A.M. Best Affirms Ratings of Lloyd`s Syndicate 33

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the Best`s Syndicate Rating of A (Excellent) and
issuer credit rating (ICR) of "a+" of Lloyd`s Syndicate 33, which is managed by
Hiscox Syndicates Ltd (HSL). At the same time, A.M. Best has affirmed the ICR of
"bbb+" of Hiscox Ltd (Bermuda), the ultimate parent holding company of the
Hiscox group of companies, including HSL. The outlook for all ratings remains
stable.

Syndicate 33`s financial strength is supported by the excellent consolidated
risk-adjusted capitalisation of Hiscox Ltd and internal group reinsurance
provided by Hiscox Insurance Company (Bermuda) Limited (Hiscox Bermuda).
Capacity for the syndicate`s 2009 year of account is provided by Hiscox Ltd`s
Lloyd`s corporate member, Hiscox Dedicated Corporate Member (HDCM) (72.5%) and
third party capital providers, including traditional Lloyd`s Names. HDCM`s funds
at Lloyd`s (FAL) requirement for the 2009 year of account is met in part by its
GBP 180 million letter of credit facility. For the 2010 year of account, the
syndicate`s capacity will increase to GBP 1 billion (2009: GBP 750 million),
reflecting the weakening of sterling against the U.S. dollar (the syndicate`s
principal trading currency).

A.M. Best believes rate strengthening in 2009, particularly for
catastrophe-exposed business, will support an improvement in syndicate 33`s
combined ratio on an annually accounted basis from 102% in 2008. A solid
investment result is anticipated compared to 2008, when unrealised losses of GBP
76.8 million reduced the syndicate`s net investment return to -0.6%. On a year
of account basis, 2006 closed with a strong return on capacity of 37%,
reflecting favourable rating conditions for the syndicate`s catastrophe-exposed
lines of business.

Syndicate 33 writes a well-diversified portfolio and maintains an excellent
business profile within the Lloyd`s market. In A.M. Best`s opinion, the
syndicate`s profile is enhanced by its importance to the Hiscox group and its
close working relationship with other Hiscox group entities. The syndicate
writes certain lines of business in conjunction with Hiscox Insurance Company
(Guernsey) Limited and Hiscox Insurance Company Limited (United Kingdom).

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