Ye a r E n d 21
Hiscox Ltd
Report and Accounts 2021
Opportunity knocks
Aki Hussain, our new Group Chief
Executive Officer, sees opportunities
everywhere for Hiscox. He discusses his
vision for the future, how he measures
success, and Hiscox’s growth ambitions.
People matter
Employees from across the business
talk about the key developments in
their areas during 2021, and what
the ‘human’ value means to them.
At your service
Hear from the frontline about how we
focus on having conversations, not just
transactions, with customers.

Opportunity knocks
Q&A with Aki Hussain
Group Chief Executive Officer
2
An Englishman in New York
Q&A with Kevin Kerridge
Chief Executive Officer,
Hiscox USA
14
Euro vision
Q&A with Robert Dietrich
Chief Executive Officer,
Hiscox Europe
34
Re birth
Q&A with Kathleen Reardon
Chief Executive Officer,
Hiscox Re & ILS
60
Rising tide
Q&A with Dan Alpay
Line Underwriter – Flood,
Hiscox London Market
92
Recruitment driver
Q&A with Vanessa Newbury
HR Director and Head of Recruitment
126
Model citizen
Q&A with Robert Caton
Director of Underwriting Risk
and Reinsurance
132
Q&
A:
with Chloe Garbutt
Insurance Expert, Hiscox UK
At your service
Excellent customer
service is central to
the Hiscox proposition,
and it all begins with
the people on the front
line taking the calls.

Chloe Garbutt, whose
photo features on the
cover, works in the Hiscox
Customer Experience
Centre in York in a sales and
service role as part of our
UK home insurance team.
Q: How did you come to
work at Hiscox?
A: I applied when I was 18,
straight out of college. At
the time, I was working as a
kickboxing instructor, so this
was a bit of a change of scene!
I’ve grown so much though, as
a result of my work at Hiscox.
Every day you’ll get asked a
question that you’ve never had
to answer before. Insurance
can be complicated, so it’s
understandable that people
would have questions. It
keeps you on your toes, it
makes you better at your job,
and it means you’re always
learning. But you’re not thrown
in at the deep end – there’s
lots of support and a real focus
on learning and development.
For example, we get at least
an hour’s coaching every
week to help us develop our
confidence and knowledge.
Q: How would you describe
your team’s approach
to service?
A: Everything we do revolves
around our customers. We
want them to feel valued. We
want to give them the best
service possible. We sell
our products on our service
and the competitive cover
we offer, and we want to be
different to the type of slightly
automated, highly scripted
customer service that we’ve all
experienced – it’s frustrating,
and it’s just not Hiscox. We’re
not robots and we’ve always
prided ourselves on not
using scripts. It’s one of the
things that struck me during
the recruitment process in
fact – that there was such a
focus on hiring for attitude and
customer focus. We want to
have natural conversations
with our customers and I hope
that comes across in every
interaction a customer has
with us.
Q. What do you enjoy most
about your role?
A. I would consider myself a
‘people’ person so for me it
is the people – and not just
my colleagues, but also the
interactions I get to have
with customers. So many
of the customers we talk to
in the home insurance team
are happy because they’re
buying a new house, or they’re
excited to start some home
renovations, or they’ve just
got engaged, and so their
insurance requirements have
changed. It’s really lovely to
be part of those stories and
I hadn’t appreciated how
rewarding it would feel to be
a small part of someone’s
big life event before I worked
in insurance.
Q: What do you see yourself
doing in the future?
A: I have absolutely no idea.
The good thing is that there
are a lot of opportunities for
people across Hiscox – I have
colleagues who started in a
role like mine and have gone
on to do a whole host of
other roles within Hiscox,
including in underwriting,
project management and
corporate governance.
Q: In October, you shaved
your head. What was the
motivation for that?
A: Both my grandparents
have had strokes – my
Grandad had three in three
years, and my Nanna had
two last year – so I wanted to
do something to raise money
for the Stroke Association.
My hair was really long, so
I shaved my head to raise
money, and donated the hair
to the Little Princess Trust,
which provides wigs for
young people who’ve
had cancer treatment. It’s
something that definitely
pushed me outside of my
comfort zone but I’m so glad I
did it. One of Hiscox’s values
is ‘human’ and this is one way
that I think I personally lived
the value in 2021.

Hiscox is a diversified international insurance group
with a powerful brand, strong balance sheet and plenty
of room to grow.
We are headquartered in Bermuda, listed on the London
Stock Exchange, and currently have over 3,000 staff
across 14 countries and 35 offices.
Our products and services reach every continent, and
we are one of the only insurers to offer everything from
small business and home insurance to reinsurance and
insurance-linked securities.
As a Bermuda-incorporated
company, Hiscox is not subject to the
UK Companies Act. As a company
listed on the London Stock Exchange,
we comply with the requirements set
out in the UK Corporate Governance
Code 2018 and the Listing Rules and
Disclosure & Transparency Rules
of the UK Listing Authority. Our
remuneration report is consistent
with UK regulations. Any additional
disclosures over and above these
requirements, have been made for
the benefit of shareholders, on a
voluntary basis.
Chapter 1
4 Performance and purpose
4 Our key performance
indicators (KPIs)
6 Our purpose, values,
culture and vision
8 Our strategy and
how we operate
10 Key risks and business priorities
12 Why invest in Hiscox?
Chapter 2
16 A closer look
16 Chairman’s statement
20 Chief Executive’s report
36 Capital
38 Risk management
42 Stakeholder engagement
44 Environmental, social and
governance (ESG)
54 Task Force on Climate-related
Financial Disclosures (TCFD)
Chapter 3
62 Governance
62 Board of Directors
65 Board statistics
66 Group Executive
Committee (GEC)
68 Chairman’s letter
to shareholders
69 Corporate governance
76 Compliance with the UK
Corporate Governance
Code 2018
82 Nominations and Governance
Committee report
89 Audit Committee report
Chapter 4
94 Remuneration
94 Annual statement from the Chair
of the Remuneration Committee
98 Remuneration summary
100 Annual report on
remuneration 2021
108 Implementation of remuneration
policy for 2022
110 Other remuneration matters
114 Remuneration policy
Chapter 5
128 Shareholder information
128 Directors’ report
131 Directors’ responsibilities
statement
131 Advisors
Chapter 6
134 Financial summary
134 Independent auditor’s report
142 Consolidated income statement
142 Consolidated statement of
comprehensive income
143 Consolidated balance sheet
144 Consolidated statement of
changes in equity
145 Consolidated statement of
cash flows
146 Notes to the consolidated
financial statements
207 Additional performance
measures (APMs)
208 Five-year summary

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
At Hiscox people matter
Having a human approach to our work is really important to us.
At Hiscox, we care immensely about the job, each other, our
customers, partners and the brand.
It’s why we always aim to understand the person behind the
policy or claim, the job description or task. This means we try
to be clear, fair, and inclusive, and to treat everyone around us
with the respect they deserve.
Living our human value isn’t just about grand gestures, it’s also
about the ‘tiny noticeable things’ that can make a huge difference
to a customer or a colleague during the good times and the bad.
In the pages that follow, you will hear from people across our
business on what being ‘human’ means to them.
1Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose

2 Hiscox Ltd Report and Accounts 2021
Aki Hussain is the new
Group Chief Executive
Officer of Hiscox, having
stepped up to the role in
January 2022. He joined the
business in 2016 as Group
Chief Financial Officer.
Q: When you joined as Group
Chief Financial Officer back
in 2016, what was it that
drew you to Hiscox?
A: I loved the culture and the
ethos – and, quite frankly, the
scale of the opportunity. The
thought of being able to work
in a more entrepreneurial
environment, an organisation
that is much closer to the start
of its journey, was and still is
incredibly exciting to me.
Q: What do you think is the
most important quality for a
leader to have?
A: You have to be able to
recognise that you’re there
to serve the organisation. It’s
not about you. The way I see
it, one of my major roles is
what I call ‘clearing the path’.
We have a clear strategy
and great people who are
trying to do the best they
can every single day, and a
massive part of my job is to
clear the path to allow that to
happen. Business is never
straightforward, environments
change, so continuously
clearing the path so that
people can give their best
is absolutely key.
Q: This is the first time
you’ve fronted a whole
business. How are you
finding the step up?
A: I’ve had lots of experience
of running large, complex
operations and I’ve always
taken ownership of everything
I’ve done, but being the Group
Chief Executive Officer is
totally different. Taking on that
responsibility, realising that
the buck really does stop here,
that the problem is not going
to go anywhere else – that’s
something I’m getting used to,
and I’m enjoying it immensely.
Q: Is growth still the
most important measure
of success?
A: It’s one of many, but a very
important one. But growth
is not an end in itself; it’s just
an indicator that we’re doing
things right. Partly, it’s a
barometer of the choices we
make: through good decisions
made over a long period of
time, we’re now exposed to
markets in the USA, the UK
and continental Europe that
are growing quite quickly, and
that really helps. Then you’ve
got to ask: why do we do what
we do? Our expertise helps
individuals and businesses
realise their own strategies and
ambitions while minimising the
chances of ruin. If we do that,
if we serve our customers to
the best of our ability, growth
is going to come.
Another key mark of success
for me is having people who
are happy and proud to work
at Hiscox. If we have those
three things – happy people,
satisfied customers, and the
ability to innovate in a rapidly
changing environment – I’ll be
pretty satisfied.
Q: What do you think are
Hiscox’s biggest strengths?
A: In our London Market and
reinsurance businesses, our
big advantage is that we have
deep underwriting expertise,
built over many, many years.
In our retail business, that
underwriting pedigree is
complemented by the brand
we’ve built and the investment
we’ve put into technology.
Companies like Google and
Amazon have completely
transformed the way people
interact with the internet – click
just three or four times and
you’ve bought something. For
insurance, and certainly the
kind of specialist insurance we
provide, that’s quite unusual,
but through our investments
in technology, underwriting
and pricing, that’s what we’re
able to provide.
Q: As the retail business
grows, what kind of
relationship do you want
to have with customers?
A: I’m not naïve about this
– we’re never going to be
able to create the depth
of relationship that a
customer might have with
their favourite retailer. But nor
do we see buying insurance
as a one-time transactional
relationship. We want to create
an ecosystem that takes
into account the cycle of a
customer’s life or business.
Our ambition is to understand
and predict how their
insurance needs will change
over time and what sort of
help they might need through
that process. We’re not there
yet, but it’s something we’re
very focused on.
Q: What does sustainability
mean to Hiscox?
A: It means building for the
future, not just for the short
term. It means understanding
long-term risk, investing
in technology, investing in
people and building their
capabilities, understanding
that we have a role to play in
the communities in which we
operate, understanding our
customer base, and, given
the range of environmental
changes we’re seeing today,
thinking about the impact
of our work on the planet.
Ultimately, it’s about being
a responsible organisation,
understanding that we’re
not an island, and building a
business for the long term.
Q: How do you see the
human value being
applied at Hiscox?
A: I see it most tangibly
in the interactions, the
interdependency, the
teamwork. Here, the
awareness people have
of each other’s welfare is
palpable. I’ve seen it in other
organisations, but not turned
up to that level. Everybody here
is approachable. My door is
always open, and people from
all parts of the organisation can
come to me with questions
and ideas. My job is to clear
the path, but how do you clear
a path for people if they don’t
feel they can tell you truthfully
what’s going on? Ours is
an environment where a
graduate who has just joined
the business can put me on
the spot, ask difficult questions,
or highlight something that
I wouldn’t otherwise know.
I think that’s quite human.
I also think it’s quite normal.
Q&
A:
with Aki Hussain
Group Chief Executive Officer
Opportunity knocks
The Group’s new Chief
Executive Officer sees
his main role as ‘clearing
the path’ for others to
do their jobs to the very
best of their ability.

3Hiscox Ltd Report and Accounts 2021

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
4 Hiscox Ltd Report and Accounts 2021
Our key performance indicators (KPIs)
Gross premiums written
$4,269.2m
Net premiums earned
$2,919.9m
Profit/(loss) before tax
$190.8m
Combined ratio
93.2%
Basic earnings/(loss)
per share
55.3¢
Ordinary dividend
34.5¢
Net asset value per share
739.8¢
Tangible net asset value
per share
648.6¢
Return on equity
8.1%
Financial KPIs
2021
20
20
20
19
20
18
20
17
4,269.2
4,033.1
4,030.7
3,778.3
3,286.0
20
21
20
20
20
19
20
18
20
17
2,919.9
2,752.2
2,635.6
2,573.6
2,416.2
20
21
20
20
20
19
20
18
20
17
190.8
(268.5)
53.1
135.6
37.8
20
21
20
20
20
19
20
18
20
17
55.3
(91.6)
17.2
41.6
8.1
20
21
20
20
20
19
20
18
20
17
34.5
0.0
13.8
41.9
39.8
20
21
20
20
20
19
20
18
20
17
93.2
114.5
106.8
94.4
98.8
20
21
20
20
20
19
20
18
20
17
739.8
689.0
768.2
798.6
817.1
20
21
20
20
20
19
20
18
20
17
648.6
601.5
670.6
726.2
751.5
20
21
20
20
20
19
20
18
20
17
8.1
(11.8)
2.2
5.3
1.0

20
21
20
20
20
19
20
18
2017
71%
69%
78%
76%
66%
2021
20
20
20
19
20
18
2017
92%
92%
89%
90%
90%
20
21
20
20
20
19
20
18
20
17
4.8
4.8
4.8
4.7
4.7
20
21
20
20
20
19
20
18
20
17
64%
68%
71%
74%
77%
20
21
20
20
20
19
20
18
2017
95%
90%
99%
99%
97%
0.0 12.5 25.0 37.5 50.0 62.5 75.0 87.5 100.0
20
21
20
20
20
19
20
18
2017
19.1%
21.2%
26.1%
28.8%
31.1%
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Our key performance
indicators (KPIs)
5Hiscox Ltd Report and Accounts 2021
Non-financial KPIs
UK gender pay gap
19.1%
As a UK company with 250 or more employees,
we are required to disclose our gender pay gap
for UK employees, which we have done since
2017. Improving diversity and inclusion at Hiscox
is a high priority, and we continue to focus on
finding ways to reduce our gender pay gap.
London Market broker
satisfaction 71%
Each year, we survey our London Market broker
partners to understand more about their
experience of working with Hiscox throughout
the year. Their feedback is a reflection of our
products and service levels, so receiving
consistently good scores matters to us.
UK customer satisfaction
92%
In the UK, customers who speak to one of our
insurance experts in our customer experience
centre in York are asked to rate their experience
of Hiscox at the end of the call. Whether they
have phoned for advice, a quote, to purchase a
new policy or make changes to an existing one,
their feedback helps us to constantly improve
our service.
Employee engagement
64%
Our annual global employee engagement
survey looks at how connected we feel to
Hiscox, our managers, teams and roles.
The results are shared widely and heavily
influence our people strategy, and improving
our employee engagement scores is a
focus for 2022 as part of our work around
building connected teams with shared values
(see page 11).
Germany customer
satisfaction 95%
In Germany, we ask all customers that purchase
a policy to provide feedback on their experience
so that we can continue to improve our service.
This includes both quantitative analysis on
how they would score their experience with us,
and also qualitative insight on what they were
satisfied with, whether they would recommend
Hiscox, and any areas for improvement, so we
are pleased to have maintained consistently
high scores over time.
US customer reviews
using Feefo 4.8/5
In the USA, we ask customers to review their
experience of Hiscox post-purchase. We do this
using Feefo, which has a five-star rating system,
and are pleased to maintain such high scores
year after year even as the business grows.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
6 Hiscox Ltd Report and Accounts 2021
Our purpose, values, culture and vision
Our purpose
As experts in risk, we give people and
businesses the confidence to realise
their ambitions. To do this we need
differentiated products and services,
great talent and a winning spirit.
Success is measured in our reputation
and financial performance.
Our values
We have had a strong set of values
for decades and they are incredibly
important to us; we talk about them often
and they guide our decision-making.
We want our values to differentiate us,
which is why they are considered in our
strategy and how we operate (see pages
8 to 9). Our values play an important part
when it comes to being a business our
customers can relate to, and to providing
all employees with a work environment in
which they can flourish. We periodically
review our purpose, values, culture and
vision to ensure they are still true to the
business and fit for the future.
In our 2021 annual global employee
engagement survey, which was
completed by 85% of employees:
• 90% said they believe in our
corporate values;
• 83% said employees are treated
fairly, regardless of disability,
age or professional background;
• 73% said they felt proud to work
for Hiscox.
During 2021 we:
• attracted 644 new talented
permanent employees;
• promoted 368 existing employees;
• delivered over 43,500 hours of staff
training worldwide.
Our culture
We work hard to nurture our culture, and
it is something we regularly measure
and monitor to ensure we keep it alive.
We have a number of culture standards
we wish to live by, such as diversity and
inclusion, diligence in risk management,
good leadership, integrity and respectful
behaviour. As Lloyd’s participants, these
also contribute to the wider market focus
on culture and talent.
We are also embedding new hybrid
working practices that balance the
ability to work remotely with the culture,
collaboration and energy of our offices.
This has required new technology and
tools to ensure a seamless remote
working experience, but it has also
meant a re-engineering of our existing
office space – with greater use of
hot-desking and the creation of
‘neighbourhoods’ that bring teams
and like-minded functions together.
Our vision
For Hiscox to be the leading specialist
insurer in material markets – not the
biggest, but the most respected.
We want to be known by customers for
being true to our word, by our employees
as a great place to work and grow for
those who are ambitious and talented,
and to be seen as an industry leader
in attitude, sales growth, profits and
value creation.
Our culture and values
are a really important
part of our employment
proposition. They are
distinctive, they attract
people to Hiscox, and
they are a big part of
why people stay with
us for so long.”
Amanda Brown
Chief Human Resources Officer

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Our purpose, values,
culture and vision
7Hiscox Ltd Report and Accounts 2021
Our values

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Our strategy and how we operate
We have built a good reputation as
a specialist insurer in our chosen
segments through a long-held strategy
of balance between our big-ticket and
Retail businesses – where greater
volatility in our big-ticket businesses
has typically been offset by more stable
returns in Retail – and a long-term
investment in a differentiated brand
that customers value. This approach
has served us well, forming the
building blocks of our success, but
over time that balance has evolved
as the Retail businesses have grown
consistently while the big-ticket
• Global risks through Lloyd’s platform
• Heritage of deep technical expertise
• Leading the market in applying
technology to distribution
and underwriting
Delivers profits and capital
generation for reinvestment
• Small and micro businesses
• Digitally traded, with
low-cost distribution and
auto-underwriting
• Partnership management capability
through digital connectivity
Significant structural
growth opportunity
• Specialist reinsurance capability
• Holistic risk insights
• Expert alternative capital manager
Delivers underwriting profit
and capital-light fee income
• Focus on SMEs, not traded digitally
• Leadership in specialist lines
• Long-term broker partnerships
Delivers stable profit generation
and growth
businesses have been subject to a more
cyclical environment.
As the external environment evolves and
new opportunities emerge, how we think
about balance evolves too. In Hiscox
London Market and Hiscox Re & ILS,
we have begun building out more
balanced portfolios with an emphasis
on leading the business we write.
This means Hiscox underwriting
plays a greater role in risk selection
and contractual terms, with greater
control over growth. Volatility exists in
every part of insurance, but through
a focus on building and maintaining
balanced portfolios we will create more
manageable volatility across the Group.
By thinking about balance in this way,
we believe we can maximise both the
profitable, cyclical growth and the
structural growth opportunities ahead.
The Hiscox Group comprises four
businesses facing into different
opportunities and challenges, but with
a common set of capabilities and the
capital support required for success.
People
and culture
Brand
Underwriting
Technology
Capital
Balanced portfolio of large and complex risks
SME and personal lines
8 Hiscox Ltd Report and Accounts 2021
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Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Our strategy and
how we operate
9Hiscox Ltd Report and Accounts 2021
Our strategy in practice
Opportunity
There is an abundance of opportunity
ahead for Hiscox. In many of our
chosen lines and markets, our market
shares remain small, giving us plenty
of headroom for growth. This is
where our specialist knowledge and
multi-year investments in digital trading
differentiate us.
Innovation
The insurance industry consists of an
ecosystem of different types of business;
there are the ‘wave surfers’ for example,
who enter the market on the upside of
opportunity and retreat when it recedes.
Hiscox aims to be a ‘game changer’
and here for the long term: innovating
through long-held market experience
and underwriting acumen, embracing
technology and taking risks to evolve
with and lead market change.
Growth
Growth is important to us, but not at
the expense of profitability. That’s
why our focus is on maximising the
structural growth opportunities
ahead as we see them in Retail, and
in building out balanced portfolios in
our bigger-ticket businesses.
Volatility
Our business is naturally exposed to
volatility. We manage this through our
underwriting experience and expertise,
our investment in data, and our risk
management processes, and we work
hard to ensure the risks we take are
commensurate with the premium that
is paid.
A differentiated offering
Global reach
We are a truly international business,
with over 3,000 employees across
14 countries and 35 offices. We invest in
local market knowledge and experience
which ensures we understand the
markets we operate in and provide
relevant products and services. This
gives us a unique breadth of expertise,
serving customers from one-man-bands
to multinational companies and
ILS investors.
Specialist products
In every part of the Hiscox Group, we
focus on providing products and services
that differentiate us. These range from
high-value home insurance and fine art –
areas where we have deep foundations
to build on – to small business, flood and
kidnap and ransom – where innovative
products set us apart.
Claims experience
Being true to our word is the cornerstone
of our claims service. We know that
each customer and each claim is
different, which is why we have
embedded experienced claims teams
with specialist product knowledge in
every part of our business.
Talented people
The quality of our people is a crucial
factor in our continuing success. Their
expertise, energy and commitment
drive our reputation for quality and
professionalism. In return we aim to
provide a work environment that brings
out the best in everybody and rewards
hard work.
Powerful brand
We have invested significantly over
many years to build a recognised
and renowned brand. Our distinctive
marketing campaigns are developed
from a deep understanding of our
customers and positively contribute
to consumer buying decisions.
Our mix of businesses
provides exposure to
both long-term structural
growth and cyclical
trading opportunities.
Market conditions are
incredibly attractive,
and we have a powerful
combination of
underwriting pedigree,
data analytics and
investment in technology
which I believe sets
us apart.”
Aki Hussain
Group Chief Executive Officer

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
10 Hiscox Ltd Report and Accounts 2021
Key risks and business priorities
Strategic risk
The possibility of adverse outcomes
resulting from ineffective business
plans and strategies, decision-making,
resource allocation or adaptation to
changes in the business environment.
The Group’s continuing success
depends on how well we understand
our clients, markets and the various
internal and external factors affecting
our business, and having a strategy in
place to address risks and opportunities
arising out of this. Not having the right
strategy could have a detrimental impact
on profitability, capital position, market
share and reputation.
Underwriting risk
The risk that insurance premiums prove
insufficient to cover future insurance
claims and associated expenses. Likely
causes include failing to price policies
adequately for the risk exposed, making
poor risk selection decisions, allowing
insurance exposures to accumulate
to an unacceptable level, or accepting
underwriting risks outside of agreed
underwriting parameters. This includes
people, process and system risks
directly related to underwriting, and
considers emerging external risks such
as climate, geopolitical and changing
customer trends.
Reserving risk
The Group makes financial provisions for
unpaid claims, defence costs and related
expenses to cover liabilities both from
reported claims and from ‘incurred but
not reported’ (IBNR) claims. Reserving
risk relates to the possibility of unsuitable
case reserves and/or insufficient
outstanding reserves being in place to
meet incurred losses and associated
expenses, which could affect the
Group’s future earnings and capital.
Credit risk
The risk of a reinsurance counterparty
being subject to a default or downgrade,
or that for any other reason they may
renege on a reinsurance contract
or alter the terms of an agreement.
The Group buys reinsurance as a
protection, but if our reinsurers do not
meet their obligations to us, this could
put a strain on our earnings and capital
and harm our financial condition and
cash flows. Similarly, if a broker were
to default, causing them to fail to pass
premiums to us or pass the claims
payment to a policyholder, this could
result in Hiscox losing money.
Market risk
The threat of unfavourable or unexpected
movements in the value of the Group’s
assets or the income expected from them.
It includes risks related to investments
– for example, losses within a given
investment strategy, exposure to
inappropriate assets or asset classes, or
investments that fall outside of authorised
strategic or tactical asset allocation limits.
Liquidity risk
This relates to the risk of the Group
being unable to meet cash requirements
from available resources within the
appropriate or required timescales,
such as being unable to pay liabilities to
customers or other creditors when they
fall due. It could result in high costs in
selling assets or raising money quickly
in order to meet our obligations, with the
potential to have a material adverse effect
on the Group’s financial condition and
cash flows.
Operational risk
The risk of direct or indirect loss resulting
from internal processes, people or
systems, or from external events. This
includes cyber security risk, which is
the threat posed by the higher maturity
of attack tools and methods and the
increased motivation of cyber attackers,
in conjunction with a failure to implement
or maintain the systems and processes
necessary to protect the confidentiality,
integrity or availability of information
and data. Operational risk also covers
the potential for financial losses, and
implications from a legal, regulatory,
reputational or customer perspective,
for example, major IT, systems or
service failures.
Regulatory, legal and tax governance
This relates to the risk that the business
fails to act, or is perceived to have failed
to act, in accordance with applicable
legal, regulatory, and tax requirements
in all of the jurisdictions where the Group
operates. The regulatory, legal and tax
environment continues to be complex,
with frequent changes in rules and
expectations which increase complexity
in this area.
Climate-related risk
This relates to the range of complex
physical, transition and liability risks
arising from climate change. This includes
the risk of higher claims as a result of
more frequent and more intense natural
catastrophes; the financial risks which
could arise from the transition to a
lower-carbon economy; and the risk that
those who have suffered loss from climate
change might then seek to recover those
losses from others who they believe may
have been responsible. Climate-related
risk is not considered a stand-alone risk,
but a cross-cutting risk with potential to
amplify each existing risk type.
As an insurance group,
specific risks related
to our business include:

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Key risks and
business priorities
11Hiscox Ltd Report and Accounts 2021
Read more on risk management in
chapter 2, and on our key risks and
how we manage them in note 3.
The opportunity ahead
of us is huge and I’m
personally very excited
by our 2022 plans, which
build on the progress
we’ve already made
in optimising both our
underwriting portfolios
and our operating model.”
Joanne Musselle
Group Chief Underwriting Officer
Realising the retail opportunity
We will continue to build on our multi-year
investments in technology during the
year ahead, as we look to realise the
significant growth opportunities that exist
across our retail operations. Our head
start in digital small business insurance in
the UK, USA and a number of European
markets positions us well to serve the
needs of this high-growth segment of
the economy. We will use customer
analytics and insights to continue to
enhance our digital trading strategy
to best support the evolving buying
behaviours of our customers.
Balancing big-ticket growth
with volatility
With Hiscox London Market and
Hiscox Re & ILS currently enjoying
more favourable market conditions,
in 2022 we will leverage our unique
combination of underwriting and digital
expertise to achieve profitable growth
while balancing volatility. This will involve
the use of balanced performance metrics
and require best-in-class underwriting,
active portfolio management and
technical excellence.
Technical excellence
The strong progress made in 2021 in
optimising our underwriting portfolios
provides a solid basis for further work
in 2022. We will continue to address
lower decile lines through active portfolio
management, as we dynamically
adjust to evolving market conditions
and maintain an optimum portfolio
mix. Equally, we will look to grow in
top quartile lines and in line with our
ambitions. We will also build on progress
made in the Group’s underwriting
controls and governance around
product, pricing, appetite and wordings
by finding new and improved ways to
share data, insights and expertise across
claims, underwriting and reserving and
the areas that support them.
Operational efficiency
In 2022, we will build on the operational
efficiencies realised in 2021 in areas such
as procurement and operations, where
automation has played a part, and in
the rebalancing of our global versus
local capabilities. We will continue to
evolve our operating model to ensure
we have the right structure to enable fast
decision-making, and a strong culture
of accountability. We will also review
and refine our supplier assessment
and management processes. This
will include new tools that improve
consistency in our procurement
processes and ensure factors such as
ESG are considered in decision-making.
Connected teams with shared values
and mindset
The global pandemic has changed
where and how we work, and in 2022 we
will continue to embed the new hybrid
working styles that we established in
2021. This means an ongoing focus
on activity-based working; balancing
the more autonomous tasks that can
be achieved through remote working,
with those that require the collaboration
and energy of our offices. It also means
finding new ways to communicate a
common vision, and a strategy that
unites our people. In addition, we will
look to find new ways to enhance our
employee proposition and evolve our
approach in areas such as employee
benefits, in line with our ambitions to be
an employer of choice within our sector.
Read more on performance against
our 2021 business priorities.
Business priorities
for 2022
38 103
Read more about our key risks
hiscoxgroup.com/about-hiscox/
risk-management
156

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
12 Hiscox Ltd Report and Accounts 2021
Why invest in Hiscox?
Hiscox is a diversified
and resilient business
with a great runway of
future opportunity in
both Retail and big-ticket
lines. This, along with our
unique combination of
underwriting and digital
expertise, talented people,
powerful brand and
robust capital position,
is a real differentiator
in the market.”
Liz Breeze
Interim Chief Financial Officer
A focus on generating sustainable and
compounding shareholder returns
We aim to balance consistent and
progressive shareholder cash returns
with reinvestment into the business
to support long-term growth and
value creation.
A unique structural
growth opportunity
We aim to grow the business in a way that
is organic, sustainable and profitable,
and the abundance of opportunity we
see ahead supports this continued
trajectory. In Hiscox Retail, where our
market shares remain modest, the size
of the addressable market is huge, giving
us plenty of headroom for growth; and
in our big-ticket businesses, where we
now lead on more open market risks, our
combination of underwriting and digital
expertise differentiates us.
14 8%
total shareholder return over the
last ten years.
$ 1.7 b n *
returned to shareholders over the
last ten years.
A rated
over ten years of S&P A rating.
50m SMEs
size of the addressable SME market
across the UK, USA and Europe.
300%
increase in Retail customer numbers
across the Group since 2013.
68%
Hiscox London Market now leads
on 68% of the business it writes,
14 percentage points more than
it did five years ago.
* Based on special, ordinary and Scrip Dividends
paid to shareholders since 1 January 2012.
Excludes the final dividend proposed for 2021.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Why invest in Hiscox?
13Hiscox Ltd Report and Accounts 2021
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2020*
2021
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1
,500
1
,000
500
0
Hiscox Retail Hiscox London Market, Hiscox Re & ILS
1,506
1,928
2,033
1,901
2,587
2,951
2,570
2,690
2,585
2,669
2,839
3,008
3,268
3,310
3,625
3,652
4,224
4,530
4,532
4,795
Big-ticket business
Hiscox Re & ILS
Hiscox London Market
Retail business
Hiscox UK
Hiscox Europe
Hiscox Special Risks
Hiscox USA
Hiscox Asia
* 2020 restated for Hiscox Special Risks.
Total Group controlled income
($m)

14 Hiscox Ltd Report and Accounts 2021
Kevin Kerridge has worked
for Hiscox for over 25
years. In 1999, he was given
the task of, in his words,
‘figuring out what we should
do on this thing called the
internet’. Ten years later,
having played a major role
in developing the brand’s
digital operations in the
UK, he moved to the USA
to carry out the same task.
He is now Chief Executive
Officer of Hiscox USA.
Q: What did you find when
you first came to the USA
in 2009?
A: I came over here just to
scout around and was amazed
by what I found: nobody in
the small business insurance
space, which was our sweet
spot, was doing anything on
the internet. When you typed
into Google ‘small business
insurance’, the message was:
‘call us on this number’, or: ‘fill
out this form and someone
will come back to you’. We
realised at that point how
huge an opportunity this was.
Within a couple of months, I’d
agreed to uproot my wife and
four children and move to New
York. It was only meant to be
a three-year secondment,
but the possibilities here are
just so massive. I don’t think
I – or the Company – ever
looked back.
Q: What does the US
business look like now?
A: We are now almost a
billion-Dollar business in
terms of top-line revenue.
The most exciting thing is
that today we’re America’s
leading digital small business
insurer. We’ve got more digital
scale than anybody else out
there, even compared to
the biggest brands, brands
that have been around for
100-plus years. At the other
end of the scale, there are a
number of start-ups with
great ideas and technology,
but the great thing is we’ve
got more scale and capability
than them. If you’re a start-up,
you’re clamouring to get
traction, but we’re sitting
here with over 600,000
policies in force. We’re in the
middle of those two things –
the incumbent giants and the
nimble start-ups – and we
feel good about that.
The scale we’ve reached
also means that we’ve got a
wealth of data that will help
with our future assessment
of risk. Digital business is
all a data game. We don’t
have underwriters sitting
there looking at individual
applications that come in.
It’s the machine that’s doing
the underwriting. The other
thing that’s happening right
now is that we’re using a lot
more third-party data. Use of
third-party data will be a big
strategic battleground for us
in the future.
Q: Looking back at 2021,
what were some of the big
highlights for you?
A: We’ve continued to
make strides on our digital
business. We’re really keeping
that momentum going.
Despite the economic and
social impacts of Covid-19,
which have obviously been
terrible, from our perspective
it’s caused a real tailwind.
When the world shut down,
everyone in the insurance
space was like: “Blimey, how
do we do business?”. They’re
used to bricks and mortar,
face to face. Now everyone’s
having to consider a digital
model, and because we’re so
well advanced that has played
to our strengths.
Then on the more
traditional side, which is
still around 50% of our US
business, we’re going
through this thing called
A25, which is short for
‘accelerate to 2025’. We’ve
been reshaping the broker
business here because it’s
not been profitable enough,
quite frankly. We made good
progress in addressing this
in 2021.
Q: So, you’re feeling
positive about the future?
A: I am. This past year has
been an emotional one for
those of us who’ve been here
a long time. We’ve celebrated
Bronek’s contribution over
the past few decades and
now we’ve got a new leader
in Aki, who’s bringing a fresh
perspective and looking to
realise the next phase of our
growth. We’re just about to
start this new chapter, and
I think that’s really exciting.
Q: How do you see the
human value being
applied at Hiscox?
A: When I think about our
values, we’ve always been
strong on things like courage
and ownership, but the two
that have really come into
their own recently have been
connected and human.
Because of Covid-19, and
because of the important
conversations that began here
in the wake of George Floyd’s
death, we’ve really leant into
those values in a big way.
We’ve thought a lot about how
we can be more supportive,
more inclusive. We’ve started
a development programme
for diverse talent, we’ve given
our people time off to attend
peaceful protests, and that’s
really just the beginning.
Q: What was your experience
of the lockdowns of the past
two years?
A: It wasn’t until I first saw a
lot of people back in the office
again, and started going to
events with our brokers, that
I realised just how much we’d
missed. It’s like the frog in the
pot: when the temperature’s
turned up slowly, you don’t
really notice. You forget how
life used to be. When you see
people back in the office,
gathered around a screen,
trying to solve a problem – or
you’ve got new people making
themselves heard, getting
on-boarded in person – it’s
then that you realise how
much we missed out on, how
much of that social capital got
eroded over that period.
Q&
A:
with Kevin Kerridge
Chief Executive Officer, Hiscox USA
An Englishman in
New York
From a standing start just
over a decade ago, Hiscox
USA is now the country’s
leading digital small
business insurer and
is busy reshaping its
broker business.

15Hiscox Ltd Report and Accounts 2021

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
16 Hiscox Ltd Report and Accounts 2021
Chairman’s statement

17Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chairman’s statement
Chapter 1 4
Performance
and purpose
I am pleased to report that our
skilled underwriters have substantially
contributed to a very good result in
a period of low investment returns.
Joanne Musselle, Group Chief
Underwriting Officer, has provided
strong leadership and the active
portfolio management is producing
results. We have strong teams
in place to make the most of the
opportunities ahead.”
Robert Childs
Chairman
The Retail businesses are going well;
Hiscox Europe in particular. The UK
and USA divisions are making great
strides in their direct and partnerships
business, where we maintain a strong
competitive advantage. Hiscox USA is
on track, increasing rates and trimming
the portfolio in broker lines. In the UK,
the broker business continues to do
well, particularly in our commercial
lines business.
Our big-ticket businesses in London
and Bermuda are benefitting from
good risk selection and substantial
rate rises. Digital initiatives in Hiscox
London Market are broadening
our appetite and providing new
opportunities. In Hiscox Re & ILS,
our prudent approach to reserving
and discipline in risk selection has
delivered an excellent result in
another year of higher than average
natural catastrophes.
We are in this business for the long
term, innovating through deep market
expertise, embracing technology, and
unafraid to take risks to evolve. In 2021,
particularly in the UK, we have had some
challenges, but we have learned a lot.
Courage is one of our values and we
have needed it in 2021, but Hiscox is
a stronger business for it in 2022.
We are pleased that our good
performance has allowed the Group
to resume paying dividends with the
2021 interim results and the Board is
pleased to propose a final dividend
for 2021 (subject to shareholder
approval) of 23 cents per share. The
record date for the dividend will be
6 May 2022 and the payment date will
be 13 June 2022. The Board proposes
to offer a Scrip alternative, subject to the
terms and conditions of Hiscox’s 2019
Scrip Dividend Scheme. The last date
for receipt of Scrip elections will be
20 May 2022 and the reference price
will be announced on 30 May 2022.
People
Following Bronek Masojada’s decision to
retire at the end of 2021, we announced
the appointment of Aki Hussain as our
new Group Chief Executive Officer back
in July. Aki has 22 years’ experience
working in financial services, telecoms
and media which we are benefitting from.
Having worked with Aki over the last five
years I have seen his strong leadership
as our Group Chief Financial Officer
first-hand, his capable management of
the Group’s finances in what has been
a challenging period for Hiscox and the
industry while delivering a highly complex
finance transformation programme. Over
the years, the Board and I have seen the
energy, passion and determination with
which Aki operates, and this combined
with a strategic mindset and clear
ambition for building a customer-focused
businesses, means he is well placed to
shape our future strategy and capture
the vast opportunities ahead.
I would also like to take this opportunity
to pay tribute to the outstanding
contribution that Bronek has made in
leading the strategic development of
the Group over the last three decades.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chairman’s statement
Chapter 1 4
Performance
and purpose
18 Hiscox Ltd Report and Accounts 2021
I had the pleasure of working with Bronek
for over 28 years and throughout that
time, his leadership skills, tenacity and
desire to build a better business have
shone through. With Bronek’s energy
and commitment, we have overcome
some of the biggest challenges the
industry has faced, and seized some of
the greatest opportunities. His intellect
and vision built Hiscox from a small
private company to a FTSE 250 with
$4 billion of premium – which is an
immense achievement.
Following nine years of service, including
six as Chair of the Audit Committee,
Caroline Foulger will retire from the Ltd
Board at the 2022 AGM. I have valued
Caroline’s counsel greatly over the
years and would like to thank her for the
passion and challenge she brought to
the role. Ahead of Caroline’s retirement,
Donna DeMaio joined the Board as an
Independent Non Executive Director at
the end of 2021 and will replace Caroline
as Chair of the Audit Committee. Donna
has an impressive financial services
background and experience of the
US market which we will benefit from.
We also strengthened our subsidiary
Boards with the appointment of three
new Independent Non Executive
Directors. Mark Cliff and Jane Hayes
joined Hiscox UK while James Illingworth
joined Hiscox London Market; between
them they bring a wealth of industry
knowledge, underwriting and
distribution expertise.
Environmental, social and governance
We take ESG seriously and we have
made significant progress this year.
The Board has been very supportive
and the staff enthusiastic. We started
2021 by approving our ESG exclusions
policy which sets out our ambition
Courage is one of our
values and we have
needed it in 2021, but
Hiscox is a stronger
business for it in 2022.”
From left to right: Robert Childs, Joanne Musselle, Aki Hussain and Bronek Masojada.

19Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chairman’s statement
Chapter 1 4
Performance
and purpose
Aki’s deep knowledge
of the Hiscox Group,
combined with a
strategic mindset and
ambition for building
customer-focused
businesses, means he
is well placed to shape
our future strategy
and capture the vast
opportunities ahead.”
to reduce steadily, and eliminate by
2030, our insurance, reinsurance and
investment exposure to some of the
most carbon-intensive industries.
We are now embedding the required
supporting processes and a
dashboard to measure our progress.
We continue to attract and develop top
talent: last year we welcomed 644 new
permanent employees and made 368
internal promotions. It is thanks to the
hard work, ingenuity and flexibility of
our colleagues across the globe that we
have been able to continue to support
our customers and brokers during the
pandemic. We paid out $1.25 billion
in claims last year across the whole
business – from exceptional events like
Covid and catastrophes, to the more
frequent fires and thefts. We have also
contributed very substantially to the
restitution of many businesses through
indemnifying them following their loss.
We have also served our communities
through our charitable work, resulting
in $1.5 million being donated to good
causes and over 1,000 volunteering
hours – from beach clean-ups in
Bermuda to plastic fishing on the
River Thames.
We continue to focus on improving
diversity at all levels. Our 15 employee
network chapters play an important
part in this, but so too does our diversity
reporting. 2021 marked our fifth year of
UK gender pay reporting and although
our gender pay gap has been steadily
reducing since 2017, it continues to
be predominantly driven by more men
than women holding more senior roles.
In this respect it is important to show
leadership: our current Board diversity
is 55% men and 45% women, and
the newly formed Group Executive
Committee comprises 40% men and
60% women. There is more work to
do throughout the Company but we
are on a positive trajectory.
Outlook
Hiscox is a growing company. We aim
to grow our top-line profitably in this
underwriting climate and continuously
attract first-rate talent. We are embracing,
and in many cases leading, the digital
revolution in insurance and continue to
invest. Aki has clear and exciting plans
that are motivating our people and which
the Board supports.
In the insurance industry, catastrophes
can happen at any time, but there is a fair
wind behind us and I am looking forward
to a great year – we are disciplined, rates
are up, we are attracting exceptional
talent, and the opportunity ahead of
us is huge.
Robert Childs
Chairman
2 March 2022

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
20 Hiscox Ltd Report and Accounts 2021
Chief Executive’s report
I am pleased with the strong results
the Group has delivered despite
elevated natural catastrophe losses,
reflecting successful execution of
our strategy and the management
actions we have undertaken to
improve the performance and
quality of our portfolios.”
Aki Hussain
Group Chief Executive Officer
On 1 January 2022, I officially
assumed my role as the Group
Chief Executive Officer of Hiscox
and I am pleased to be able to
report a strong 2021 result for the
Group. Hiscox delivered a pre-tax
profit of $190.8million (2020: loss
of $268.5million) and a combined
ratio of 93.2% (2020:114.5%),
despite reserving $223.8million
net of reinstatement premiums for
natural catastrophe losses in an
elevated catastrophe loss environment.
This strong performance is the
outcome of proactive portfolio
actions undertaken over the last
few years to improve our margins.
Bronek Masojada, who retired as Group
Chief Executive Officer at the end of
2021, left the business in good shape
and I am delighted to be taking the reins
at this exciting juncture with plentiful
opportunities ahead. In my first CEO
statement I would like to share my views
on the ambition we have as a business
and how we are going to achieve it. I will
also provide the usual commentary on
business performance in 2021.
Strategy
Our long-standing strategy of balance
has served us well through the years,
allowing us to generate $4.3billion of
profits over the last two decades, while
also seeding and organically growing
Retail to the $2.3billion gross premiums
written business it is today. The greater
volatility in the big-ticket businesses
has been balanced, or offset, by more
stable returns in Retail (2020 being the
exception when the result was affected
by the global pandemic). Excess profits
in our big-ticket businesses have been
used to fund our Retail expansion.
This strategy has allowed the Group
to build a solid platform to expand its
footprint and product offering through
multiple distribution channels, develop
a recognised global brand and nurture a
reputation as a leading specialist insurer
with deep technical expertise.
We remain committed to the concept
of balance, however, as our markets
are evolving, so too is the way we think
about balance. We are in the business of
taking calculated risks, so while volatility
is an inherent feature of our business
model, we are also focused on building
a business that delivers sustainable,
attractive returns. As our strategy
continues to evolve, our focus is on
building more balanced portfolios within
each business, with an increased focus
on and use of the Hiscox underwriting
ecosystem, which includes underwriting,
pricing, claims analytics, reserving,
research and modelling, in our chosen
lines of business.
The fundamentals of our strategy remain
unchanged: we continue to have strong
competitive positions in all our business
segments, but managing volatility
across the Group will pave the way to
maximising the long-term structural
growth opportunity we have in our Retail
businesses. Our purpose is ’to give
people and businesses the confidence
to realise their ambitions’ and this
remains core to our strategy.

21Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chief Executive’s report
Chapter 1 4
Performance
and purpose

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chief Executive’s report
Chapter 1 4
Performance
and purpose
22 Hiscox Ltd Report and Accounts 2021
In summary, this is strategic evolution as
we evolve our business model to make
the most out of the opportunity in each
of our businesses, with each playing a
critical role in what it brings to the Group
and our strategic ambitions. I think
about our business in four component
parts – Retail digital, Retail traditional,
London Market and Re & ILS
1
. Each
component faces unique opportunities
and challenges, which informs the role
that each will play in our future growth
and success, underpinned by our
long-term investment in both
underwriting and digital expertise.
Retail digital – significant structural
growth opportunity
Retail digital presents the Group’s most
significant long-term structural growth
opportunity. This business has benefitted
from the secular trends in society where
our customers and partners increasingly
want to deal with us digitally. Across our
geographies, there are approximately
50 million SMEs, so the market is huge
and we are barely scraping the surface
of the opportunity ahead; I expect our
digital platforms to grow strongly for
many years to come.
In this new and emerging landscape,
Hiscox has developed market-leading
capabilities including products designed
to meet customer needs, strong brand
awareness, an underwriting ecosystem
and investment in technology; this has
enabled a significant part of the value-
chain to be automated, while delivering
superb customer service. Capturing this
opportunity is not simply about deploying
cool technology, we are underwriters
first and foremost, technical rigor and
disciplined risk management are a
prerequisite. We see technology as being
an enabler, allowing Hiscox to access
new markets in new ways.
Through long-term investment Hiscox
now has market-leading platforms in
the USA and UK and an emerging digital
business in Europe. The opportunity is
particularly significant in the USA where
we believe we will continue to win in the
long run, becoming one of the dominant
players, so it makes clear strategic sense
to continue investing in this business.
Building scale is important, not just for
operating leverage and cost efficiency,
but to drive further growth. Expanding
our customer base will make us into
an increasingly attractive distribution
partner. Over time our objective is to build
a marketplace for our customers, offering
a broad range of insurance products
catering for all their key needs. Some of
these products Hiscox will underwrite on
our own balance sheet, while others we
will offer through our expanding range of
reputable partners. The aim is to create
a small business commercial insurance
marketplace in which Hiscox is a central
and meaningful player.
Our confidence in being able to succeed
comes from the strength of our core
Group capabilities – our powerful brand,
the cross-divisional fertilisation of data
and analytics to improve underwriting
decisions and our ability to selectively
invest from the Group’s capital pool to
keep our client service and scalability
of platform market-leading.
Retail traditional – source of continued
growth and profitability for the Group
Our Retail traditional business, which
is distributed and serviced through the
traditional non-digital channels, has been
the backbone of growth and profitability
for the Retail division and in recent years
for the Group (with the exception of 2020
that was affected by the pandemic) as we
have traded through challenging market
conditions in our big-ticket businesses.
Over the years we have built this
business carefully by being specialists
in attractive and large niches, getting to
know our customers’ needs intimately,
building strong distribution partnerships,
maintaining robust risk selection and
delivering excellent customer service.
We operate in meaningful niches with
material further growth potential, while
we also explore new adjacent niches
with specialist distribution partners,
into which the business can expand.
This business will continue to evolve:
for instance, we are in the process of
reshaping our US broker channel book
to focus on smaller business, and we are
making changes to further improve our
broker service model in the UK. This is all
part and parcel of building a sustainably
profitable business. This business will
continue to provide growth and most of
the Retail profits over the next five years.
Hiscox London Market – underwriting
pedigree meets trading innovation
Hiscox’s roots lie in the London Market.
This is our heritage and where we have
built a tremendous track record of delivery.
Our business continues to evolve as we
develop deeper underwriting expertise
and data analytics in our specialist
areas. We now lead over two-thirds of
the business we write in premium terms,
compared to just over a half four years
ago. This ensures we have much more
control of the business and the terms
on which it is being written, in short,
the Hiscox underwriting ecosystem
is driving decisions. I am also excited
1
These are Group strategy business components.
Accounting segmentation, which reflects
how the businesses are managed, remains
unchanged, as represented in 2021 financial
performance sections.

23Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chief Executive’s report
Chapter 1 4
Performance
and purpose
Professional liability
Errors and omissions
Private directors
and officers’ liability
Cyber
Commercial
small package
Small technology
and media
Healthcare related
Media and
entertainment
Kidnap and ransom
Contingency
Terrorism
Product recall
Personal accident
Property
Marine
Aviation
Casualty
Specialty
Commercial
property
Onshore energy
USA homeowners
Flood programmes
Managing
general agents
International
property
Cargo
Marine hull
Energy liability
Offshore energy
Marine liability
Public directors and
officers’ liability
Large cyber
General liability
SpecialtyReinsurance Property Global
casualty
Marine
and energy
+2%* +9%+8% +3% +6% -1%
Small
commercial
$1,707m
$917m
$482m
$562m
$289m
$359m
An actively managed business
Total Group controlled premium 31 December 2021: $4,795m
Period-on-period in constant currency
Home and contents
Fine art
Classic car
Luxury motor
Asian motor
Art and
private client
0%
$479m
* 8% including
$109m of US
exited business.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chief Executive’s report
Chapter 1 4
Performance
and purpose
24 Hiscox Ltd Report and Accounts 2021
about Hiscox London Market pioneering
digital underwriting and distribution in the
Lloyd’s market with its HiscoxPlus suite of
products reaching a critical mass of over
$100 million of gross premium written.
While this is still a small proportion of
Hiscox London Market’s top line, digital
distribution and auto-underwriting will
continue to grow in both importance and
quantum in the years to come, and in
2022 we expect this business to double
to over $200 million.
Hiscox London Market provides cyclical
growth opportunities, expanding
and shrinking as market conditions
change. Since 2017 conditions have
been improving and we now enjoy rate
adequacy in all of our lines. We have
used these improving market conditions
to create a better-balanced portfolio of
business, improve terms and conditions,
expand margins and grow net revenues in
business lines with better risk-adjusted
returns. As I look forward, the improved
balance and control, combined with
stronger margins and therefore resilience
in the portfolio position us well for
generating attractive risk-adjusted
returns through the cycle.
Hiscox Re & ILS – specialist capabilities
complemented by third-party capital model
Hiscox Re & ILS is also part of our
heritage and once again a business
that has had an excellent long-term
track record. This business operates in
a market where conditions are cyclical,
although the shape of the cycle has
changed over the last decade. The
development of insurance-linked
securities (ILS) platforms has resulted
in new and efficient capital coming into
the market. We have capitalised on this
opportunity and Hiscox Re & ILS has built
a successful ILS proposition, providing
a mechanism for lowering the cost of
capital for the business and providing
a means of scale in specialist areas in
which the business participates.
Market conditions have significantly
improved, although further rate increases
are necessary in some areas to genuinely
achieve satisfactory returns through the
cycle. We have used the last few years
to refocus on business lines in which we
have deep expertise, thereby creating
a balance which is consistent with our
underwriting expertise. This combined
with improving market conditions is
increasing the resilience of the portfolio
and creates the capacity to grow in lines
where the returns are stronger. Looking
forward, the improved resilience in
the portfolio, together with the growth
of ILS AUM, is expected to drive
much-improved generation of capital
and profits through the cycle.
These component parts of our business
enjoy a symbiotic relationship. The
development of market-leading
underwriting capabilities, deep
relationships, innovation and
entrepreneurial drive have traditionally
come from the big-ticket businesses.
In recent years, operational know-how,
new-generation digital technology, data
analytics and the auto-underwriting
expertise of the Retail digital business
have been supporting growth in the
rest of the Group. It is this ecosystem
wrapped in the unique culture of Hiscox
that is a source of strength and has helped
the business to withstand the external
challenges of recent years in order to
continue to deliver a resilient performance.
Turning to the 2021 financial result.
Rates
Rate momentum continues to be
favourable across all business divisions.
However, as the rating cycle unfolds at
a different pace, the dynamic is slightly
different by business segment.
Hiscox London Market began
benefitting from rate increases as
early as 2017 and has seen a cumulative
rates increase of 60%. In 2021, we
saw a 13% average rate improvement.
While rate growth is continuing, the
speed of increase is now slowing in all
lines except cyber. This is particularly
pronounced in US public company
D&O and US general liability, although
the overall rate adequacy remains
significantly above the loss experience
and expectation. We expect this trend
to continue in 2022 with momentum
slowing further, however, rate adequacy
remains solid and rates are likely to
remain in positive territory growing
by mid-single digits.
For Hiscox Re & ILS the market started
to turn slightly later, but the business
has achieved a cumulative rate increase
of 35% since 2017. In 2021, Re & ILS
saw an average rate increase of 8%.
European floods in July, Hurricane Ida’s
landfall in August and US tornadoes in
December were once again a useful
reminder of the risks borne by property
catastrophe reinsurers. As a result,
we have seen better underwriting
discipline and further rate strengthening
in North American property lines, risk,
retro, marine and specialty as well as
loss-impacted European business.
At the January 2022 renewals we saw
10% reinsurance rate growth, however,
it is our view that further increases are
necessary to achieve satisfactory returns
through the cycle in all property lines.
In light of this, Hiscox Re & ILS will
continue to be disciplined to ensure
the business we write is sufficiently
rated to make a sustainable profit.

25Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chief Executive’s report
Chapter 1 4
Performance
and purpose
Hiscox Retail is generally less cyclical
business with rates less prone to
extreme fluctuations, yet in 2021 Retail
rates increased by 5% on average.
This was led by Hiscox UK with rates
up 7% and Hiscox USA, where rates in
the broker business grew 10%. Even in
Hiscox Europe, where rate increases are
typically dampened by tacit renewals,
we saw increases of 4% on average.
Across all regions Retail rate increases
are at least adequate or in excess of loss
experience and expectation, resulting in
sustained or expanding margins.
Across all our business segments, through
a combination of an indexed increase to
exposure data and increasing rates, we
believe we are achieving premium growth
in excess of inflation expectations.
Claims
2021 was another year with above-mean
natural catastrophe losses. The Group
has reserved $223.8 million net of
reinstatement premiums, with Hiscox
Re & ILS most impacted. In Hiscox
London Market we reduced the property
catastrophe exposure in 2021 as we
made a conscious choice not to write
business where pricing is not deemed
adequate. In Hiscox Re & ILS, we
continued the re-underwriting action
commenced in 2020 as we further
reduced our exposure to aggregate
covers and increased attachment levels.
In 2021, we saw a continuation of
heightened threats in cyber and
fine-tuned our cyber appetite, focusing
our SME business within Retail,
reducing our exposure to ransomware
events in Hiscox London Market and
reducing cyber aggregate exposure.
The Hiscox CyberClear Academy, our
free online training program for our
smaller customers, goes from strength
to strength: we have now enrolled
over 30,000 customers across the
geographies in which we operate.
Our dedicated central cyber team
continues to support our cyber
underwriters across the Group,
delivering training to our underwriting
and claims teams. We now have nearly
20 employees who have gained
external cyber security certifications.
We have also added significant new
features to our Hiscox Cyber Insight
tool to support underwriting decisions,
including integration with Microsoft
Secure Score, which allows us to
streamline questions for customers,
and gain far greater insight into our
customers’ security position.
Throughout 2021, we worked closely
with customers and brokers in the UK
to pay business interruption claims as
quickly as possible. As of 31 January
2022, 84% of the claims notified
had received an outcome and we
expect to maintain the current claim
settlement momentum to resolve the
outstanding claims. The business
interruption claims in aggregate
continue to settle within the actuarial
best estimate and in addition we
continue to hold conservative
margin above the best estimate.
The UK business interruption book
has now been fully renewed with
the appropriate pandemic exclusion
terms. We have maintained continuous
and transparent dialogue with our
reinsurance panel throughout this
period and the reinsurance recoveries
are now being collected.
Hiscox Retail
Hiscox Retail comprises our retail
businesses around the world: Hiscox
UK, Hiscox Europe, Hiscox USA
and DirectAsia. In this segment, our
specialist knowledge and retail products
differentiate us and our ongoing
investment in the brand, distribution
and technology reinforces our strong
market position in an increasingly
digital world.
Hiscox Retail grew gross premiums
written by 5.0%, or 1.5% in constant
currency. Our commercial businesses,
which constitute over three-quarters of
the Retail portfolio in gross premiums
written terms, grew strongly across all
geographies. This was partially offset by
slower momentum in personal lines and
the impact of deliberate portfolio actions
in the US broker channel to reposition the
business towards smaller customers.
We have now exited over $100 million of
the non-core US business and, adjusting
for this, the Group Retail underlying
portfolio grew by 6.8% on a constant
currency basis.
Hiscox DPD business grew gross
premiums written by 18.2% in constant
currency to $694 million and now serves
over 910,000 customers. In the USA
our DPD business grew 25.5% and it
now represents almost two-thirds of
our global DPD business.
With the more significant portfolio action
largely executed in the broker channel,
the headline growth rate is expected to
trend back towards the middle of the
5% to 15% range for the Retail division
in 2022.
Together with delivering robust growth,
the Retail business has achieved an
underlying combined ratio of 97.3%,
a 2.6 points improvement on prior
year, despite sustaining a net natural
catastrophe loss of $34 million net of
reinstatement premiums. This underpins
Hiscox Retail
2021
$m
2020*
$m
Gross premiums written 2,290.0 2,180.0
Net premiums written 1,969.3 1, 9 07. 8
Underwriting profit/(loss) 34.9 (3 97.7 )
Investment result 26.9 103.4
Profit/(loss) before tax 54.9 (295.6)
Combined ratio (%) 98.9 123.4
Combined ratio excl. Covid-19 and loss portfolio transfer cost (%) 97.3 99.9
* Numbers have been re-presented to reflect reclassification of the Special Risks division.
See note 4 to the financial statements.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chief Executive’s report
Chapter 1 4
Performance
and purpose
26 Hiscox Ltd Report and Accounts 2021
our confidence that we are on track to
return to the 90%-95% combined ratio
range in 2023.
Hiscox UK
Hiscox UK provides commercial
insurance for small- and medium-sized
businesses as well as personal lines
cover, including high-value household,
fine art and luxury motor.
Hiscox UK gross premiums written of
$831.1 million (2020: $756.1 million)
are up 9.9% or 2.9% on a constant
currency basis. The business has
delivered a resilient performance,
despite the ongoing impact of Covid-19
on events and art exhibitions. The
commercial lines business is showing
strong growth of 9.9% in constant
currency, boosted by rate improvements,
maintaining good retention rates and
adding a net 45,000 customers. Rate
increases were achieved across the
portfolio of commercial business led
by cyber and professional indemnity
lines. In our personal lines business,
which includes art and private client
and direct home, we have taken
deliberate action to rebalance the
portfolio and non-renew some of
the higher commission business.
As a result, we have seen premiums
reduce by 4.9% in constant currency,
however, this action will improve our
business returns. The personal lines
business is expected to return to
growth in 2022.
The non-natural catastrophe loss
performance has been better than
the prior year, with a particularly benign
first half and return to a more normal
claims frequency in the second half.
The outlook for Hiscox UK is positive,
with opportunities to continue growing
in our established niches such as
technology, consultants and other
emerging professions, where Hiscox’s
competitive advantage is strong and
the opportunity is the most attractive.
In 2022, we expect to increase our
investment in marketing to build affinity
with new audiences and accelerate
the ongoing positive growth of the
digital acquisition channel.
Hiscox Europe
Hiscox Europe provides personal lines
cover, including high-value household,
fine art and classic car; as well as
commercial insurance for small- and
medium-sized businesses.
Hiscox Europe delivered another
strong top-line performance, growing
gross premiums written by 9.8% in
constant currency to $532.0 million
(2020: $461.1 million). Rates are up
4% on average, with double-digit
rate increases in cyber, commercial
property and traditional professional
indemnity. A large share of the European
book renews in January and our
underwriters have been focusing on
improving rate adequacy in cyber.
Hiscox Germany, Benelux and Iberia,
which together constitute around
60% of Hiscox Europe’s gross
premiums written, all grew top line
at double-digit rate in constant
currency, underpinned by healthy
growth in commercial lines. Hiscox
France, our second largest European
business, grew gross premiums
written by 5.9% in constant currency
despite the impact of continuing
course correction actions and
delivered strong new business
growth. Ireland’s performance is up
4.4%, as the business continues to
undertake re-underwriting actions.
Europe’s DPD business is relatively
nascent with gross premiums written
of just over $50 million and is growing
well. The digital opportunity in Europe is
attractive with around 11 million SMEs
in the markets where we operate and
about a half of these being our target
customers. Hiscox Europe started its
direct digital business first in France,
almost a decade ago, followed by
Germany. In June 2021, the Netherlands
became the latest market to launch a
digital proposition. Europe DPD is an
excellent example of leveraging
cross-market expertise and infrastructure
with the businesses using common
technology and sharing product
expertise and marketing collateral.
Similar to the UK, the non-natural
catastrophe loss performance has
been in line with expectations.
The roll-out of the new core technology
is progressing well in Germany and
France and we continue to enhance
our data infrastructure to drive more
sophisticated underwriting and pricing.
Hiscox USA
Hiscox USA focuses on underwriting
small commercial risks with
distribution through brokers, partners
and direct-to-consumer using both
traditional and digital trading models.
Our aspiration remains to build America’s
leading small business insurer.
Hiscox USA saw gross premiums
written decline 3.9% to $879.2 million
(2020: $914.6 million). This is in line with
our expectations and previous guidance,
as a result of planned reductions in
our US broker channel. We have now
exited over $100 million of large cyber,
stand-alone general liability and other
broker channel business which is no

27Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chief Executive’s report
Chapter 1 4
Performance
and purpose
longer within our appetite. This number
is slightly higher than originally indicated,
as we successfully accelerated our exit
plans in certain portfolios. Excluding the
effect of the course correction actions in
2021, Hiscox USA underlying portfolio
grew by 9.2%.
Our US digital partnerships and direct
business continues to deliver excellent
performance, with the top line growing
25.5% to $424 million, continuing the
excellent growth rate achieved the
year before. In the first half of the
year US DPD grew at 30%, above
our expectations, as the business
benefitted from the pent-up demand,
with the second half more in line with
the sustainable growth rate. We have
added around 90,000 customers in
2021 with approximately 520,000 now
insured. Over 80% of our new customers
accessed us digitally and over 90% of
new policies were auto-underwritten.
The US digital partnerships business
is growing particularly well, as we are
benefitting from distribution relationships
with over 140 partners. As our business
matures and our brand strengthens,
more and more of our premium is
coming from larger producing partners,
which contribute over a million of
revenue per annum to Hiscox. Over
the last three years the number of
these large partners almost doubled
to 41 today. One example of such
partnership is with Amazon. In August,
Hiscox joined a small network of
insurance providers to offer general
liability insurance to businesses selling
in Amazon’s marketplace through our
existing platform integrations with Bold
Penguin and Simply Business.
The US DPD business started 2022
with continued strong growth, however,
this is expected to moderate through
the third quarter as we take deliberate
action to limit new business to facilitate
the migration of our partners and existing
policyholders from our legacy policy
administration system to our modernised
next-generation platform. The new
technology will offer a wider product
portfolio, improved data collection,
better underwriting analytics, upgraded
pricing capability and enhanced digital
experience for agents and customers.
An expanded business owners’ policy
(BOP) and new cyber product are being
launched as part of the new technology
roll-out. The migration requires the
deliberate slowdown of growth, as we
bed in new systems, appetite, products
and rating, we expect to complete the
process by the end of the year and begin
to realise the full benefits of this multi-year
technology investment as we head into
2023. In 2022, we still expect full-year US
DPD growth of between 15% to 20%.
Hiscox Asia
Despite the challenges of Covid-19
lockdowns in its two Asian markets
alongside lower customer demand
and aggressive discounting by
competitors, DirectAsia delivered
gross premiums written of $47.7 million
(2020: $48.2 million), broadly in line
with 2020, as the fourth quarter saw
a recovery in revenues. DirectAsia
launched brand enhancements
campaigns in Singapore and Thailand
in November which will continue to
run throughout 2022. A reduced
claims frequency during the lockdowns
together with the continued focus on
profitability has resulted in an improved
underwriting result.
Hiscox London Market
Hiscox London Market uses the
global licences, distribution network
and credit rating of Lloyd’s to insure
clients throughout the world.
Hiscox London Market delivered a
strong performance in 2021, despite
the above-mean natural catastrophe
losses. Our underwriters have been
working tirelessly to deliver 13%
average portfolio rate growth in 2021,
with 16 of our 17 lines enjoying price
rises and 11 lines benefitting from
double-digit rate increases. Gross
premiums written grew 5.6% to
$1,171.4 million (2020: $1,109.7 million),
as we continued to execute course
correction actions in the property binder
portfolios, and build a more balanced
and resilient portfolio. Importantly, net
premiums written grew by 9.5%, almost
two times faster than top line, as the
strong rate momentum made retaining
more premium attractive. Hiscox
London Market incurred $68.1 million
of natural catastrophe losses in 2021
net of reinstatement premiums, mainly
from Hurricane Ida, US tornadoes and
Storm Uri. In contrast, non-catastrophe
experience in London Market was
favourable in the first three quarters of
the year, albeit several large cyber and
casualty losses occurred in the last two
months of 2021.
It is particularly pleasing that Syndicate
33, our flagship Lloyd’s syndicate,
achieved a 82.5% combined ratio
in 2021 calendar year, the best result
since 2016.
We are making good progress on digital
distribution and underwriting. Hiscox
London Market’s digital strategy started
in 2016 with the launch of FloodPlus
which offers flood cover to commercial
and residential properties in the USA
across 49 states as an alternative to the
National Flood Insurance Program (NFIP)
Hiscox London Market
2021
$m
2020*
$m
Gross premiums written 1,171.4 1,10 9.7
Net premiums written 711.5 649.9
Underwriting profit 89.6 94.8
Investment result 15.8 60.5
Profit before tax 104.8 155.2
Combined ratio (%) 89.1 89.2
* Numbers have been re-presented to reflect reclassification of the Special Risks division.
See note 4 to the financial statements.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chief Executive’s report
Chapter 1 4
Performance
and purpose
28 Hiscox Ltd Report and Accounts 2021
product. In 2020, we further expanded
our product range by launching FloodPlus
Excess, offering additional cover in
excess of the NFIP. In the five years
since inception, FloodPlus has grown
to form the majority of our $100 million
flood book with 70,000 customers.
Twenty-eight of our coverholder partners
are seamlessly connected to our
FloodPlus API service that uses advanced
algorithms to deliver bindable quotes in
less than ten seconds and it is currently
averaging 17,000 quotes per week.
FloodPlus has advanced risk management
capability, allowing the control of
aggregate exposure to an extremely
granular level. This approach combined
with the ability to adjust prices in real time
allows the generation of optimal spread
of risk through the portfolio.
In 2020, we launched BindPlus Residential
which offers private property insurance
with coverage for wind, earthquakes,
wildfires and any other perils. In March
2021 we extended our BindPlus
API offering by launching BindPlus
Commercial, supplementing the flood
and the household products already
on the platform. Our plan for 2022 is to
streamline the platform technology and
scale it to meet the growth ambition we
have for this business.
In February 2022, Helen Rose assumed
her role as Chief Financial Officer of
Hiscox London Market and Hiscox
Syndicates Limited. With more than a
decade in the insurance industry, Helen
held a number of roles with Aspen Group,
including Insurance CFO, UK CFO and
most recently Chief Accounting Officer.
Hiscox Re & ILS
Gross premiums written increased
by 8.7% to $807.8 million (2020:
$743.4 million), however, excluding
reinstatement premiums, premiums
are down 0.4% year on year, as an
improved rating environment has been
offset by re-underwriting actions in risk
and pro-rata and aggregate books.
Importantly, net premiums written grew
by 42.3% as we deployed more capital
into an improving rating environment,
which will build earnings power into
2022. Hiscox Re & ILS made a profit of
$98.5 million and achieved combined
ratio of 68.0%; this is an excellent result.
Hiscox Re & ILS business delivered
$91.1 million of underwriting result, as a
strong non-catastrophe loss experience
and favourable prior-year movements
in our Japan and risk books more
than offset the elevated net natural
catastrophe losses of $122.0 million net
of reinstatement premiums in the period.
Since 2016, Hiscox Re & ILS has
non-renewed $378 million of
non-profitable business, having fully
exited casualty and healthcare and
significantly reduced risk exposure.
In property, we have reduced the
aggregate and bottom layer exposures
on North American catastrophe
business, most notably in Florida, and
our Japanese typhoon exposure is 23%
less than it was three years ago. In cyber,
ahead of the market, we exited some
low attaching risks to reduce exposures
to increasing ransomware attacks while
our core stop loss product continued
to benefit directly from the significant
improvements in the underlying rate
adequacy. In short, we have rebalanced
the book to align to our expertise and
create more resilience while also driving
rate improvement and margin expansion.
Our ILS proposition has attracted new
inflows, $190 million in 2021 and a
further $217 million in January 2022.
AUM stands at $1.6 billion at 1 January
2022 ($1.4 billion at 31 December 2021),
supporting gross premiums written
growth into 2022.
Matthew Wilken joined the business as
our new Chief Underwriting Officer in
January 2022. He joins from MS Amlin
Underwriting Ltd, where he held the Head
of Reinsurance role. Matthew spent his
early career at Kiln Syndicate, Argo Re and
Ariel Re. With his underwriting acumen
and a strong market reputation, we are
delighted to be further strengthening our
underwriting and executive teams.
Dividend, capital and
liquidity management
The Group remains strongly capitalised
against both regulatory and rating
agency requirements. The Hiscox
Group Bermuda solvency capital
requirement (BSCR) ratio is estimated
at 31 December 2021 at 200%, a
13 percentage point improvement on
the prior year. The 11 percentage point
impact of the final stage of strengthening
of the formula (an industry-wide basis
strengthening implemented by our
Group regulator, the Bermuda Monetary
Authority) was more than offset by a
combination of strong organic capital
generation and 13 percentage points
of benefit from proactive capital
management through loss portfolio
transfer (LPT) transactions executed in
the period. On an S&P basis we remain
well capitalised to maintain an A rating.
S&P are in the process of updating their
capital model, as a result of this Hiscox is
expected to benefit from recognition of
risk diversification benefit in our business
model and conservative reserve margin.
During 2021 and into 2022, we have
continued to proactively take action to
limit profit volatility from the back-book,
in particular where we have decided
Hiscox Re & ILS
2021
$m
2020
$m
Gross premiums written 807.8 743.4
Net premiums written 274.2 192.7
Underwriting profit/(loss) 91.1 (67.7 )
Investment result 8.8 33.6
Profit/(loss) before tax 98.5 (3 5.1)
Combined ratio (%) 68.0 131.8

29Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chief Executive’s report
Chapter 1 4
Performance
and purpose
Reinsurance
19%
Large property
10%
Casualty
8%
Specialty – terrorism, product recall
6%
Marine and energy
6%
Small commercial
28%
Tech and media casualty
7%
Art and private client
10%
Specialty – kidnap and ransom,
contingency, personal accident
4%
Small property
2%
Big-ticket business
Larger premium, globally traded, catastrophe-exposed
business written mainly through Hiscox London Market
and Hiscox Re & ILS.
Retail business
Smaller premium, locally traded, relatively less volatile business
written mainly through Hiscox Retail.
Strategic focus
Total Group controlled income for 2021
100% = $4,795 million

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chief Executive’s report
Chapter 1 4
Performance
and purpose
30 Hiscox Ltd Report and Accounts 2021
Portfolio – asset mix
Investment portfolio $7,290 million as at 31 December 2021
Asset allocation (%)
Debt and fixed income holdings 75.9
Cash and cash equivalents 17.8
Equity and investment funds 6.3
Debt and fixed income holdings credit quality (%)
Gvt 16.4
AAA 11.4
AA 9.6
A 28.0
BBB 28.7
BB and below 5.9
Debt and fixed income holdings currency split (%)
USD 70.4
GBP 17.3
EUR 8.4
CAD and other 3.9

31Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chief Executive’s report
Chapter 1 4
Performance
and purpose
to exit the business. In the first half
of 2021, the Group undertook two
LPT transactions, covering legacy
healthcare claims in Bermuda and
the selected lines of Hiscox Syndicate
3624, including the majority of Hiscox
USA’s surplus lines broker business.
The two transactions cover 15% of
2019 and prior years’ gross reserves,
and will remove potential reserve
volatility from longer tail lines which
we have mostly exited in the coming
years, thus allowing management to
focus on the opportunities presented
by the good trading conditions we have
ahead of us. This together with the
substantial reserve margin above the
actuarial best estimate demonstrates
our resilient foundations.
The Board believes that paying a
dividend is one important indicator
of the financial health of the Group.
Having carefully considered the capital
requirements of the business, the Board
has recommended to shareholders
for approval the payment of the final
dividend at 23.0 cents per share.
This brings our total dividend for the
year to 34.5 cents per share. The
record date for the dividend will be
6 May 2022 and the payment date will
be 13 June 2022. The Board proposes
to offer a Scrip alternative, subject to the
terms and conditions of Hiscox’s 2019
Scrip Dividend Scheme. The last date
for receipt of Scrip elections will be
20 May 2022 and the reference price will
be announced on 30 May 2022. Further
details on the dividend election process
and Scrip alternative can be found on the
investor relations section of our corporate
website, www.hiscoxgroup.com.
Investments
We manage our investment portfolio with
two main objectives in mind:
providing sufficient liquidity to pay
claims and providing capital to
support the underwriting business,
while generating strong risk-adjusted
returns. Given the depressed yield on
our short-dated bond portfolio at the
start of the year, and the rising rate
environment during 2021 driving
mark to market losses, investment
returns were subdued at $51.2 million
(2020: $197.5 million) after investment
expenses, a return of 0.7% (2020: 2.8%).
Assets under management at
31 December 2021 were $7.3 billion
(December 2020: $7.6 billion).
Despite global supply chain pressures
and intermittent pandemic-driven
lockdowns, the strong global economic
recovery saw equity markets deliver
strong returns over the year. While
bond markets were initially calmed by
reassurance from central banks that
inflationary pressures were temporary,
the latter part of 2021 saw sharper
increases in bond yields as central
banks started to scale back asset
purchases and indicate that they
would implement tighter interest
rate policy going forwards.
Government bond yields increased
over the period, however, they remain
depressed relative to historical levels
and credit spreads for high-quality
bonds remain near their historical
lows. The yield to maturity on the
bond portfolio improved in 2021,
but remained modest at 1.0% at end
December 2021 (December 2020: 0.4%).
Central banks have started to tighten
monetary policy since the year end,
and markets are pricing in several rate
rises through 2022 and government
bond yields have shifted sharply higher
at shorter maturities. The resulting
The Board believes that
paying a dividend is
one important indicator
of the financial health
of the Group. Having
carefully considered the
capital requirements of
the business, the Board
has recommended to
shareholders for approval
the payment of the final
dividend at 23.0 cents
per share.”

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chief Executive’s report
Chapter 1 4
Performance
and purpose
32 Hiscox Ltd Report and Accounts 2021
temporary mark to market losses on
our short-dated bond portfolios will
make a considerable dent in 2022
investment returns, but we are pleased
that the interest rate environment
has started to normalise, markedly
improving reinvestment opportunities
in the longer term.
Year to date, our bond portfolio yield
has risen to 1.7%, up from 1.0% at end
December 2021. The short-dated
nature of our investment portfolio means
we will be able to reinvest maturities
at higher rates to capitalise on the
higher yield environment during 2022,
however, this will be partly offset by
mark to market losses in the short term.
The outlook for 2023 is now looking
brighter with respect to investment
income and we continue to look through
ongoing volatility to steadily invest into
diversifying positions where valuations
present attractive long-term risk and
capital-adjusted outcomes.
People
Hiscox could not have become
the business it is today without the
contribution of its dedicated, resourceful
and talented people; our future success
fully rests on our people. It is a key
competitive advantage that we have and
I am fully committed to nurturing and
investing in our people. I am also pleased
to welcome new world-class talent to the
Group. In December, we announced
Paul Cooper was appointed as Group
Chief Financial Officer, subject to
regulatory approval. Paul has over 25
years of financial services experience
across both the retail and Lloyd’s
insurance markets and his broad
commercial acumen as well as his
audit, regulatory and capital markets
experience will help us capture the
many opportunities ahead.
In February 2022, Jon Dye was
appointed to become the new UK Chief
Executive Officer, effective September
2022, subject to regulatory approval. Jon
has held a number of senior roles within
the industry, most recently as CEO of
Allianz UK for eight years. He also served
as Chair of the ABI between 2019 and
2021, and as such has driven industry
collaboration on issues including the
industry’s response to the pandemic,
FCA fair pricing review and climate
change. Jon is a recognised industry
leader with solid CEO experience and
I look forward to working with him as
part of our Group Executive Team.
Hiscox has always had a differentiated
culture and we are keen to preserve
its unique nature, such as a sense of
proprietary ownership, entrepreneurial
spirit, empathy for each other, customers
and partners. At the same time, we are
entering a new stage of our journey, so
our culture will evolve as we become a
larger business. I am keen for our people
to be clear about the role they play in the
overall Group strategy and how they are
contributing to our joint future success.
With this in mind I have created a single
Group Executive Committee, with five
business unit CEOs complemented by
five functional leaders, including the new
role of a Group Chief Operating Officer.
Our new executive leadership team will
ensure increased collaboration between
business units and Group functions and
will steer coordinated execution of the
Group strategy.
Environmental, social and governance
ESG matters at Hiscox; it is why we were
a founding member of ClimateWise, a
public supporter of the Task Force on
Climate-related Financial Disclosures
(TCFD) and a signatory to the 2015 Paris
Agreement. We made good progress on
ESG issues in 2021, but of course there is
more still to do.
On the environmental side, we made
new greenhouse gas (GHG) emission
reduction commitments, using
Science Based Targets initiative (SBTi)
methodologies, that align with a
1.5°C net-zero world by 2050. These
include reducing our Scope 1 and 2
emissions by 50% by 2030; reducing
our operational Scope 3 emissions by
25% per FTE by 2030; and transitioning
our investment portfolios to net zero by
2050. The aim is that more than 25% of
our corporate bond portfolio by invested
value will have net-zero/Paris-aligned
targets by 2025, and more than 50%
by 2030. Our new commitments also
include engaging with our suppliers,
brokers and reinsurers on our net-zero
targets as well as their own, and
Hiscox could not have
become the business
it is today without
the contribution of its
dedicated, resourceful
and talented people;
our future success fully
rests on our people.”

33Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chief Executive’s report
Chapter 1 4
Performance
and purpose
monitoring emerging standards around
underwritten emissions so we can
align with best practice as it emerges.
We will share periodic updates on our
progress towards accomplishing these
ambitions, and remain operationally
carbon neutral through offsetting, as
we have been since 2014.
In addition, our ESG exclusions policy
– which sets out our ambition to reduce
steadily and eliminate by 2030 our
insurance, reinsurance and investment
exposure to coal-fired power plants and
coal mines; Arctic energy exploration,
beginning in the Arctic National
Wildlife Refuge region; oil sands; and
controversial weapons – officially
came into force on 1 January 2022. Our
big-ticket risks are now categorised by
ESG status and we have developed new
underwriting dashboards that provide
live views of our exposure to excluded
sectors; steps that enabled us to start
declining out-of-scope risks ahead of
time. In investments, we have been
embedding a range of ESG requirements
in segregated investment manager
mandates and have already eliminated
all direct exposures outside of appetite.
This, alongside the semi-annual ESG
reviews we have established with our
managers, has enabled our investment in
sustainable and impact assets including
green bonds to reach over $250 million.
When it comes to social, I think of this
in three parts: customers, colleagues
and communities. We paid $1.25 billion
in claims during the year, but we also
helped our customers to actively manage
risk through tools such as our CyberClear
Training Academy. For colleagues, we
continue to focus on improving diversity
at all levels. Our 15 employee network
chapters – encompassing Latino and
Pan-African communities, WeMind,
Pride, and parents and caregivers –
play an important part in this, but so
too does our diversity reporting. 2021
marked our fifth year of UK gender pay
reporting and although our gender pay
gap has been steadily reducing since
2017, it continues to be predominantly
driven by more men than women holding
more senior roles. I am pleased to see
our current Board diversity reach 55%
men and 45% women, and my newly
formed Group Executive Committee
comprises 40% men and 60% women,
but equally I recognise we have more to
do here. And finally, our communities,
where the combination of Hiscox Gives
(our fundraising and volunteering arm),
the Hiscox Foundation (our charitable
foundation) and our employee-led
green teams continue to drive a range
of socially responsible initiatives – from
beach clean-ups in Bermuda to plastic
fishing on the River Thames. In 2021,
this work resulted in $1.5 million
donated to good causes and over
1,000 volunteering hours.
In governance, we boosted our existing
commitments by becoming members
of the Principles for Responsible
Investment (PRI) – both as an asset
owner and asset manager – and the
Principles for Sustainable Insurance
(PSI). We also strengthened our existing
ESG oversight structure with the
formation of our Sustainability Steering
Committee (SSC), bringing new senior
expertise to our activities. The SSC
is responsible for executing our ESG
strategy across our operations, driving
actions and delivery at a Group level,
tracking our sustainability performance
over time, and identifying relevant risks
and opportunities – with an initial focus
on climate change. I am pleased to chair
the SSC and personally contribute to our
sustainability agenda.
Outlook
I am optimistic about the outlook
for 2022. Cumulative rate increases
over a number of years in our big-
ticket businesses have created the
opportunity to build balanced portfolios
with improved margins and resilience
and the profit outlook is positive. Our
Retail business is very well placed to
drive significant growth into large and
underserved markets. With much of the
course correction complete, I expect
this to lead to strong headline growth,
improving profitability and we remain
on track to achieve the 90% to 95%
combined ratio target in 2023.
While the recent extreme weather
events are a stark reminder that we
live in an unpredictable world, the
re-underwriting actions we have
undertaken mean our business
portfolio is less volatile and more
resilient; and we are strongly capitalised
with sufficient financial flexibility to
support our growth ambitions.
Finally, I would like to thank our
employees, business partners and
shareholders for their continued support.
Aki Hussain
Group Chief Executive Officer
2 March 2022

34 Hiscox Ltd Report and Accounts 2021
In 1997, when Robert
Dietrich joined Hiscox as
an administration manager,
he was the business’s fifth
employee in Germany.
Sixteen years ago, after
a stint as European
Underwriting Director,
he became Managing
Director of Germany. In
2021, he was made Chief
Executive Officer of Hiscox
Europe, overseeing eight
countries and more than
600 employees.
Q: In your 25 years with
Hiscox, how dramatically
has the European
operation changed?
A: When we started in Germany
nobody knew us. Nobody.
They couldn’t even pronounce
Hiscox. There was an orange
juice in Germany that had a
similar name, so everybody
here thought we made orange
juice. Hiscox didn’t have any
brand; now we have a very
good brand. Almost everything
has changed. The only thing
that hasn’t changed is that
start-up mentality, that feeling
that you haven’t achieved it yet,
that you’ve just started the first
chapter of an exciting book
and there’s so much more to
do. People are really motivated
to be here. It’s fun to build
something. We always say:
“Next year is going to be super
exciting”, and it’s true every
year. Next year is going to be
super exciting, we’re going to
do something completely new
and challenging. I have not
been bored one single day at
Hiscox, not one single day.
Q: How does it work,
running a business across
an entire continent?
A: We’re taking care of eight
countries, and we’ve got
over 600 people. It can be
complicated, having different
nationalities, different sizes
of operation, different
evolution stages, but we
believe that we’re greater
together. We exchange
so many ideas – that’s the
fascinating part of being so
international, that you can
get the best ideas from all the
different countries. Our vision
is that we want to become
the most recommended
insurer in Europe. That’s
the common goal.
Q: Looking back at 2021,
what are the achievements
that stand out for you?
A: The thing that I’m most
happy about is how we
managed to respond to
Covid-19. At the start of the
crisis, we said: “We’ll look after
our people, we’ll look after our
clients, and we’ll make sure
we don’t stop the big strategic
initiatives”. In Europe, I think we
accomplished all three goals.
The business results have
been very good – we’ve grown
and we’re profitable – but the
bigger accomplishment has
been in the culture and the
spirit, and how that’s survived
the pandemic.
Beyond that, the thing
I’m most proud of is that in
2020, right at the beginning
of lockdown, we started a
technology project called
Leap. There was a big
question: can we manage a
big project like that remotely,
with people from Germany, the
UK, Israel, Portugal, India, all
working together to achieve
something? The team did so
well. We did it on time and
within budget. This wasn’t
just a job, this was a mission.
It’s something we will benefit
from for years to come.
Q: What is Project Leap
seeking to achieve?
A: It’s about rebuilding our
core system. At an insurance
company, the core system
is the most complex thing
to change – it underpins
everything. For 23 years,
we’ve worked with a system
we created ourselves. I’m quite
proud of what we built, but
with it we wouldn’t be able to
achieve our vision. The new
platform will make it possible
for our business to really scale
up, get better connectivity
to the market, increase
automation and set the
foundations for gathering and
using data. We started with
Germany as a pilot, and now
we’re moving on to France.
This is where this idea of
‘greater together’ comes in: no
country in isolation could afford
a system change like that,
but combined we can do it.
Q: Are there any other
changes happening
in parallel?
A: On the front end, working
with brokers, we’re continuing
to move into digitisation.
That’s also the case with
direct-to-consumer,
because buying behaviour
is changing so quickly.
If you’re a 28-year-old
consultant and you want
to buy insurance on a
Sunday evening, you don’t
want to go via a broker.
New partnerships and new
platforms are emerging all
the time. It’s not just brokers
and end consumers, either. In
France, for example, smaller
clients often go via banks, so
we need to partner with those
banks. These models are
changing, and we need
to play a role in all of them.
Q: How do you see the
human value being
applied at Hiscox?
A: For me, it’s not necessarily
always the big things. It’s
lots of small things. It’s about
being a decent person. It’s
about saying please and
thank you and well done,
no matter what position
you’re in. It’s about helping a
colleague who needs a hand,
supporting someone who
feels a bit down, just being
there when you’re needed.
It’s how we treat clients if
they have a claim. It’s how
we deal with a complaint.
It’s about trying to feel a bit of
what other people are going
through. That’s what being
human means.
Q: During the lockdowns
of the past two years, what
did you miss most about
being around other people?
A: For me, the office is like a
cultural shower. It’s refreshing.
Every person you meet, you
have a chat, you have a laugh,
you discuss something, you
have a creative idea together.
I think we did a pretty good job
in trying to be connected, but
just having an unscheduled
chat and a laugh, a bit of
camaraderie, I think that’s
the bit that I missed most.
Q&
A:
with Robert Dietrich
Chief Executive Officer, Hiscox Europe
Euro vision
Hiscox Europe is
transforming its core
system through
Project Leap and has
developed a strong
vision for the future.

