A.M. Best Affirms Ratings of Principal Hiscox Ltd Operating Companies

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength ratings (FSRs) of A
(Excellent) and issuer credit ratings (ICRs) of "a" of Hiscox Insurance Company
(Bermuda) Limited (Hiscox Bermuda), Hiscox Insurance Company Limited (Hisco)
(United Kingdom), Hiscox Insurance Company (Guernsey) Limited (Hiscox Guernsey)
and Hiscox Insurance Company Inc. (Hiscox US), all operating companies of Hiscox
Ltd (Bermuda). The outlook for all ratings remains stable.

In A.M. Best`s opinion, the Hiscox operating entities continue to benefit from
the excellent consolidated risk-adjusted capitalisation of the group`s ultimate
holding company, Hiscox Ltd. In addition, each operating company has a strong
business profile in its respective market, which is enhanced by its membership
of the Hiscox group.

A.M. Best expects Hiscox Bermuda to maintain excellent stand-alone risk-adjusted
capitalisation, supported by strong financial performance and factoring the
likely payment of a significant dividend at year-end 2009. The ratings also
reflect A.M. Best`s expectation that the correlation between the reinsurance
business written by Hiscox Bermuda and that written by other group companies,
particularly Lloyd`s Syndicate 33, will remain strong. This business, together
with business ceded from Hisco and Hiscox Guernsey, continues to provide the
company with a well established and geographically diverse portfolio.

The ratings of Hiscox Guernsey continue to reflect the explicit support of
Hiscox Bermuda, which reinsures substantially all of its gross premiums written
in 2009. In addition, the company has an excellent business profile as a
specialist underwriter of fine art and kidnap and ransom business.

Hisco is likely to maintain excellent stand-alone risk-adjusted capitalisation
in 2009, supported by robust retained earnings. The company`s technical
performance is expected to deteriorate in 2009 due to adverse claims experience
for its European business. Nevertheless, strong improvement in investment
performance is likely to support a modest increase in Hisco`s pre-tax profit
from GBP 18.2 million in 2008. The ratings also factor the benefit of
reinsurance support from Hiscox Bermuda.

A.M. Best expects Hiscox US to maintain excellent standalone risk-adjusted
capitalisation in 2009. In addition, the company`s ratings reflect reinsurance
support provided by Hiscox Bermuda and its strategic importance to the Hiscox
group in providing access to the U.S. admitted market.

For Best`s Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Analysts
Stephen Mullan, +(44) 20 7626 6264
stephen.mullan@ambest.com
or
Colin Towell, +(44) 20 7626 6264
colin.towell@ambest.com
or
Public Relations
Jim Peavy, +1-908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, +1-908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009