents; fine art; classic cars; specie; executive household  Stable rating environment  Strong fine art growth following new product introduction in Nov 2004  Record combined ratio Professions & Specialty Commercial Professional indemnity; directors & officers; commercial office; internet & email  France: core professional indemnity launched  Germany: exited unprofitable partnerships  Holland: professional indemnity team in place

24. 2006: Accelerated marketing  Build Hiscox as a consumer brand  Accelerate growth across direct and broker channels Objective  A-B households  TV debut (May)  Invest behind proven growth drivers (digital, direct mail, press advertising)  Contemporary arts sponsorship Target Market 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 25 Source: Hiscox, Datamonitor, ABI UK Contents >£75K £75K £1m+ Contents Sums Insured Policy Volume

26. Hiscox International 26

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

28. Guernsey International: fine art; kidnap & ransom; personal accident  Stable rating environment  Record profitability for Guernsey operation in 2005  Staffing levels increased for 2006 to promote growth Business areas USA Professional indemnity; fine art; terrorism  Ed Donnelly – experienced local as President  Recruited underwriting staff  13 March 2006 start  Est. US$15m first year 28 Bermuda International: reinsurance; internal quota shares  Underwriting, pricing and modelling staff in place  Back office staff recruited  International reinsurance rates stable  USA rates continue to rise

29. 2006 Bermuda business plan Expected 2006 business mix 100% = US$325m 27% 8% Reinsurance Kidnap & Ransom and Fine Art UK Syndicate 33 Q.S. USA 52% 8% 5% 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. Clear strategic focus  Build distribution to access new markets  Grow regional to balance London Market volatility  Retain specialist focus 33 100% = £1,105m Total group controlled income for 2005 London Market Regional Syndicate 33 & Hiscox Bermuda Syndicate 33, Hiscox Insurance Company, Hiscox Guernsey & Hiscox USA TMT Art & Private Client London Market Reinsurance & Major Property Specialty Professions & Specialty Commercial 29% 27% 15% 9% 15% 5%

34. Clear geographic and product focus Hiscox plc Hiscox Global Markets  Reinsurance & Major Property  London Market  Marine & Energy  Specialty  Technology & Media Hiscox Bermuda Hiscox Guernsey Hiscox USA  Reinsurance  Group Capital Support  Art & Private Client  Kidnap & Ransom  Art & Private Client  PI & Specialty Commercial  Regional Media & Technology Hiscox International Hiscox UK Hiscox Europe  Art & Private Client  PI & Specialty Commercial  Regional Media & Technology  Art & Private Client  PI & Specialty Commercial  Regional Media & Technology  Direct Hiscox UK & Europe 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 36  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

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

38. Geographical & currency split 38 CAD USD EUR GBP 13.2% 55.9% 28.4% 2.5% 2006 Geographical split2006 Currency split North America UK 1.2% Oceania 0.2% Northern Africa 0.4% South America 0.6% Middle East 1.1% East Asia 0.2% Central Asia Western Europe (excl. UK) 0.2% South Asia 0.5% Central America 0.7% Central & Southern Africa 0.5% Central & Eastern Europe 0.9% Caribbean 23% Worldwide 34.6% 23% 9.4% 26.5%

39. Loss ratios as a % of Syndicate premiums 39 GILRNILR YOA 20022003200420052002200320042005 12 mths 13.4%11.6%30.0%84.3%20.0%14.1%30.8%63.3% 24 mths 27.9%30.0%59.3%36.6%35.3%59.0% 36 mths 37.2%39.9%45.3%47.6% 48 mths 41.7%44.9% Syndicate 33 incurred losses as a percentage of signed premium

40. Syndicate 33 capacity & Hiscox plc ownership 40 0 100 200 300 400 500 600 700 800 900 20002001200220032004 CapacityHiscox plc OwnershipQQS £ m 2005 360 191 53% 360 191 53% 504 277 55% 201 842 547 65% 48 846 550 65% 25 550 71% 774 2006 605 73% 833

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

42. Reinsurance 42 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% 10.8% % % 20.9% 17.0%

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

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 three 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 his 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