35Hiscox Ltd Report and Accounts 2021

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
36 Hiscox Ltd Report and Accounts 2021
Capital
We continue to
manage our capital
proactively, leading
to a robust position
which will enable us to
seize the underwriting
opportunities that
lie ahead.”
Craig Martindale
Group Head of Capital Management
The Board monitors the Group’s
capital strength, ensuring Hiscox
remains suitably capitalised for
regulatory and rating purposes, and
to fund future growth opportunities.
Monitoring of the Group’s capital
requirements is based on both external
risk measures, set by regulators and
rating agencies, and our own internal
guidelines for risk appetite.
The Group measures its capital
requirements against its available
capital, which is defined by the Group
as the total of net tangible asset
value and subordinated debt. The
subordinated debt issued by the
Group is hybrid in nature, which
means it counts towards regulatory
and rating agency capital requirements.
At 31December2021, available capital
was $2,599million (2020:$2,431million),
comprising net tangible asset value of
$2,226million (2020:$2,055million)
and subordinated debt of $373million
(2020:$376million).
The Group can source additional
funding from its borrowing facilities
which comprise a revolving credit and
Letter of Credit facility, as well as a
Tier 1 Funds at Lloyd’s facility. Standby
funding from these sources comprised
$941million (2020: $946 million), of
which $331million was utilised as at
31December2021 (2020:$524million).
Our key rating agencies, A.M. Best,
S&P and Fitch, calculate capital
adequacy by measuring available
capital, after making various balance
sheet adjustments, and comparing
it with required capital, which
incorporates charges for catastrophe,
premium, reserve, investment and
credit risk. Our interpretation of
the results of each of these models
indicates that we are comfortably able
to maintain our current A ratings. In
December 2021, S&P published details
of significant proposed changes to
the model used to assess our capital
adequacy for consultation. We expect
these changes to be introduced
during 2022. We will be looking at any
consequences for our capital position
very closely and will factor this into our
capital management plans. Being an
A-rated business is important to us,
and our intention is to maintain our
current strong ratings.
The Group manages the underwriting
portfolio so that, in a 1-in-200 aggregate
bad year across all major risk types, it
will still be able to meet its regulatory
capital commitments. A market loss of
this magnitude would be expected to
bring about increases in the pricing of
risk, and the Group’s capital strength and
financial flexibility following this scenario
means we would be well positioned to
take advantage of any opportunities
that might arise as a result.
The Group is regulated by the Bermuda
Monetary Authority (BMA) under
the Bermuda Group Supervisory
Framework. The BMA requires Hiscox
to monitor its Group solvency and
provide a return in accordance with the
Group Solvency Self Assessment (GSSA)
framework, including an assessment
of the Group’s Bermuda Solvency
Capital Requirement (BSCR). The BSCR
model applies charges for catastrophe,
premium, reserve, credit and market
risks to determine the minimum capital
required to remain solvent throughout
the year.
The GSSA is based on the Group’s own
internally-assessed capital requirements

0.0
0.5
1.0
1.5
2.0
2.5
3.0
A.M. Best S&P Fitch Hiscox
integrated
capital model
(economic)
Hiscox
integrated
capital model
(regulatory)
Bermuda
enhanced
solvency
capital
requirement
$2.60 billion available capital
Economic
Regulatory
$2.52 billion available capital (post-final dividend)
37Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Capital
Chapter 1 4
Performance
and purpose
and is informed by the Group-wide
Hiscox integrated capital model (HICM)
that, together with the BSCR, forms
part of the BMA’s annual solvency
assessment. The HICM provides a
consistent view of capital requirements
for all segments of the business and at
Group level.
The Group’s estimate for the year-end
2021 BSCR solvency coverage ratio is
200%, which includes the final stage of
changes to the BSCR standard formula
phased in by the BMA over a three-year
period, which began in 2019. These
changes since last year-end have
been effectively offset by our proactive
approach to capital management in
the form of two loss portfolio transfer
transactions. The first relates to legacy
healthcare claims in Bermuda, while
the second covers selected lines of
Hiscox Syndicate 3624, including the
majority of Hiscox USA’s surplus lines
broker business. Both transactions are
designed to remove reserve volatility in
the coming years, allowing us to focus on
the opportunities presented by the good
trading conditions we have ahead of us.
The Group continues to operate with a
robust solvency position and expects
to maintain an appropriate margin of
solvency going forward. In addition, each
of the respective insurance carriers holds
appropriate capital positions on a local
regulatory basis.
The Hiscox businesses are rated
‘A’ by A.M. Best and S&P and A+
by Fitch. Read more in note 3 to
the financial statements.
Read more about our financial condition
in our financial condition report
hiscoxgroup.com/about-hiscox/
group-policies-and-disclosures
Projected capital requirement
167
Rating agency assessments shown are internal Hiscox assessments of the agency capital requirements
on the basis of projected year-end 2021. Hiscox uses the internally developed Hiscox integrated capital
model to assess its own capital needs on both a trading (economic) and purely regulatory basis. All capital
requirements have been normalised with respect to variations in the allowable capital in each assessment
for comparison to a consistent available capital figure. The available capital figure comprises net tangible
assets and subordinated debt.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
38 Hiscox Ltd Report and Accounts 2021
Risk management
Our risk management
strategies continue to
evolve with our business,
enabling us to adapt
our responses to
key emerging and
changing trends like
climate and cyber.”
Hanna Kam
Group Chief Risk Officer
The Group’s core business is to take
risk where it is adequately rewarded,
guided by a strategy that aims to
maximise return on equity within a
defined risk appetite. The Group’s
success is dependent on how well
we understand and manage our
exposures to principal risks.
Risk strategy
Our robust risk strategy positions us to
capture the upside of the risks we pursue
and effectively manage the downside of
the risks to which we are exposed. It is
based on three key principles:
— we maintain underwriting discipline;
— we seek balance and diversity
through the underwriting cycle;
— we are transparent in our approach
to risk, which allows us to
continually improve awareness
and hone our response.
Risk management framework
The Group takes an enterprise-wide
approach to managing risk. The risk
management framework provides
a controlled system for identifying,
measuring, managing, monitoring
and reporting risk across the Group.
It supports innovative and disciplined
underwriting across many different
classes of insurance by guiding our
appetite and tolerance for risk.
Exposures are monitored and
evaluated both within the business
units and at Group level to assess
the overall level of risk being taken
and the mitigation approaches being
used. We consider how different
exposures and risk types interact,
and whether these may result in
correlations, concentrations or
dependencies. The objective is to
optimise risk-return decision-making
while managing total exposure, and in
doing so remain within the parameters
set by the Board.
The risk management framework is
underpinned by a system of internal
control, which provides a proportionate
and consistent system for designing,
implementing, operating and
assessing how we manage our key
risks. This framework is regularly
reviewed and enhanced to reflect
evolving practice on risk management
and governance. During 2021, we
continued to embed and strengthen
our system of internal control.
Risk appetite
The risk appetite sets out the nature and
degree of risk the Group is prepared to
take to meet its strategic objectives and
business plan. It forms the basis of our
exposure management and is monitored
throughout the year.
Our risk appetite is set out in risk
appetite statements, which outline the
level of risk we are willing to assume,
both by type and overall, and define
our risk tolerances: the thresholds
whose approach would represent a
‘red alert’ for senior management and
the Board.
Risk appetites, which are set for each
of our insurance carriers and for the
Group as a whole, are reviewed
annually, enabling us to respond to
internal and external factors such as
the growth or shrinkage of an area of
the business, or changes in the
underwriting cycle that may have an
impact on capacity and rates. In 2021,
we continued to enhance and refine
our risk appetite statements across
the Group.

39Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Risk management
Chapter 1 4
Performance
and purpose
Risk management across the business
The Group coordinates risk management
roles and responsibilities across three
lines of defence. These are set out
in the model to the right. Risk is also
overseen and managed by formal and
informal committees and working groups
across the first and second lines of
defence. These focus on specific risks
such as catastrophe, cyber, casualty,
sustainability, reserving, investments
and credit, as well as emerging risks.
The Group Risk and Capital Committee
and the Group Underwriting Review
Committee make wider decisions on risk.
The Own Risk and Solvency
Assessment (ORSA) process
The Group’s ORSA process involves a
self-assessment of the risk mitigation
and capital resources needed to achieve
the strategic objectives of the Group
and relevant insurance carriers on a
current and forward-looking basis,
while remaining solvent, given their risk
profiles. The annual process includes
multi-disciplinary teams from across the
business, such as capital, finance and
business planning.
O
R
S
A
p
r
o
c
e
s
s
Risk
appetite
Risk
owner
Risk
measurement
Risk
mitigation
Risk
monitoring
Risk
reporting
Risk
definition
Risk governance
Third line of defence
Provides independent assurance
of risk control
Provides independent assurance to
the Board that risk control is being
managed in line with approved policies,
appetite, frameworks and processes,
and helps verify that the system of
internal control is effective. Consists
of the internal audit function.
Risk management framework
Understanding and managing the
significant exposures we face.
First line of defence
Owns risk and controls
Responsible for ownership and
management of risks on a day-to-day
basis. Consists of everyone at every
level in the organisation, as all have
responsibility for risk management
at an operational level.
Second line of defence
Assesses, challenges and advises
on risk objectively
Provides independent oversight,
challenge and support to the first line
of defence. Includes the Group risk
team and the compliance team.
Three lines of defence model Hiscox Own Risk and Solvency
Assessment (ORSA) framework
The Group’s ORSA process is an evolution
of its long-standing risk management
and capital assessment processes.
ORSA governance
Business
planning
ORSA
documentation
Assurance
Risk
assessment
Capital and
solvency
assessment

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Risk management
Chapter 1 4
Performance
and purpose
40 Hiscox Ltd Report and Accounts 2021
The role of the Board in risk
management and key
developments during 2021
The Board is at the heart of risk
governance and is responsible for
setting the Group’s risk strategy
and appetite, and for overseeing
risk management (including the risk
management framework). The Risk
Committee of the Board advises on
how best to manage the Group’s risk
profile by reviewing the effectiveness
of risk management activities and
monitoring the Group’s risk exposures,
to inform Board decisions.
The Risk Committee relies on frequent
updates from within the business and
from independent risk experts. At each
of its meetings during the year, the Risk
Committee reviews and discusses a
risk dashboard and a critical risk tracker
which monitors the most significant
exposures to the business, including
emerging risks and risks that have
emerged but continue to evolve. The
Risk Committee also engages in focused
reviews. Stress tests and reverse stress
tests (scenarios such as those shown
in the chart opposite, which could
potentially give rise to business failure
as a result of either a lack of viability or
capital depletion) are also performed
and reported on to the Risk Committee.
The Risk Committee also provided input
into a number of key risk management
developments during 2021.
— A structural review of the risk
appetite limits framework
was undertaken, taking into
consideration the changing nature
of the Group’s business mix. This
included an enhancement of the
risk limits calibration to reflect
the interdependent relationship
between underwriting risk (current
principal risks facing the Company,
including those that would threaten its
business model, future performance,
solvency or liquidity, has been carried
out during the year and that no
material changes to the principal
risks are required.
The role of the Group risk team
The Group risk team is responsible
for designing and overseeing the
implementation and continual
improvement of the risk management
framework. The team is led by the
Group Chief Risk Officer who reports
to the Group Chief Executive Officer,
the Risk Committee of the Board and
of the relevant subsidiary boards.
The team works with the first-line
business units to understand how they
manage risks and whether they need
to make changes in their approach.
It is also responsible for monitoring
how the business goes about meeting
regulatory expectations around
enterprise risk management.
2021 has seen a continued focus on
improving the efficiency of the risk
management framework, mainly
through the streamlining and automation
of repeatable cycles. This drive for
efficiency allows for an increase in
risk deep-dives and for more support
to be available to the portfolio of
Group-wide change programmes,
as well as ensuring appropriate
support and challenge is provided to
the first line of defence in assessing,
understanding and responding to risks
that continue to emerge out of Covid-19.
Read more about our key risks.
More information on our approach to
risk management can be found at
hiscoxgroup.com/about-hiscox/
risk-management
year volatility), reserve risk (prior
years) and reinsurance strategy.
Multiple workshops were held
with Board members providing
valuable feedback for the use of
risk limits and risk modelling.
For the Group, we formalised
an aggregate risk measure for
solvency monitoring at different
return periods.
— Enhancements were made to our
risk and control self-assessment
(RCSA) which is an annual
programme of work undertaken
across the Group to assess the key
risks and controls in our risk and
control register (RCR). The RCSA
ensures the business appropriately
reflects the key risks it currently
faces; appropriate key controls are
captured against each of these risks
and it enables the first line, as risk
and control owners, to better focus
attention on areas where additional
oversight is needed to further uplift
the control environment.
— A critical risk designation review
was conducted during the year
to ensure that those risks within
the RCR that are identified as
critical continued to reflect the
most significant exposures to
the business.
— Summary operational risk metrics
dashboard reports, aligned to
the RCR, were developed and
presented to the Risk Committee to
strengthen the visibility of existing
operating metrics utilised across
the Group, as well as to develop
additional metrics where areas for
enhancement were identified.
In light of these arrangements and the
key developments made in 2021, the
Directors are satisfied that a robust
assessment of the emerging and
10

41Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Risk management
Chapter 1 4
Performance
and purpose
0
100
200
300
400
500
600
700
70
0
60
0
50
0
40
0
30
0
20
0
10
0
0
JP
EQ
JP
WS
EU
WS
US
EQ
US
WS
02 05 07 02 28
JP
EQ
JP
WS
EU
WS
US
EQ
US
WS
06 09 13 07 55
JP
EQ
JP
WS
EU
WS
US
EQ
US
WS
15 16 22 19 99
JP
EQ
JP
WS
EU
WS
US
EQ
US
WS
28 25 29 38 152
JP
EQ
JP
WS
EU
WS
US
EQ
US
WS
48 37 38 68 21
7
Industry
loss return
period
and peril
5–10 year 10–25 year25–50 year50–100 year 100–250 year
Mean
industry loss $bn
Superstorm Sandy – $20bn market loss 7-year return period Hurricane Katrina – $50bn market loss 21-year return period 1987 J – $10bn market loss 15-year return period Loma Prieta Quake – $6bn market loss 15-year return period Northridge Quake – $24bn market loss 40-year return period 2011 Tohoku Quake – $25bn market loss 45-year return period Hurricane Andrew – $56bn market loss 25-year return period
Property extreme loss scenarios
Boxplot and whisker diagram of modelled Hiscox Ltd net loss ($m) January 2022
Hiscox Ltd loss ($m)
Upper 95%/lower 5%
Modelled mean loss
This chart shows a modelled range of net loss the Group might expect from any one catastrophe event.
The white line between the bars depicts the modelled mean loss.
The return period is the frequency at which an industry insured loss of a certain amount or greater is likely to occur.
For example, an event with a return period of 20 years would be expected to occur on average five times in 100 years.
JP EQ – Japanese earthquake, JP WS – Japanese windstorm, EU WS – European windstorm, US EQ – United States earthquake, US WS – United States windstorm.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
42 Hiscox Ltd Report and Accounts 2021
Stakeholder engagement
Engagement with our
stakeholders is critical
to our continued
success, so we place
real importance on
considering and
responding to our
stakeholders’ needs
at all levels, including
Board level.”
Marc Wetherhill
Group General Counsel and
Company Secretary
Regular investor dialogue
We maintain regular dialogue with capital
markets stakeholders, predominantly
via our Group Chief Executive Officer,
Group Chief Financial Officer and Head
of Investor Relations, who meet with
existing shareholders, potential investors
and research analysts regularly to
discuss our strategy, trading conditions,
business performance and other
factors affecting our operations.
We run several comprehensive investor
roadshows a year in the UK and USA
and participate in a range of investor
conferences. During 2021, the Company
conducted over 350 meetings and met
with over 130 investors, representing
approximately 75% of our issued
share capital.
Financial reporting
We report to the market on Company
performance four times per year,
providing shareholders with an overview
of recent business performance and
trading conditions. These are available
on our corporate website and as an
email alert for subscribers.
Annual Report and Accounts
Our Annual Report and Accounts gives
shareholders a more detailed view of the
business and includes some additional
corporate governance disclosures
beyond our statutory requirements.
Annual General Meeting (AGM)
Our AGM provides another regular
investor touchpoint. At the 2021 AGM,
all resolutions were passed with a
significant majority.
Shareholders
Our shareholders value our clear
strategy, strong underwriting discipline
and sound capital management, and
we maintain ongoing engagement
with them.
Annual employee engagement survey
Our annual employee engagement
survey gives all our employees the
opportunity to provide honest feedback
on how they feel about Hiscox, with the
results discussed at all levels including
Board level and informing future plans.
Board-level Employee Liaison
Non Executive Director, Anne
MacDonald, also serves as the Group’s
Employee Liaison, working with the
Group’s employee engagement network
to ensure that workforce views are
considered in Board decision-making.
Employee networks
Many of our employees are actively
engaged in at least one of our 15
employee network chapters, including
WeMind, Pan-African, parents and
carers, and Pride. These networks
are supported by our Directors, who
contribute to panel debates and other
employee events.
Communication updates
Employees have access to
Company-wide ‘connected’ events,
annual ‘launch’ events and ‘box’
meetings, many of which are led or
attended by our Directors to share
news, align on strategy and objectives
and celebrate successes.
Partners’ meetings
Hiscox Partner is an honorary title given
to employees who make significant
contributions to the development and
profitability of the Group. Up to 5% of
the total workforce are Hiscox Partners,
and have the opportunity to influence the
direction of our business through regular
formal and informal Partners’ meetings,
which Directors also attend.
Employees
We want to build teams that are as
diverse as our customers and create
a vibrant work environment where all
employees can thrive.

43Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Stakeholder
engagement
Chapter 1 4
Performance
and purpose
Annual Hiscox broker events
We hold an annual preferred broker
summit for our UK brokers, to share
insight and expertise, and a London
Market broker academy to educate
and inform. These events are
supported and often attended by
our Executive Directors.
Broker satisfaction survey
Each year we measure broker
satisfaction with our products and
services. In 2021, this involved
interviewing over 700 UK- and
US-based brokers, with the results
shared and discussed at Board level
and informing future plans.
Attending key industry events
We participate in key industry events in
every part of our broker-facing business,
including at Executive Director level.
This includes: BIBA, a UK insurance
and broker conference; the CIAB, a US
marketplace meeting for commercial
property and casualty brokers and
insurers; and, in our big-ticket businesses,
Monte Carlo, Baden Baden, and RIMS.
Thought leadership
We produce thought leadership that
enhances our broker relationships
and our position as experts in our
chosen areas. In 2021, this included
cyber security trends to be aware of,
managing malicious attacks, the future
of event cancellation, rebuild costs and
under-insurance, as well as climate
change and the role of wind energy
in the transitioning economy.
Customer satisfaction
We talk to thousands of customers each
year, through surveys, focus groups and
other qualitative research – including
feedback after they have bought a
product or made a claim – which are
reviewed by our leadership teams and
help to continually improve our offering.
Consumer awareness
We also measure the health of our
brand through regular brand tracking
surveys which assess consumer brand
awareness and perception. These are
shared with senior management and
inform marketing and sales activities.
Contributing to product development
We have undertaken qualitative
research in the UK as we look to develop
products tailored to professions such as
fitness professionals, digital marketing
and graphic designers. Insights gained
from professionals in these fields helps
shape our insurance offering to their
particular needs.
Informing our marketing
and communications
Marketing and communications activity
across our markets is informed by the
qualitative and quantitative research
we carry out with both existing and
potential customers. For example, a
US segmentation study which explored
attitudes and behaviours among small
businesses with revenues of up to
$25 million is contributing to a future
USmarketing campaign.
Regular dialogue
Our Chief Compliance Officer and central
compliance team lead our relationships
with regulators worldwide and maintain
regular dialogue with them, with
involvement from senior management
and the Board when required.
Regulatory dialogue includes the annual
supervisory college, hosted by the BMA
as our Group supervisor, which gives
an important annual opportunity for
us to present a consistent message to
our regulators on issues of common
interest, and in 2021 was attended
by six members of the Group’s senior
management team.
Regulatory change
We contribute to the regulatory change
process, both directly and through active
membership of trade associations, such
as the Association of Bermuda Insurers
and Reinsurers and the Association of
British Insurers. Our Executive Directors
are important contributors to this work.
Scenario analysis and stress testing
We maintain a regular cycle of stress
testing and scenario analysis to ensure
we manage risk well and evolve at
the same pace as the risks we cover.
In 2021, this included participation in
the Bank of England’s Climate Biennial
Exploratory Scenario (CBES) exercise.
Regulatory reporting
The Group and its subsidiaries met all
material regulatory reporting obligations
for 2021.
Brokers
The risks we write through brokers
account for around 85% of our business,
so it is essential that we build strong and
lasting relationships with those brokers
that share our values.
Customers
We have over 1.5 million retail customers
worldwide and providing each of them
with products they can rely on is what
we are here for.
Regulators
We are a global business with a
responsibility to engage with regulators
in all jurisdictions where we operate.
The Group is regulated in Bermuda and
has regulated subsidiaries worldwide.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
44 Hiscox Ltd Report and Accounts 2021
Environmental, social and governance (ESG)
Sustainable underwriting
We have made important developments
towards defining a sustainable
underwriting approach for Hiscox
over the last 12 months. This has
included the implementation of our
ESG exclusions policy, which is
supported by an ESG dashboard to
monitor exposures frequently and
consistently (see page 47); becoming
a Principles for Sustainable Insurance
(PSI) signatory; and contributing to
key industry taskforces via the
Sustainable Markets Initiative and
ClimateWise. We will go further in
2022 as we look to embed a sustainable
underwriting strategy across each of
our business areas.
Responsible investment
We have transformed our approach to
responsible investment over the last
12months. This has included becoming
a Principles for Responsible Investment
(PRI) signatory, both as an asset owner
and an asset manager through our
ILS business; and embedding ESG
requirements (including ESG exclusions)
in all segregated investment manager
mandates – such that there are no longer
any direct exposures in breach of the
ESG exclusions policy. With semi-annual
ESG reviews of all segregated investment
managers now established, assets under
management (AUM) in sustainable and
impact assets including ESG-related
bonds at over $250 million, and senior
investment team members undertaking
ESG specific investment training, we
have good progress to build on in 2022.
Greenhouse gas (GHG)
reduction targets
Setting new GHG targets for the Group
during the year required extensive
stakeholder engagement, across
functions including HR, procurement
and property services, an awareness
of evolving expectations around
‘net zero’, and alignment to the Science
Based Targets initiative (SBTi) which
is increasingly considered the global
standard (see page 49). We will build
on this work in 2022 by developing and
publishing a supporting action plan that
outlines the steps we will take towards
achieving these targets.
ESG governance structure
and resource
We strengthened our existing ESG
governance structure during the
year with the formation of a new
Sustainability Steering Committee.
This has increased senior-level oversight
and accountability for ESG matters,
specifically climate, and brought new
expertise to our activities (see page 47).
Our ESG ambition is
clear. We want to be
there for the long term,
for our customers,
communities and our
people, operating in
a sustainable way for
the future.”
James Millard
Chief Investment Officer
and ESG Executive Sponsor
2021 marked another
year of progress in our
ESG efforts across the
Group, particularly on
environmental issues,
where climate volatility
presents both risks
and opportunities.

45Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Environmental, social
and governance (ESG)
Chapter 1 4
Performance
and purpose
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Hiscox ESG framework
ESG issues touch many different parts of our business and the Hiscox ESG framework helps us stay focused and make an
impact. It ensures we are pragmatic and consistent, teaming Group-wide themes with local market relevance. We also evolve
as regulation changes and public interest in emerging issues grows.

ESG governance structure
How we manage and monitor ESG issues
to ensure appropriate accountability
and oversight.
Board
s Oversight of long-term ESG vision, strategy, priorities and performance against agreed metrics and targets.
s Ensures governance and accountability in place with sufficient support.
s Minimum twice-yearly discussion on ESG strategy, trends, opportunities, vulnerabilities, and emerging issues.
Risk Committee
s Advises Board on ESG strategy, key priorities, risk profile, risk exposures and opportunities.
s Recommends proposals for consideration by the Board as required.
Group Risk and Capital Committee (GRCC)
s Quarterly reporting on ESG matters from Sustainability
Steering Committee.
s Sets high-level Group strategy, priorities and ensures
delivery across the Group.
Group Executive Committee (GEC)
s Periodic ESG sessions.
s Sets business unit or function ESG-related strategy,
priorities and drives delivery through business units
and functions.
Sustainability Steering Committee (SSC)
s Sub-committee of the GRCC, responsible for execution of the agreed ESG strategy, driving actions and delivery at a
Group level.
s Meets quarterly and embeds sustainability risks and opportunities, with an initial focus on climate.
s Oversees effective use of resources and tracks Group and entity-level sustainability performance.
s Ensures senior management-level involvement and accountability for sustainability issues, with senior representation
from areas including underwriting, investments and operations.
ESG working group
s Operational body, providing central point of coordination and expertise for ESG-related activity across the Group.
s Manages ESG-related Group reporting, disclosures and communications.
s Meets monthly and provides input and recommendations to management on ESG matters.
s Focuses on ESG-related research, including external monitoring and expectations.
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Environmental, social
and governance (ESG)
Chapter 1 4
Performance
and purpose
46 Hiscox Ltd Report and Accounts 2021
Board
ESG working group
Risk Committee
2021 activity highlights
s New Board-approved, SBTi-aligned
greenhouse gas (GHG) reduction
targets set for the Group (see
page 49).
s ESG exclusions policy established
and new tracking introduced to
classify risks by ESG status.
s New Sustainability Steering
Committee improving senior
oversight and accountability.
s Signing up to the PRI and the PSI.
s Working with our industry to define
sustainable underwriting through
ClimateWise and the Sustainable
Markets Initiative.
Sustainability Steering Committee
2022 focus areas
s Embed our new Group-wide
net-zero aligned GHG reduction
targets, including a supporting
action plan.
s Further review and refine our
strategy for carbon emissions
offsetting, as we look to remain
operationally carbon neutral.
s Enhance our sustainable
underwriting strategy for
the Group.
s Integrate ESG considerations
more formally within our supplier
management activities, boosting
engagement with our suppliers,
brokers and reinsurers on their
plans to adopt Paris-aligned
climate targets.
s Continue to review and refine our
existing physical risks and casualty
exposure management processes
to ensure climate change remains
appropriately reflected, particularly
when it comes to stress testing and
scenario analysis.
s Further embed climate change
assessment in the business
planning process to ensure the
continued consideration of
potential climate change impact on
our underwriting, reinsurance and
investments strategies.
s Continued industry collaboration
to identify areas where we can
help our insureds and reinsurers
progress towards decarbonisation,
and to contribute to the
development of common
methodologies in areas such
as underwritten emissions.
s Embed ESG-specific objectives for
each Group Executive Committee
member to ensure they are
empowered to play an active
role in our ESG agenda.
s Prepare for PRI and PSI reporting.
HRH The Prince of Wales’ Sustainable
Markets Initiative
Principles for Responsible Investment
Principles for Sustainable Insurance
Group Risk
and Capital
Committee
(GRCC)
Group Executive
Committee
(GEC)
New commitments and partnerships

ESG governance structure
How we manage and monitor ESG issues
to ensure appropriate accountability
and oversight.
Board
s Oversight of long-term ESG vision, strategy, priorities and performance against agreed metrics and targets.
s Ensures governance and accountability in place with sufficient support.
s Minimum twice-yearly discussion on ESG strategy, trends, opportunities, vulnerabilities, and emerging issues.
Risk Committee
s Advises Board on ESG strategy, key priorities, risk profile, risk exposures and opportunities.
s Recommends proposals for consideration by the Board as required.
Group Risk and Capital Committee (GRCC)
s Quarterly reporting on ESG matters from Sustainability
Steering Committee.
s Sets high-level Group strategy, priorities and ensures
delivery across the Group.
Group Executive Committee (GEC)
s Periodic ESG sessions.
s Sets business unit or function ESG-related strategy,
priorities and drives delivery through business units
and functions.
Sustainability Steering Committee (SSC)
s Sub-committee of the GRCC, responsible for execution of the agreed ESG strategy, driving actions and delivery at a
Group level.
s Meets quarterly and embeds sustainability risks and opportunities, with an initial focus on climate.
s Oversees effective use of resources and tracks Group and entity-level sustainability performance.
s Ensures senior management-level involvement and accountability for sustainability issues, with senior representation
from areas including underwriting, investments and operations.
ESG working group
s Operational body, providing central point of coordination and expertise for ESG-related activity across the Group.
s Manages ESG-related Group reporting, disclosures and communications.
s Meets monthly and provides input and recommendations to management on ESG matters.
s Focuses on ESG-related research, including external monitoring and expectations.
47Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Environmental, social
and governance (ESG)
Chapter 1 4
Performance
and purpose

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Environmental, social
and governance (ESG)
Chapter 1 4
Performance
and purpose
48 Hiscox Ltd Report and Accounts 2021
Environmental
Understanding climate
science is really the
starting point for lots
of our environmental
activities. We have internal
expertise, including
climate scientists, who
inform our underwriting
approach, but we also
have plenty of other
passionate people
thinking about our
climate impact in
other ways.”
Robert Caton
Director of Underwriting Risk
and Reinsurance
We carefully manage our environmental
impact and work with our customers,
suppliers and business partners to
respond to the changing climate. This
includes looking at our operations and
finding ways to limit our consumption
of materials such as energy and
water, and reduce the amount of waste
we generate. It also means investing in
areas such as research, catastrophe
modelling and new technologies that
improve our underwriting capabilities
and ensure we are well placed to help
our customers when it comes to
managing the risks they face.
ESG exclusions policy embedded
Last year, we set out our ambition to
reduce steadily and eliminate by 2030
our insurance, reinsurance and
investment exposure to coal-fired power
plants and coal mines; Arctic energy
exploration, beginning in the ANWR
region; oil sands; and controversial
weapons such as landmines.
Since then, we’ve:
s made system changes to allow
us to categorise big-ticket risks
by ESG status;
s created new underwriting
dashboards that provide live
views of our exposure to
excluded sectors;
s started to decline underwriting
risks that fall outside of appetite;
s shared the policy with our fund
managers, to ensure it is considered
in relation to pooled funds;
s eliminated our investment exposure
within all directly held bonds that fall
outside of appetite.
We will develop on this work in 2022
and provide periodic updates on
our progress.
Growing appetite for sustainable
insurance products
While we carefully manage the
underwriting risks associated with
climate change, we also recognise the
new opportunities that exist to support
customers as the risks they face evolve.
Our US flood product, FloodPlus, is
one example of this; providing broader,
more attractive flood cover than the
government-backed alternative to both
homeowners and businesses who face
a growing risk of flood. Demand for
FloodPlus is such that we now serve
over 70,000 customers across 49 states
and we have ambitious plans to build
on this in 2022. For more information,
see page 92.
Industry collaboration through the
Sustainable Markets Initiative (SMI)
During 2021, we were heavily involved in
HRH The Prince of Wales’ Sustainable
Markets Initiative. The SMI is designed
to accelerate the transition to a more
sustainable future, and we have
contributed to a number of its big-ticket
and retail-focused workstreams. The
first step was to promote the array
of green products and services that
(re)insurers are already providing,
so our early work culminated in a
public, industry-wide showcase to
demonstrate that our industry is already
thinking about, and responding to, the
transitioning economy. The showcase
featured Hiscox contributions from
across our flood, nuclear and motor
products, as well as how we support
decommissioning projects. These are
areas we will build on as we continue to
focus on climate-conscious products and
services. An overview of the showcase
can be found at: https://a.storyblok.
com/f/109506/x/c0c3181f7e/smi-itf_
products-and-services-showcase.pdf.
CO
2
Hiscox has set new
targets, using SBTi
methodologies, that
align with a 1.5°C
net-zero world by 2050.

49Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Environmental, social
and governance (ESG)
Chapter 1 4
Performance
and purpose
Total GHG emissions inventory
We continue to focus on managing and minimising our carbon
footprint as a Group, and during 2021, our total operational
footprint decreased by 36%.
We experienced a year-on-year increase in natural gas usage,
driven by staff returning to our offices post-pandemic and
better quality data from a number of sites. When it comes to
electricity usage, we have benefitted from continued adoption
of renewable energy sources.
Business travel emissions, including travel in company-owned
vehicles, as well as staff travelling in their own vehicles, has
seen a significant drop due to the fact that 2021 was the first
full year of post-pandemic travel patterns. We expect to see
a rebound in travel emissions as work patterns normalise.
* GHG emissions are calculated according to the Greenhouse Gas Protocol:
A Corporate Accounting and Reporting Standard (revised edition). Hiscox
uses market-based Scope 2 emissions for reporting in line with its new
GHG reduction target. Operational Scope 3 emissions cover operational
suppliers (office and other related services), capital purchases, fuel and
energy related activities, waste generated in operations, business travel,
employee commuting and remote working. Non-operational emissions are
those that do not directly contribute to the emissions associated with daily
business activity, including non-operational purchased goods and services
and transportation and distribution.
The investment emissions are calculated using the Enterprise Value Including
Cash (EVIC-based) method of attributing financed emissions to investors,
and calculations use MSCI’s carbon data
†
as the ultimate source. Our 2020
operational emissions baseline for business travel has been restated to
project pre-Covid travel patterns. Note some emissions totals may not
tally due to rounding.
A copy of our SECR GHG emissions table can be found on page 57.
†
Although Hiscox’s information providers, including without limitation, MSCI
ESG Research LLC and its affiliates (the ‘ESG Parties’), obtain information
(the ‘information’) from sources they consider reliable, none of the ESG Parties
warrants or guarantees the originality, accuracy and/or completeness, of
any data herein and expressly disclaim all express or implied warranties,
including those of merchantability and fitness for a particular purpose. The
information may only be used for your internal use, may not be reproduced or
redisseminated in any form and may not be used as a basis for, or a component
of, any financial instruments or products or indices. Further, none of the
information can in and of itself be used to determine which securities to buy or
sell or when to buy or sell them. None of the ESG Parties shall have any liability
for any errors or omissions in connection with any data herein, or any liability
for any direct, indirect, special, punitive, consequential or any other damages
(including lost profits) even if notified of the possibility of such damages.
New Board-approved, SBTi-aligned GHG reduction
targets set for the Group
Getting to net zero is a shared challenge, and we need to
play our part in achieving this global goal. As a Group,
Hiscox has had stretching GHG emission reduction targets
for a number of years but this year we set new targets,
using SBTi methodologies, that align with a 1.5°C net-zero
world by 2050.
As a result, we commit to:
s reducing our Scope 1 and 2 emissions by 50% by 2030,
against a 2020 adjusted baseline*;
s reducing our operational Scope 3 emissions by 25%
per FTE by 2030, against a 2020 adjusted baseline*;
s transitioning our investment portfolios to net-zero GHG
emissions by 2050. The aim is that more than 25% of
our corporate bond portfolio by invested value will have
net-zero or Paris-aligned targets by 2025, and more than
50% by 2030;
s engaging with our suppliers, brokers and reinsurers
on our net-zero targets and on their plans to adopt
Paris-aligned climate targets;
s monitoring emerging standards around underwritten
emissions and collaborate across our industry on their
development, aligning with best practice in this area as
it emerges.
We continue to focus on reducing the emissions we have
control over, and to work closely with our partners where
that control is shared. Where common standards and
methodologies do not yet exist – for example, in measuring
and assessing supply chain impacts, and underwritten
emissions – we want to help shape the solution.
We will share more information on how we plan to achieve
these targets in 2022, along with periodic updates on our
progress towards achieving them.
We will also continue to offset the emissions we generate
via accredited offset schemes, to ensure we remain
operationally carbon neutral as we have been since 2014.
* The 2020 baseline has been adjusted for Covid-19 to ensure it reflects
a more normal year with regards to office usage, business travel, etc.
Read more about how we plan to achieve
our new GHG targets.
92
GHG emissions*
Scope
2021
(tCO
2
e)
2020
(tCO
2
e)
Year-on-year
change
Scope 1 678 615 10%
Scope 2 (market-based) 866 1,111 -22%
Total Scope 1 and 2 1,544 1,726 -11%
Scope 3 (operational) 17,116 27, 4 61 -38%
Total operational footprint 18,660 29,187 -36%
Scope 3 (non-operational) 8,458 7, 0 4 6 20%
Investments 125,156 135,275 -7%

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Environmental, social
and governance (ESG)
Chapter 1 4
Performance
and purpose
50 Hiscox Ltd Report and Accounts 2021
Social
We strive to be a good employer, a
trusted insurer and a good corporate
citizen. Our social responsibilities help
to inform our customer and claims
philosophies, our strategy for charitable
giving and our employment practices.
In 2021 this included:
s new multi-year charity partnerships.
The Hiscox Foundation, which we
have had since 1987, continues to
support a raft of good causes and
in 2021 formed new partnerships
with social mobility programmes
including Social Ark and Dress
for Success, and environmental
champions such as the London
Wildlife Trust;
s a continued focus on improving
our gender pay gap. 2021 marked
our fifth year of UK gender pay
reporting and showed that on a
mean basis this gap has been
steadily reducing since 2017
to now reach 19.1%. Diversity
and inclusion action plans,
gender-focused KPIs, tailored
training and development,
networking and peer support,
and the targeting of diverse talent
pools are all making a difference
here. More information on this
can be found in our 2021 gender
pay report: hiscoxgroup.com/
gender-pay-report-2021;
s conducting our annual employee
engagement survey, which was
completed by 85% of employees,
with 90% saying they believe in
our corporate values and 73%
saying they are proud to work for
Hiscox. These results, and the
plans developed to further improve
employee engagement in the year
ahead, were shared and discussed
at both the Group level and
subsidiary boards.
I’m proud of how we
support our customers,
our communities
and each other. It’s
something I see as a
business unit CEO and
as Executive Sponsor of
Diversity and Inclusion,
and it’s something I feel
as a Hiscox employee
every day.”
Kate Markham
Chief Executive Officer,
Hiscox London Market
Social accreditations
UK Living Wage employer
Insuring Women’s Futures
Race at Work Charter
Race at Work Charter signatory

51Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Environmental, social
and governance (ESG)
Chapter 1 4
Performance
and purpose
$1.5 million donated
to good causes in 2021.
15 employee
network chapters –
encompassing Latino
and Pan-African
communities, WeMind,
Pride, Women,
Parents and Caregivers
and Generations.
20+ vulnerable
customer champions
to support those
requiring additional
support when
accessing our
products and services.
$1.25 billion paid out
in claims worldwide
in 2021.
Over 1,000 hours
spent volunteering
by our teams.
Over 43,500 hours
spent on training and
talent development.
Supporting our customers Supporting our communities Supporting our colleagues
Tools to manage the
risks they face – from
our CyberClear Training
Academy to our cyber
exposure calculator.
60+ mental health
first aiders.
Causes our people are
passionate about
Protecting and preserving
the environment
Social mobility
and entrepreneurship
Our three strategic pillars
for charitable giving
Gender diversity
at 31 December 2021
Male Female
Board 55% 45%
Group Executive
Committee 40% 60%
Direct reports
to the Group
Executive
Committee 52% 48%
All employees 50% 50%
Ethnic diversity
at 31 December 2021
Members with ethnic
minority background
Board 9%
Group Executive
Committee 20%

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Environmental, social
and governance (ESG)
Chapter 1 4
Performance
and purpose
52 Hiscox Ltd Report and Accounts 2021
Governance
Our governance
structures and processes
are taken seriously at
all levels. We evolve our
governance practices
in line with our strategy
and business model
and, as you would
expect, the relevant
laws and regulations
where we operate.”
Marc Wetherhill
Group General Counsel and
Company Secretary
As a global insurer, good governance
practices are essential to our
day-to-day business of serving
customers and paying claims. That
means having appropriate internal
controls, policies and procedures,
and structures and oversight, but it
also means ensuring all employees
are accountable for their actions
and empowered to raise their hand
if something goes wrong. As a
Bermuda-domiciled, UK-listed
business, we comply with the
Bermuda Companies Act, the
UK listing rules and local country
laws in each of the locations where
we operate.
In 2021, this meant:
s updating our Board diversity
policy to reflect more clearly the
underlying ethos of the Company,
the ongoing delivery of a diverse
Board, and to formalise the
Committee’s oversight of the
Group’s wider D&I programme
(see pages 84 to 87);
s the continuation of our employee
engagement network which
ensures workforce views
are considered in Board
decision-making;
s eleven modules of mandatory
training for all employees, on
issues including information
security, financial crime, and
data privacy;
s establishing a new Sustainability
Steering Committee to boost
senior-level oversight and
accountability of ESG matters
and, in particular, climate change;
s boosting our existing ESG
disclosures by signing up to
the Principles for Responsible
Investment (PRI) and the Principles
for Sustainable Insurance (PSI).
Active climate risk management
During 2021, we tested the potential
impact to our assets and liabilities from
physical and transition risks as a
result of climate change on some of our
big-ticket portfolios across a 30-year
horizon. This exercise involved
cross-function teams including
underwriting, investments, exposure
modelling, strategy and risk, and
resulted in the identification of a
number of new focus areas for the
Group in 2022 (see page 46). These
actions will be driven at a functional
and/or business unit level, with progress
monitored by the Sustainability Steering
Committee, in accordance with the
ESG governance structures we
have embedded.
Climate training for Directors
In 2021, we completed an externally
facilitated climate training session
to boost existing understanding and
awareness of climate-related matters.
This training was available to our Board
Directors at both Group and subsidiary
level, and was designed to establish
a new baseline of climate knowledge
post-COP26; brief Board members on
the latest climate-related developments
they should be aware of; and introduce
the concept of a climate-competent
board. We will look to build on this
work further in 2022.

2021: A grade
2020: A grade
53Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Environmental, social
and governance (ESG)
Chapter 1 4
Performance
and purpose
Latest ESG disclosure scores
2021: 40/100
2020: 35/100
20 21: 27.0
2020: 25.6
2021: B- grade
2020: C grade
2021: 3.3/5
2020: 4.1/5
2021: 72%
2020: 66%
Read more about Board activities and
matters approved by the Board in 2021.
74
2020
s Board-approved responsible investment policy introduced.
s Senior Management Functions (SMFs) with responsibility for climate appointed
within our UK subsidiaries.
2017
s Hiscox-led industry ‘dry run’ event to test market resilience
hiscoxgroup.com/london-market-looks-ahead.
Five years of progress – key ESG milestones
2021
s Board-approved ESG exclusions policy published.
s Sustainability Steering Committee established.
s Board-approved, SBTi-aligned, greenhouse gas targets for the Group.
s Became PRI and PSI signatories.
2019
s Hiscox ESG framework published, showcasing the Group’s ESG strategy.
s Became a public TCFD supporter.
s Boosted existing disclosures with Dow Jones Sustainability Index.
2018
s ESG Executive Sponsor appointed to spearhead ESG activities Group-wide.
s ESG working group established to drive action at an operational level.
Read more about our D&I policies,
including our updated Hiscox Ltd
Board D&I policy.
84

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
54 Hiscox Ltd Report and Accounts 2021
Task Force on Climate-related Financial Disclosures (TCFD)
Reporting against the Financial Stability
Board’s Task Force on Climate-related
Financial Disclosures will become
mandatory in the UK from 2025, and
the Financial Conduct Authority (FCA)
requires TCFD disclosure for UK
premium-listed firms on a ‘comply
or explain’ basis – effective from
accounting periods beginning on
or after 1January2021.
We have been reporting against the
TCFD-aligned ClimateWise Principles
since 2019 and are public supporters
of TCFD. Our annual climate report sets
out our approach to climate-related
matters in every part of our business:
governance, risk management,
operations, underwriting, investments,
marketing and so on. It is our richest
source of climate-related information
and expands on the information set out
below, so for more information go to:
hiscoxgroup.com/2021climatereport.
Governance
We have an established and
embedded governance structure for
climate-related matters, with robust
and rigorous processes for identifying,
measuring, monitoring, managing
and reporting climate-related matters
across the Group. This spans from
an operational level up to the newly
established Sustainability Steering
Committee, the Risk Committee of the
Board, and the Board itself.
Within this structure, there are clear
roles and responsibilities. In our UK
legal entities, this structure is bolstered
by the appointment of senior managers
with overall regulatory responsibility
for managing the financial risks from
climate change, in line with the
UK’s Senior Managers Certificate
Regime (SMCR).
In 2021, we strengthened our existing
Group-wide governance structures
around climate with a new Sustainability
Steering Committee, which has
increased senior-level oversight and
accountability. The Committee is chaired
by the Group Chief Executive Officer
and members include the Group Chief
Underwriting Officer, Chief Risk Officer,
Chief Investment Officer, Chief Executive
Officer or Chief Underwriting Officer
business unit representatives, Chief HR
Officer, Group General Counsel, and
Head of Investor Relations.
An overview of our governance structure
for climate-related matters is detailed
on pages 46 to 47. This includes the
frequency of climate-related meetings
at each level, along with each group’s
particular role in monitoring, managing,
reporting and escalating climate-related
matters. While this structure also covers
broader ESG matters, climate-related
matters are an important component of
this and as such are regularly debated
and discussed.
Within this structure we also consider
the training and development
requirements of those with oversight
responsibilities and accountability
for climate matters to ensure we have
appropriate awareness and expertise
to drive progress. In 2021, this included
an externally facilitated climate training
session, available to our Board Directors
at both Group and subsidiary level,
to establish a new baseline of climate
knowledge post-COP26; brief Board
members on the latest climate-related
developments they should be aware
of; and introduce the concept of a
climate-competent board.
The governance structure we have
embedded for climate issues is also
supported by a range of relevant policies
and processes that we expect both our
staff and our third-party providers to
adhere to. These include the following.
s The Hiscox Group ESG exclusions
policy, which sets out our aim to
reduce steadily and eliminate by
2030 our insurance, reinsurance
and investment in thermal
coal-fired power plants and
thermal coal mines, Arctic energy
exploration projects (beginning
with the ANWR region), oil sands
and controversial weapons.
Oversight of this policy belongs
to the Sustainability Steering
Committee, with implementation
of it driven at a business unit
and function level across both
underwriting and investments.
s The Hiscox Group responsible
investment policy, which outlines
our expectations of both our
in-house investment team and
our external asset managers.
This includes our investment
processes and stewardship
activities as we look to invest in
companies that have sound ESG
practices; how we evaluate our
managers’ ESG integration; and
our approach to impact investing.
This policy is owned by the Group
investment team with oversight
from both the Sustainability
Steering Committee and the
Group Investment Committee.
s The Hiscox Group environmental
policy, which outlines our approach
to managing the environmental
impact of our business activities
and those that arise from our
ownership and occupation of
office premises. We actively
manage and aim to minimise our
environmental impacts, due to
the resources we consume and

55Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Task Force on Climate-
related Financial
Disclosures (TCFD)
Chapter 1 4
Performance
and purpose
the amount of waste our activities
produce, as well as complying with
relevant environmental legislation
and other external requirements.
While the policy is owned by
our property services teams, its
effective implementation relies
on Group-wide adherence to the
environmental principles we wish
to live by.
s The Hiscox Group ethical guide
for suppliers, which outlines
how our corporate values and
commitments to doing business in
a socially responsible way extends
to our relationships with suppliers.
It covers our supplier selection
process; fairness and recognition;
supplier diversity; engagement;
our expectations of how our
suppliers behave as well as their
obligations in adhering to laws
and regulations regarding
employment, health and safety,
the environment and anti-bribery
and corruption. It is owned by our
Group procurement team, shared
with suppliers during the tender
process and suppliers are
reminded of it periodically.
These governance policies and
processes are complemented by our
long-standing active risk management
practices, which include climate-related
stress testing and scenario analysis
(see page 41). Examples of the outputs of
this work, such as the property extreme
loss scenarios detailed on page 41,
show the potential financial impact to
the Group of events including Japanese
earthquake, Japanese windstorm,
European windstorm, US earthquake
and US windstorm.
Our governance work culminates in
regular, repeatable climate-related
public reporting and disclosures.
This includes owned reports such as
our annual climate report, as well as
global standards that provide a means
of peer comparison: CDP, ClimateWise,
ISS, MSCI and Sustainalytics. An
overview of our 2021 performance
can be found on page 53.
Strategy
Climate change is considered to be an
emerging risk with the potential to impact
each existing risk type. It could have a
material impact on the Group, by altering
the frequency and severity of extreme
weather events. It could also present an
opportunity, driving greater demand for
cover against changing weather trends
and creating a need for innovative new
products that meet emerging needs.
In addition to the physical impacts of
a changing climate, the Group is also
aware that the transition to a low-carbon
economy, necessary to limit the worst
physical impacts of global warming, also
presents significant business challenges
as well as opportunities. One example of
this is litigation risk, where one party may
seek to recover climate-change-related
losses from another who they believe
may have been responsible.
The governance and risk management
structures we have in place ensure a
coordinated approach to climate across
the Group. They are supported by
investments in technology – to ensure the
right modelling and data are available to
support our pricing and exposure –
and in-house expertise – to combine
off-the-shelf climate views with our
own claims expertise and insight.
We consider the potential impact
from climate-related issues over short-,
medium- and long-term time horizons.
Near-term climate risks and
opportunities (0-5 years)
s Higher claims are likely to result
from more frequent and more
intense natural catastrophes,
such as floods and storms, due
to climate change. These claims
will not only come from damage
to property but also from other
knock-on effects, such as global
supply chain disruption or scarce
resources. However, given the
majority of the policies we write
are annual (re)insurance policies,
we regularly consider our
exposures to climate-related risks
which gives us the opportunity
to adjust pricing and appetite
accordingly. An overview of our
modelling of extreme natural
catastrophe loss scenarios can
be found on page 41.
s There are also the financial
risks which could arise from
the transition to a lower-carbon
economy, such as a slump in the
price of carbon-intensive financial
assets. Our ESG exclusions policy,
which will see us reduce our
exposures to the worst carbon
emitters in both underwriting and
investments, prepares us for this
– as do our new greenhouse gas
(GHG) emission reduction targets.
For more information, see page 48.
s In terms of opportunities, we have
significant expertise in areas such
as flood, where we have a suite
of products and considerable
risk experience; renewable
energy where we are supporting
a number of major wind and
solar energy projects; and in the
decommissioning of offshore
carbon assets which is an area
we insure. These are just some
examples of lines of business
See an overview of our governance
structure for climate-related matters.
46
See an overview of our modelling
of extreme natural catastrophe
loss scenarios.
41

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Task Force on Climate-
related Financial
Disclosures (TCFD)
Chapter 1 4
Performance
and purpose
56 Hiscox Ltd Report and Accounts 2021
where we could see increased
opportunity over time, and in some
cases we are already benefitting
from changing customer trends.
An example of this is US flood,
where demand is growing and our
product offering, use of data and
technology means we are well
placed to serve more customers
with flood cover. More information
on our approach to US flood can be
found on page 92.
Medium- to long-term climate risks
and opportunities (5+ years)
s Climate-related risks have the
longer-term potential to impact
regulatory risk, credit risk,
legal risk, reputational risk, and
technology risk. We have several
emerging risks forums across the
organisation which are designed
to identify emerging, longer-term
risks and opportunities, including
climate-related risks and
opportunities. Alongside our
in-house modelling and research
expertise, these groups ensure
our work takes into account
climate-related issues over a
range of business planning
time frames.
s There is also the longer-term risk
that those who have suffered loss
from climate change might then
seek to recover those losses from
others who they believe may have
been responsible. Where such
claims are successful, those
parties against whom the claims
are made may seek to pass
on some, or all, of the cost to
insurance firms through policies
such as professional indemnity or
directors and officers’ insurance.
s While in the long term as a property
casualty insurer, Hiscox is certainly
exposed to climate-related risks,
we believe our exposures can be
managed through time as a result
of how we conduct our business.
For example, through the flexibility
we have in our predominantly
annual underwriting contracts,
and through the liquidity of our
investment portfolio which lends
itself to constant adjustment. This
flexibility is our key tool for managing
the multi-decade challenge of
climate risks holistically.
As climate risks and opportunities
evolve, so too does our strategy. We are
working to improve our assessment and
disclosures regarding the resilience of
the organisation’s strategy, taking into
consideration different climate-related
scenarios. We are leveraging work done
to date in developing scenarios and
participating in wider industry initiatives
such as the Bank of England’s Climate
Biennial Exploratory Scenario (CBES)
exercise for Hiscox Syndicate 33. The
objective of the CBES industry exercise
was to test the resilience of current
business models within the largest
UK banks, insurers and the financial
system to the physical and transition
risks from climate change. The CBES
exercise was designed to progress
climate thinking across the industry
and establish an initial aggregate view
of the risk exposures that the market
may be facing over the next 30 years,
the resilience of the financial system
as a whole to these risks, and the
adjustments and management actions
that may be required. Through our
participation in this exercise, we have
gained new insights in relation to stress
testing in a 2
o
C or lower scenario, which
we will use to further develop our
thinking in this area and boost our
climate risk preparedness.
These insights will contribute to our
future plans to assess our resilience
taking into consideration different
climate-related scenarios, including a
2°C or lower scenario. In order to meet
future disclosures in this area, we intend
to review a range of scenario impacts
through internal workshops, from which
potential management actions can
be identified and our strategy and risk
management approach can be further
refined. This work will be a focus for
2022 and an update on our progress
against it will be provided in our 2022
Annual Report.
Risk management
Climate-related risks, among other
major exposures, are monitored and
measured both within our business
units and at Group level, so we
understand how much overall risk
we take and what is being done to
manage it. We look at how different
risks interact and whether these may
result in correlations or concentrations
of exposure that we need to know about,
monitor and manage.
While there are certain nuances to
climate risk, we consider it to be a
cross-cutting risk with potential to
impact each existing risk type,
rather than a stand-alone risk. By
design, our Group risk management
framework provides a controlled and
consistent system for the identification,
measurement, mitigation, monitoring
and reporting of risks (both current
and emerging) and so is structured
in a way that allows us to continually
and consistently manage the various
impacts of climate risk on the risk profile.
For example, relevant climate
considerations are included in our risk
and control register and our risk and
control self-assessment process,
Hear more from our catastrophe
modelling and research lead.
More information on our approach
to ESG and, in particular,
climate can be found at
hiscoxgroup.com/responsibility
132
GHG emissions are calculated according to the
Greenhouse Gas Protocol: A Corporate Accounting
and Reporting Standard (revised edition) and
UK government SECR guidelines. Note some
emissions totals may not tally due to rounding.
A copy of our total GHG emissions inventory can be
found on page 49.

57Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Task Force on Climate-
related Financial
Disclosures (TCFD)
Chapter 1 4
Performance
and purpose
as well as in our risk policies. This
means that climate-related risk drivers
are assessed and recorded against the
risks on our risk and control register, and
ensures that we do not consider any
single climate risk factor in isolation.
Our Risk Committee has the main
responsibility for assessing the
climate-related risks and opportunities
we face. It advises the Board on
how best to manage the Group’s
risks, by reviewing the effectiveness
of risk management activities and
monitoring the Group’s actual risk
exposure. The Risk Committee relies
on frequent updates from within the
business and from independent risk
experts for its understanding of the
risks facing both our business and
the wider industry.
This includes:
s underwriting – exposure radar
in casualty exposure
management group (EMG);
s enterprise view – risk team
emerging risk;
s compliance – regulatory
horizon scanning;
s indemnity – claims and
actuarial reserving;
s market – strategic and
business planning.
We also review natural catastrophe
risk at least quarterly, through our
Natural Catastrophe Exposure
Management Group (NCEMG),
which is chaired by the Group Chief
Underwriting Officer and attended by
other Hiscox senior managers with
responsibility for catastrophe-exposed
business. This group looks at the risk
landscape, exposure monitoring and
capital modelling for climate-related
perils, and recommends, based on
the latest observations and
scientific knowledge, which models
should be used for each peril, and,
if necessary, how they should be
adapted to reflect our best view of
the risk. They also identify new areas
of risk research.
All changes to modelling policy and
all of our research prioritisations and
results are signed off and authorised
by this group, decisions are recorded,
and models are adapted to reflect
policy. Their work not only enables us
to continuously refine our models (using
data to make better decisions): it also
supports future product development.
For example, we have calibrated and
delivered a loss model that will improve
the pricing capabilities for one of our
flood insurance products, FloodPlus.
We also included the use of additional
model sources for location-level pricing.
In addition, we are working with data
providers to augment FloodPlus with
first-floor elevation data, and are
exploring the use of machine learning
to augment the information we receive
from vendor floodhazard maps.
The risk management processes we
have established and embedded for
climate-related matters feed into
the annual review of the operating
plan, the long-term strategy planning
process, as well as forward-looking
assessment scenarios and stress
tests and reverse stress test scenarios.
Metrics and targets
The cornerstone of our climate-related
metrics and targets is our GHG emission
reduction targets. In 2021, we set
new Board-approved targets to 2030
which have been created using SBTi
methodologies that align with a 1.5°C
net-zero world by 2050.
This is in keeping with our commitments
as a signatory to the 2015 Paris
Climate Agreement.
GHG targets
Our new targets commit us to:
s reduce our Scope 1 and 2
emissions by 50% by 2030,
against a 2020 adjusted baseline;
s reduce our Operational Scope 3*
emissions by 25% per FTE
by 2030, against a 2020
adjusted baseline;
s transition our investment
portfolios to net-zero GHG
emissions by 2050;
s engage with our suppliers,
brokers and reinsurers on our
net-zero targets and on their
plans to adopt Paris-aligned
climate targets;
s monitor emerging standards
around underwritten emissions
and collaborate across our
industry on their development,
aligning with best practice in
this area as it emerges.
* Operational Scope 3 emissions predominantly
consist of business travel (air, rail and car travel).
Interim targets and actions
We recognise that achieving these
targets will take collective, consistent
effort. While we will further define our
supporting action plan during 2022,
there are areas where we already have
a glide path, or where work is already
underway, as follows.
s In addressing our Scope 1 and 2
targets, we are already engaging
with our facilities managers across
the Group to continue to transition
our offices to renewable electricity
contracts. Where we have total
control over our utility providers,
this is easier to do, but where
that control is shared, or where it
Streamlined Energy and Carbon Reporting (SECR) GHG emissions
Activity
2021
energy
(kWh)
2021
emissions
(tCO
2
e)
2020
energy
(kWh)
2020
emissions
(tCO
2
e)
% change
emissions
(tCO
2
e)
Scope 1 total – 678 – 615 10%
Natural gas 2,342,644 441 1,710,200 315 40%
Company cars 377,056 87 560,441 151 -42%
Refrigerants 150 149 1%
Scope 2 (market-based) total 866 1,111 -22%
Electricity (location-based) 5,603,303 1,484 5,176,116 1,565 -5%
Electricity (market-based) 5,603,303 847 5,176,116 1,090 -22%
District heating 108,999 19 119,942 21 -10%
Scope 3 total 15 231 -93%
Personal vehicles 66,085 15 899,189 231 -93%
Total (market-based) 8,498,087 1,559 8,465,888 1,957 -20%

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Task Force on Climate-
related Financial
Disclosures (TCFD)
Chapter 1 4
Performance
and purpose
58 Hiscox Ltd Report and Accounts 2021
belongs to our landlords, we will
petition for change. We are also
reassessing our existing use of
company cars, which is currently
limited to a small fleet in some
of our European operations.
We are already making progress
here, having retired our fleet
of company cars in Germany
during 2021, and in those
areas where it is not possible
to eliminate the fleet entirely,
we intend to transition
to electric vehicles over time.
s On operational Scope 3, which
is dominated by business travel,
we are currently focused on
improving the consistency of
travel data across the Group to
enhance our understanding of
both volume and class of travel,
to ensure our action plan is
appropriately targeted.
s On Scope 3 more broadly, where
emissions are dominated by
our investments, the Board has
agreed that we will aim for more
than 25% of our corporate bond
portfolio by invested value to have
net-zero/Paris-aligned targets by
2025 and that we will target an
additional 25% by AUM coverage
every five years as we aim to be
on a linear path to 100% portfolio
coverage by 2040.
Progress against these targets will
be driven by our ESG working group
and overseen by our Sustainability
Steering Committee, with at least
annual updates to the Board.
Progress will also be recorded through
our annual carbon reporting cycle,
and we will seek to remain operationally
carbon neutral through offsetting,
as we have been since 2014.
More information on our 2021 carbon
emissions can be found on page 49.
Other metrics and targets we
consider include:
s the monitoring and measurement
of underwriting and investment
exposure to carbon-heavy
sectors including coal-fired
power plants and coal mines,
oil sands and Arctic energy
exploration (beginning with the
Arctic National Wildlife Refuge),
in line with our Group ESG
exclusions policy;
s annual investment portfolio
sustainability reviews, taking into
account climate-related issues,
in line with our responsible
investment policy;
s the growth and exposure of
sustainable underwriting products
such as flood and renewable
energy products.
These activities are owned by the
relevant business areas, from
underwriting to investments, with
progress reported through the
embedded ESG governance structures.
These metrics and targets are
complemented by external key
performance indicators, such as our
public ESG disclosure scores (see
page 53) and our annual climate report,
which assess our progress against
climate-related activities during the
prior year and outlines our plans for
climate-related action in the year ahead.
TCFD disclosure mapping
compliance statement
Disclosures have been made against the TCFD recommendations. Where additional information outside of this report aids
our TCFD disclosure, links to this information have been provided, and where we have not yet disclosed fully against the
recommended TCFD disclosure, we have outlined why this is and the actions already being taken towards meeting the
disclosure requirements within the timeframe given.
Theme Recommended disclosure Status Reference
Governance
Disclose the organisation’s
governance around climate-related
risks and opportunities.
Describe the organisation’s governance around
climate-related risks and opportunities.
Disclosed. 2021 climate report* pages 9, 10 and 11.
CDP climate questionnaire 2021.
Describe management’s role in assessing and
managing climate-related risks and opportunities.
Disclosed. 2021 climate report* pages 14 and 15.
CDP climate questionnaire 2021.
Strategy
Disclose the actual and potential
impacts of climate-related risks and
opportunities on the organisation’s
businesses, strategy, and financial
planning where such information
is material.
Describe the climate-related risks and opportunities
the organisation has identified over the short,
medium, and long term.
Disclosed. 2021 climate report* pages 5 and 22.
CDP climate questionnaire 2021.
Describe the impact of climate-related risks and
opportunities on the organisation’s businesses,
strategy, and financial planning.
Disclosed. CDP climate questionnaire 2021.
Describe the resilience of the organisation’s strategy,
taking into consideration different climate-related
scenarios, including a 2°C or lower scenario.
Plan to
disclose in
the next
two years.
2021 climate report* page 12.
More information on how we intend to
meet this disclosure requirement, and
steps already being taken towards it,
are outlined on page 56.
Risk management
Disclose how the organisation
identifies, assesses, and manages
climate-related risks.
Describe the organisation’s processes for identifying
and assessing climate-related risks.
Disclosed. 2021 climate report* pages 9, 11, 27-29.
CDP climate questionnaire 2021.
Describe the organisation’s processes for managing
climate-related risks.
Disclosed. 2021 climate report* pages 14-15.
CDP climate questionnaire 2021.
Describe how processes for identifying, assessing,
and managing climate-related risks are integrated
into the organisation’s overall risk management.
Disclosed. 2021 climate report* page 9.
CDP climate questionnaire 2021.
Metrics and targets
Disclose the metrics and targets
used to assess and manage relevant
climate-related risks and opportunities
where such information is material.
Disclose the metrics used by the organisation to
assess climate-related risks and opportunities in line
with its strategy and risk management process.
Disclosed. 2021 climate report* pages 39-40.
CDP climate questionnaire 2021.
See Hiscox Group website.
Disclose Scope 1, Scope 2 and, if appropriate,
Scope 3 GHG emissions and the related risks.
Disclosed. 2021 climate report* pages 39-40.
CDP climate questionnaire 2021.
See Hiscox Group website.
Describe the targets used by the organisation to
manage climate-related risks and opportunities
and performance against targets.
Disclosed. 2021 climate report* pages 39-40.
CDP climate questionnaire 2021.
* Our 2021 climate report was published in August 2021 and covers our
climate-related activities between July 2020 and July 2021. Where we
reference information from that report, that information remains correct
at 2 March 2022.

59Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Task Force on Climate-
related Financial
Disclosures (TCFD)
Chapter 1 4
Performance
and purpose
TCFD disclosure mapping
compliance statement
Disclosures have been made against the TCFD recommendations. Where additional information outside of this report aids
our TCFD disclosure, links to this information have been provided, and where we have not yet disclosed fully against the
recommended TCFD disclosure, we have outlined why this is and the actions already being taken towards meeting the
disclosure requirements within the timeframe given.
Theme Recommended disclosure Status Reference
Governance
Disclose the organisation’s
governance around climate-related
risks and opportunities.
Describe the organisation’s governance around
climate-related risks and opportunities.
Disclosed. 2021 climate report* pages 9, 10 and 11.
CDP climate questionnaire 2021.
Describe management’s role in assessing and
managing climate-related risks and opportunities.
Disclosed. 2021 climate report* pages 14 and 15.
CDP climate questionnaire 2021.
Strategy
Disclose the actual and potential
impacts of climate-related risks and
opportunities on the organisation’s
businesses, strategy, and financial
planning where such information
is material.
Describe the climate-related risks and opportunities
the organisation has identified over the short,
medium, and long term.
Disclosed. 2021 climate report* pages 5 and 22.
CDP climate questionnaire 2021.
Describe the impact of climate-related risks and
opportunities on the organisation’s businesses,
strategy, and financial planning.
Disclosed. CDP climate questionnaire 2021.
Describe the resilience of the organisation’s strategy,
taking into consideration different climate-related
scenarios, including a 2°C or lower scenario.
Plan to
disclose in
the next
two years.
2021 climate report* page 12.
More information on how we intend to
meet this disclosure requirement, and
steps already being taken towards it,
are outlined on page 56.
Risk management
Disclose how the organisation
identifies, assesses, and manages
climate-related risks.
Describe the organisation’s processes for identifying
and assessing climate-related risks.
Disclosed. 2021 climate report* pages 9, 11, 27-29.
CDP climate questionnaire 2021.
Describe the organisation’s processes for managing
climate-related risks.
Disclosed. 2021 climate report* pages 14-15.
CDP climate questionnaire 2021.
Describe how processes for identifying, assessing,
and managing climate-related risks are integrated
into the organisation’s overall risk management.
Disclosed. 2021 climate report* page 9.
CDP climate questionnaire 2021.
Metrics and targets
Disclose the metrics and targets
used to assess and manage relevant
climate-related risks and opportunities
where such information is material.
Disclose the metrics used by the organisation to
assess climate-related risks and opportunities in line
with its strategy and risk management process.
Disclosed. 2021 climate report* pages 39-40.
CDP climate questionnaire 2021.
See Hiscox Group website.
Disclose Scope 1, Scope 2 and, if appropriate,
Scope 3 GHG emissions and the related risks.
Disclosed. 2021 climate report* pages 39-40.
CDP climate questionnaire 2021.
See Hiscox Group website.
Describe the targets used by the organisation to
manage climate-related risks and opportunities
and performance against targets.
Disclosed. 2021 climate report* pages 39-40.
CDP climate questionnaire 2021.
* Our 2021 climate report was published in August 2021 and covers our
climate-related activities between July 2020 and July 2021. Where we
reference information from that report, that information remains correct
at 2 March 2022.
Read more about our approach to
climate change in our 2021 climate
report, available online at
hiscoxgroup.com/2021climatereport.
Read more in our CDP climate
questionnaire 2021
hiscoxgroup.com/cpddisclosure2021.

60 Hiscox Ltd Report and Accounts 2021
Kathleen Reardon was
appointed Chief Executive
Officer of Hiscox Re & ILS in
January 2021, after a highly
successful six-year tenure
as Chief Executive Officer of
Hamilton Re. She is a former
chair of the Reinsurance
Association of America, and
co-founder of the Women in
Reinsurance organisation.
Q: What brought you to
Hiscox Re & ILS?
A: It’s been a 20-year
attraction. The underwriting
acumen, the technical
expertise: that’s always
been appealing to me. So
too is the leadership. At
events and conferences,
there was always something
interesting happening with
Hiscox, always a crowd
gathering. Bronek would be
out there, saying things that
needed to be said: climate,
rate change, attachment
point. We were early starters
of ILS, early starters of
our quota share strategy.
I like that punchiness, that
audacity. When the role
became available, I knew I’d
be working for a leadership
team with conviction and
compassion. These are
people who truly want
Hiscox to succeed. They
are ‘all in’ and truly invested
in the business.
Q: What were your first
impressions when
you arrived?
A: Because it wasn’t an
unknown entity to me, I was
able to hit the ground running.
What was nice when I looked
at the stats, was that about
a third of our underwriters
have been with Hiscox for
more than 18 years and a third
have arrived in the past two
years. I like that balance of
‘been there, done that, have
the experience to show for
it’ versus ‘I’m coming with a
different perspective’. What
also didn’t disappoint is that
Hiscox Re & ILS really is an
analytical shop. Underwriters
are more technical than
most and that makes a
real difference.
Q: What do you see as your
task here?
A: We have a really strong
heritage, especially on the
big-ticket side of our business,
and now that the market is
turning, I want Hiscox Re &
ILS to get back to the type of
greatness which I believe it is
known for. That’s an awesome
challenge, and I’m proud
to say we’re starting with a
solid foundation.
We refreshed our strategy
for Hiscox Re in 2021, which
included an element of
‘getting to yes’. We can’t
stay out on the sidelines all
the time; we have to come
in and be decisive. We were
retreating, rightfully so, in
a soft market, but this is an
improving marketplace, so
now we need to lean in to
the sales element of what
we do. We need to be going
in, saying: ‘how can I solve
your problems?’. And for
that, we need to dial up the
inquisitiveness and create
a more holistic view of the
client. You might still say no
a lot, but not without coming
to the table with other
solutions. It’s just a shift.
On the underwriting side
specifically, it’s a ramping up
of something that’s already
there; it’s just brushing off
the cobwebs, given the
market conditions.
Q: Is there a need to shift
perceptions of Hiscox Re
among brokers and clients?
A: We ran a broker survey
early last year and we had
some good, pure, heartfelt
feedback. I think there’s a
general acceptance that
we were retreating, but they
really do want Hiscox to be
great. They want us back with
a louder voice and in a lead
position. So, what can we do
for people to wholeheartedly
say: ‘they’re back’? We’re
enhancing client service,
which means ensuring quotes
remain relevant and timely,
sharing climate change and
inflation views, and continuing
to pay claims swiftly. It also
means staying focused on
our core areas of expertise
and using smart underwriting
and analytics in new areas,
as well as optimised capital
management, and of course
having the client at the core of
everything we do. With that,
we’ll be back to greatness in
no time.
Q: What are your main
priorities for 2022?
A: Our strategic priorities
will be to continue to build a
better portfolio, mature our
model, engage our people,
and nail the business plan.
This year, we’re going to have
fewer big projects happening
on technology. It’s all going
to be more bite-sized, and
we’re going to balance that
with maturing our model.
So, what does that mean?
We need to define our roles
more clearly, so it’s easier for
people to take ownership and
be accountable. We also need
to build out our knowledge
hub as a single source of
processes, research and
insight. There’s an awesome
entrepreneurial culture at
Hiscox, which has served
us well for many years,
but as we go from being a
‘big-small company’ to a
‘small-big company’ we need
to make sure our processes
evolve with us. It also means
assessing those processes
for complexity. For example,
in our ILS offering, all of the
work in the value chain, from
submission to release of
collateral, are we actually
doing it in an efficient way?
Q: How do you see the
human value being
applied at Hiscox?
A: It’s that sense that every
voice is heard. It’s making
sure that you acknowledge
different personalities and
perspectives. Some people
are forthright with their
ideas, some people are more
conservative. Over the past
year, I met with every team
and I made sure everybody
at the table said something.
It’s about increasing the
confidence of people to share
an opinion, to have a say.
I think it’s important to have
that open door and I’m proud
to see that is a philosophy that
runs throughout Hiscox.
Q&
A:
with Kathleen Reardon
Chief Executive Officer, Hiscox Re & ILS
Re birth
After a difficult period
in a soft market,
Hiscox Re & ILS has
new leadership and
a new mission: getting
back to greatness.

61Hiscox Ltd Report and Accounts 2021

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
62 Hiscox Ltd Report and Accounts 2021
Board of Directors
Non Executive Chairman
Robert Childs (Aged 70)
Appointed Chairman: February 2013
Appointed to the Board: September 2006
Relevant skills, experience and contribution
s Extensive knowledge of Hiscox, having
worked for the Group for over 30 years.
s Significant expertise in insurance cycle
management, having worked through
unprecedented large loss events
such as 9/11 and Hurricanes Katrina,
Rita and Wilma.
Robert joined Hiscox in 1986 and has held a
number of senior roles across the Group, including
Active Underwriter for Syndicate 33 and Group
Chief Underwriting Officer, before becoming Non
Executive Chairman in February 2013. Robert is
also Chair of the Nominations and Governance
Committee, the Investment Committee, and the
Hiscox Syndicates Limited Board. He joined the
Council of Lloyd’s in 2012 and served as Deputy
Chairman of Lloyd’s from 2017 to 2020.
External board appointments
None.
Executive Director
Aki Hussain (Aged 49)
Group Chief Executive Officer
Appointed to the Board: September 2016
Relevant skills, experience and contribution
s Considerable experience of
providing strategic, financial and
commercial management and
in-depth knowledge of the regulatory
and compliance environment.
s Significant experience of driving
business change.
Aki joined Hiscox in 2016 as Group Chief Financial
Officer and became Group Chief Executive
Officer in 2022. Aki also sits on the Board of a
number of Hiscox subsidiary companies. Prior to
Hiscox, Aki held a number of senior roles across
a range of sectors, including Chief Financial
Officer of Prudential’s UK and Europe business,
and Finance Director for Lloyds Banking Group’s
consumer bank division. Aki is a Chartered
Accountant, having trained with KPMG.
External board appointments
Visa Europe Limited.
Independent Non Executive Director
Caroline Foulger (Aged 61)
Appointed to the Board: January 2013
Relevant skills, experience and contribution
s Extensive accounting and financial
reporting expertise.
s Deep understanding of Bermuda as a
reinsurance centre.
Caroline is a resident of Bermuda and led
PwC’s insurance and reinsurance practice in
Bermuda until her retirement in 2012. With a
strong background in accounting, she is a Fellow
of the Institute of Chartered Accountants in
England and Wales, a member of the Institute
of Chartered Accountants of Bermuda and a
member of the Institute of Directors. Caroline
also serves on the Hiscox Insurance Company
(Bermuda) Limited and Hiscox Syndicates
Limited boards as a Non Executive Director
and is Chair of the Audit Committee.
External board appointments
Oakley Capital Investments Limited; Catalina
Holdings Bermuda Ltd; Atlas Arteria International
Limited; Ocean Wilsons Holdings Ltd.
Executive Director
Joanne Musselle (Aged 51)
Group Chief Underwriting Officer
Appointed to the Board: March 2020
Relevant skills, experience and contribution
s Considerable underwriting expertise,
including experience of managing
underwriting portfolios in our key markets.
s Significant knowledge of Hiscox,
particularly Hiscox Retail, having
worked for the Group for 19 years.
Joanne joined Hiscox in 2002 and has held a
number of roles across the Group, including
Head of UK Claims, Chief Underwriting Officer
for Hiscox UK & Ireland, and Chief Underwriting
Officer for Hiscox Retail. Joanne also sits on
the Board of a number of Hiscox subsidiary
companies. Prior to Hiscox, Joanne spent
almost ten years working in a variety of actuarial,
pricing and reserving roles at Axa and Aviva in
both the UK and Asian markets.
External board appointments
Realty Insurances Ltd.
Senior Independent Director
Colin Keogh (Aged 68)
Appointed to the Board: November 2015
Relevant skills, experience and contribution
s Valuable financial services experience.
s Significant knowledge of how to run an
international financial business.
Colin has spent his career in financial services,
principally at Close Brothers Group plc where
he worked for 24 years and served as CEO for
seven years until 2009. Colin is also Chair of
the Remuneration Committee and of the
Hiscox Insurance Company Limited Board.
External board appointments
Ninety One Plc; Ninety One Ltd ; Premium
Credit Limited.
Independent Non Executive Director
Donna DeMaio (Aged 63)
Appointed to the Board: November 2021
Relevant skills, experience and contribution
s Extensive financial services experience,
particularly in the USA.
s Proven expertise in overseeing global
auditing activities.
Donna has over 35 years’ financial services
experience, gained across banking and
insurance. She was AIG Global Chief Operating
Officer, General Insurance and also served as
their Global Chief Auditor. Donna was Chief
Executive and Chair of the Board at United
Guaranty, CEO and Chair of the Board at
MetLife Bank and was a PwC Financial Services
Partner. Donna will also serve as Chair of the
Audit Committee following Caroline Foulger’s
retirement at the 2022 Annual General Meeting.
External board appointments
Azure.

63Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Board of Directors
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Independent Non Executive Director
Michael Goodwin (Aged 63)
Appointed to the Board: November 2017
Relevant skills, experience and contribution
s Significant knowledge of the Asian
insurance market.
s Deep understanding of risk management
as a trained actuary.
Michael has over 25 years’ experience in the
insurance industry, having worked in Australia
and the Asia Pacific region for QBE Insurance
Group for over 20 years. Michael started
his career as an actuary, is a Fellow of the
Institute of Actuaries of Australia and served
as Vice President of the General Insurance
Association of Singapore between 2006 and
2012. Michael also serves on the DirectAsia
Board as a Non Executive Director.
External board appointments
Partner Reinsurance Asia Pte Ltd; Steadfast
Distribution Services Pte Ltd; NCI Brokers (Asia)
Pte Ltd; Galaxy Insurance Consultants Pte Ltd;
Enya-Lea Pte Ltd; Werombi Pte Ltd.
Independent Non Executive Director
Thomas Hürlimann (Aged 58)
Appointed to the Board: November 2017
Relevant skills, experience and contribution
s Considerable experience of leading a
global business.
s Extensive knowledge of the European
insurance market.
Thomas has 30 years’ experience in banking,
reinsurance and insurance. He was CEO
Global Corporate at Zurich Insurance Group,
a $9 billion business working in over 200
countries. Prior to that, he held senior positions
at Swiss Re Group and National Westminster
Bank. Thomas also serves on the Hiscox SA
Board as a Non Executive Director.
External board appointments
None.
Independent Non Executive Director
Anne MacDonald (Aged 66)
Appointed to the Board: May 2015
Relevant skills, experience and contribution
s Extensive marketing expertise,
particularly in the USA.
s Sizable experience in developing
well-known global brands.
Anne has served as Chief Marketing Officer
at four Fortune 100 companies, and been in
charge of some of the most recognised brands
in the world, including Citigroup, Traveler’s,
Macy’s and Pizza Hut. Anne also serves as
the Employee Liaison for Hiscox.
External board appointments
Boot Barn Holdings, Inc.; IGNITE National;
Visiting Nurse & Hospice of Litchfield County.
Independent Non Executive Director
Constantinos Miranthis (Aged 58)
Appointed to the Board: November 2017
Relevant skills, experience and contribution
s Deep understanding of Bermuda’s
(re)insurance industry.
s Senior leadership experience in the
reinsurance sector.
Costas served as President and CEO of
PartnerRe Ltd, one of the world’s leading
reinsurers, until 2015 and prior to that was a
Principal of Tillinghast-Towers Perrin in London,
where he led its European non-life practice.
He is a Fellow of the UK Institute and Faculty
of Actuaries and a resident of Bermuda.
Costas also serves on the Hiscox Insurance
Company (Bermuda) Limited Board as a
Non Executive Director.
External board appointments
Argus Group Holdings Limited; Pacific Life Re;
Gatland Holdings Jersey Limited.
Independent Non Executive Director
Lynn Pike (Aged 65)
Appointed to the Board: May 2015
Relevant skills, experience and contribution
s Strong background in the US financial
services sector.
s Significant knowledge of providing
commercial solutions for small
businesses, particularly in the USA.
Lynn worked in the US banking industry for
nearly four decades, most recently as President
of Capital One Bank. Before that, she was
President of Bank of America’s small business
banking division, a multi-billion-Dollar business
with 110,000 clients and over 2,000 employees.
Lynn also serves on the Hiscox Insurance
Company Inc. Board as a Non Executive
Director and is Chair of the Risk Committee.
External board appointments
American Express Company (NYSE: AXP);
American Express National Bank;
CareerWork$; California State University
Channel Island Foundation.
Chair of Committee is highlighted in solid.
Group General Counsel and
Company Secretary
Marc Wetherhill (Aged 49)
Marc has significant legal and governance
experience, and is the Principal Representative
to the Bermuda Monetary Authority for the
Hiscox Group. He previously served as
Chief Legal Counsel and Chief Compliance
Officer at PartnerRe Ltd, having trained as a
solicitor in London, and is a member of the
Bermuda Bar.
Member of the Audit Committee
Member of the Nominations and
Governance Committee
Member of the Remuneration Committee
Member of the Risk Committee
Member of the Investment Committee

Chapter 3 62
Governance
Board of Directors
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
64 Hiscox Ltd Report and Accounts 2021
Bronek Masojada (Aged 60)
Group Chief Executive Officer
Appointed to the Board: October 2006
Bronek joined Hiscox in 1993 as Group
Managing Director and became Chief Executive
in 2000. Prior to that he worked with McKinsey
& Company, where he advised Lloyd’s on its
renowned Reconstruction and Renewal plan.
Bronek also previously served as Deputy
Chairman of Lloyd’s and Chairman of the
Lloyd’s Tercentenary Research Foundation,
and currently serves as a City of London
Alderman. Bronek retired as Group Chief
Executive Officer at the end of 2021 but
continues to be an employee of Hiscox,
providing strategic advice as a Director for
key subsidiaries.
Departures and appointments
Executive appointments
Aki Hussain to Group Chief Executive Officer
(effective 1 January 2022)
Paul Cooper to Group Chief Financial Officer
(effective first half of 2022)
Non Executive appointments
Donna DeMaio
(effective 18 November 2021)
Executive retirements
Bronek Masojada
(effective 31 December 2021)
Non Executive retirements
None.
Director duties
As a company incorporated under the laws
of Bermuda, Hiscox complies with Bermuda
Company Law and as such the UK Companies
Act 2006 and associated reporting regulations
do not apply. Although there is no prescription
of statutory duties in Bermuda, Directors are
bound by fiduciary duties to the Company and
statutory duties of skill and care. This includes
exercising care, diligence, and skill that a
reasonably prudent person would be expected
to exercise in a comparable circumstance.
The Directors act in a way that they consider in
good faith would be most likely to promote the
success of the company for the benefit of its
members as a whole.
Retired Director

65Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Board statistics
Gender
Female 5
Male 6
Age
46-55 2
56-65 6
66-75 3
Location
USA 3
Bermuda 2
Europe 5
Asia 1
Tenure
0-3 years 2
3-6 years 4
6-8 years 3
8+ years 2
Board statistics
Board diversity at 2 March 2022
Nationality
British 4
Bermudian* 2
American 3
Swiss 1
Australian 1
* Includes those Directors who hold
a Permanent Residency Certificate.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
66 Hiscox Ltd Report and Accounts 2021
Liz Breeze
Interim Group Chief Financial Officer
Joined Hiscox: May 2012
Relevant skills, experience and contribution
s Significant experience of financial
and commercial management
within a complex regulatory and
compliance environment.
s Qualified Chartered Accountant, with
significant knowledge of the UK and
Bermuda (re)insurance markets.
Liz joined Hiscox in 2012 and has held a number
of senior finance roles across the Group,
including Group Technical Accountant, Head
of Finance for Hiscox UK, and Chief Financial
Officer for Hiscox Re & ILS. As interim Group
Chief Financial Officer, she leads our team
of 400 finance experts around the world to
ensure robust financial systems and continued
capital efficiency.
Group Executive Committee (GEC)
The combination of
business unit CEOs
and functional leaders
that we have on our
newly formed Group
Executive Committee
drives accountability
and ensures effective
progress in all areas.”
Aki Hussain
Group Chief Executive Officer
Amanda Brown
Chief Human Resources Officer
Joined Hiscox: October 2006
Relevant skills, experience and contribution
s Deep expertise in developing and
implementing HR strategy across
multiple geographies.
s Global compensation management
including executive compensation
policy and shareholder consultation.
Amanda leads our team of 90 HR professionals
around the world, overseeing our HR policies
and procedures, employee rewards and
benefits, recruitment, learning and development,
and our approach to remuneration to ensure
our continued ability to attract and retain talent
at all levels.
Robert Dietrich
Chief Executive Officer, Hiscox Europe
Joined Hiscox: June 1997
Relevant skills, experience and contribution
s In-depth knowledge of the European
insurance market.
s Significant experience of bringing niche
insurance products to market.
Robert served as Managing Director for Hiscox
Germany for many years, driving disciplined
expansion and building it into the flagship
European business it is today. In 2021, he took
on wider responsibility for Hiscox Europe, whose
operations span eight countries, overseeing
critical cross-country systems transformation
and redefining its long-term vision.
Stéphane Flaquet
Chief Transformation Officer and
Interim Chief Executive Officer, Hiscox UK
Joined Hiscox: March 2010
Relevant skills, experience and contribution
s Strong financial services background.
s Sizable insurance industry
experience gained within a range
of European territories.
Stéphane originally joined Hiscox as Chief
Operating Officer for Europe, and has also
served as the Group’s Chief Information Officer
and latterly as Chief Executive Officer of Hiscox
Europe. In 2021, he took on the newly created
role of Chief Transformation Officer, driving
critical change programmes across the Group,
and is also Interim Chief Executive Officer for
Hiscox UK.

67Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Group Executive
Committee (GEC)
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Aki Hussain
Group Chief Executive Officer
Joined Hiscox: September 2016
Relevant skills, experience and contribution
s Considerable experience of
providing strategic, financial and
commercial management and
in-depth knowledge of the regulatory
and compliance environment.
s Significant experience of driving
business change.
Aki joined Hiscox in 2016 as Group Chief Financial
Officer and became Group Chief Executive
Officer in 2022. Aki also sits on the Board of a
number of Hiscox subsidiary companies. Prior to
Hiscox, Aki held a number of senior roles across
a range of sectors, including Chief Financial
Officer of Prudential’s UK and Europe business,
and Finance Director for Lloyds Banking Group’s
consumer bank division. Aki is a Chartered
Accountant, having trained with KPMG.
Kevin Kerridge
Chief Executive Officer, Hiscox USA
Joined Hiscox: December 1996
Relevant skills, experience and contribution
s Significant expertise in developing
customer-focused eCommerce solutions.
s Multi-market, ground-up experience of
building retail businesses.
Kevin has held a number of strategic planning
and operational roles across the Group and was
an early pioneer of our eCommerce approach.
He set up and ran our UK Direct business before
relocating to establish our direct-to-consumer
operations in the USA. With our US Digital
Partnerships and Direct (DPD) business now an
important growth driver, Kevin was appointed
to lead Hiscox USA in 2021.
Hanna Kam
Group Chief Risk Officer
Joined Hiscox: February 2015
Relevant skills, experience and contribution
s Qualified actuary with in-depth
enterprise risk management and
insurance expertise.
s International property and casualty
insurance industry experience gained
within corporates and consultancies
across the UK and Australia.
Hanna leads our global team of risk and
compliance experts, located in our key
geographies and jurisdictions. She has
Group-wide responsibility for Hiscox’s
enterprise risk management and regulatory
compliance, and manages our relationships
with regulators.
Kathleen Reardon
Chief Executive Officer, Hiscox Re & ILS
Joined Hiscox: January 2021
Relevant skills, experience and contribution
s Extensive experience of building
reinsurance businesses throughout
the cycle.
s In-depth knowledge of the Bermuda
reinsurance market.
Kathleen joined Hiscox in 2021 from Hamilton
Re, where she was Chief Executive Officer.
She leads our reinsurance and ILS business,
based in London and Bermuda, and is
responsible for ensuring the team takes
advantage of the hardening market and
opportunities as they present themselves.
Kate Markham
Chief Executive Officer, Hiscox London Market
Joined Hiscox: June 2012
Relevant skills, experience and contribution
s Strong experience of building
customer-focused businesses.
s Track record of establishing
operational and digital infrastructures
that support growth.
Kate originally joined Hiscox to run our UK
Direct business, and was promoted to
Chief Executive Officer of Hiscox London Market
in 2017. She leads our team of 300 London
Market underwriters, analysts and support
functions in the UK, Guernsey and the USA.
In addition, Kate is the Group’s Executive
Sponsor for Diversity and Inclusion.
Joanne Musselle
Group Chief Underwriting Officer
Joined Hiscox: April 2002
Relevant skills, experience and contribution
s Considerable underwriting expertise,
including experience of managing
underwriting portfolios in our key markets.
s Significant knowledge of Hiscox,
particularly Hiscox Retail, having
worked for the Group for 19 years.
Joanne joined Hiscox in 2002 and has held a
number of roles across the Group, including
Head of UK Claims, Chief Underwriting Officer
for Hiscox UK & Ireland, and Chief Underwriting
Officer for Hiscox Retail. Joanne also sits on
the Board of a number of Hiscox subsidiary
companies. Prior to Hiscox, Joanne spent
almost ten years working in a variety of actuarial,
pricing and reserving roles at Axa and Aviva in
both the UK and Asian markets.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
68 Hiscox Ltd Report and Accounts 2021
Chairman’s letter to shareholders
Dear Shareholder
During 2021, we announced a change
of leadership of the Group. It gives me
great pleasure that such is the strength
of the talent within Hiscox that we were
able to make an appointment from within
our ranks – Aki Hussain, who previously
served as the Group’s Chief Financial
Officer. We then needed to fill the Group
Chief Financial Officer role, and here
we have made an appointment from
outside of the Group. Paul Cooper, who
served as Finance Director for Hiscox UK
and Europe from 2006 to 2011, comes
back to us having gained significant
experience of financial services and in
particular insurance at a high level. We
have also appointed a new Independent
Non Executive Director to the main
Board, Donna DeMaio, who will chair
our Audit Committee following Caroline
Foulger’s departure during 2022.
Other themes remained a constant: ESG
and in particular, climate change; and our
focus on culture and the role of the Board
in employee engagement. In these areas,
I can report solid progress.
Group Chief Executive Officer and
Group Chief Financial Officer succession
The Board and Nominations and
Governance Committee’s focus in recent
years was to ensure that there were strong
internal succession options for the Group
Chief Executive Officer. This process
involved articulating the key qualities for a
Group Chief Executive Officer successor;
engaging professional advisors to evaluate
both internal and external talent against
these qualities; and the contribution of
a leading independent search firm in
reviewing external candidates.
This process resulted in the Board
appointing Aki Hussain as Group
Chief Executive Officer, effective from
1January2022. His experience, skills and
values align to those which we sought
in a Group Chief Executive Officer, as
demonstrated in his five years with Hiscox
as Group Chief Financial Officer. In his
new role, the Group will also benefit from
his significant experience gained prior to
Hiscox, which bring valuable and fresh
perspective, as well as his clear thinking
and drive to continue to build the business.
With Aki’s appointment, the Board
and Nominations and Governance
Committee focused on Group Chief
Financial Officer succession, a process
which resulted in the Board appointing
Paul Cooper to succeed Aki Hussain as
Group Chief Financial Officer. Paul will
join the business in the first half of 2022,
at which point he will join the Board
of Directors and the Group Executive
Committee. I would like to personally
thank Liz Breeze, Chief Financial Officer
for Hiscox Re & ILS, for stepping in as
Interim Group Chief Financial Officer.
New Independent Non
Executive Director
The Board and Nominations and
Governance Committee also oversaw
the appointment of a new Independent
Non Executive Director during the year.
Following a robust process, Donna
DeMaio was appointed to succeed
Caroline Foulger both as Independent
Non Executive Director and Chair of the
Audit Committee when Caroline retires
at the 2022 AGM. We will benefit from
Donna’s significant financial services
and US market expertise.
Group-level and subsidiary boards
We continually review our existing
structures to ensure the knowledge and
expertise we have within our Group-level
and subsidiary boards is shared. Many
of the Independent Non Executive
Directors on our Group-level Board also
serve on one or more of our subsidiary
boards, and during the year Colin Keogh,
our Senior Independent Director, took
over from me as Chairman of the Hiscox
Insurance Company Limited Board, the
subsidiary board for our UK entities.
Task Force on Climate-related
Financial Disclosures (TCFD)
Last year I talked about our annual climate
report, which we have produced for many
years and which since 2019 has been
structured around a set of TCFD-aligned
principles. This year we have boosted
our long-standing disclosures with more
information on our compliance with TCFD,
in line with the new FCA requirements,
which can be found on pages 54 to 59.
Culture and employee engagement
The employee engagement network we set
up in 2019, chaired by our Independent
Non Executive Director, Anne MacDonald,
is now fully embedded and proving to be an
effective means of workforce engagement,
ensuring workforce views are considered in
Board decision-making. Anne was chosen
to carry out this role due to her relevant
experience in her professional career and
people skills. The network convenes twice
a year and their contributions are shared
with both Group-level and subsidiary
boards. Their inputs have contributed to
ongoing thinking in areas including how we
communicate across the business, and
future ways of working as hybrid working
becomes the new normal.
I trust that the information set out in this
report will give you a strong understanding
of our corporate governance arrangements
a
nd assurance that Hiscox continues to be
focused on the importance of maintaining
a robust corporate governance framework.
Robert Childs, Chairman

69Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Corporate governance
Corporate governance framework
The corporate governance framework
throughout Hiscox supports the delivery
of our values, culture, strategy and
business objectives.
The Board’s formal corporate
governance framework includes the
Board, the Hiscox Group subsidiaries
and the Executive internal governance
structures, which together ensure
the governance requirements for the
Group are robust and fit for purpose.
As a company listed on the London
Stock Exchange, the UK Corporate
Governance Code (the Code) is
applicable to Hiscox, and an overview
of the Company’s compliance with the
Code is detailed on pages 76 to 81.
The Board has a formal schedule
of matters reserved for the Board’s
determination that covers areas
including: setting the Group’s purpose
and strategic vision; monitoring
performance of the delivery of the
strategy; approving major investments,
acquisitions and divestments; risk
oversight and setting the Group’s risk
appetite; and reviewing the Group’s
governance. The Group governance
manual (the manual) details the wider
corporate governance framework
including the overall legal entity structures
and relationship with the business units,
the division of responsibilities between
Group and principal subsidiary boards,
Board process and procedures for
issues such as Non Executive Director
appointments, diversity requirements
and Board evaluations, and the principles
to be applied to the wider subsidiary
management. The manual is approved
by the Board and regularly reviewed.
The Company also benefits from a
strong governance framework at a
subsidiary level. The manual and the
supporting subsidiary governance
manuals ensure that the underlying
processes throughout the subsidiary
boards follow consistent and effective
governance practices. The division of
responsibility between the Group Board
and the boards of the Group’s principal
subsidiaries is understood throughout
the Group and is visually represented
in the Hiscox Group governance
model (available at hiscoxgroup.com/
investors/corporate-governance).
The model shows the relationship
between the Board exercising strategic
direction and oversight of the Hiscox
Group, and the subsidiary boards’
delivery of their respective entity’s
responsibilities. This is further translated
into explicit terms of reference and
governance manuals for the principal
subsidiaries – ensuring alignment to
the overall Group approach to values,
purpose, culture of risk awareness,
ethical behaviour and Group controls.
Informal interaction, information flows
and collaboration between Group
and the principal subsidiaries are also
delivered by Group Board Non Executive
and Executive Director representation
on the boards of the principal insurance
carrier entities.
The Executive’s internal governance
structures support decision-making
at the Executive level between the
Group Executive Committee, the
business units and the functional
departments. Membership of the Group
Executive Committee was refreshed
in January 2022 following a review of
existing leadership structures by the
incoming Group Chief Executive Officer,
and the resulting Group Executive
Committee members are detailed
on pages 66 to 67.
Supporting policies and processes
The corporate governance framework
complements the Company’s internal
controls framework and its supporting
framework of policies and processes.
Key policies for the Group are published
online and available to view at
hiscoxgroup.com/about-hiscox/
group-policies-and-disclosures.
In particular, the internal control and risk
management systems relating to the
financial reporting process are strong,
with the Audit Committee and the Risk
Committee forming the central points
of review and challenge. Further detail
can be found in the Audit Committee
report on pages 89 to 91 and in the risk
management section on pages 38 to 41.
In addition, the Board and the Audit
Committee – whose Chair also serves
as the Group’s whistleblowing champion
– have oversight of whistleblowing
matters and receive reports arising
from its operation. The Company’s
whistleblowing policy ensures that the
workforce feel empowered to raise
concerns in confidence and without
fear of unfair treatment. The structures
and processes in place allow for
the proportionate and independent
investigation of any such matters, and
for appropriate follow-up action to be
taken where necessary.
Board composition
The Board has responsibility for the
overall leadership of the Group and its
culture. The operations of the Board
are underpinned by the collective
experience of the Directors and the
diverse skills which they bring. The Board
comprises the Non Executive Chairman,
two Executive Directors, and eight
independent Non Executive Directors
including a Senior Independent Director.

Chapter 3 62
Governance
Corporate governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
70 Hiscox Ltd Report and Accounts 2021
Notable changes in the reporting
period include the appointment of Aki
Hussain as Group Chief Executive
Officer, effective from 1January2022
following Bronek Masojada’s retirement
on 31December2021, the appointment
of Paul Cooper into the Group Chief
Financial Officer role in the first half
of 2022, and Donna DeMaio’s
appointment on 18November2021
as Independent Non Executive Director
and Audit Committee Chair designate,
which ensures an orderly transition
in preparation for Caroline Foulger’s
retirement at the AGM in 2022, following
the conclusion of her nine-year term
with the Company. Biographical details
for each member of the Board are
provided on pages 62 to 63.
In accordance with the Company’s
Bye-laws and the Code, all Directors
will seek re-appointment at the 2022
Annual General Meeting, with the
exception of Caroline Foulger who
will retire at the 2022 AGM. No issues
have arisen that would prevent the
Chairman from recommending the
re-appointment of any individual
Director. In addition, the Senior
Independent Director has reviewed
the position of the Chairman with
the Non Executive Directors, and
recommends the re-appointment
of Robert Childs, confirming that
the Chairman continues to show
the independence of character and
judgement necessary to chair the
Board effectively. The Board is satisfied
that it has the appropriate balance of
skills, experience, independence,
and knowledge of the Company to
enable it to discharge its duties and
responsibilities effectively, and that
no individual or group dominates the
Board’s decision-making. Additional
details on board composition and
succession planning can be found
in the Nominations and Governance
Committee report on pages 82 to 88.
Board independence and
Director duties
The Nominations and Governance
Committee review the independence
of each Non Executive Director, taking
into account, among other things, the
circumstances set out in the Code that
are likely to impair, or could appear
to impair, their independence. The
Committee remains of the view that the
most important factor is the extent to
which they are independent of mind.
As noted in the 2020 report, the Board
approved that Caroline Foulger (Audit
Committee Chair) could continue
in office until May2022, to allow for
the completion of the 2021 financial
statement process.
Each Director has undertaken to
allocate sufficient time to the
Group in order to discharge their
responsibilities effectively. Each
Non Executive Director’s letter of
appointment outlines the commitments
expected of them throughout the
year and this is further detailed in
the manual. Executive Directors are
prohibited from taking more than one
additional Non Executive directorship
in a FTSE 100 company. Each year as
part of the Director review process,
the Directors are required to provide
a complete list of all third-party
relationships that they maintain. This
is analysed to determine if there is any
actual or potential conflict of interest
and that appropriate time continues to
be available to devote to the Company.
The Nominations and Governance
Committee review the findings and
determine if there is any conflict
of interest.
With respect to 2021, the Committee
determined that there were no
relationships which could cause an
actual or potential conflict. Additionally
there were no concerns regarding
overboarding and all Directors had
adequate time available to carry
out their duties. Where Directors took
on additional Board positions during
the year, these were reviewed as part
of our corporate governance processes
and were not deemed to be significant
to the extent that they would overburden
that Directors’ time. This has been
demonstrated throughout 2020 and
2021 where all Directors have given
additional time to the Company due
to increased meetings caused by
the pandemic. Approval occurs prior
to a Director undertaking additional
external appointments.
Onboarding and board training
On joining the Board, all Non Executive
Directors take part in a full, formal
induction programme which is tailored
to their specific requirements. More
information on this, including the
recent induction of Donna DeMaio
on her appointment as Independent
Non Executive Director, can be found
in the Nominations and Governance
Committee report on pages 82 to 88.
The Board also has an ongoing training
programme with regular items on
topical issues. In 2021, this included
sessions on underwriting through the
cycle, developments in D&I, climate
change and the disclosure landscape
including TCFD and IFRS 17. Items
for training are identified in the Board,
Committee and Director reviews, as well
as through specific requirements and
individual requests, and can be delivered
via the frequent programme of Board
informational sessions.

The role of the Board
The Board as a whole is collectively responsible for the success of Hiscox Ltd and the Group. Its duties are to:
•
set the Group’s strategic direction, purpose and values and align these with its culture;
• oversee competent and prudent management of internal control, corporate governance and risk management;
• determine the sufficiency of capital in light of the Group’s risk profile and business plans;
• approve the business plans and budgets.
This structure is supported by the Group Executive Committee, Investment Committee and a number of other
management committees.
Certain administrative matters have been delegated to a committee comprising of two Directors and the Company Secretary.
71Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Corporate governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Audit Committee Nominations and
Governance Committee
Remuneration Committee Risk Committee
• Advises the Board on
financial reporting.
•
Oversees the
relationship with internal
and external audit.
•
Oversees internal
controls including
reserving and claims.
The Audit Committee report
can be found on pages 89
to 91.
• Recommends Board
appointments.
•
Succession planning.
• Ensures an appropriate
mix of skills and
experience on
the Board.
•
Promotes diversity.
• Manages any potential
conflicts of interests.
The Nominations and
Governance Committee
report can be found on
pages 82 to 88.
• Establishes
remuneration policy.
•
Oversees alignment
of rewards, incentives
and culture.
•
Sets Chairman,
Executive Director and
senior management
remuneration.
•
Oversees workforce
remuneration-related
policies and practices
across the Group.
The remuneration report can
be found on pages 100 to 113.
• Advises the Board on
the Group’s overall risk
appetite, tolerance
and strategy.
•
Provides advice,
oversight and challenge
to embed and maintain
a supportive risk culture
throughout the Group.
More information on risk
management can be found
on pages 10 and 38 to 41.
To ensure that the Board operates efficiently, each Director has distinct role responsibilities.
Chairman Senior Independent
Director (SID)
Chief Executive Independent Non
Executive Directors
• Leadership of the Board.
• Ensuring effective
relationships exist
between the Non
Executive and
Executive Directors.
•
Ensuring that the views
of all stakeholders
are understood and
considered appropriately
in Board discussions.
•
Overseeing the annual
performance evaluation
and identifying any
action required.
•
Leading initiatives to
assess the culture of the
Company and ensure
that the Board leads
by example.
• Advisor to the Chairman.
• Leading the Chairman’s
performance evaluation.
•
Serving as an
intermediary to
other Directors
when necessary.
•
Being available to
shareholders and other
stakeholders if they
have any concerns
which are unable to
be resolved through
normal channels, or if
contact through these
channels is deemed
inappropriate.
• Proposing and delivering
the strategy as set by
the Board.
•
Facilitating an effective
link between the
business and the Board
in support of effective
communication.
•
Leading the Group
Executive Committee,
which delivers
operational and financial
performance.
•
Representing Hiscox
internally and externally
to stakeholders,
including shareholders,
employees, government
and regulators, suppliers
and contractors.
• Active participation in
Board decision-making.
•
Advising on key
strategic matters.
•
Critiquing and
challenging proposals
and activities, and
approving plans
where appropriate.

Chapter 3 62
Governance
Corporate governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
72 Hiscox Ltd Report and Accounts 2021
Board structure and decision-making
The Board operates within an
established structure which includes
clear responsibilities at Board level,
transparent, well-informed and balanced
decision-making, and appropriate
onward delegations to effectively
deliver the Company’s purpose,
values and strategy.
The Board has delegated a number of its
responsibilities to its Audit, Nominations
and Governance, Remuneration and Risk
Committees. Each Board Committee
operates within established written terms
of reference and each committee Chair
reports directly to the Board. The formal
schedule of matters reserved for Board
decision and the Committee terms of
reference were reviewed in late 2021
as part of the annual review of terms of
reference, and copies of each can be
found at hiscoxgroup.com/investors/
corporate-governance. To ensure
that the Board operates efficiently, the
role of the Chairman, Senior Independent
Director and Chief Executive are
distinct to demonstrate the segregation
of responsibilities.
Board cycle
The Board receives appropriate and
timely information to enable Directors
to review business strategy, trading
performance, business risks and
opportunities. Executive Directors and
senior management from the business
are invited to present on key items,
allowing the Board the opportunity
to debate and challenge initiatives
and proposals directly.
The Board agenda is set by the
Chairman following discussion with the
Chief Executive Officer and Company
Secretary, and taking into consideration
feedback from the individual Directors.
Board agendas focus on strategically
important issues, key regulatory items
and regular reports from key business
areas. Board papers are circulated in
advance of each meeting to ensure
Directors have appropriate time to review
them, and to seek clarification where
necessary. The management reports
follow a short standard format which
aids discussion and understanding.
The quality of Board papers is kept
under regular review. At each meeting
the Board receives an update from
the Committee Chairs to keep them
abreast of the items discussed, the
outcomes agreed, and to summarise
recommendations for Board approval
from the Committees.
The scheduled meetings follow an
agreed format; agendas are developed
from the Board’s annual plan of
business, with flexibility built in to ensure
the agendas can accommodate relevant
upcoming issues. Each quarterly cycle
typically covers a series of decisions,
discussions and regulatory items
either at the Board, during Committee
discussions, or during informal
informational sessions, depending
on the nature of the matter. Items for
discussion may be identified from
actions from previous meetings, issues
escalated from management, items
requested either formally or informally
by Non Executive Directors, ongoing
regulatory topics throughout the Group,
and horizon scanning including review
of the competitive landscape. Agendas
are built to ensure that the most
appropriate method of progressing
an item is utilised. The Chairman and
Non Executive Directors usually meet
at the start or end of each Board meeting
without the Executive Directors, creating
an opportunity for Non Executive
Directors to raise any issues privately.
Owing to this system, the Group has an
effective Board which supports a culture
of accountability, transparency and
openness. Executive and Non Executive
Directors continue to work well together
as a unitary Board and debate issues
freely. The Board culture is congenial;
however, both Non Executive Directors
and Executive Directors continually
challenge each other in order to deliver
our shared aim. In the context of unitary
Boards, Non Executive Directors provide
Executive Directors with support and
guidance, not just challenge, and our
Non Executive Directors are close
enough to the business to do this.
Board attendance in 2021
In line with the agreed meeting schedule,
the Board held four comprehensive
meetings in 2021 (these meetings
comprise meetings of the Board and of
each of the Committees of the Board).
In keeping with the practices developed
during the early stages of the pandemic,
there were an additional ten informational
calls between Board meetings. These
informational calls provided an opportunity
to ensure the Board was kept informed of
any business developments and allowed
the Directors to monitor exposures,
emerging issues and opportunities.
There were also four additional sessions
held in 2021 in relation to the appointment
of the Group Chief Executive Officer.
The Company’s Bye-laws prohibit any
Director who is in the UK or the USA from
counting towards the quorum necessary
for the transaction of business at a Board
meeting. This restricts the ability of the
Company’s Directors based in the UK or
USA to participate in Board meetings
by telephone or other electronic means.
This year, a number of Board meetings
were held during periods where
government-imposed Covid-19-related

73Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Corporate governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
travel restrictions and guidance were in
place. As a result, it was not possible in
many instances for our UK- and
USA-based Directors to travel to
Bermuda or join all Board meetings.
Informational calls were held to allow
for the continued sharing of information
and ensured that all Directors had an
opportunity to be apprised of all Board
issues, even when, through no fault of
their own, they were not able to attend
the comprehensive Board meetings in
person or, as a result of the prohibition
in the Bye-laws, by telephone.
All Directors were able to fulfil their
fiduciary responsibilities during 2021
and attended all Board and Committee
meetings that they were eligible to
attend (that is, those Board and
Committee meetings that they were not
precluded from attending as a result of
Covid-19-related travel restrictions and
guidance, and the Company’s Bye-laws).
With respect to the four comprehensive
Board meetings in 2021, the Directors’
attendance (and the number of meetings
that they were eligible to attend) was
as follows: Caroline Foulger, Michael
Goodwin, Thomas Hürlimann, Costas
Miranthis, Joanne Musselle, Aki Hussain,
Bronek Masojada (4/4); Robert Childs,
Colin Keogh (3/3); Anne MacDonald,
Lynn Pike (2/2). Donna DeMaio was
appointed following the final Board
meeting of 2021 and as such was not
eligible to attend Board and Committee
meetings during 2021.
There were also four meetings of each of
the Committees of the Board during 2021.
All of the Company’s Independent Non
Executive Directors are members of each
of the Audit Committee, Nominations and
Governance Committee, Remuneration
Committee, Risk Committee and
Investment Committee and their
attendance (and the number of meetings
that they were eligible to attend) was
as follows: Caroline Foulger, Michael
Goodwin, Thomas Hürlimann, Costas
Miranthis (4/4); Robert Childs, Colin
Keogh (3/3); Anne MacDonald, Lynn
Pike (2/2). Robert Childs is a member
of the Nominations and Governance
Committee, Risk Committee and
Investment Committee and he attended
all three of the meetings that he was
eligible to attend. Aki Hussain and
Joanne Musselle are members of the
Investment Committee and attended all
four meetings, as did Bronek Masojada.
Outside of the formal Board and
Committee meetings and informational
calls, Non Executive Directors have
unfettered access to employees at all
levels of the business, regularly liaise
with management on activities aligned
to their key skills, and attend appropriate
management strategy and training
events. They also have the opportunity
to attend briefings with Group Executive
Committee members and senior
management, to understand key issues
and conduct ‘deep dives’ on specialist
subjects. In 2021, among other things,
this included marketing and branding;
strategic assessment; workforce
engagement; and digitisation. Specific
sessions are held for succession
planning and strategy.
Board engagement with stakeholders
A key element of the corporate
governance framework is open and
transparent communication with
stakeholders at all levels including
Board level. As such, the Board regularly
discusses stakeholder matters including
shareholder matters, employee
engagement, customers, and the
Group’s impact on, and relationship
with, wider society.
The Board is kept abreast of stakeholder
feedback and issues through reports
from a variety of sources, including
the Chairman, Group Chief Executive
Officer, Group Chief Financial Officer,
senior management and external
consultants. This feedback loop is
complemented by the regular dialogue
that the Board maintains with the Group’s
key stakeholders, with the support of
Executives and senior management.
While the nature and format of this
dialogue has adapted throughout the
year to ensure that communication was
sustained during periods of lockdown
restrictions, it has remained a consistent
feature. More information on how the
Board engages with key stakeholders
can be found on pages 42 to 43.
Board evaluation 2021
The Board encourages a culture of
continuous improvement, and an
important part of this is the annual review
of the Board, its Committees and each
Director. The Board evaluation in 2021
was internally facilitated, the details of
which can be found in the Nominations
and Governance Committee report on
pages 82 to 88.
Board remuneration
The remuneration of Independent Non
Executive Directors is determined by
the Nominations and Governance
Committee and is regularly benchmarked
to ensure it reflects the time commitment
and responsibilities of each role; there are
no performance-related elements. The
Chairman’s remuneration is determined
under the remuneration policy.

Chapter 3 62
Governance
Corporate governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
74 Hiscox Ltd Report and Accounts 2021
Board activity
The Board factored the needs and concerns of our key stakeholders into its discussions and decisions throughout the year.
In addition to business as usual reviews, the Board’s key activity and decisions for the reporting period are detailed below.
The table demonstrates the different stakeholders the Board took into account when these activities and decisions were taken.
Shareholders Workforce Brokers Customers Regulators
Values/culture/strategy
• Ongoing review of the values and strategy.
• Initiation of the strategy refresh following the change
of Chief Executive Officer.
• Ongoing review of business unit strategies.
• Loss portfolio transfers and adverse development cover
implemented to reduce reserve uncertainty and bolster
capital ratios.
• Continued focus on simplifying our operating model.
Succession/workforce
• Appointment of Aki Hussain as Group Chief Executive
Officer, effective 1 January 2022 following Bronek
Masojada’s retirement, effective 31 December 2021.
• Appointment of Donna DeMaio as Independent Non
Executive Director and Audit Committee Chair designate
on 18 November 2021, facilitating an orderly transition
ahead of Caroline Foulger’s retirement at the 2022 AGM.
• Oversight of the development of a robust and open culture
including further embedding of the Board Employee
Liaison role.
• Review of senior management succession plans, Group
talent management initiatives and Group diversity and
inclusion initiatives.
• Review of the employee engagement survey and approval
of a shift to a more regular rhythm of review.

75Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Corporate governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Shareholders Workforce Brokers Customers Regulators
Performance
• Approval of the 2022 business plan.
• Ongoing review of the Company’s financial results, going
concern status and viability and open and transparent
reporting of the same.
• Ongoing review of operational risk reviews of the Group
and business units.
• Ongoing examination of the Covid-19 underwriting
impact, reserve position and reinsurance recoveries.
• Approval of the final dividend payment.
Governance, compliance and internal controls
• Updates on key underwriting exposures.
• Delivery of a Group-wide programme to ensure contract
certainty and further identify any potential systemic risks.
• Approval of the updated risk limits framework.
ESG
• Increased focus on the risks associated with climate
change and embedding a Group-wide approach to
this following a detailed exercise carried out in one of
our UK subsidiaries.
• Introduction of the clear documentation of individual
climate risk assessments for the big-ticket business.
• Approval of new greenhouse gas targets for the Group.
• Approval of the ESG exclusions policy for the Group.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
76 Hiscox Ltd Report and Accounts 2021
Compliance with the UK Corporate Governance Code 2018
of the Chairman and the robustness of
the Non Executive Director succession
plan; the results of which were positive.
A similarly positive result was found in
the 2021 Board evaluation as detailed
on pages 87 to 88. The Board therefore
retains complete confidence in the
Chair’s ability to act independently, and
unanimously supports his re-election at
the AGM.
The Company complies with all of
the Provisions in Section 3 (audit, risk
and internal control) except for part of
Provision 25, as the Chair of the Board
sits on the Risk Committee. The Board
considers that this brings value to
that Committee.
the Chair appointment and the Board set
out its reasons for his appointment.
The Board continues to believe that the
Chairman’s experience and expertise
in underwriting and risk management
remain a valuable asset in the
performance of its functions. In 2019,
following the introduction of the new
provision of the Code, a more robust
annual process was introduced which
allows the question of the Chairman’s
independence and Board tenure to be
discussed in a specific session with the
Non Executive Directors (without the
Chairman being present). This process
is now in its third year of execution
and is led by the Senior Independent
Director. The meeting took place in
November 2021 and, having also
considered the views of the Executive
Directors, the meeting determined that
the Directors continue to highly value
the Chair’s skills and experience, and
that he demonstrates independence,
constructive challenge and engagement
in the Board as well as valuable guidance
to senior management. The Board
is therefore satisfied that the Chair
continues to show the independence
of character and judgement necessary
to chair the Board effectively.
Separately, there are a number of further
measures to ensure the robustness of
these arrangements including: a strong
Senior Independent Director in place;
an annual review of independence of
mind as part of the effectiveness review,
and oversight of this at the Nominations
and Governance Committee; the Chair
is not a member of the Remuneration
Committee or the Audit Committee;
and a majority of Board Directors are
independent Directors. A key focus of
the 2020 externally facilitated Board
evaluation was an assessment of the
independence of the Board, the role
As a company listed on the London
Stock Exchange, the UK Corporate
Governance Code (the Code) is
applicable to Hiscox. The Board is
pleased to report that the Company
has applied the principles and complied
with the provisions of the Code as
issued by the Financial Reporting
Council in July2018 for its financial
year 2021 (as applicable to a
Bermuda-registered entity), except
in relation to Provision 9 on Chair
independence; Provision 19 on
Chair tenure (as explained below) and
Provision 25 regarding the Chairman’s
membership of the Risk Committee.
The corporate governance statement
(pages 69 to 75), the remuneration
report (pages 100 to 113) and the
shareholder information contained on
pages 128 to 131, together with the cross
references to other relevant sections of
the Annual Report and Accounts, explain
the main aspects of the Company’s
corporate governance framework and
seek to give a greater understanding
as to how the Company has applied
the Principles and reported against the
Provisions of the Code. The Code itself
can be found at frc.org.uk.
Chair independence and tenure
The Company complied with all of the
Provisions of section 2 with the exception
of Provision 9 and 19 regarding Chair
independence and tenure respectively.
As previously disclosed, the Chair,
Robert Childs, was not deemed to be
independent upon his appointment as
Chair in 2013. The Chair has been in post
since 2013, and has served less than
nine years as Chair, however, the Chair
has served as an Executive Director
(Chief Underwriting Officer) prior to
that. At the time of appointment major
shareholders were consulted ahead of

77Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Compliance with the
UK Corporate
Governance Code 2018
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Requirements Operation and practices Additional detail on provisions:
Compliance
1
Section 1
of the Code:
Board leadership
and Company
purpose
A: Board’s role
Code: A successful company is led by an effective and entrepreneurial
board, whose role is to promote the long-term sustainable success of the
company, generating value for shareholders and contributing to wider society.
Hiscox: The Board is collectively responsible for the stewardship and
long-term success of the Company. There is a robust decision-making
process in place with constructive challenge and debate. Pages 20 to
33 demonstrate the Company’s strong performance and position. In the
corporate governance overview on pages 69 to 75, we detail the governance
structure and how this contributes to the delivery of the Company’s strategy.
Provision 1:
pages 38 to 41
(risk management),
pages 8 to 9
(business model)
Provision 2:
pages 74 to 75
(Board activity),
pages 94 to 125
(chapter 4,
remuneration).
Provision 3:
pages 42 to 43
(shareholder
engagement).
Provision 4:
No AGM votes
below 80%.
Provision 5:
pages 42 to 43
(stakeholder
engagement)
pages 74 to 75
(Board activity).
Provision 6:
page 69
(corporate
governance
framework).
Provision 7:
pages 69 to 73
(Non Executive
Director time,
corporate
governance
framework).
Provision 8:
Group governance
manual and Director
appointment letters.
The Company
applied all of the
principles and
complied with
the provisions
of section 1.
Provision 5 refers
to S172 of the UK
Companies Act
which is not
applicable to Hiscox
as a Bermuda-
incorporated
company, therefore
compliance is against
Bermudian Director
duties, as detailed
on page 64.
B: Purpose and culture
Code: The board should establish the company’s purpose, values and
strategy, and satisfy itself that these and its culture are aligned. All directors
must act with integrity, lead by example and promote the desired culture.
Hiscox: The Company’s purpose and values were last reviewed in 2019.
Having a clear purpose and strong set of values has always been important
at Hiscox as they act as a culture barometer by which the Board and wider
workforce can hold each other to account (see pages 6 to 7). Procedures
for regulation of Board conduct are detailed in the Group governance
manual and individual appointment letters, and is overseen by the Chair
of the Board.
C: Resources and controls
Code: The board should ensure that the necessary resources are in
place for the company to meet its objectives and measure performance
against them. The board should also establish a framework of prudent and
effective controls, which enable risk to be assessed and managed.
Hiscox: One of the key roles of the Board is to oversee the delivery of
strategy and annual operating plans, holding management to account on
their delivery of those plans. This is assisted by a robust internal control
and risk management framework (see pages 38 to 39). The Board and
its Committees have unfettered access to the resources they deem
necessary to fulfil their obligations.
D: Stakeholder engagement
Code: In order for the company to meet its responsibilities to shareholders
and stakeholders, the board should ensure effective engagement with,
and encourage participation from, these parties.
Hiscox: The Board regularly considers the Group’s relationship with
various stakeholder groups including shareholder matters, employee
engagement, customers, and the Group’s impact on, and relationship
with, wider society as highlighted in the overview of Board decisions on
pages 74 to 75. Further stakeholder engagement measures are detailed
on pages 42 to 43. The Board continues to engage with the workforce
through the pre-existing infrastructure and via the employee engagement
network. This ensures Hiscox is motivating and engaging employees
in an effective way. The Employee Liaison is responsible for providing a
summary of findings at Board meetings.
E: Workforce engagement
Code: The board should ensure that workforce policies and practices are
consistent with the company’s values and support its long-term sustainable
success. The workforce should be able to raise any matters of concern.
Hiscox: Comprehensive and robust policies and procedures are in place.
Having a supportive and inclusive culture is important to us and we track
how employees feel about working at Hiscox through our annual global
employee engagement survey. More information on our 2021 results
can be found on page 6. The overview of Board decisions on pages
74 to 75 highlights where the Board took account of the workforce in
decision-making.

Chapter 3 62
Governance
Compliance with the
UK Corporate
Governance Code 2018
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
78 Hiscox Ltd Report and Accounts 2021
Requirements Operation and practices Additional detail on provisions:
Compliance
2
Section 2
of the Code:
Division of
responsibilities
F: Role of the Chair
Code: The chair leads the board and is responsible for its overall
effectiveness in directing the company. They should demonstrate objective
judgement throughout their tenure and promote a culture of openness and
debate. In addition, the chair facilitates constructive board relations and
the effective contribution of all non-executive directors, and ensures that
directors receive accurate, timely and clear information.
Hiscox: The Chair is responsible for the leadership and overall effectiveness
of the Board. The Chair drives a boardroom culture which encourages
openness and debate and ensures constructive relations between Executive
and Non Executive Directors, see Board cycle on page 72. The Chair,
with the support of the General Counsel and Company Secretary,
delivers high-quality information to the Board to enable a strong basis
for decision-making. Pages 69 to 75 detail the corporate governance
structures in place.
Provision 9:
see explanation
left, (Chair
independence
and tenure),
page 71
(CEO and Chair
separate roles).
Provision 10:
page 62 to 63
(Board of Directors).
Provision 11:
page 62 to 63
(Board composition).
Provision 12:
page 62 to 63
(Board composition),
page 87 to 88
(Board evaluation).
Provision 13:
page 72
(Board cycle).
Provision 14:
page 71
(structure of Board
decision-making),
page 72 to 73
(Board attendance
in 2021).
Provisions 15 and 16:
Group governance
manual and Director
appointment letters.
The Company
applied all of the
principles and
complied with
the provisions of
section 2 except for
Chair independence
within Provision 9
(see page 76).
G: Composition of the Board
Code: The board should include an appropriate combination of executive
and non-executive (and, in particular, independent non-executive)
directors, such that no one individual or small group of individuals
dominates the board’s decision-making. There should be a clear division
of responsibilities between the leadership of the board and the executive
leadership of the company’s business.
Hiscox: There is a clear division of responsibilities between the Chair,
Chief Executive Officer and Senior Independent Director (see page 71).
No individual or small group has unfettered powers of decision. The Board
has a majority of independent Directors. As noted in the 2020 report, the
Board approved that Caroline Foulger could continue in office until May
2022, to allow for the completion of the 2021 financial statement process,
and the Board considers that she continues to demonstrate independence
of thought and judgement to fulfil her role as Audit Committee Chair effectively.
Donna DeMaio’s appointment as independent Non Executive Director and
Audit Committee Chair designate on 18 November 2021 ensures an orderly
transition in preparation for Caroline’s retirement following the conclusion of
her nine-year term with the Company.
H: Role of Non Executive Directors
Code: Non-executive directors should have sufficient time to meet their
board responsibilities. They should provide constructive challenge, strategic
guidance, offer specialist advice and hold management to account.
Hiscox: The Group governance manual and the Directors’ letters of
appointment detail the requirements for the Non Executive Directors
regarding their role and time expectations. These factors are subject
to ongoing review, which is overseen by the Chair of the Board, and
is formally reviewed in the annual Director reviews conducted by the
Nominations and Governance Committee (see page 82). The duties of the
Board are detailed in our Matters reserved for the Board policy, which aligns
to the requirements of this principle and includes the key role of appointing
and removing Executive Directors. The Matters reserved for the Board is
available in the Board terms of reference at hiscoxgroup.com/investors/
corporate-governance.
I: Role of the Company Secretary
Code: The board, supported by the company secretary, should ensure
that it has the policies, processes, information, time and resources it
needs in order to function effectively and efficiently.
Hiscox: The Group General Counsel and Company Secretary acts as
a trusted advisor to the Board and its Committees, and ensures there
are appropriate interactions between senior management and the Non
Executive Directors. He is responsible for advising the Board on all
governance matters and all Directors have access to him for advice.

79Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Compliance with the
UK Corporate
Governance Code 2018
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Requirements Operation and practices Additional detail on provisions:
Compliance
3
Section 3
of the Code:
Composition,
succession
and evaluation
J: Appointment to the Board and succession planning
Code: Appointments to the board should be subject to a formal, rigorous
and transparent procedure, and an effective succession plan should be
maintained for board and senior management. Both appointments and
succession plans should be based on merit and objective criteria and,
within this context, should promote diversity of gender, social and ethnic
backgrounds, cognitive and personal strengths.
Hiscox: The Group governance manual details the commitment to
a formal, rigorous and transparent procedure for appointments to
the Board and effective succession planning for Board and senior
management, both of which are based on merit and promote diversity.
This is also detailed within the Matters reserved for the Board as part
of the Board terms of reference and the terms of reference of the
Nominations and Governance Committee, available at
hiscoxgroup.com/investors/corporate-governance.
The Board diversity and inclusion policy was updated in 2021 and
republished as detailed on pages 84 to 87. It details the parameters for
appointments and succession planning, as well as oversight of Board
and workforce diversity and inclusion policies and programmes. The
Nominations and Governance Committee lead on the delivery of this
principle on behalf of the Board as detailed on pages 82 to 88.
Provision 17:
page 82
(key responsibilities
and membership,
Nominations
and Governance
Committee report).
Provision 18:
pages 62 to 63
(Board composition).
Provision 19:
See explanation above
(Chair independence
and tenure).
Provision 20:
pages 82 to 84
(talent review and
Board composition
and succession,
Nominations
and Governance
Committee report).
Provisions 21 and 22:
page 82 to 88
(Board evaluation,
Nominations
and Governance
Committee report).
Provision 23:
pages 82 to 88
(Nominations
and Governance
Committee report).
The Company
applied all of the
principles and
complied with
the provisions of
section 3 except
for Chair tenure
within Provision 19
(see page 76).
K: Skills, experience and knowledge of the Board
Code: The board and its committees should have a combination of skills,
experience and knowledge. Consideration should be given to the length
of service of the board as a whole and membership regularly refreshed.
Hiscox: The current composition of the Board is set out on pages 62 to 63
and is considered to be an appropriate size for the business, with the right
balance of Executive and Non Executive Directors with a wide range of
skills and experience that contribute to the Board’s performance. Length
of service is considered as part of the succession planning process and
this is delivered by the Nominations and Governance Committee on behalf
of the Board as detailed on pages 82 to 88.
L: Board evaluation
Code: Annual evaluation of the board should consider its composition,
diversity and how effectively members work together to achieve
objectives. Individual evaluation should demonstrate whether each
director continues to contribute effectively.
Hiscox: The Board, Committee and Director evaluation process is a robust
annual process which ensures that a thorough evaluation is completed
each year. This internal evaluation process is supported by external
evaluations, which are completed every three years, with the next external
review scheduled for 2023 (see pages 87 to 88).

Chapter 3 62
Governance
Compliance with the
UK Corporate
Governance Code 2018
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
80 Hiscox Ltd Report and Accounts 2021
Requirements Operation and practices Additional detail on provisions:
Compliance
4
Section 4
of the Code:
Audit, risk and
internal control
M: Internal and external audit
Code: The board should establish formal and transparent policies and
procedures to ensure the independence and effectiveness of internal and
external audit functions and satisfy itself on the integrity of financial and
narrative statements.
Hiscox: The Audit Committee oversees the relationships with the
internal and external audit functions ensuring their independence and
effectiveness. The Committee also has oversight of the relationship
with the actuarial function. The three parties work together to provide
assurances to the Audit Committee and Board on the integrity of the
financial statements, with external audit also providing assurances in
relation to the narrative statements. The Audit Committee report for 2021
can be found on pages 89 to 91.
The Directors’ responsibilities statement, going concern and viability
statements are set out on pages 128 to 131.
Provisions 24 and 26:
pages 89 to 91
(Audit Committee
report).
Provision 25:
Audit Committee
terms of reference
are available at
hiscoxgroup.com/
investors/corporate-
governance. Risk
Committee terms of
reference are also
available. The Chair of
the Board sits on the
Risk Committee as the
Board considers that
this brings value to
that Committee.
Provisions 27, 30
and 31:
pages 128 to 131
(going concern and
viability statements,
Directors’ report).
Provisions 28, 29
and 31:
pages 38 to 41
(risk management).
The Company
applied all of the
principles and
complied with
the provisions
of section 4, except
for Provision 25 as
the Risk Committee
membership includes
the Board Chairman.
N: Fair, balanced and understandable assessment
Code: The board should present a fair, balanced and understandable
assessment of the company’s position and prospects.
Hiscox: The Board is responsible for the preparation of the Annual Report
and Accounts and for stating whether it considers the Annual Report and
Accounts, taken as a whole, to be fair, balanced and understandable, and
provides information necessary for shareholders to assess the Company’s
position, performance, business model and strategy. The Audit Committee
details how this is achieved on pages 89 to 91.
O: Risk management and internal control framework
Code: The board should establish procedures to manage risk, oversee
the internal control framework, and determine the nature and extent of
the principal risks the company is willing to take in order to achieve its
long-term strategic objectives.
Hiscox: The Board is ultimately responsible for our risk management and
internal controls, and for ensuring that the systems in place are robust and
take into account the principal and emerging risks faced by the Company.
An overview of risk management can be found on pages 38 to 41. The Risk
Committee leads detailed discussions on the principal and emerging risks
of the Company on behalf of the Board, and recommends to the Board
the appropriate risk management framework including risk limits, appetite
and tolerances. The Risk Committee also oversees the independence and
effectiveness of the risk and compliance functions.

81Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Compliance with the
UK Corporate
Governance Code 2018
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Requirements Operation and practices Additional detail on provisions:
Compliance
5
Section 5
of the Code:
Remuneration
P: Remuneration policies and practices
Code: Remuneration policies and practices should be designed
to support strategy and promote long-term sustainable success.
Executive remuneration should be aligned to company purpose and
values, and be clearly linked to the successful delivery of the company’s
long-term strategy.
Hiscox: Our remuneration policy and practices are developed by the
Remuneration Committee in consultation with our shareholders. They are
designed to support the Company’s strategic aims, promote the long-term
sustainable success of the Company, and attract and retain talent, while
also being aligned with the Company’s purpose, values and culture (see
pages 6 to 7).
Provisions 32 and 33:
pages 94 to 96
(annual statement
from the Chair of
the Remuneration
Committee).
Provision 34:
page 105 and 109,
(Non Executive
Director fees,
Chair remuneration).
Provisions 35:
pa ge 110
(consultants are
highlighted in
chapter 4:
remuneration).
Provisions 36, 37,
38, 39:
pages 114 to 125
(remuneration policy).
Provisions 40 and 41:
pages 94 to 125
(chapter 4:
remuneration).
The Company
applied all of the
principles and
complied with
the provisions
of section 5.
Q: Executive remuneration
Code: A formal and transparent procedure for developing policy on
executive remuneration and determining director and senior management
remuneration should be established. No director should be involved in
deciding their own remuneration outcome.
Hiscox: The Remuneration Committee is responsible for setting the
remuneration for all Executive Directors and senior management. The
remuneration report contains details of the procedures that have been
established for developing the Company’s policy on Executive pay and
determining Director and senior management remuneration outcomes.
No Director is involved in deciding their own remuneration outcome. The
Remuneration Committee receives information on broader workforce
remuneration policies and practices during the year which informs its
consideration of the policy (see page 112).
The remuneration policy was reviewed in May 2020, and changes were
made to rebalance the weighting of incentives towards the long term
in order to encourage an ownership culture and increase the focus on
long-term performance. Shareholders’ views on proposed changes to the
policy were sought and shareholders were supportive of this approach.
In 2021, the Employee Liaison facilitated a discussion with respect to the
content of the remuneration policy and how this aligns to wider Company
pay policy, and shared feedback on this with the Board.
R: Remuneration outcomes and independent judgement
Code: Directors should exercise independent judgement and discretion
when authorising remuneration outcomes, taking account of company
and individual performance, and wider circumstances.
Hiscox: The Remuneration Committee leads on this area of work on
behalf of the Board. Details of the composition and the work of the
Remuneration Committee are detailed on pages 94 to 128. The
Remuneration Committee comprises of Independent Non Executive
Directors only. The remuneration of Independent Non Executive Directors
is determined by the Nominations and Governance Committee and is
regularly benchmarked to ensure it reflects the time commitment and
responsibilities of each role; there are no performance-related elements.
The Board Chair’s remuneration is determined in line with the remuneration
policy and reviewed by the Remuneration Committee. The Remuneration
Committee terms of reference can be found at hiscoxgroup.com/
remuneration-committee-tor.
A full copy of the Corporate Governance
Code 2018 can be found at frc.org.uk.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
82 Hiscox Ltd Report and Accounts 2021
Nominations and Governance Committee report
It has been a busy
year for the Committee,
but achieving a smooth
Group CEO transition was
particularly rewarding.”
Robert Childs
Chair of the Nominations and
Governance Committee
Key responsibilities and membership
The Nominations and Governance
Committee (the Committee) leads
in the delivery of formal, rigorous
and transparent procedures on
appointments and succession, ensuring
the development of a diverse pipeline of
Board members and senior managers.
This includes an annual review of
succession plans for Executives and
Non Executives, a process which
is guided by the appointment and
succession principles set out in the
Group governance manual for
Non Executive Directors and by our
Group HR policies for Executive Directors
and senior management. The Committee
also reviews the Board evaluation
process, Company strategy relating to
diversity and inclusion, and the gender
balance of both the Board and senior
management. In addition, the Committee
carries out several other Group activities,
including a review of intra-Group
conflicts of interest and the approval
of Group policies.
The Committee is comprised of
eight members, of which seven are
Independent Non Executive Directors.
The Chair of the Board is the Chair
of the Nominations and Governance
Committee; the Senior Independent
Director leads on matters relating to
the Chair. The Committee’s terms of
reference are reviewed and approved
annually and are available on the
Company’s website at hiscoxgroup.
com/investors/corporate-governance.
Key activities of the Committee:
The Committee’s key priorities in 2021
were as follows.
•
Group Chief Executive Officer
succession, a process which
resulted in the recommendation
to the Board of the appointment
of AkiHussain as Group Chief
Executive Officer.
•
Group Chief Financial Officer
succession, a process which
resulted in the recommendation
to the Board of the appointment
of Paul Cooper to succeed
Aki Hussain as Group Chief
Financial Officer.
•
Appointment of a new Audit
Committee Chair, Donna DeMaio,
with a transition period involving
the outgoing Audit Chair to ensure
an orderly transition.
•
Review of the Board diversity
and inclusion policy and ongoing
diversity monitoring of the
Board and senior management.
•
Review of the Board
evaluation outcomes.
Talent reviews
The Nominations and Governance
Committee leads on Executive
succession planning via an established
and robust talent review process.
This process reviews key talent plans
throughout the Group across three time
horizons: zero-to-two years; two-to-five
years; and the watch list. The Group
review focuses on the Group Executive
Committee, and their direct reports, and
the Company Secretary. The main focus
of the talent reviews in 2021 and into 2022
was the succession and appointment
of the Group Chief Executive Officer
and the transition plans following Aki
Hussain’s promotion to Group Chief
Executive Officer, along with other senior
management changes. The outputs of the
talent review process contribute to senior
management performance development
plans and include relevant diversity
actions. This process is replicated at a
business unit level to ensure a sufficient
pipeline of talent in each area. Talent plans
are also reviewed when vacancies arise.

83Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Nominations and
Governance
Committee report
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Following the announcement of Aki
Hussain’s appointment to Group
Chief Executive Officer, effective
1January2022, a transitional plan was
put in place to address the resulting
Group Chief Financial Officer vacancy.
A search process was initiated in the
summer of 2021 for a replacement
Group Chief Financial Officer with the
appointment of an independent search
agency, Spencer Stuart, which had
strong credentials, international reach
and participation in the voluntary code of
conduct to address gender and ethnicity
diversity on UK-listed company boards
of directors. The search firm used was
deemed to be independent as it does not
have any connection with the Company
or its individual Directors other than in
its engagement in this capacity. This
process resulted in the announcement
on 21December 2021 of Paul Cooper
as the new Group Chief Financial Officer.
Paul has over 25 years of financial
services experience across both the
retail and Lloyd’s insurance markets.
As such, the Group will benefit from both
his insurance market knowledge and
his audit, regulatory and capital markets
experience. He will join the Group in
the first half of 2022, at which point he
will also become a Board and Group
Executive Committee member. In the
meantime, Liz Breeze, Chief Financial
Officer for Hiscox Re & ILS, has been
appointed Interim Group Chief Financial
Officer, effective 1 January 2022.
Board composition and succession
As part of the annual Board succession
planning process, the Nominations
and Governance Committee reviewed
the composition of the Board in 2021.
This included a skills and experience
review – encompassing independence,
length of service, the balance of skills
and experience, diversity, and the
Summary of the Group Chief Executive Officer succession process
The Board and Committee’s focus
over the last number of years was to
ensure that there were strong internal
succession options for the Group Chief
Executive Officer.
The Committee articulated the key
qualities for a CEO successor, and
engaged professional advisors to
evaluate both internal and external
talent against these qualities. This
process was supported by a leading
independent search firm, Russell
Reynolds Associates, who conducted a
thorough review of external candidates
and presented these to the Committee.
The firm was appointed due to its strong
credentials, international reach and
participation in the voluntary code of
conduct to address gender and ethnic
diversity on UK-listed company boards
of directors. The search firm used was
deemed to be independent as it does
not have any connection with the
Company or its individual Directors other
than in its engagement in this capacity.
The Committee considered input from
all of the external advisors, in addition
to conducting its own evaluation of
candidates. Following this rigorous
review process Aki Hussain was
selected as new Group Chief Executive
Officer, effective from 1January2022,
due to:
•
his experience, skills and values,
which align with those which were
sought in a Group Chief Executive
Officer, as demonstrated in
his five years with Hiscox as Group
Chief Financial Officer;
•
the benefit of vast experience
gained prior to Hiscox which
brought a valuable and
fresh perspective;
•
his clear thinking and drive to
continue to build the business.
More information on Aki and his vision
can be found on page 2.

Chapter 3 62
Governance
Nominations and
Governance
Committee report
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
84 Hiscox Ltd Report and Accounts 2021
and progress. This includes our
D&I approach to manager training,
alignment of HR policies with inclusion
requirements, amplifying efforts via
employee and broker networks, and
ensuring alignment to credible external
D&I commitments. In addition, each
business unit Chief Executive Officer
and functional leader has developed
an action plan for gender and ethnic
diversity which includes aspects such
as recruitment, career development,
education and awareness and
community engagement. These plans
are monitored centrally and also via
specific local reports to subsidiary
Boards. This approach is supported
by an annual report on D&I which this
Committee receives.
Board D&I policy
In 2021, the Committee reviewed the
existing Board diversity policy and
updated this to reflect more clearly the
underlying ethos of the Company, the
ongoing delivery of a diverse Board, and
to formalise the Committee’s oversight
of the Group’s wider D&I programme.
The new Board D&I policy builds on
the prior iteration, which focused on
key requirements for appointments
and links to the Board succession
planning process which monitors skills,
knowledge and experience in addition
to diversity (both gender and ethnicity).
The policy continues to recognise the
benefits of diversity in its broadest sense
and sets out the Board’s ambitions while
clarifying its qualitative objectives. The
Committee’s terms of reference were
updated to formally note the relevant
changes to the Board’s responsibilities
regarding D&I oversight.
DonnaDeMaio. Donna’s induction is
ongoing and, while she will formally take
over as Chair of the Audit Committee
following Caroline’s retirement at the
2022 AGM, Donna has been a key
participant in the review of the 2021
Annual Report and Accounts.
Following the appointment of the Audit
Committee Chair, a further review was
undertaken on the composition of the
Board. As part of the discussions on
the requirements of new Directors,
the Committee determined that the
Company has a strong Board which
is sufficiently capable to meet the
demands of the Group and future
strategy, but that it would be useful to
investigate how the Board could be
further bolstered in certain areas and
in the continued delivery of a diverse
Board. This was also central to the
Board effectiveness review.
Diversity and inclusion (D&I)
D&I has been a strategic priority for a
number of years and remains critical
to our development as a sustainable
organisation. Hiscox operates in a
global market and the success of our
business is dependent on our people,
which is why we want to build teams
that are as diverse as the customers
and communities we serve, with a
working environment where all our
people can thrive. Our belief is that
diverse perspectives and different ways
of thinking help us anticipate and meet
market needs in new ways. This diversity
of thought allows us to look at problems
differently, and helps make us more
innovative and a stronger partner for
our customers.
We have a Global Head of D&I and a
D&I Executive Sponsor for the Group
who together drive our D&I strategy
capacity required to oversee the delivery
of the Company’s strategy – and Board
succession planning on an immediate
and longer-term basis for the Chair and
all members of the Board. The review
focuses on Non Executive succession
and aligns to the talent reviews for the
Executive Directors. Following these
formal reviews, the Board remain
confident that the current skills and
expertise are in place to deliver value to
the Company and its shareholders. This
formal annual process is augmented by
ongoing open dialogue between the Non
Executive Directors on succession and
the skills required to deliver the strategy.
Pages 62 to 63 demonstrate the nature
and breadth of each Director’s relevant
skills and experience. Additionally, all
Directors have demonstrated that they
have adequate capacity to address their
duties, evidenced by all Non Executive
Directors having been able to lead the
Company through the challenges of
the pandemic which, as detailed in last
year’s Annual Report and Accounts
and continued in 2021, included more
frequent informal interactions with
the Executive Directors and senior
management as well as attendance at
more sessions than in a standard year.
As part of this Board review, an
appointment process was initiated for
the replacement of Caroline Foulger as
Independent Non Executive Director
and Chair of the Audit Committee. This
was the main Non Executive Director
succession focus for 2020 and 2021.
An early appointment was sought to
ensure that an orderly transition could
take place with the outgoing Chair, and
to give sight to the new Chair of the 2021
financial review cycle. The appointment
process is detailed in the table on page
85, and resulted in the appointment of

85Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Nominations and
Governance
Committee report
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Audit Committee Chair succession process
A formal and transparent process was deployed for the appointment of the Audit Committee Chair.
Requirements Process Interview and appointment Induction
In 2020, as part of the
orderly succession plan
for the retirement of the
Audit Committee Chair, it
was agreed to target an
appointment to be in place
by late 2021.
The key requirements of
the role were agreed as
being recent audit and
finance experience.
It was agreed that a
diverse candidate with
these skills would also be
highly regarded.
A review was completed
by the Committee on the
geographical location of the
new Audit Chair, assisted by
an externally delivered market
map of available Directors.
A brief was prepared for the
role specifying the above.
The process was initiated with
the appointment of an agency.
Russell Reynolds was
engaged based on its market
reputation, and alignment
to our D&I objectives. The
search firm used was deemed
to be independent as it does
not have any connection with
the Company or its individual
Directors other than in its
engagement in this capacity.
The search firm identified
potential candidates
assessed against the role
specification, based on
merit, and with due regard
for the benefits of all forms
of diversity on the Board,
including gender and
ethnicity. This produced
a long list of high-quality
candidates from a broad
range of potential sources
of talent. Candidates
were then shortlisted for
interviews, which focused on
each candidate’s skills and
experience for the role.
A formal, multi-stage
interview process was used to
assess candidates. Following
interviews with the Chairman,
the Chair of the Audit
Committee and the incoming
Group Chief Executive Officer,
a number of candidates
progressed to meet other
Board members. All interview
candidates were deemed
appropriate for appointment
based on their skills and
experience, and subject
to a referencing process
and review of any potential
conflicts and time availability
(assessed against significant
time commitments).
The outstanding candidate for
the role was Donna DeMaio,
and the Nominations and
Governance Committee
agreed that she demonstrated
significant financial services
and US market expertise.
The position further assists
in the development of
our diverse Board. The
appointment was announced
on 22November2021.
Donna’s induction consisted
of a tailored induction
programme which allowed
her to become more familiar
with the working of the Board
and the Group, and to fully
understand the Company’s
operating environment
(internal and external).
This included meetings
with individuals from the
Board, senior management
and external auditors,
and was supported by
an induction pack. The
programme is tailored
to Donna’s appointment and
it was continually reviewed
to identify additional areas
where induction is required.
A key part of the orderly
transition from one Audit
Committee Chair to
another was Donna’s active
participation in the ongoing
review cycle for the 2021
Annual Report and Accounts.

Chapter 3 62
Governance
Nominations and
Governance
Committee report
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
86 Hiscox Ltd Report and Accounts 2021
Board D&I objectives and 2021 progress
Board objective Implementation Progress
1.
Ensure a
diverse
1
and
effective Board
1
Diversity of gender,
social and ethnic
backgrounds,
cognitive and
personal strengths.
s At least annually review the
structure, size and composition of
the Board, including the balance of
skills, knowledge and experience
to assist in the development of a
diverse pipeline.
s Annually review Board diversity as
part of the Board evaluation process.
s Ensure the values of the
Company promote an open
and inclusive environment.
Page 65 of the report demonstrates the diversity of our Board
as at 2March2022.
Via the delivery of our Board diversity and inclusion policy,
we have:
s maintained a gender balance in line with the Davies
and Hampton-Alexander reviews since 2015;
s had one ethnic minority Director for five years.
2.
Ensure that
all Board
appointments
are considered
on merit within
the context of
the strategy
requirements
and diversity
considerations
s At least annually review the
succession plans for the Board and
senior management and ensure the
talent review process is in place for
the wider workforce.
s Gender and ethnic diversity will
be taken into consideration when
evaluating the skills, knowledge and
experience desirable to fill each role
and when considering the methods
to attract diverse candidates.
s A search firm will normally be
engaged to assist in the review
of the market and they should be
committed to addressing gender
and/or ethnicity diversity.
s All appointments must be made
on merit as aligned to the needs
of the Board, the Company, and
its strategy and values.
Each June, the Board and Committee review the talent plans
for senior management and, each November, the Board
succession plans. Talent reviews are replicated throughout
the business.
In 2021, the Board made three permanent appointments:
s new Group Chief Executive Officer (Aki Hussain);
s new Group Chief Financial Officer (Paul Cooper);
s new Independent Non Executive Director and incoming
Chair of the Audit Committee (Donna DeMaio).
All appointments had gender and ethnic diversity considered
when evaluating the skills, knowledge and experience required,
with the respective search firms committed to addressing
gender and ethnic diversity. The best candidates for the roles
were selected against merit, the needs of the Board and
Company, and its strategy and values.
An Interim Group Chief Financial Officer appointment
(Liz Breeze) was also made from internal succession
plans while a longer-term appointment was sought.
3.
Ensure that the
overall workforce
is diverse and
inclusive
s Review the execution of the Group
diversity and inclusion policy
2
.
s Ongoing Board and Committee
review of matters relating to
employee retention, engagement
and culture.
2
hiscoxgroup.com/diversity-and-
inclusion-policy.
The Committee has an annual report from the Global Head
of D&I. We have a Head of D&I and a D&I Executive Sponsor
for the Group, who together drive our progress and a key
commitment from every business unit and functional area
Chief Executive Officer to deliver on our employee D&I targets.
These plans are monitored centrally and also via specific local
reports to subsidiary boards. Further work is ongoing
to develop the next iteration of this strategy.
The tables on page 87 provide a breakdown of diversity
at Hiscox.
The Board and Committees receive reports relating to
key workforce matters on an ongoing basis, including
employee retention, engagement and culture.

87Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Nominations and
Governance
Committee report
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Group D&I policy
We have a Group D&I policy that applies
to the workforce and is reflective of
our Company values (see page 7).
Alongside this, the employee networks
we have established – covering topics
such as mental health and well-being,
and touching communities including
parents and carers, Pride, pan-African
and Latino – drive D&I progress
across our offices.
We will look to build on this good
work in 2022 and beyond, with a
Board-approved D&I strategy which
continues to focus on representing,
leading and guiding the D&I culture,
strengthening and leveraging data and
insights, inspiring with our story, and
embedding D&I into business as usual.
Together, these initiatives will strengthen
further the diversity measures in
place and build the maturity of the
D&I landscape at Hiscox.
The Hiscox Ltd Board D&I policy and
Group D&I policy are publicly available
on our website at hiscoxgroup.com/
about-hiscox/group-policies-and-
disclosures. Both reflect the ethos of the
Company in advocating that opportunity
should be limited only by an individual’s
ability and drive.
We have also fulfilled our UK obligations
to report our gender pay gap ratios with
respect to our UK subsidiaries, and
published our fifth annual gender pay
report during the year. This report
sets out in detail the D&I programmes
and initiatives we pursued during
2021, and can be viewed at hiscoxgroup.
com/gender-pay-report-2021.
In addition, we complied with the
provisions of the Hampton-Alexander
Review, which set a minimum target for
FTSE 350 companies to achieve 33%
representation of women on FTSE 350
boards and in the two layers of leadership
below the Board (the Group Executive
Committee and the direct reports to
the Group Executive Committee) by
the end of 2020. While the target for
compliance has now passed, our
ambition to achieve greater gender
diversity at all levels remains, which is
why we continue to track and report
our progress.
Equally, we complied with the provisions
of the Parker Review, which set a
minimum target of having at least one
ethnic minority Director on the Board by
2021, which we have had since 2016.
We are committed to improving our
ethnic diversity at all levels, to
ensure our workforce reflects the
customers and communities that we
serve. In some of the jurisdictions in
which we operate, current laws mean it
is not possible to collect ethnicity data
from employees, but where we can we
encourage employees to self-identify.
Improving the volume of voluntary
disclosure from employees remains
a focus area.
Board evaluation
The Board and its Committees have
a culture of continuous improvement
and as part of this undertake a formal
and rigorous annual evaluation of
Board and Committee performance;
the results of which help to inform
action and development. Board and
Committee effectiveness evaluations
are carried out each year and the
results are reviewed and discussed
at the Board and its Committees
– specifically the Nominations and
Governance Committee, with a
focus on Board composition.
2021 Board and Committee
effectiveness review
Every third year, the Board evaluation is
undertaken by an external evaluator. This
was last undertaken in 2020 and is next
scheduled for 2023. In the interim years,
such as 2021, an internal evaluation is
carried out which also reviews each
Committee, the Board and individual
Directors. The evaluation also assesses
the completion of the prior year’s actions.
Each are addressed in turn below.
2021 evaluation
Building on the work of prior years, the
interim year evaluation was carried out
using our improved evaluation process
of Board, Committee Chair and
individual Director performance.
The Board and Committee reviews
focused on, among other things: Board
oversight of strategy, risk management
performance and objective delivery;
Board accountability, focus and
priorities; Board composition and culture
of the Board including independence,
expertise, decision-making and dynamics,
and succession planning; Board
progress on diversity, climate change
approach and digitalisation; and Board
support. The format of the evaluation
was a confidential survey of the Board.
Individual Director reviews are an
opportunity to discuss individual skills,
training requirements, succession and
any other issues. Each Non Executive
Director completes a self-assessment
form which is followed by a detailed
discussion on performance with the
Chairman. The Senior Independent
Director carries out the Chairman’s
review and this supports the annual
review process of the Chairman.
Individual objectives and action
plans are agreed following each
meeting where appropriate.
Gender diversity
at 31 December 2021
Male Female
Board 55% 45%
Group Executive
Committee 40% 60%
Direct reports
to the Group
Executive
Committee 52% 48%
All employees 50% 50%
Ethnic diversity
at 31 December 2021
Members with ethnic
minority background
Board 9%
Group Executive
Committee 20%

Chapter 3 62
Governance
Nominations and
Governance
Committee report
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
88 Hiscox Ltd Report and Accounts 2021
2021 Board review outcomes
The 2021 Board review continued to find
a strong and dynamic Board in place
which re-affirmed the independence of
the Board, the appropriate leadership
provided by the Chair, and the
robustness of the Non Executive
Director succession plans and
Executive Director talent reviews.
All Directors were fully engaged with the
Board, Committee and Director evaluation
process. The review was positive with
continued robust decision-making and a
Board culture which fosters constructive
discussion. The review also focused on
three areas: climate change, diversity
and digital. The evaluation revisited
the external reviewer’s findings in 2020
and were content to re-confirm that the
independence of the Board (as currently
composed) was deemed satisfactory;
the Chair was seen to continue to
demonstrate strong leadership; and
the Non Executive Director succession
plans were considered to be robust.
The Board continues to engage in
continuous improvements with the
annual review process being an explicit
point of reflection on ongoing actions
and new areas of focus. The Directors
determined to focus on the following
matters in 2022:
•
strategy – continue to review
the Group’s strategy to further
address risk, operations and
competitor environment in a
fast changing world;
•
management information – building
on new management information
to further increase the linkage
between objective setting
and monitoring;
•
people and succession planning –
further focus on workforce
diversity and inclusion, employee
engagement, and key long-term
succession planning for senior
management, the Non Executive
Directors and the Chair. Additionally,
the Board will ensure a smooth
transition of the new Group Chief
Executive Officer, Group Chief
Financial Officer and Audit Chair;
•
climate change/ESG – further
work on the Company’s strategic
response to climate change and
further deep dives on social
and governance;
•
IFRS 17 Insurance Contracts
– oversight of IFRS 17 and
understanding the business
changes and peer positioning
on this in addition to the
financial changes;
•
topics for review – additional topics
for review were identified as part of
the review which then influenced
the agenda and training plans for
the year.
The Board welcomed the review’s
findings with the actions feeding directly
into ongoing succession planning
discussions and Board developments.
The Chair owns the action plan relating to
the actions and leads the implementation
of these actions, and will report on their
delivery in the 2022 Annual Report
and Accounts.
2020 external Board effectiveness
review – progress against
identified actions
In 2020, an external evaluation was
competed by Lintstock, an independent
third-party agency. Overall the external
evaluator rated Board and Committee
effectiveness as good or extremely good
with no fundamental issues highlighted.
In particular, Lintstock noted that the
independence of the Board (as currently
composed) was deemed satisfactory;
the Chair was seen to continue to
demonstrate strong leadership; and
the Non Executive Director succession
plans were considered to be robust.
However, the Board and its Committees
have made tangible progress against
many of the action points identified
during 2021:
•
focused on the succession of
Executive Directors and other key
leadership positions as detailed in
this report;
•
transitioned back to in-person
meetings when Covid-19-related
restrictions allowed for this,
while retaining the use of
video-conferencing for interim
Board calls and updates;
•
driving accountability and
excellence in execution, including
the continued monitoring of
progress against the Company’s
business priorities and key projects;
•
continued discussions on strategy,
including business mix and
capital allocation;
•
devoted more time to considering
changes in the external
environment and their impact
on Hiscox, including competitor
activity in key markets; and
•
maintained a focus on talent
management, employee
engagement and the retention
of high performers.
Robert Childs
Chair of the Nominations and
Governance Committee

89Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Audit Committee report
This will be my final
report before stepping
down from the Board in
2022 and I am delighted
to state that the Audit
Committee continued to
work effectively in 2021.
We were pleased to
welcome Donna, whose
experience within both
financial services and the
US market will be valuable
for the next stage of the
Group’s journey.”
Caroline Foulger
Chair of the Audit Committee
In relation to financial reporting, the
primary role of the Audit Committee (the
Committee) is to monitor the integrity
of the financial statements of the Group
and any formal announcements relating
to the Group’s financial performance,
and review significant financial reporting
judgements contained within them. The
Committee meets four times a year.
Working with both management and
the external auditor, the Committee
reviewed the appropriateness of the
interim and annual financial statements,
concentrating on:
•
the quality and acceptability of
accounting policies and practices;
•
the clarity of the disclosures
and compliance with financial
reporting standards and relevant
financial and governance
reporting requirements;
•
material areas in which significant
judgements and estimates have
been applied or where there has
been discussion with the external
auditor; and
•
any correspondence from
third parties in relation to our
financial reporting.
The Committee is comprised of eight
independent Non Executive members.
Following the transition of the Chair
role to Donna DeMaio in May 2022,
this will return to seven members. The
Committee has recent and relevant
finance expertise and competence
relevant to the insurance sector.
To aid the review, the Committee
considered the key judgements and
estimates in the financial statements as
identified by the Chief Financial Officer, as
well as reports from the external auditor
on the outcomes of its annual audit and
half-year review. The Committee ensured
that the external auditor, PwC, displayed
the necessary professional scepticism
its role requires. The primary areas
considered by the Committee in relation
to the 2021 Annual Report and Accounts
were as follows.
i) Reserving for insurance losses
As set out in our significant accounting
policies on pages 154 to 155, the
reserving for insurance losses is the
most critical estimate in the Company’s
consolidated balance sheet.
The Chief Actuary presents a quarterly
report to the Committee covering Group
loss reserves which discusses both the
approach taken by management in
arriving at the estimates and also the
key judgements within those estimates.
The Committee reviewed and challenged
the key judgements and estimates in
valuing the insurance liabilities.
During the year, a number of natural
catastrophes occurred which impacted
the Group, including Hurricane Ida,
Storm Uri, and European floods. It
is important that the Company can
quickly, and with a reasonable degree
of reliability, estimate the gross and net
losses arising from these events. The
Committee received presentations from
the Chief Actuary and management
on the process undertaken, and the
judgements arrived at, to establish
these key estimates. The Committee
is satisfied with both the process that
was conducted and the reporting and
disclosure of the resulting estimates.
The Company continues to keep
Covid-19 losses under review, continually
evaluating loss estimates based on
entity-specific historical experience
and contemporaneous developments
observed in the wider industry when
relevant. The Committee received

Chapter 3 62
Governance
Audit Committee
report
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
90 Hiscox Ltd Report and Accounts 2021
detailed presentations from the Chief
Actuary and management relating
to the latest information and the
recommendations arising therefrom.
The Committee is satisfied with both
the process that was conducted and
the reporting and disclosure of the
resulting estimates. While there remains
uncertainty around the final cost of these
events to the Group, the Committee
notes that the Group continues to adopt
a prudent approach where uncertainty
exists as to the final cost of settlement.
The Committee also reviewed the level
of margin held within the insurance
liabilities in the Group’s balance sheet.
Management confirmed that they remain
satisfied that the claims reported and
claims adjustment expenses, together
with claims incurred but not reported
liabilities included in the financial
statements, provide an appropriate
margin over projected claims costs to
allow for the risks and uncertainties within
the portfolio. As with prior years, the
Committee also considers the report of the
external auditor following its re-projection
of reserves using its own methodologies,
and the independent actuary who
reviews the estimates of insurance
liabilities for the Hiscox Syndicates.
On the basis of this work, it reported
no material misstatements in respect of
the level of reserves held by the Group at
the balance sheet date. On the basis of
these assessments and the consistent
application of the Group’s reserving
principles, the Committee was satisfied
that the valuation of insurance liabilities
at 31 December 2021 was appropriate.
ii) The recoverability of
reinsurance assets
The Committee received regular
updates on the credit risk exposures
to reinsurers, including the impact of
business interruption and the status
of recoveries resulting from Covid-19.
There were updates on the process
to monitor the levels of recoverability,
including the level of collateral held, and
the regular contact with counterparties,
the ratings of reinsurers and the
concentration of risk. The reinsurer panel
and associated exposures appear to
be robust, and management are not
aware of any material issues regarding
concentration risk, credit risk or default
risk. The Committee is satisfied with the
approach taken and the recoverability of
reinsurance assets.
iii) Going concern assessment and
longer-term viability statements
The Committee reviewed and advised
the Board on the Group’s going concern
and longer-term viability statements
included in this Annual Report and
Accounts, and the assessment reports
prepared by management in support
of such statements. As part of this
review, the Committee assessed the
methods, assumptions and judgements
underpinning the going concern
assessment. The Committee was
satisfied by the level of analysis presented
during the year, the related approach
taken, and statements made in the
Group’s key external reporting. More
information on the going concern and
viability statements can be found on
pages 128 to 129.
iv) Recoverability of goodwill and other
intangible assets
Judgements in relation to impairment
testing relate primarily to the
assumptions underlying the calculation
of the value in use of the Group’s
businesses, being the achievability of
the long-term business plans and the
macroeconomic factors underlying the
valuation process.
The Committee reviewed and discussed
the analysis performed by management
and challenged the appropriateness of
the assumptions made.
The Committee is satisfied with the
approach taken and the recoverability
of the assets.
v) Accounting for the defined
benefit scheme
As explained in note 2.15, the Group
recognises the present value of the
defined benefit obligation, less the fair
value of plan assets at the balance sheet
date. The Committee reviewed the report
of the key judgements and estimates in
the financial statements from the Group
Chief Financial Officer, and the results of
the independent pension valuation, and
is satisfied that the assumptions used to
measure the net liabilities are reasonable.
vi) Valuation of the investment portfolio
The Group values and reports its
investment assets at fair value. Due to the
nature of the investments, as disclosed in
notes 17 and 20, the fair value is generally
straightforward to determine for most of
the portfolio which is highly liquid. For the
element of the portfolio held in equities
and investment funds, a small proportion
relies on a higher degree of judgement.
The Committee, through the Investment
Committee, receives reports on the
portfolio valuation and is content with
the process and the estimates reported.
Sensitivity analysis on valuation of assets
is captured within the financial risk
section (note 3.3) of this report.
vii) The recoverability of deferred
tax assets
A deferred tax asset can be recognised
only to the extent that it is recoverable.
The recoverability of deferred tax assets
in respect of carry-forward losses

91Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Audit Committee
report
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
requires consideration of the future levels
of taxable profit which will be available to
utilise the tax losses. The assumptions
regarding recoverability of deferred
tax assets remain consistent with prior
years. The Committee challenged
the underlying assumptions for the
recognition of deferred tax assets,
principally the availability of future
taxable profits and utilisation period.
viii) Estimated premium income
An estimate included within the
Group’s close process is an estimate
of gross premiums written during the
year. For certain contracts, premium
is initially recognised based on
estimates of ultimate premium. This
occurs where pricing is based on
variables which are not known with
certainty at the point of binding the
policy. In determining the estimated
premium, the Group uses information
provided by brokers and coverholders,
as well as past underwriting experience,
the contractual terms of the policy
and prevailing market conditions. The
estimated gross written premium is
regularly reviewed and the Committee
is satisfied with the approach taken.
Systems and process change projects
The Committee received updates on
various change projects including the
Group’s programme implementing
IFRS 17 Insurance Contracts. The
IFRS 17 updates covered key IFRS 17
accounting policies which have been
approved, educational material, and
programme risks and governance.
Internal audit
The Group’s Chief Auditor provided
quarterly updates to the Committee on
the progress of the internal audit plan,
the outcomes of recent audits, the
progress of audit-related actions, and
any other relevant activities including
its key performance measures and the
development of its resources. Updates
on aspects such as the assessment
of internal audit’s effectiveness and
the review of the internal audit policy
are shared annually. The internal audit
plan is derived using a risk-based
approach. In 2021, key themes included
core underwriting and claims controls,
Covid-19-related impacts, change
controls and embedding, the financial
control framework, data governance and
controls, various regulatory themes,
and information security.
External auditor
PwC has been the Company’s external
auditor since 2016. PwC is invited to
attend all meetings of the Committee and
it is the responsibility of the Committee
to monitor their performance, objectivity
and independence. The Committee
discusses and agrees with PwC the
scope of its audit plan for the full-year
and the review plan for the interim
financial statements.
The Audit Committee receives reports
from PwC at each meeting which
include the progress of the audit,
key matters identified and the views
of PwC on the judgements outlined
above. PwC also reports on matters
such as their observations on the
Company’s financial control environment,
developments in the audit profession,
key upcoming accounting and
regulatory changes and certain
other mandatory communications.
To provide a forum in which any
matters of concern could be raised
in confidence, the Non Executive
Directors met with the external and
internal auditors throughout the year
without management present.
The Committee also meets annually
with the auditor and with the finance
team without management present.
Non-audit services are not contracted
with PwC unless it is clear that
there is no practical alternative and
there are no conflicts of interest or
independence considerations.
Throughout the year, the Committee
assesses the independence,
effectiveness and quality of the
external audit process. This process
forms the basis for its recommendation
to shareholders to reappoint the
external auditor.
Chair of Audit Committee
As part of the succession plan for the
retirement of the Audit Committee Chair,
it was announced on 22 November 2021
that Donna DeMaio will become the new
Chair. A key part of the orderly transition
from one Audit Committee Chair to
another was Donna’s active participation
in the ongoing review cycle for the 2021
Annual Report and Accounts. See page
85 for further details.
Fair, balanced and understandable
The Committee assessed whether
the Annual Report and Accounts,
taken as a whole, is fair, balanced
and understandable and provides the
information necessary for shareholders
to assess the Group’s financial position
and performance, business model and
strategy. The Committee reviewed the
processes and controls that underpin
its preparation, ensuring that all
contributors, and senior management
are fully aware of the requirements and
their responsibilities.
Caroline Foulger
Chair of the Audit Committee

92 Hiscox Ltd Report and Accounts 2021
Q&
A:
with Dan Alpay
Line Underwriter – Flood, Hiscox London Market
Rising tide
US flood is a major growth
area for our big-ticket
business, driven in
part by innovations in
digital underwriting.
Dan Alpay joined Hiscox
in 2009 as part of the very
first graduate training
scheme. In 2016, he took
over as underwriter for
the household line of
Hiscox London Market.
Also contained within his
portfolio was US flood –
then, in Dan’s words,
‘a tiny fledgling business’.
By 2019, the flood product
had grown to the point
where it demanded his
full-time attention.
Q: How did US flood come
to be part of the Hiscox
London Market offering?
A: Since 1968 flood had
been underwritten by the US
government. If you’re in a flood
zone and have a federally
backed mortgage – which
most mortgages are – it’s a
legal requirement to buy flood
insurance. But until a few
years ago, you could only buy
it through the government’s
National Flood Insurance
Program (NFIP) – no private
carrier could offer flood
insurance. In 2012, the NFIP
was $30billion in debt, mainly
due to Hurricanes Katrina and
Sandy, so the government
decided to throw open the
marketplace. After watching
closely for a couple of years,
we sensed an opportunity to
move in. Through the NFIP,
you can only buy $250,000 of
buildings cover and $100,000
of contents. When those
limits were put in place in the
seventies, they would have
covered most buildings in the
USA; now they don’t come
close. Using the strength of
our underwriting, we’re able
to offer something much
broader: our FloodPlus
product covers up to
$2.5million in value.
Q: US flood is expected to
continue to grow strongly.
What’s the secret behind
that rapid growth?
A: It’s really a success story
about digital trading. We
decided quite quickly that
we were going to build an
online platform to do the
underwriting for us – we had
no legacy to build on, so we
had the luxury of a blank slate.
Although we also distribute
flood through third-party
intermediaries, the way it’s
underwritten isn’t manual
at all. It uses an online rating
portal, which we control.
It’s a very different rating
mechanism, which allows us
to be faster, more responsive
and a lot more granular in
what we do.
It’s not been simple.
Any underwriting product
demands tonnes of data, but
we started out with nothing
except a few models, which
were still in their infancy, and
our gut feel for underwriting.
The NFIP didn’t release any
of its data until 2020, so
everyone was going in blind.
Then Hurricanes Harvey and
Maria hit in 2017, and that was
an important learning point
for us. With a catastrophe
product, you’re not getting
claims every day, so although
any big event is a negative
in terms of cost, it gives us
another chance to evaluate the
product. We doubled down,
kept investing in technology,
and have grown ever since.
It’s been a fun ride, and we’re
in an exciting place now.
Q: Is flooding a growing
problem in the USA?
A: We deal with hurricane-
borne flooding and flooding
from just normal rain and river
rise, and both appear to be
getting more prominent as
time goes by – clearly driven
by climate change. The big
events tend to be happening
more frequently. Cat 4 and
Cat 5 landfalling hurricanes
are supposed to be rare, but
we’ve seen five in the past
three years and that does
raise the question: is this a
blip or is it the new norm? The
challenge for us is to ensure
we’re pricing for the growing
risk and providing adequate
cover for customers who
want protection.
Q: How was 2021 for you?
A: Really good. We managed to
grow the portfolio significantly.
We weathered more events,
and we weathered them
while retaining profitability.
We’re at the point now where
there’s strong belief within the
business that this is working.
More and more customers
are buying the product, more
brokers and distributors are
wanting to talk to us. Most
importantly, it’s genuinely
helping people. Hurricane
Ida, which caused extensive
flooding in New York, New
Jersey and Connecticut
in September 2021, was
testament to that. We’ve been
going through the process of
paying those claims, putting
people back on their feet.
Q: How do you see the
human value being
applied at Hiscox?
A: I think Hiscox as a culture
tends to be very empathetic,
but also fair, and that’s quite
a hard balance to strike.
We’ve had a tough few years,
the market has been in a
bad place, and it’s easy at
times like that for people to
feel disillusioned or worried.
In that moment, you need
empathetic leadership. I
think that’s been expressed
really well. There are a lot of
individuals here who take it
upon themselves to put an
arm around someone, and
that is so important.
Q: During the lockdowns of
the past two years, what did
you miss most about being
around other people?
A: Mostly, just having a chat
about something completely
unrelated to work. We did
virtual catch-ups all the time,
but it’s never the same as
the experience you have
when you’re together,
bouncing off each other.
The other thing it brought
home is how much we learn
by osmosis. That’s especially
important for people who
are just starting out. If you’re
sitting in your house on your
own and you have a small
question you can’t answer,
you’re not going to call your
manager or set up a meeting.
But when you’re in the office
and they’re sitting right next
to you, you’ll just lean over
and ask. You miss all of that
working remotely.

93Hiscox Ltd Report and Accounts 2021

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
94 Hiscox Ltd Report and Accounts 2021
Annual statement from the Chair of the
Remuneration Committee
Our remuneration strategy
is designed to attract
and keep talented,
ambitious people and
foster a culture that
encourages sustainable
high performance. Our
aim is to deliver strong
returns across the
insurance cycle and
create long-term value
for our shareholders.”
Colin Keogh
Chair of the Remuneration Committee
Dear fellow Shareholder
At Hiscox, our remuneration strategy is
designed to attract and keep talented,
ambitious people and foster a culture
that encourages sustainable high
performance. Our aim is to deliver
strong returns across the insurance
cycle and create long-term value for
our shareholders.
The Committee believes that for all
employees, basic pay should be
competitive, with bonuses reflecting
personal and business performance.
We expect all employees to meet or
exceed a series of objectives based
on our strategy and values, which are
essential to Hiscox’s business operations
and reputation, including delivering
great customer service, complying with
regulation and managing risk. Long-term
share awards provide alignment with
the shareholder experience and reward
demanding performance targets linked
to net asset value per share growth and
shareholder returns.
We believe this approach works well for
both our employees and shareholders,
and I would like to thank shareholders
for their high levels of support on the
remuneration resolutions at the AGM
in recent years.
Performance and
remuneration outcomes
In 2021, the Executive Directors led
the business to deliver a pre-tax
profit of $190.8million (2020: loss of
$268.5million), pre-tax ROE of 8.1%
(2020:-10.8%) and a combined ratio
of 93.2% (2020:114.5%). Despite
elevated natural catastrophes losses
and a subdued investment return, this
represents a resilient performance,
helped by portfolio optimisation action
taken over a number of years and
improving rates in big-ticket lines. In
the UK, the business has continued to
prioritise UK business interruption claims
and has made significant progress in
settling claims during 2021.
During 2020, we made a commitment
that Executive Directors would not be
paid a bonus until the dividend had
resumed, irrespective of the Group’s
performance. Dividend payments have
now been resumed, with an interim
dividend of 11.5 cents per share paid on
22 September 2021 and a final dividend
(subject to shareholder approval) to be
paid on 13 June 2022 of 23.0 cents per
share, in line with pre-Covid-19 levels.
Hiscox has not furloughed any staff or
accessed any UK, USA, or European
government support schemes.
For 2021, a pre-tax ROE of 8.1% was
achieved (above the hurdle rate of 2.5%)
and a bonus pool was therefore created.
In considering the bonus awards for
Executive Directors, the Committee
took into account the ranges agreed
at the start of the year alongside
the personal performance of the
individuals, the delivery of Group’s
business priorities, and the overall
performance of Hiscox, as well as a
consideration of risk. More information
on business performance during 2021
can be found on pages 16 to 33, and
for more on Executive Director
performance see page 103. Taking
these factors into account, Bronek
Masojada and Aki Hussain were awarded
bonuses of 90% of salary, representing
30% of the maximum opportunity.
Joanne Musselle as Group Chief
Underwriting Officer, was awarded a
bonus of 107% of salary, representing
27% of the maximum opportunity,
reflecting the best underwriting result
for five years.

95Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
This bonus outcome follows two years
of zero bonus pay-out for the Executive
Directors during 2019 and 2020 – in line
with our approach of rewarding financial
achievements, not just effort – despite
very strong personal performance over
those two years. For the wider workforce
during this period, we paid bonuses
relative to personal performance and
business area profitability.
The 2019-2021 Performance Share
Plan (PSP) was set against stretching
net asset value plus dividends per share
targets. The net asset value per share
threshold of 7.5% compound growth
over the three-year performance period
was not met.
As already noted, the Committee
assessed performance in the round
when determining variable pay
outcomes, including an assessment
of wider Company performance, the
employee experience, the shareholder
experience and wider stakeholder
experience, alongside a consideration
of risk. The Committee concluded that
there would be no exercise of discretion
to override the outcomes of the
performance conditions for 2021.
Board changes in 2021
After 21 years as Group Chief Executive
Officer (CEO), Bronek Masojada stepped
down as an Executive Director of Hiscox
with effect from 31 December 2021.
Following his retirement from the Board,
Bronek is continuing as an employee
of Hiscox Ltd and accordingly, he has
received no loss of office payment in
respect of his services as a Director. In
his new role, Bronek will provide strategic
advice as a Director for key subsidiaries,
enabling Hiscox to continue to benefit
from his considerable experience. In line
with our policy and best practice, Bronek
will be subject to a post-employment
shareholding requirement for a period
of two years from stepping down from
the Board.
The Board was delighted to appoint Aki
Hussain, previously Group Chief Financial
Officer (CFO), as Group CEO, effective
1 January 2022. Aki’s appointment
followed a thorough and independent
process led by the Nominations and
Governance Committee, and supported
by a leading recruitment firm, which
involved a global search and the
assessment of both internal and external
candidates. More information on that
process can be found on pages 82 to 83.
As announced in July 2021, Aki’s salary
for the Group CEO role has been set at
£750,000 per annum. All other elements
of his package are unchanged, namely
a pension allowance of 10% of salary in
line with the wider workforce, a maximum
bonus opportunity of 300% of salary and
a performance share plan opportunity of
up to 250% of salary.
In determining the package for the
incoming Group CEO, the Remuneration
Committee was mindful that Bronek had
been in the role for over two decades and
had built up a considerable shareholding
in the Company. The Committee
has a track record of demonstrating
a disciplined approach to salary
management, with CEO increases set
at or below the wider workforce since
2014. While the salary for the incoming
Group CEO has been set above
that of Bronek, the search process
demonstrated the competitive landscape
and recruitment market in which we
operate, and provided direct insight
into the level of packages required
to attract high-quality candidates.
Therefore, taking into account the scale
and complexity of the role, the calibre
and experience of Aki, as evidenced by
his performance as Group CFO and his
knowledge of the Hiscox Group, and
considering market data both for the
UK and globally, with reference to our
key international peers, the Committee
considered that the package for the role
was appropriate.
As announced in December 2021,
Paul Cooper has been appointed as
Group CFO and will assume the role
during 2022. His salary has been
set at £525,000 per annum, with all
other elements of his package being
consistent with that of the outgoing
CFO, namely a pension allowance
of 10% of salary, a maximum bonus
opportunity of 300% of salary and a
performance share plan opportunity
of up to 250% of salary. The salary
positioning is c.2.2% above the outgoing
CFO, consistent with the increase to Jo
Musselle’s salary (and below the average
UK employee increase). In line with
standard practice and consistent with
our remuneration policy, Paul will receive
awards to compensate for remuneration
arrangements forfeited on leaving his
previous employer. These awards will
mirror the time horizon and form of
the original awards with performance
conditions applied (where relevant).
Further details on Aki and Paul’s
remuneration arrangements are set
out in the annual report on remuneration
on page 107.
2022 remuneration
For 2022, Joanne Musselle’s salary
will be increased by 2.2%. There will
be no further increases in 2022 for Aki
Hussain or Paul Cooper following their
appointments as Group CEO and Group
CFO respectively.
Chapter 4 94
Remuneration
Annual Statement
from the Chair of
the Remuneration
Committee

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Annual Statement
from the Chair of
the Remuneration
Committee
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
96 Hiscox Ltd Report and Accounts 2021
There are no proposed changes to the
award levels or structure of annual bonus
awards, which will continue to be based
on pre-tax ROE performance, alongside
individual and strategic performance,
including non-financial factors, the
shareholder and wider stakeholder
experience, and the consideration of risk.
Bonuses will not be paid unless the
Group’s performance exceeds a hurdle
rate of return set, taking into account
prevailing market conditions.
There are no proposed changes to the
award levels or structure of Performance
Share Plan (PSP) awards, which will
continue to be based on stretching
growth in net asset value (NAV) plus
dividends targets and relative total
shareholder return (TSR) against a group
of global insurance peers. Further detail
on the 2022 PSP measures and targets
are set out on pages 108 to 109.
Wider workforce
During the year, the Committee
was updated on wider workforce
remuneration trends and policies to aid
our understanding of how Executive
Directors’ remuneration aligns to
employees. There has been a consistent
pay philosophy and reward structure
across the Group for a number of years
and the approach for the Executive
Directors is aligned with this.
Pay
In the UK, Hiscox has been an accredited
Living Wage employer since 2019.
This approach ensures that everyone
at Hiscox receives a wage that
recognises the actual cost of living
in the UK. The Board also aims to ensure
workforce views on a range of issues,
including remuneration, are reflected
in decision-making. This is done not
only through the annual employee
engagement survey, but also through
the employee engagement network
which is led by our Employee Liaison,
Anne McDonald, and which discussed
remuneration during 2021 – with the
outputs of those discussions fed back
to the Board.
Bonuses
Annual bonus payments are funded
from profit-related pools and employees
who are eligible for an annual bonus
are subject to the same deferral terms
as set out in the policy that applies
to Executive Directors. For 2021, a
new element was introduced to the
annual bonus for management below
the Board, to incentivise and reward
individual contribution. For Executive
Directors, bonuses are only payable once
a minimum ROE has been achieved,
with individual performance taken into
account thereafter.
Share schemes
All PSP participants are subject to the
same performance measures and targets
for the performance element of awards.
Below the Board an element of the award
is non-performance tested and vests
subject to continued employment.
Hiscox also operates an all-employee
Sharesave Scheme to foster a culture of
ownership among the wider workforce.
The scheme provides all employees with
the opportunity to save over a three-year
period and to purchase Hiscox shares
at a discounted price. The Scheme is
popular, with 66% of UK employees
currently participating. Shareholding
guidelines also extend to Hiscox Partners
who are expected to own shares valued
at 100% of salary, such is our ownership
culture, while Executive Directors are
expected to own shares valued at 200%
of salary.
Pensions
Executive Directors’ pension benefits
have always been consistent with the
wider UK workforce, and Executive
Directors receive either a 10% of salary
cash allowance in lieu of the standard
employer pension contribution or a
combination of cash and pension
contribution, totalling 10% of salary.
UK gender pay reporting
In 2021, Hiscox published its fifth annual
gender pay report for the UK, and the
mean pay gap of 19.1% (2020: 21.2%)
represents steady progress at getting
more women into more senior and
higher-paid roles. Since 2017, on a mean
basis, our gender pay gap has reduced
steadily and is now 12 percentage points
lower than when reporting commenced.
The median figure was 20.7% in 2021
(2020: 25.0%). On a median basis, the
gender pay gap has also reduced over
time, with the exception of 2020 when
the data reflects the introduction of
part-time teams in our entry-level
customer-facing roles, increasing
flexible working opportunities, with the
majority of these roles filled by women.
While some of the fundamentals
remain – that our pay gap reflects the
higher proportion of men in more senior
roles – we are making steady progress
towards redressing the balance. We have
established structures and processes
which ensure that men and women are
paid the same for similar roles, so the
focus of our work has been on getting
more women into more senior roles
across the Group. Improving diversity
and inclusion remains a priority, and
while our progress so far has been
helped by the policies, processes and
partnerships we have established, we
recognise there is more to do. For more
information, see pages 84 to 87.
2023 remuneration policy
The current remuneration policy was
approved by shareholders at the 2020
AGM and, as such, a new policy is
required to be put to the vote at the 2023
AGM. We look forward to consulting
with shareholders over the coming year,
ahead of the policy’s renewal.
In summary
The Remuneration Committee is satisfied
that the 2021 outcomes are aligned with
the experience of shareholders and
reflective of business performance.
Colin Keogh
Chair of the Remuneration Committee

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Annual Statement
from the Chair of
the Remuneration
Committee
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
97Hiscox Ltd Report and Accounts 2021
How we have addressed the following factors in the UK Corporate Governance Code 2018
Factor Consideration of how this is addressed for Hiscox
Clarity – remuneration
arrangements should be
transparent and promote
effective engagement
with shareholders and
the workforce.
s Shareholders’ views on the key changes to the remuneration package are sought.
s In 2021, the Employee Liaison facilitated a discussion with respect to the content of
the remuneration policy and how this aligns to wider company pay policy, and shared
feedback on this with the Board. The Remuneration Committee also receives information
on broader workforce remuneration policies and practices during the year which informs
its consideration of the policy for Executive Directors.
Simplicity – remuneration
structures should avoid
complexity and their rationale
and operation should be easy
to understand.
s Hiscox’s remuneration framework is simple, comprising three main elements:
i) fixed pay (base salary, benefits and pension);
ii) annual bonus; and
iii) performance share awards.
s The remuneration philosophy is a simple one: to reward performance. For over a decade,
the foundation of the Group’s remuneration strategy has been the belief that the best way
to foster a high-performance culture across the Group is to ensure that pay reflects our
results, not just effort.
s The remuneration policy’s operation in 2021, including form of awards, time horizons,
and performance measures, is designed to avoid complexity and is fully disclosed in
the Directors’ remuneration report on on pages 114 to 125.
Risk – remuneration
arrangements should ensure
reputational and other risks
from excessive rewards, and
behavioural risks that can
arise from target-based
incentive plans, are identified
and mitigated.
s Incentive awards are capped and are not considered excessive.
s Executive Directors’ annual bonus awards are judgement-based within a formulaic
framework based on ROE performance, to ensure they reflect their overall performance
rather than being measured according to a formulaic outcome. Risk is also taken into
consideration as part of this.
s The Committee has the ability to apply independent judgement to ensure that the
vesting outcome of performance share awards is a fair reflection of both the Company’s
performance and that of the individual over that period.
s Part of the annual bonus is subject to deferral, and share awards are subject to a
holding period following vesting. All variable remuneration is subject to malus and
clawback provisions.
s Following an annual review by the Chief Risk Officer, no risk adjustments are proposed to
2021 variable remuneration outcomes.
Predictability – the range of
possible values of rewards
to individual Directors and
any other limits or discretions
should be identified and
explained at the time of
approving the policy.
s The range of possible values are set out in the performance scenario charts in the
remuneration policy on page 124.
s Limits and ability to exercise discretion are also set out in the policy. No discretion was
exercised in 2021.
Proportionality – the link
between individual awards,
the delivery of strategy and
the long-term performance of
the Company should be clear.
Outcomes should not reward
poor performance.
s Historic variable incentive pay-outs have had a strong link to the Company’s actual
performance. There is a track record of payment for performance, with evidence of
zero bonuses where ROE performance has been below the predetermined hurdle.
s The 2021 performance outcome and bonus awards are described on page 102. The
2019-2021 share grant will not vest as the performance hurdle was not met.
Alignment to culture –
incentive schemes should
drive behaviours consistent
with Company purpose,
values and strategy.
s The variable incentive schemes, including quantum, time horizons, form of award and
performance measures are all designed with the Company’s purpose, values and strategy
in mind.
s The pay arrangements for the Executive Directors are aligned with those of the broader
workforce and senior team.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
98 Hiscox Ltd Report and Accounts 2021
Remuneration summary
The Hiscox remuneration policy is
designed to drive a culture of high
performance and create sustainable
long-term value for shareholders.
The policy follows three clear principles:
A simple and results-driven,
with variable rewards if Hiscox
delivers profits and shareholder
returns in excess of specified
return thresholds;
A incentivise Executive Directors
appropriately, over the short and
long term; and
A align Executive Directors’ interests
with those of our shareholders,
focusing on effective risk
management, return on equity
(ROE) and net asset value growth,
which drives total shareholder
return over time.
Base salary
Competitive fixed pay.
Bonus of c.30% of
maximum opportunity
for the Executive
Directors.
Long-term performance
impacted by Covid-19
events and catastrophe
claims. PSP awards
granted in 2019 will
not vest.
Single figure of
£1,332,964 for the CEO.
A summary of the
remuneration
arrangements for
Executive Directors
is provided opposite.
Annual bonus
Aligned to shareholder interests.
Benefits
Same as majority of employees.
Performance Share
Plan (PSP)
Aligned to long-term shareholder
interests and performance.
Shareholding guidelines
Aligned to shareholder interests.
Key principles underpinning
remuneration at Hiscox
Remuneration outcomes for 2021
Summary of remuneration arrangements

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Remuneration summary
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
99Hiscox Ltd Report and Accounts 2021
Salaries for 2021:
—
Bronek Masojada: £667,000
— Aki Hussain: £513,500
— Joanne Musselle: £513,500
Salary increase of 2.0%, in line with average UK employee increase.
Maximum opportunity:
—
up to 300% of salary for CEO and CFO;
— up to 400% of salary for CUO.
Over the past ten years, the average bonus to the CEO has been equivalent to 28%
of the current maximum opportunity.
Performance metrics: combination of ROE and individual performance delivered
against set objectives approved by the Board. Disclosure of the ROE target ranges
and detail around the individual performance factors including specific risk-based
objectives used to determine outcomes for 2021 is provided on pages 101 to 103.
Deferral: part deferral of amounts in excess of £50,000.
2021 actual as percentage of salary:
—
Bronek Masojada: 90%
— Aki Hussain: 90%
— Joanne Musselle: 107%
Award subject to three-year performance period and two-year holding period.
Maximum opportunity: 250% of salary for all Executive Directors.
Vesting subject to: net asset value per share growth plus dividends (60% weighting)
and relative TSR (40% weighting).
2021 award as percentage of salary:
—
Bronek Masojada: 250%
— Aki Hussain: 250%
— Joanne Musselle: 250%
Holding period: awards subject to a further two-year holding period following vesting.
Salaries for 2022:
—
Aki Hussain: £750,000
—Joanne Musselle: £525,000
—Paul Cooper: £525,000
Salary increase for Joanne Musselle of
2.2%, below the average UK employee.
Maximum opportunity, performance
metrics and deferral unchanged.
Maximum opportunity, performance
metrics and time horizons unchanged.
Share ownership and post-employment
shareholding guidelines unchanged.
Executive Directors’ benefits can include health insurance, life insurance, long-term disability schemes and participation in
all-employee share schemes. Retirement benefits are delivered via a cash allowance of 10% of salary, paid in lieu of the standard
pension contribution, or a combination of pension contribution and cash allowance, totalling 10% of salary. These benefits mirror
those available to most other employees in the organisation.
Share ownership guidelines of 200% of salary for all Executive Directors,
after five years in role.
2021 actual:
—
Bronek Masojada: 3,910%
— Aki Hussain: 154% Aki Hussain was appointed in September 2016.
— Joanne Musselle: 165% Joanne Musselle was appointed in March 2020.
Post-employment shareholding requirement: retain a shareholding at the level of
the in-employment guideline for one year and half this amount for the following year.
Base salary
Competitive fixed pay.
Implementation of policy for 2021 Implementation for 2022
Read our updated remuneration policy.
114
Annual bonus
Aligned to shareholder interests.
Benefits
Same as majority of employees.
Performance Share
Plan (PSP)
Aligned to long-term shareholder
interests and performance.
Shareholding guidelines
Aligned to shareholder interests.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
100 Hiscox Ltd Report and Accounts 2021
Annual report on remuneration 2021
This report explains how the remuneration policy was implemented for the financial year ending 31 December 2021
and how it will be applied for the 2022 financial year.
PwC has been engaged to audit the sections in the annual report on remuneration 2021 below entitled ‘Executive Director
remuneration’ and ‘additional notes to the Executive Director remuneration table’, ‘annual bonus’, ‘long-term incentives’, ‘Non
Executive Director remuneration’, ‘Directors’ shareholding and share interest’, ‘Performance Share Plan’ and ‘Sharesave
Schemes’, ‘Payments to past Directors’ and ‘Payments for loss of office’, to the extent that would be required by the Large
and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2013.
Executive Director remuneration
2021
Total split
Name
Salary
£
Benefits
£
Bonus
£
Long-term
incentive
plan
1
£
Retirement
£
Total
£
Fixed
remuneration
£
Variable
remuneration
£
Bronek Masojada
2
663,750 10,588 600,300 0 58,326 1,332,964 732,664 600,300
Aki Hussain 511,000 8,308 462,150 0 46,453 1,0 27,911 565,761 462,150
Joanne Musselle 511,000 9,060 550,000 0 46,938 1,116,998 566,998 550,000
2020
Total split
Name
Salary
£
Benefits
£
Bonus
£
Long-term
incentive
plan
1
£
Retirement
£
Total
£
Fixed
remuneration
£
Variable
remuneration
£
Bronek Masojada 649,625 10,533 0 0 57, 0 8 5 717, 24 3 717, 24 3 0
Aki Hussain 50 0,125 7,532 0 0 45,464 55 3,121 5 5 3,121 0
Joanne Musselle
3
418,458 7,6 37 0 0 38,404 464,499 464,499 0
1
2021 long-term incentives relate to performance share awards granted in 2019 where the performance period ends on 31December2021. The award is due to
vest on 8 April 2022. Based on performance achieved, this award will lapse in full. As the award will lapse in full there is no part of the award attributable to share
price appreciation.
2
Bronek Masojada retired as Group Chief Executive Officer and stepped down from the Board on 31December2021.
3
Joanne Musselle joined the Board 2 March 2020, following her appointment as Group Chief Underwriting Officer effective 1January2020. The figures in the 2020
table above relate to 2 March-31 December 2020.
Additional notes to the Executive Director remuneration table
Salary
Salary reviews take place in the first quarter of the year, effective from 1 April. As noted in last year’s remuneration report, Executive
Directors’ salaries were increased by 2.0% from April 2021, the same as the average UK-based employee salary increase.
Base salaries for Executive Directors from 1 April 2021 were as follows:
April 2021
£
Bronek Masojada 667,000
Aki Hussain 513,500
Joanne Musselle 513,500

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Annual report on
remuneration 2021
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
101Hiscox Ltd Report and Accounts 2021
Benefits
For 2021, benefits provided for Executive Directors included the healthcare scheme, Sharesave Scheme, life insurance, income
protection insurance and critical illness policies, as well as a Christmas gift hamper.
Retirement benefits
Bronek Masojada and Aki Hussain received a 10% of salary cash allowance in the year (less an offset for the employer’s
UK National Insurance liability) in lieu of the standard employer pension contribution. Joanne Musselle receives a combination
of cash allowance and employer pension contribution totalling 10% of salary (less an offset for employer’s UK National Insurance
on the cash allowance). The value of these retirement benefits is shown in the Executive Director remuneration table on page 100.
Executive Director retirement benefits are consistent with those offered to the majority of UK employees. This has been the policy
at Hiscox for a number of years.
The table below details the legacy entitlements from the closed defined benefit pension plan.
Pensions
Normal
retirement
age
Increase
in accrued
pension
during
the year
£000
Total accrued
annual pension
at 31 December
2021
£000
Increase in
accrued pension
net of inflation
£000
Transfer value
of accrued
pension
at 31 December
2020
£000
Transfer value
of accrued
pension
at 31 December
2021
£000
Increase/
(decrease)
in transfer value
of accrued
pension
during the year
£000
Bronek Masojada 60 3 63 – 2,712 2,933 221
There are no further accruals under this plan. In the event of retirement after normal retirement age, an increased pension would
be payable (in accordance with the scheme rules) to reflect the later payment date.
Variable pay
To ensure that remuneration is aligned with Company performance and the shareholder experience, a significant proportion of pay
is delivered through incentive awards, consisting of an annual bonus and share awards under the Performance Share Plan, which
can vary significantly based on the level of performance achieved. Bonuses are only paid if results exceed a specified threshold set
taking into account prevailing market conditions.
Although the remuneration structure has naturally evolved over time to reflect market and best practice, the simple framework has
been in place for more than 15 years.
Annual bonus
The maximum opportunity for 2021 remained unchanged from 2020, being 300% of salary for both the Group Chief Executive
Officer and Group Chief Financial Officer and 400% of salary for the Group Chief Underwriting Officer.
The bonus is structured in a way that ensures significant variability in outcomes, including the possibility of no bonus being paid.
The Remuneration Committee believes that the most appropriate measure for the calculation of the bonus pool is pre-tax return
on equity (ROE), as this aligns management’s interests with those of shareholders, minimises the possibility of anomalous results,
and ensures that incentives for Executive Directors and other employees are tied to the Company’s profit performance.
The Executive Directors, along with other employees across the Group, participate in profit-related bonus pools, which are
calculated at a business unit level and for the Group as a whole. In determining the bonuses to be paid to Executive Directors, the
Remuneration Committee bases its judgement on both the performance of the Group and a robust assessment of personal and
strategic objectives, including adherence to specific risk management objectives. The Remuneration Committee also seeks input
from the Chief Risk Officer and Chief Actuary to aid its assessment of whether bonus outcomes are appropriate.
Bonuses are not paid unless the Group’s performance exceeds a given threshold, irrespective of individual performance. Over
the past ten years there have been three occasions when the Group delivered a pre-tax ROE below the required threshold and no
bonuses were paid to Executive Directors. The threshold is set annually using an investment benchmark rate. The threshold for
2021 was set at pre-tax ROE of 2.5%.
A commitment was made in 2020 that Executive Directors would not be paid a bonus until the dividend had resumed, irrespective
of the Group’s performance. The dividend was resumed in 2021, with an interim dividend paid in September 2021. As set out
elsewhere in this report, the final dividend will be paid in June 2022.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Annual report on
remuneration 2021
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
102 Hiscox Ltd Report and Accounts 2021
When setting targets, the Committee seeks to motivate strong performance while also encouraging sustainable behaviours,
in line with the defined risk appetite of the business. In determining the size of the Executive Director bonuses for 2021, the
Committee used the following framework. Actual bonus outcomes also take into account personal and strategic performance
and risk management.
Pre-tax return on equity Indicative bonus range (% of max)
<RFR +2.5% 0%
RFR +2.5% to RFR +10% 0-30%
RFR +9% to RFR +14% 25-55%
RFR +13% to RFR +18% 45-75%
RFR +16% to RFR +21% 65-90%
Greater than RFR +19% 80-100%
The risk-free rate (RFR) is reviewed annually using government bonds as a reference point, reflecting the rate available to investors without commercial risk.
For 2021, the RFR was set at 0%. For 2021, a maximum bonus would have required ROE performance of at least RFR plus 20%.
Employees below the Board also participate in a personal performance bonus scheme. Awards under this scheme are normally
based on individual performance ratings. The scheme is designed to ensure that employees continue to be motivated to perform
well, irrespective of overall Group performance. The benefit is typically up to 15% of salary.
Pay for performance – track record
The chart below shows the relationship between the Group ROE performance and bonus awards for Executive Directors over an
extended period. It demonstrates the strong link between Company performance and bonus outcomes.
Performance outcomes for 2021
The pre-tax ROE for 2021 was 8.1% therefore the performance threshold of 2.5% was achieved and a bonus pool created.
Using the indicative bonus ranges set out above, and taking into account the achievement of personal and business objectives
during the year together with a consideration of risk, the size of the bonus pool and the overall performance of Hiscox, the
Committee determined that a bonus of 90% of salary (30% of maximum) for the Group Chief Executive Officer, 90% of salary
(30% of maximum) for the Group Chief Financial Officer, and 107% salary (27% of maximum) for the Group Chief Underwriting
Officer would be payable.
0510 15 20 25 30 35 40
0
50
100
150
200
250
300
350
400
0% 5% 10%15% 20% 25% 30% 35% 40
%
40
0
35
0
30
0
25
0
20
0
15
0
10
0
50
0
Return on equity
2001
2020
2011 2017
2018
2002
2008
2005
2010
2007
2009
2006
2003
2016
2004
2013
2015
2012
2014
Below zero
Bonu
s as a percentage of salary
2019
2021
Executive Directors’ cash incentives and return on equity

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Annual report on
remuneration 2021
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
103Hiscox Ltd Report and Accounts 2021
2021 key objectives and individual achievements by the Executive Directors
Key objectives Achievements
Bronek Masojada
Deliver the 2021
business plan
During 2021, Bronek led the business to deliver premium growth of 5.9% and a pre-tax profit of
$190.8million. Despite an elevated year for natural catastrophes and a subdued investment return,
this resilient performance is the outcome of big-ticket portfolio optimisation action taken over the
last few years, good risk selection, and continued growth in our Retail operations.
Deliver the Group’s
business priorities for 2021
The business priorities for 2021 were: underwriting portfolio optimisation; digitising and
streamlining our operating model; and nurturing talent in new ways. In underwriting, tough action
taken in big-ticket lines has resulted in risk-reflective pricing, and the Group has enjoyed rate
increases of 9% in aggregate and GWP growth of 5.9%. On simplification, the Group has realised
c.$20 million in underlying expense efficiencies (excluding performance-related pay and normalised
for foreign exchange movements) through a range of measures including enhanced controls
on headcount and third-party spend. On talent, the Group has attracted 644 new permanent
employees, made 368 internal promotions, bolstered succession plans, and embedded new
hybrid working practices.
Ensure Hiscox operates
within risk, regulatory and
societal expectations
As in 2020, Bronek led the business’s response to Covid-19, including our response to paying
claims in line with the Judgment delivered by the Supreme Court in January 2021, in the appeal
of the UK insurance industry test case. Bronek has also overseen the development of new
greenhouse gas targets for the Group, which ensure Hiscox complies with its legal requirements
in the UK and other jurisdictions to support net zero.
Aki Hussain
Balance sheet
management
Aki oversaw the continued optimisation of the Group’s capital and liquidity position, which in 2021
included the execution of two loss portfolio transfer (LPT) transactions covering prior year reserves
to drive net capital efficiency of c.$100 million. Careful balance sheet management and improving
financial performance enabled the Group to resume paying dividends with the 2021 interim results.
Enhancing profitability Aki has continued to drive ROE-enhancing opportunities for the Group. This includes influencing
the underwriting strategies through a continued focus on allocating capital to where Hiscox can
achieve the best risk-adjusted returns, and the achievement of ambitious expense ratio reduction
targets, which are being realised through improving procurement processes and an ongoing focus
on simplification. Following the appointment of a new Chief Investment Officer in 2020, Aki has also
overseen a reassessment of fund managers, fees, capabilities and investment strategies, resulting
in an overall reduction in manager fees, a revised line-up of fund managers with capabilities and
expertise more aligned to Hiscox strategy, and improving risk-adjusted returns.
Ensure Hiscox operates
within a risk and control
environment that adheres
to regulatory and
corporate standards
Aki has established a robust and effective multi-disciplinary IFRS 17 programme that is on track
to deliver the Group’s requirements. Aki has also led important enhancements to the risk and
control frameworks, further improving transparency of performance and oversight by the Group
Audit Committee.
Joanne Musselle
Active portfolio
management
Joanne has led the Group’s progress in underwriting portfolio optimisation, resulting in an
underwriting profit of $215.6 million for 2021 and rate increases of 9% in aggregate across the
Group. A multi-year focus on active portfolio management, combined with disciplined constant
course correction, has significantly improved the quality of the Group’s portfolio.
Exposure management
and view of risk
Joanne has driven the continued evolution of the Group’s view of risk in line with internal appetite
and external expectations. In 2021, this included the introduction of a Group ESG exclusions policy
to reduce steadily and eliminate by 2030 our exposure to thermal coal, oil sands, Arctic drilling and
controversial weapons. Joanne supported early operationalisation of the policy, which officially came
into force on 1 January 2022, with both new and existing risks starting to be declined during 2021.
Underwriting governance
and controls
Joanne has overseen important progress in the Group’s underwriting controls and governance
around product, pricing, appetite and wordings. This includes the introduction of new appetite
bullseyes for each line of business in every business unit, and underwriting governance structures
that drive business unit accountability and provide new opportunities for challenge, validation and
escalation. In 2021, this process has supported the Group’s Retail business units in reducing both
the number and complexity of our wordings.
Developing
underwriting talent
Joanne has continued to find innovative ways to develop the Group’s underwriting talent, this year
developing a new ‘faculty of underwriting’ framework delivering underwriting-focused technical and
behavioural training. This supports the existing succession planning structures and talent monitoring
processes, through which we identify and subsequently invest in high-potential underwriters.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Annual report on
remuneration 2021
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
104 Hiscox Ltd Report and Accounts 2021
Long-term incentives
Performance Share Plan awards (PSP) where the performance period ends with the 2021 financial year
The Executive Directors were granted nil-cost options under the PSP on 8 April 2019 for the three-year performance period
1January2019 to 31December2021.
The performance conditions for this award were set at the start of the performance period and are as follows:
Growth in
net asset value
plus dividends
Proportion of PSP
vesting measured
on a per-share basis
%
Minimum threshold vesting RFR + 6 = 7.5 20
Maximum vesting RFR + 14 = 15.5 100
Straight-line vesting between these points
The risk-free rate (RFR) for the awards granted in 2019 was set at 1.5%.
Performance outcome
Based on the three-year average growth in net asset value plus dividends of 0.1%, the awards ending with the 2021 performance
year will not vest as the minimum performance threshold has not been met.
PSP awards granted during the 2021 financial year
As disclosed in the 2020 Directors’ remuneration report, PSP awards granted to the Executive Directors in 2021 were set at 250%
of salary. Awards are based on a three-year performance period, followed by a two-year holding period.
60% of awards are based on stretching growth in net asset value (NAV) plus dividends targets, measured on a per-share basis,
with 40% based on relative total shareholder return (TSR) against a group of global insurance peers.
On 8 April 2021, the Executive Directors were granted nil-cost options under the PSP as shown below.
Number of
awards granted
Market prices
at date of grant*
£
Market value
at date of grant
£
Bronek Masojada 187, 612 8.588 1,611,212
Aki Hussain 144,436 8.588 1,240,416
Joanne Musselle 144,436 8.588 1,240,416
*The middle market quotation on the date of grant (8 April 2021) was £8.588.
The performance condition for these awards, measured over the period 1 January 2021 to 31 December 2023, is as follows:
Growth in NAV plus dividends measured on a per-share basis Award vesting (% of maximum)*
Less than RFR + 6% p.a 0%
RFR + 6% p.a. 16%
RFR + 14% p.a 80%
Equal to or greater than RFR +17% p.a. 100%
*Applies to 60% of awards. Straight-line vesting in between each point.
The risk-free rate (RFR) for the awards granted in 2021 was set at 0%.
Relative TSR Award vesting (% of maximum)*
Below median 0%
Median 20%
Upper quartile 100%
*Applies to 40% of awards. Straight-line vesting in between each point.
The peer group consists of the following 24 companies: Admiral Group, Alleghany, American Financial Group, Arch Capital, Argo, Axis Capital, Beazley,
Conduit, Cincinnati Financial, CNA Financial, Direct Line Insurance Group, Everest Re, Fairfax Financial Holdings, Hanover Insurance, James River Group,
Kinsale Capital Group, Lancashire Holdings, Markel, QBE, Renaissance Re, RLI, SCOR, White Mountains Insurance Group, and WR Berkley.
Executive Directors will be required to retain any shares vesting (net of tax charges) at the end of the performance period for a
further two years (five years post the start of the performance period).

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Annual report on
remuneration 2021
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
105Hiscox Ltd Report and Accounts 2021
Non Executive Director remuneration
The table below sets out the remuneration received by the Non Executive Directors for the financial years ending
31December2021 and 31 December 2020.
2021
Total split
Ltd Board
fee
£
Ltd Committee
fee
£
Subsidiary Board
fee
£
Benefits
1
£
Total
£
Fixed
£
Variable
£
Robert Childs (Chairman) 295,000 – – 12,868 3 07,86 8 307, 8 68 –
Donna DeMaio 15,580 8,877 – – 24,457 24,457 –
Caroline Foulger 62,319 42,754 88,681 – 193,754 193,754 –
Michael Goodwin 62,319 28,261 32,609 – 123,189 123,189 –
Thomas Hürlimann 62,319 28,261 50,862 – 141,442 141,442 –
Colin Keogh 74,638 34,783 106,000 – 215,421 215,421 –
Anne MacDonald 62,319 35,507 – – 97,826 97,826 –
Constantinos Miranthis 62,319 35,507 35,507 – 133,333 133,333 –
Lynn Pike 62,319 33,333 56,522 – 152,174 152,174 –
2020
Total split
Ltd Board
fee
£
Ltd Committee
fee
£
Subsidiary Board
fee
£
Benefits
1
£
Total
£
Fixed
£
Variable
£
Robert Childs (Chairman) 295,000 – – 11,655 306,655 306,655 –
Caroline Foulger 62,774 35,766 88,956 – 187,4 9 6 187, 49 6 –
Michael Goodwin 62,774 28,467 32,847 – 124,088 124,088 –
Thomas Hürlimann 62,774 28,467 52,212 – 143,453 143,453 –
Colin Keogh 75,182 35,037 48,000 – 158,219 158,219 –
Anne MacDonald 70,073 28,467 – – 98,540 98,540 –
Constantinos Miranthis 62,774 28,467 35,766 – 127,0 07 127,0 07 –
Lynn Pike 62,774 33,577 56,934 – 153,285 153,285 –
¹Benefits include life assurance and healthcare.
Donna DeMaio was appointed as a Non Executive Director in November 2021.
Fees are paid in multiple currencies – 2021 fees were converted using £1: €1.16 and £1: $1.38. 2020 fees were converted using £1: €1.13 and £1: $1.37.
Membership of the Remuneration Committee
The Remuneration Committee members during the year were Caroline Foulger, Lynn Pike, Anne MacDonald, Thomas Hürlimann,
Michael Goodwin, Constantinos Miranthis, Donna DeMaio (appointed November 2021) and Colin Keogh (Chairman).
Directors’ shareholding and share interests
To align their interests with those of Hiscox shareholders, senior managers are expected to own a minimum number of Hiscox
shares. Executive Directors are required to hold Hiscox shares valued at 200% of salary within five years of becoming an
Executive Director. Bronek Masojada has over 20 years’ service so his shareholding of 3,910% far exceeds the guidelines.
Joanne Musselle has not yet been an Executive Director for five years, and her holding is 165%, using the closing share price
on 31December2021. Aki Hussain has reached five years’ service this year and his holding is 154%, using the closing share price
on 31December2021. Aki Hussain has previously met the full shareholding guideline and has not sold any shares since this date.
Following his appointment to Group Chief Executive Officer, the number of shares he is expected to hold will increase, reflecting
his higher salary. The Committee expects the shareholding guideline to be met within three years of appointment.
There is a post-employment shareholding guideline for Executive Directors which will apply for a period of two years from
stepping down from the Board. This will be set at the level of the in-employment shareholding guideline for one year (or the
actual shareholding on stepping down from the Board if lower) and at half of this amount for the following year.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Annual report on
remuneration 2021
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
106 Hiscox Ltd Report and Accounts 2021
The interests of Executive and Non Executive Directors are set out below, including shares held by connected persons.
There have been no changes in the Director share interests between 31 December 2021 and 2 March 2022.
Directors
31 December
2021
6.5p ordinary
shares
number of shares
beneficial
31 December
2020
6.5p ordinary
shares
number of shares
beneficial
Executive Directors:
Bronek Masojada 3,029,920 3,014,825
Aki Hussain 91,786 80,786
Joanne Musselle 98,449 40,798
Non Executive Directors:
Robert Childs 1,213,162 1,208,502
Donna DeMaio* 0 0
Caroline Foulger 29,000 29,000
Michael Goodwin 12,678 12,678
Thomas Hürlimann 15,927 15,786
Colin Keogh 47,6 00 39,695
Anne MacDonald 40,251 39,893
Constantinos Miranthis 6,832 6,832
Lynn Pike 1,538 1,538
*Donna DeMaio was appointed as a Non Executive Director in November 2021.
Performance Share Plan (PSP)
Awards in the form of nil-cost options are granted under the PSP as a percentage of salary. All awards are subject to performance
conditions. The interests of Executive Directors are set out below:
Name
Number of
awards at
1 January 2021
Number of
awards granted
Number of
awards lapsed
Number of
awards exercised
Number of
awards at
31 December
2021
Mid market price
at date of grant
£
Average market
price at date of
exercise
£
Date from
which released
Bronek Masojada 130,950 – – – 130,950 6.94 17-Mar-17
1
117, 0 0 6 – – – 117,0 06 8.82 13-Apr-18
1
59,301 – – – 59,301 9.56 08-Apr-19
1
83,250 – (83,250) – – 14.88 06-Apr-21
82,000 – – – 82,000 15.46 08-Apr-22
156,000 – – – 156,000 7.0 0 15-May-23
– 187, 612 – – 187,612 8.59 08-Apr-24
Aki Hussain 36,873 – – – 36,873 10.46 08-Apr-19
1
58,000 – (58,000) – – 14.88 06-Apr-21
63,250 – – – 63,250 15.46 08-Apr-22
120,500 – – – 120,500 7.0 0 15-May-23
– 144,436 –
–
144,436 8.59 08-Apr-24
Joanne Musselle 32,361 – – (32,361) – 5.68 8.44 02-Apr-16
29,694 – – (29,694) – 6.94 8.44 17-Mar-17
24,750 – – (24,750) – 8.82 8.44 13-Apr-18
9,883 – – (9,883) – 9.56 8.44 08-Apr-19
30,000 – (30,000) – – 14.88 06-Apr-21
30,000 411 – (12,411)
18,000 15.46 8.59 08-Apr-22
2
120,500 – – – 120,500 7.0 0 15-May-23
– 144,436 – – 144,436 8.59 08-Apr-24
Total 1,184,318 476,895 (171,250) (109,099) 1,380,864
1
Awards have vested but are unexercised.
2
40% of the award vested in 2021. Remaining 60% will vest in 2022 subject to performance conditions.
Sharesave Schemes
The interests of Executive Directors under the Sharesave Schemes are set out on the next page:
The scheme offers a three-year savings contract where the exercise price of the options is calculated on an average share price
over five days prior to the invitation date, with a 20% discount. Sharesave options are not subject to performance.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Annual report on
remuneration 2021
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
107Hiscox Ltd Report and Accounts 2021
Number of
options
at
1 January 2021
Number of
options granted
Number of
options lapsed
Number of
options exercised
Number of
options
at
31 December
2021
Exercise price
£
Market price
at date
of exercise
£
Date from which
exercisable Expiry date
Bronek Masojada 778 – (778) – – 11.5 6 01-May-21 31-Oct-21
– 2,500 – – 2,500 7.20 01-Jun-24 30-Nov-24
Aki Hussain – 2,500 – – 2,500 7.20 01-Jun-24 30-Nov-24
Joanne Musselle 1,557 – (1,557) – – 11.56 01-May-21 31-Oct-21
– 2,380 – – 2,380 7.5 6 01-Dec-24 31-May-25
Total 2,335 7,3 8 0 (2,335) – 7,3 80
Payments for loss of office
No payments were made during the year for loss of office.
Payments to past Directors
No payments were made to former Directors during the year.
Remuneration arrangements for the new Group Chief Executive Officer and new Group Chief Financial Officer
The Company announced on 22 July 2021 that Aki Hussain had been appointed as Group Chief Executive Officer with effect from
1 January 2022. His remuneration package, which is in line with the Directors’ remuneration policy, was disclosed at the time and
details are set out below.
•
Basic salary of £750,000 per annum.
• No change in pension allowance (10% of salary, which is aligned to the pension allowance for the UK’s workforce).
• No change to his annual bonus maximum opportunity (300% of salary) and Performance Share Plan award level (up to 250%
of salary).
As this is an internal hire, there are no buy-outs of forfeited incentive awards associated with the appointment.
Aki’s appointment followed a full and independent process led by the Nominations and Governance Committee, supported by
a leading search firm. This involved a global search and the assessment of internal and external candidates. The Remuneration
Committee took into account a number of different factors and reference points when setting the Group Chief Executive Officer’s
remuneration package, including the calibre and experience of Aki, evidenced by his performance as Group Chief Financial
Officer, alongside his knowledge of the Hiscox Group, as well as considering market data, both for the UK and globally, with
reference to our key international peers.
The Company announced on 21 December 2021, that Paul Cooper had been appointed as the Group Chief Financial Officer
subject to regulatory approval. Details of his remuneration package, which is line with the Directors’ remuneration policy, were
disclosed at the time and are set out below.
•
Basic salary of £525,000 per annum.
• Pension allowance of 10% of salary, which is aligned to the pension allowance for the UK’s workforce.
• Annual bonus maximum opportunity of 300% of salary.
• Performance Share Plan award of up to 250% of salary per annum.
Paul will receive awards to compensate for remuneration arrangements forfeited on leaving his previous employer. These will
remain subject to performance conditions where appropriate and mirror the form and time horizons of forfeited awards. Full
disclosure will be made in the 2022 annual report on remuneration.
Remuneration arrangements for the outgoing Group Chief Executive Officer
Bronek Masojada stepped down as Group Chief Executive Officer and as an Executive Director of Hiscox Ltd with effect from
31 December 2021. Following his retirement from the Board, Bronek is continuing as an employee of Hiscox. Accordingly, he
has received no loss of office payment in respect of his services as a Director. In his new role, he will provide strategic advice as a
Director for key subsidiaries. This will enable Hiscox to continue to benefit from Bronek’s considerable experience including over
20 years as Group Chief Executive Officer of the Company.
As he had served a full year as an Executive Director, Bronek Masojada was considered for an annual incentive award in respect
of 2021, in line with other Executive Directors. Details of such payment and the deferral which applies are set out in this report.
As Bronek will continue to be a Hiscox employee, he will retain (in accordance with the plan rules) his Performance Share Plan
awards consisting of 156,000 shares (in respect of the 2020 award) and 187,612 shares (in respect of the 2021 award). These
Performance Share Plan awards will remain subject to the existing vesting dates, performance conditions and holding periods.
As an employee, he will retain his outstanding options under the Sharesave Scheme in accordance with the rules of the scheme.
The post-employment shareholding requirement as set out in the Annual Report on Remuneration will apply for a period of two
years from the date he steps down from the Board.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
108 Hiscox Ltd Report and Accounts 2021
Implementation of remuneration policy for 2022
Salary
Annual salary reviews take effect from April each year. The Committee takes account of a number of factors, primarily the increase
applied to other UK-based employees. The Committee applies judgement when using external market data.
There is no further salary increase for Aki Hussain following his appointment as Group Chief Executive Officer on 1January2022.
Paul Cooper’s annual salary as Group Chief Financial Officer is shown below, effective from his start date in 2022. From
1April2022, Joanne Musselle’s salary will be increased by 2.2%, which is below the average UK employee increase.
2022
£
Aki Hussain 750,000
Paul Cooper 525,000
Joanne Musselle 525,000
Annual bonus
The maximum opportunity for the year ending 31 December 2022 will remain unchanged from 2021, being 300% of salary for both
the Group Chief Executive Officer and Group Chief Financial Officer and 400% of salary for the Group Chief Underwriting Officer.
The bonus for the incoming Group Chief Financial Officer will be pro-rata for 2022 for time in role. In determining the bonuses to be
paid to Executive Directors, the Committee bases its judgements on both the performance of the Group and a robust assessment
of individual performance. Bonuses will not be paid unless the Group’s performance exceeds a given ROE threshold. This
threshold and the ranges used to support the Committee’s decision-making are considered to be commercially sensitive at this
time and will be disclosed in the 2022 Directors’ remuneration report, together with an overview of the individual objectives set
and performance against these.
Performance Share Plan (PSP)
In line with our shareholder-approved remuneration policy, the maximum opportunity for the awards to be granted to the
Executive Directors in 2022 will be 250% of salary. Awards will continue to be based on a three-year performance period followed
by a two-year holding period.
For 2022, 60% of awards will continue to be based on stretching growth in NAV plus dividends targets, measured on a per-share
basis with 40% based on relative TSR against a group of global insurance peers.
The Committee considers that growth in NAV continues to be a key metric for the PSP given that our strategy is built around the
objective of generating long-term shareholder value and NAV is aligned with shareholder value creation. The targets for the 2022
awards are unchanged from those set out in the 2020 Directors’ remuneration report and the Committee considers that they are
very stretching targets in the current environment.
Growth in NAV plus dividends measured on a per-share basis Award vesting (% of maximum)*
Less than RFR + 6% p.a. 0
RFR + 6% p.a. 16
RFR + 14% p.a. 80
Equal to or greater than RFR +17% p.a. 100
The risk-free rate (RFR) will be 0% for 2022.
*Applies to 60% of awards. Straight-line vesting in between each point.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Implementation of
remuneration policy
for 2022
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
109Hiscox Ltd Report and Accounts 2021
Relative total shareholder return has been selected as a measure for the 2022 awards to complement the absolute NAV metric
and is aligned to our strategy of generating long-term value for shareholders, benchmarking those returns versus our closest listed
peers. The vesting schedule for the element of the award based on TSR is set out below.
Relative TSR Award vesting (% of maximum)*
Below median 0
Median 20
Upper quartile 100
*Applies to 40% of awards. Straight-line vesting in between each point.
The peer group will consist of the following 24 companies: Admiral Group, Alleghany, American Financial Group, Arch Capital, Argo, Axis Capital, Beazley,
Conduit, Cincinnati Financial, CNA Financial, Direct Line Insurance Group, Everest Re, Fairfax Financial Holdings, Hanover Insurance, James River Group,
Kinsale Capital Group, Lancashire Holdings, Markel, QBE, Renaissance Re, RLI, SCOR, White Mountains Insurance Group, and WR Berkley.
Non Executive Director fees
The Non Executive Director fees which apply for 2022 are set out below. These remain unchanged from 2021, but may be subject
to further review during 2022.
2022
fees
Board Chairman and subsidiary services £295,000
Basic fee $86,000
Additional fees for:
Audit Committee Chair $26,000
Audit Committee member $16,000
Remuneration Committee Chair $18,000
Remuneration Committee member $9,000
Risk Committee Chair $17,000
Risk Committee member $10,000
Nominations and Governance Committee member $4,000
Senior Independent Director fee $17,000
Employee Liaison fee $10,000
Bermuda Committee fee $10,000

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Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
110 Hiscox Ltd Report and Accounts 2021
Other remuneration matters
External Non Executive Directorships
Executive Directors may not accept any external appointment that may give rise to a conflict of interest, and all external
appointments require the consent of the Chairman. During the year, Bronek Masojada held Directorships on the Board of the
Association of British Insurers and Pool Reinsurance Company Limited and was Chair of Policy Placement Limited. Bronek
Masojada was remunerated £43,000 for his Directorship at Pool Reinsurance Company Limited. Aki Hussain held a Directorship
at Visa Europe Limited and received a fee of £115,000. Joanne Musselle was remunerated £18,500 for her Directorship at Realty.
External advisors
The Committee received independent advice from Deloitte, who were appointed by the Committee in 2013 following a competitive
tender process. Deloitte is a founder member of the Remuneration Consultants Group and, as such, voluntarily operates under its
code of conduct. During the year, Deloitte’s executive compensation advisory practice advised the Committee on developments
in market practice, corporate governance and institutional investor views, and on the development of the Company’s incentive
arrangements. Total fees for advice provided to the Committee during the year were £96,200 based on a time and materials basis.
The Committee regularly reviews the advice it receives and is satisfied that this has been objective and independent. During the
year Deloitte also provided the Company with other tax and consulting services.
In addition to the external advisors, the Group Chief Executive Officer and Group Chief Human Resources Officer attend the
Committee meetings by invitation and provided material assistance to the Remuneration Committee during the year. No Director
or Committee member was involved in determining their own remuneration during the year.
Statement of shareholder voting
At the AGM on 13 May 2021, the annual report on remuneration received the votes below from shareholders. While the Director’s
remuneration policy was not voted on in the most recent AGM, results from the last policy vote are included below.
Annual remuneration report
(13 May 2021)
Remuneration policy
(14 May 2020)
For 276,848,268 230,333,655
% 98.80% 95.86%
Against 3,364,342 9,949,668
% 1.20% 4.14%
Withheld 10,572 32,597
Total votes 280,223,182 240,315,920

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Other remuneration
matters
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
111Hiscox Ltd Report and Accounts 2021
Total shareholder return performance
The graph below shows the total shareholder return of the Group against the FTSE All-Share and FTSE Non-Life Insurance
indices. These reference points have been shown to assess performance against the general market and industry peers.
Between December 2011 and 2021, Hiscox delivered total shareholder return of 148%.
Group Chief Executive Officer historic remuneration
The table below shows the single total remuneration figure for the Group Chief Executive Officer for the past ten years.
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
CEO single
figure of
remuneration (£) 1,938,759 2,341,737 3,130,535 3,358,894 3,970,466 2,394,428 1,818,086 6 9 8,196 717, 24 3 1,332,964
Annual bonus
as percentage
of current max 46 51 44 39 64 0 9 0 0 30
PSP vesting
as percentage
of maximum
opportunity 39 53 100 100 100 85 47 0 0 0
Prior to 2015, the annual bonus was operated on an uncapped basis. In order to facilitate comparison, a cap has been
applied retrospectively.
Total shareholder return
(%)
400
350
300
250
200
150
100
50
0
-50
Dec 20 Dec 21
Dec 19
Dec 18
Dec 17 Dec 16 Dec 15 Dec 14
Dec 13
Dec 12 Dec 11
Hiscox
 FTSE All-Share
 FTSE Non-Life Insurance

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Chapter 4 94
Remuneration
Other remuneration
matters
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
112 Hiscox Ltd Report and Accounts 2021
Comparator data
Remuneration for the wider workforce
The Remuneration Committee receives information on Group-wide remuneration policies and uses internal and external
measures to assess the appropriateness of the remuneration policy and outcomes for Executive Directors. During the year, the
Committee reviewed information on market levels of pay in our peer group, bonus pools split by business area, levels of share plan
participation and pay ratios between Executives and average employees. No employees were furloughed and all were offered
flexible working options to help juggle the demands of work life and home life during 2021. Our annual employee engagement
survey gives all our employees the opportunity to provide honest feedback on how they feel about Hiscox. We also have an
employee engagement network, led by our Employee Liaison and Non Executive Director, Anne MacDonald, where employees
can provide feedback on a range of topics including pay, which we included as a specific agenda item this year.
Group Chief Executive Officer pay ratio
The Group Chief Executive Officer’s total remuneration compared with the median (50th percentile) remuneration of the
Company’s UK employees as at 31December2021 is shown below, along with the 25th and 75th percentiles.
We selected calculation method ‘Option A’ as it is the more robust approach and favoured by investors. This method captures all
pay (excluding overtime due to its volatility) and benefits for the financial year to 31 December 2021 and aligns with how the ‘single
figure’ table is calculated (from which there has been no deviation). Part-time employee single figures were annualised to provide
more meaningful comparison.
Full year
Calculation
methodology
P25
(lower quartile)
P50
(median)
P75
(upper quartile)
2021 A 34:1 20:1 12:1
2020 A 20:1 12:1 8:1
2019 A 19:1 11:1 7:1
The table below shows the salary and total remuneration of each employee at the 2021 quartile positions.
2021
P25
£
P50
£
P75
£
Salary 32,869 57,000 90,000
Total remuneration 39,344 67,442 108,927
The Committee has considered the pay data for the three employees identified and believes that it fairly reflects pay at the
relevant quartiles among the UK employee population. The ratios have increased this year primarily as a result of annual bonuses
being paid to all employees. The total remuneration of our most senior executives, including the Group Chief Executive Officer,
is more highly weighted to variable remuneration, so in years when bonuses are paid, the ratios will increase. The Committee is
comfortable that the pay ratio for 2021 aligns to the pay and progression policies for employees, in particular that pay is truly linked
to performance and that individuals are appropriately motivated and rewarded according to their knowledge and seniority within
the business.

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Remuneration
Other remuneration
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Chapter 5 128
Shareholder
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Chapter 6 134
Financial
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Chapter 2 16
A closer look
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Performance
and purpose
113Hiscox Ltd Report and Accounts 2021
Percentage change in remuneration of the Board Directors
The table below shows the percentage change in remuneration for each Executive and Non Executive Director, between the year
ended 31 December 2020 and 31 December 2021. Salary and bonus are compared against all employees globally, benefits are
compared against all UK-based employees, reflecting the location of the Executive Directors.
2020 % change 2021 % change
Salary/fees Benefits Bonus
2
Salary/fees Benefits Bonus
2
All employees
1
4.3 5.9 (3 6.1) 1.8 (3.7) 147
Executive Directors:
Bronek Masojada 2.8 2.7 N/A 2.2 1.9 N/A
Aki Hussain 2.8 (6.9) N/A 2.2 3.3 N/A
Joanne Musselle
3
– – N/A 22.1 21.6 N/A
Non Executive Directors:
4
Robert Childs 1.7 (1.7) – – 10.4 –
Donna DeMaio
5
N/A N/A N/A N/A – –
Caroline Foulger (3.2) – – (1.5) – –
Michael Goodwin 4.2 – – (0.7) – –
Thomas Hürlimann (2.0) – – (1.4) – –
Colin Keogh
6
(2.5) – – 32.4 – –
Anne MacDonald 2.2 – – (0.7) – –
Constantinos Miranthis (5.2) – – 5.0 – –
Lynn Pike (6.3) – – (0.7) – –
1
Median employee salary, benefits and bonus have been calculated on a full-time equivalent basis. Salary and benefits are calculated as at 31 December, bonus is
that earned during the year ending 31 December.
2
No bonuses were paid to Executive Directors in respect of 2020.
3
Joanne Musselle was appointed to the Board on 2 March 2020.
4
Non Executive Director fees are subject to exchange rate fluctuations.
5
Donna DeMaio was appointed as a Non Executive Director in November 2021.
6
Colin Keogh assumed the responsibility of Chair of a regulated subsidiary in 2021 and received an increased fee of £52,000.
Relative importance of the spend on pay
The charts below show the relative movement in profit, shareholder returns and employee remuneration for the 2020 and 2021
financial years. Shareholder return for the year incorporates the distribution made in respect of that year. Employee remuneration
includes salary, benefits, bonus, long-term incentives and retirement benefits. Profit is the ultimate driver behind the performance
metrics of the bonus and long-term incentive schemes. Profit before tax can be located on page 142.
Profit/(loss) before tax ($m)
+171 (% change)
Dividend and return of
capital to shareholders ($m)
Total employee remuneration ($m)
+9.5 (% change)
(268)
0
348
191
118
381
2020 2020 20202021 2021* 2021
* Includes a final dividend in respect of the year
ended 31 December 2021 of 23.0¢ per share,
subject to shareholder approval.

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Remuneration
Chapter 5 128
Shareholder
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Chapter 6 134
Financial
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Chapter 2 16
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Performance
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114 Hiscox Ltd Report and Accounts 2021
Remuneration policy
Future policy table
Executive Director remuneration
Base salary
Purpose and link to strategy Fixed-pay elements enable the Company to be competitive in the recruitment market when
looking to employ individuals of the calibre required by the business.
Operation Base salary is normally reviewed annually, taking into account a range of factors including
inflation rate movements by country, relevant market data and the competitive position of
Hiscox salaries by role.
Individual salaries are set by taking into account the above information as well as the individual’s
experience, performance and skills, increases to salary levels across the wider Group and
overall business performance.
By exception, an individual’s salary may be amended outside of the annual review process.
Maximum potential value The salaries for current Executive Directors which apply for 2022 are set out on page 108.
Executive Directors’ salary increases will normally be in line with overall employee salary
increases in the relevant location.
Increases above this level may be considered in other circumstances as appropriate (for
example, to address market competitiveness, development in the role, or a change in role
size, scope or responsibility).
Performance metrics Individual and business performance are taken into account when setting salary levels.
Application to broader
employee population
Process for review of salaries is consistent for all employees.
Hiscox has a forward-looking remuneration policy for its Board members.
The policy was approved at the 2020 AGM and is replicated below, including how it will be implemented for Executive Directors in
2022 shown in italics. The original policy can be viewed in the 2019 Annual Report and Accounts at hiscoxgroup.com.

Chapter 3 62
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Chapter 4 94
Remuneration
Remuneration policy
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
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Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
115Hiscox Ltd Report and Accounts 2021
Future policy table
Executive Director remuneration
Benefits (including retirement benefits)
Purpose and link to strategy Fixed-pay elements enable the Company to be competitive in the recruitment market when
looking to employ individuals of the calibre required by the business.
Operation Retirement benefits
These vary by local country practice but all open Hiscox retirement schemes are based
on defined contributions or an equivalent cash allowance. This approach will be generally
maintained for any new appointments other than in specific scenarios (for example, local
market practice dictates other terms). For current Executive Directors, a cash allowance
of up to 10% of salary is paid in lieu of the standard employer pension contribution, or a
combination of pension contributions and cash allowance, totalling 10% of salary.
Certain Board members retain legacy interests in closed defined benefit schemes. However,
there is no entitlement to any further accrual under these schemes.
Other benefits
Benefits are set within agreed principles but reflect normal practice for each country. Hiscox
benefits include, but are not limited to: health insurance, life assurance, long-term disability
schemes and participation in all-employee share plans such as the Sharesave Scheme.
Executive Directors are included on the directors and officers’ indemnity insurance.
The Committee may provide reasonable additional benefits based on the circumstances
(for example, travel allowance and relocation expenses) for new hires and changes in role.
Maximum potential value Set at an appropriate level by reference to the local market practice and reflecting individual
and family circumstances.
Pension benefits will be in line with the standard employer contribution taking into account any
local requirements.
Performance metrics
None.
Application to broader
employee population
Executive Directors’ benefits are determined on a basis consistent with all employees.

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Remuneration policy
Chapter 5 128
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Chapter 6 134
Financial
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A closer look
Chapter 1 4
Performance
and purpose
116 Hiscox Ltd Report and Accounts 2021
Future policy table
Executive Director remuneration
Annual bonus
Purpose and link to strategy To reward for performance against the achievement of financial results over the financial year
and key objectives linked to the strategic priorities.
To provide a direct link between reward and performance.
To provide competitive compensation packages.
Operation Executive Directors participate in profit-related bonus pools.
Bonus pools are calculated at a business unit level and for the Group as a whole on the basis of
Group financial results. For 2022, the bonus pool will be funded by a set percentage of profits
on achievement of a hurdle rate of ROE. The bonus for prior years was determined on a similar
basis. Further detail is set out on page 102.
For Executive Directors, individual allocations from the pool are determined by the
Remuneration Committee based on a judgement of various factors including:
p
size of the Group bonus pool;
p results of business area (where relevant);
p individual performance, including non-financial and strategic factors; and
p consideration of risk.
Amounts are paid in accordance with the bonus deferral mechanism described on page 117.
Bonus awards are non-pensionable.
Bonus awards are subject to malus and clawback provisions as described in the notes to the
policy table on page 121.
Maximum potential value The maximum bonus opportunity for the Executive Directors will be as follows:
p
Group Chief Executive Officer and Group Chief Financial Officer – 300% of salary;
p Group Chief Underwriting Officer – up to 400% of salary.
Where performance is deemed to be below a predetermined hurdle, payouts will be nil.
The total of individual bonuses paid to Executive Directors for a year will not normally
exceed 15% of the total pool. If the number of Executive Directors increased in the future,
this percentage would be adjusted as required.
Performance metrics Performance is measured over one financial year.
Bonus pools are determined based on financial performance against a hurdle (reviewed
annually). Performance at or above this hurdle is rewarded and where performance falls below
this hurdle, payouts will be nil. Financial performance is therefore the main determinant of
overall bonus payouts.
In determining the level of bonuses awarded, the Committee also considers a range of
other factors including the achievement of stretching personal and strategic objectives
during the relevant year together with a consideration of risk, ensuring a robust assessment
of performance.
Application to broader
employee population
The operation of the annual incentive is consistent for the majority of employees across
the Group.
Arrangements tailored to roles and responsibilities are operated for selected positions.
Bonuses for more junior employees are calculated using a more formulaic approach.
Further details are set out on page 102.

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Remuneration
Remuneration policy
Chapter 5 128
Shareholder
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Chapter 6 134
Financial
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Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
117Hiscox Ltd Report and Accounts 2021
Future policy table
Executive Director remuneration
Bonus deferral
Purpose and link to strategy To encourage retention of employees.
To facilitate and encourage share ownership in order to align senior employees with
Hiscox shareholders.
Operation Larger bonuses are normally deferred over a three-year period and paid subject to continuing
service as explained in the table below.
Deferral points are determined based on the currency in which the Executive Director’s salary
is paid and are normally as follows:
Bonus of £50,000, €75,000, $100,000,
and below
Bonus above £50,000 and below £100,000
Bonus above €75,000 and below €150,000
Bonus above $100,000 and below $200,000
Bonus above £100,000, €150,000, $200,000
Paid shortly after the end of the financial year
in which the bonus was achieved.
£50,000, €75,000, $100,000, paid shortly
after the end of the financial year in which the
bonus was achieved.
Balance of bonus split 50% to be paid after
year two (24 months after the start of the
bonus year), and 50% after year three
(36 months after the start of the bonus year).
50% of bonus paid shortly after the end of the
financial year following the announcement
of results.
Balance of bonus split 50% to be paid after
year two, and 50% after year three.
Participants are able to (subject to any local tax/legal/regulatory restrictions) draw deferred
bonuses early in certain circumstances in order to enable the acquisition of Hiscox shares.
Such amounts remain subject to continued employment.
The Remuneration Committee can agree to early payment of deferred bonuses to Executive
Directors on an exceptional basis at their discretion.
Deferred awards are subject to malus and clawback provisions as described in the notes to the
policy table on page 121.
Maximum potential value In accordance with the operation of the annual bonus.
Performance metrics In accordance with the operation of the annual bonus.
Application to broader
employee population
Approach is consistent for all employees across the Group who are awarded a sizeable bonus.

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Chapter 5 128
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Chapter 6 134
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118 Hiscox Ltd Report and Accounts 2021
Future policy table
Executive Director remuneration
Performance Share Plan (PSP)
Purpose and link to strategy To motivate and reward for the delivery of long-term objectives in line with business strategy.
To encourage share ownership among participants and align interests with shareholders.
To provide competitive compensation packages for senior employees.
Operation Awards are granted under, and governed by, the rules of the PSP as approved by shareholders
from time to time.
Share awards (typically structured as either conditional awards or nil cost options) are made at
the discretion of the Remuneration Committee.
Awards normally vest after a three-year period subject to the achievement of performance
conditions. An additional holding period, which is currently two years, may also apply.
Further details are set out on pages 104 to 106.
Awards are generally subject to continued employment; however, awards may vest to leavers in
certain scenarios (for example, ‘good’ leaver circumstances).
Dividends (or equivalents) may accrue on vested shares prior to release. Awards are subject to
malus and clawback provisions as described in the notes to the policy table on page 121.
Maximum potential value Maximum annual grant of up to 250% of salary in respect of any one financial year.
Performance metrics The performance conditions for awards are set to align with the long-term objectives of
the Company.
The Committee reviews the targets prior to each grant to ensure that they remain appropriate.
Currently, the performance measures are linked to the achievement of growth in net asset value
plus dividends, measured on a per-share basis, over the performance period. For 2021 and
2022 awards, an additional measure of relative TSR will also apply.
For delivery of the threshold hurdle, up to 20% of the relevant award will vest. For full vesting,
the stretch hurdle needs to be met in full.
The discretions available to the Committee in assessing the achievement of the performance
target are as set out in the notes to the policy table on page 121.
Where the Committee considers it appropriate to do so, under the plan rules the Committee is
able to modify performance criteria for outstanding awards on the occurrence of certain events
(for example, major disposal).
Application to broader
employee population
Participation in this plan is restricted to Executive Directors and other senior individuals.

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119Hiscox Ltd Report and Accounts 2021
Future policy table
Executive Director remuneration
Shareholding guidelines
Purpose and link to strategy To ensure Executive Directors are aligned with shareholder interests.
Operation Within five years of becoming an Executive Director, individuals will normally be expected to have
acquired an interest in Hiscox shares valued at 200% of salary. Shares owned by the Executive
Director (and any connected person) count towards the guidelines as do shares subject to any
vested but unexercised PSP award (net of assumed taxes).
Executive Directors are normally expected to remain aligned with the interests of shareholders
for an extended period after leaving the Company. Executive Directors will typically be expected
to retain a shareholding at the level of the in-employment shareholding guideline for one year
(or the actual shareholding on stepping down, if lower) and at half of this amount for the following
year, unless the Committee determines otherwise in exceptional circumstances.
Maximum potential value N/A.
Performance metrics N/A.
Application to broader
employee population
Executive Directors are required to hold more shares than other senior managers.
Post-employment shareholding guidelines only apply to Executive Directors.

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Chapter 5 128
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Chapter 6 134
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and purpose
120 Hiscox Ltd Report and Accounts 2021
Future policy table
Non Executive Director remuneration
General approach The total aggregate fees payable are set within the limit specified by the Company’s Bye-laws.
The fees paid are determined by reference to the skills and experience required by the Company
as well as the time commitment associated with the role. The decision-making process is
informed by appropriate market data. Non Executive Directors are not eligible for participation in
the Company’s incentive plans. Travel and other reasonable expenses incurred in the course of
performing their duties are reimbursed to Non Executive Directors (including any tax thereon
where these are deemed to be taxable benefits). Non Executive Directors are included on the
directors and officers’ indemnity insurance.
The current fees payable to Non Executive Directors are set out on page 105.
Chairman The Chairman typically receives an all-inclusive fee in respect of the role. In addition to his fees
the Chairman may be provided with incidental benefits, for example, private healthcare and
life assurance (including any tax thereon where these are deemed to be taxable benefits).
The remuneration of the Chairman is determined by the Committee.
Non Executive Directors Non Executive Directors receive an annual fee in respect of their Board appointments together
with additional compensation for further duties (for example, Board Committee membership
and chairmanship). The fees for the Non Executive Directors (excluding the Chairman) are
determined by the Governance and Nominations Committee.

Chapter 3 62
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Remuneration policy
Chapter 5 128
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information
Chapter 6 134
Financial
summary
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A closer look
Chapter 1 4
Performance
and purpose
121Hiscox Ltd Report and Accounts 2021
Notes to the policy table
Performance measures, target setting
and assessment
The performance targets for the annual
bonus and share plan awards to
Executive Directors are closely aligned
with the Company’s short-term and
long-term objectives. The intention is
to provide a direct link between reward
levels and performance.
The Company operates a bonus pool
approach for the annual incentive.
This ensures that both individual
bonus levels and overall spend are
commensurate with the performance
of the Company. The Committee
applies judgement based on a range
of factors (as described in the table
on page 116) to ensure that outcomes
for Executive Directors are based
on performance in-the-round
rather than on a formulaic outcome.
The profit pool approach currently
used ensures that overall bonus
amounts are aligned to the
performance of the Company and
remain appropriate and affordable.
PSP performance measures are intended
to motivate and reward participants to
deliver long-term Company success.
The Committee considers performance
metrics and targets prior to the grant of
each award to ensure that these remain
suitable and relevant.
It is the intention of the Committee
that the vesting of PSP awards should
normally reflect the outcome of the
performance measures set, although
the Committee has the ability to apply
independent judgement to ensure
that the outcome is a fair reflection
of the performance of the Company
and individual over the performance
period. When making this judgement,
the Committee has scope to consider
any such factors as it deems relevant.
Detailed provisions
The Committee may make minor
changes to this remuneration policy
to aid in its operation or implementation
(for example, for regulatory or
administrative purposes), provided
that any such change is not to the
material advantage of Directors.
The Committee may continue to
operate the share awards under the
2006 and 2016 PSP in accordance
with the rules (for example, the
treatment of awards in the context of
a change of control or other forms of
corporate restructure).
The Committee may continue to satisfy
remuneration payments and payments
for loss of office (including the exercise
of any discretions available to the
Committee in connection with such
payments) where the terms of the
payment were:
p
agreed before 15 May 2014 when
the first approved remuneration
policy came into effect;
p
agreed before the policy set out
above came into effect, provided
that the terms of the payment
were consistent with the
shareholder-approved Directors’
remuneration policy in force at
the time they were agreed; or
p
agreed at a time when the relevant
individual was not a Director of the
Company and, in the opinion of
the Committee, the payment
was not in consideration for the
individual becoming a Director of
the Company.
For these purposes, such payments
include the Committee satisfying awards
of variable remuneration.
Malus and clawback provisions
Deferred bonus awards and PSP awards
granted for 2020 onwards are subject to
malus and clawback provisions as set
out below. The Committee may, in its
absolute discretion, determine at
any time prior to the vesting of an
award to reduce, defer, cancel or
impose further conditions in the
following circumstances:
p
a retrospective material restatement
of the audited financial results of
the Group for a prior period error in
accordance with IAS 8;
p
an error in assessing a performance
condition applicable to the award or
in the information or assumptions
on which the award was granted,
or vests;
p
actions of gross misconduct or
material error, including fraud, by
the participant or their team;
p
significant reputational or financial
damage to the Company (as a result
of the participant’s conduct).
Annual bonus and PSP awards granted
to Executive Directors shall also be
subject to clawback provisions for up to
two years from the date of vesting in the
above circumstances.
The malus and clawback provisions that
apply to awards made prior to 2020 are
as set out in the relevant remuneration
policy as at the date of award.

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Remuneration policy
Chapter 5 128
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Chapter 6 134
Financial
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A closer look
Chapter 1 4
Performance
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122 Hiscox Ltd Report and Accounts 2021
Recruitment policy
A new hire will ordinarily be remunerated
in accordance with the policy described
in the table on the previous pages. In
order to define the remuneration for
an incoming Executive Director, the
Committee will take account of:
p
prevailing competitive pay levels
for the role;
p
experience and skills of
the candidate;
p
awards (shares or earned bonuses)
and other elements which will be
forfeited by the candidate;
p
transition implications on initial
appointment; and
p
the overall Hiscox approach.
A ‘buy-out’ payment/award may be
necessary in respect of arrangements
forfeited on joining the Company. The
size and structure of any such buy-out
arrangement will take account of relevant
factors in respect of the forfeited terms
including potential value, time horizons
and any performance conditions which
apply. The objective of the Committee
will be to suitably limit any buy-out
to the commercial value forfeited by
the individual.
On initial appointment (including interim
Director appointments) the maximum
level of variable remuneration (excluding
any buy-outs) is capped at the maximum
level set out in the policy table on pages
114 to 120. Within these limits and where
appropriate the Committee may tailor
the award (for example, time frame,
form, performance criteria) based
on the commercial circumstances.
Shareholders would be informed of
the terms for any such arrangements.
Ordinarily, it would be expected that
the package on recruitment would be
consistent with the usual ongoing
Hiscox incentive arrangements.
On the appointment of a new Non
Executive Chairman or Non Executive
Director, the fees will normally be
consistent with the policy. Fees to Non
Executives will not include share options
or other performance-related elements.
Service contracts
It is the Company’s policy that Executive
Directors should have service contracts
with an indefinite term which can be
terminated by the Company by giving
notice not exceeding 12 months or by the
Director by giving notice of six months.
Non Executive Directors are appointed
for a three-year term, which is renewable,
with three months’ notice on either side,
no contractual termination payments
being due and subject to re-election
pursuant to the Bye-laws at the Annual
General Meeting. The contract for the
Chairman is subject to a six-month
notice provision on either side.
The terms set out in the service contracts
for the current Executive Directors do not
allow for any payments that are not in line
with this policy.
Policy on payment for loss of office
Subject to the execution of an appropriate
general release of claims an Executive
Director may receive on termination of
employment by the Company:
1. Notice period of up to 12 months
In the normal course of events, an
Executive will remain on the payroll but
may be placed on gardening leave for
the duration of the notice period (or until
they leave early by mutual agreement,
whichever is sooner). During this period
they will be paid as normal, including
base pay, pension contributions (or cash
allowance as appropriate) and other
benefits (for example, healthcare).
In the event of a termination where
Hiscox requests that the Executive
Director ceases work immediately, a
payment in lieu of notice may be made
that is equal to fixed pay, pension
entitlements and other benefits
(benefits may continue to be provided).
Payments may be made in instalments
and would ordinarily be subject to
mitigation should the individual find
alternative employment during the
unexpired notice period.
2. Bonus payment for the financial year
of exit
The Committee may pay a bonus
calculated in line with the normal bonus
scheme timings and performance
metrics. The bonus amount would
normally be pro-rated depending on
the proportion of the financial year
which has been completed by the
time of the termination date.
3. Release of any deferred bonuses
All outstanding bonuses deferred from
the annual incentive scheme will normally
be paid in full at the normal vesting date.
4. Unvested Performance Share
Plan awards
Treatment would be in accordance
with the plan rules and relevant grant
documentation. The intended approach
is summarised below.
p
Awards will vest in line with the
normal plan vesting date (unless the
Committee determines otherwise).
Awards vest to the extent that the
relevant performance target is
considered to have been met.
p
The award will normally be
pro-rated to reflect the period
which has elapsed from the
commencement of the award to
the date of termination unless the
Committee determines otherwise.

Chapter 3 62
Governance
Chapter 4 94
Remuneration
Remuneration policy
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
123Hiscox Ltd Report and Accounts 2021
If the departing Executive Director
does not sign a release of claims, they
would normally be entitled to payments
defined under point 1 only. In the event
that the Executive is dismissed for
gross misconduct, they would forfeit
any payments under UK and Bermuda
employment law. In the event of a
voluntary resignation to join another
company, no payments would normally
be made other than remaining on the
payroll, with associated benefits,
during the contractual notice period
of six months.
The Committee may also make a
payment in respect of outplacement
costs, legal fees and costs of settling
any potential claims where appropriate.
5. Change of control
In the event of a change of control,
outstanding PSP awards will normally
vest early to the extent that the
performance condition, as determined
by the Committee in its discretion,
has been satisfied and, unless the
Committee determines otherwise,
would be pro-rated to reflect the
period which has elapsed from the
commencement of the award to the
date of the relevant corporate event.
Deferred bonus awards will vest in
full. Outstanding awards under
all-employee share plans will be
treated in accordance with the
relevant plan rules.
Consideration of employment
conditions elsewhere
At Hiscox we encourage employees
to share in the Group’s success
through competitive pay, profit and
performance-related bonuses,
all-employee share plans and a
generous benefits package.
Salary reviews are applied consistently
throughout the Group, ensuring
employees are paid fairly in line with
their responsibilities, experience
and the market rate for the role. All
employees (including Executive Directors)
are encouraged to become Hiscox
shareholders through our SAYE schemes.
Employees participate in a discretionary
profit-related bonus scheme, with the
overall level of payout based primarily
on financial performance. From 2021, a
separate individual and strategic element
has been introduced for employees
below Board level to incentivise and
reward individual contribution and
delivery of key strategic objectives.
Remuneration for the most senior
executives, including the Group
Chief Executive Officer is more highly
performance-geared towards the longer
term in order to encourage delivery of
strong returns across the insurance
cycle and create sustainable long-term
value for our shareholders. Senior
employees participate in a performance
share plan with awards normally vesting
after a three-year period subject to the
achievement of performance conditions.
An additional holding period applies for
Executive Directors.
While the Committee did not consult
directly with the broader workforce on
the remuneration policy for Executive
Directors, we have introduced a process
by which employee views are gathered
on a range of topics and presented to
the Board.
The Remuneration Committee also
receives an update on the broader
workforce remuneration policies and
practices during the year which informs
the Committee’s consideration of the
policy for Executive Directors.
Consideration of shareholder views
Hiscox regularly discusses remuneration
policy matters with a selection of
shareholders. The Remuneration
Committee takes into consideration
the range of views expressed in making
its decisions.
The Committee consulted with major
shareholders during 2019 and took
shareholders’ feedback into account
when finalising the revised 2020 policy.
In anticipation of introducing TSR as an
additional performance metric for the
PSP in 2021, the Committee wrote to
major shareholders, ISS, Glass Lewis
and the Investment Association. All
responses received were positive and
no major concerns were raised.

124 Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Remuneration policy
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
MaximumMax with
share price
appreciation
On target
100%
736
Below
target
29%
39%
38%
5,238
32%
2,570
4,404
45%
17%
14%
38%
48%
Illustration of application of the remuneration policy
(£000s)
Chief Executive Chief Financial Officer Chief Underwriting Officer
Long-term variable remuneration
Annual variable remuneration
Fixed remuneration
100%
568
29%
39%
32%
1,980
3,393
45%
17%
14%
38%
48%
MaximumMax with
share price
appreciation
On targetBelow target
4,034
38%
100%
569
25%
46%
33%
53%
3,907
45%
14%
13%
MaximumMax with
share price
appreciation
On targetBelow target
42%
4,549
29%
2,239
The charts above have been compiled using the following assumptions.
Fixed remuneration Fixed reward (base salary, benefits and retirement benefit).
p
Salary with effect from 1 April 2021.
p Benefits as received during 2021, as disclosed in the Executive Director remuneration
table on page 100.
p
Retirement benefit as received during 2021, as disclosed in the Executive Director
remuneration table on page 100.
Variable remuneration Assumptions have been made in respect of the annual incentive and the PSP for the purpose
of these illustrations.
p
Annual incentive: the amounts shown in the scenarios are for illustration only. In practice,
the award would be determined based on a range of performance factors and therefore
vary depending on the circumstances. The maximum award reflects the incentive caps
described at the beginning of this report.
p
PSP: scenario analysis assumes awards are granted at the maximum level set out in the
policy table on page 118. In practice, award levels are determined annually and are not
necessarily granted at the plan maximum every year.

125Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Remuneration policy
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Performance scenarios
Below target performance Fixed reward only.
On target performance Fixed reward plus variable pay for the purpose of illustration as follows.
p
Annual incentive: assume a bonus equivalent to 50% of the maximum opportunity.
p PSP: assume vesting of 50% of the maximum award.
Maximum performance Fixed reward plus variable pay for the purpose of illustration as follows.
p
Annual incentive: maximum bonus equivalent to 300% of salary for the Group Chief
Executive Officer and Group Chief Financial Officer and 400% of salary for the Group
Chief Underwriting Officer.
p
PSP: vesting of 100% of the maximum award.
Maximum performance with
share price appreciation
Fixed reward plus variable pay for the purpose of illustration as follows.
p
Annual incentive: maximum bonus equivalent to 300% of salary for the Group Chief
Executive Officer and Group Chief Financial Officer and 400% of salary for the Group
Chief Underwriting Officer.
p
PSP: vesting of 100% of the maximum award plus assumed share price growth of 50%.

126 Hiscox Ltd Report and Accounts 2021
Vanessa Newbury joined
Hiscox in 2016 as Interim
Head of HR for a nine-month
maternity cover and has
been here ever since. Her
role now also involves
leading a recruitment
team, a function that
prior to her appointment
had been outsourced
to agencies.
Q: How did you come to
join Hiscox?
A: I’d worked in luxury retail for
most of my career, so insurance
was completely new to me. I
hadn’t heard of Hiscox – I had to
Google who they were. I came
for nine months and it was
always with a view to moving
on afterwards and doing
something else. But I never
left. It really, really surprised
me. Genuinely, I absolutely
love it. I’d never considered the
global impact an insurance
company can have, or how
many bright, smart people I’d
get to work with. I think that’s
one of the challenges we have
in attracting candidates into
insurance: lots of people have
the same misconceptions
as me.
When I started, we didn’t
have our own recruitment
team. I was asked to stay on
and build that team, with the
proviso that we save 200%
of our costs by not using
agencies. In fact, we save
significantly more than that.
Q: What other benefits
are there to managing
recruitment internally?
A: A big one is having control
of the recruitment brand.
Because our recruiters
work for Hiscox, they can
talk very authentically about
what it’s like here. We’re an
organisation where you’re
empowered to get on with
things. You’re not hand-held,
you’re not micromanaged.
If you’re someone who likes
a step-by-step process and
someone watching over
you the whole time, we’re
probably not the organisation
for you. We try to be as honest
as we can about that.
The fact that we understand
the business and know what
our hiring managers want
is also important. My team
have good relationships with
business stakeholders and
know the markets they operate
in. That helps us get ahead
of the curve, carry out talent
mapping for roles that might
need a pipeline of talent, and
keep candidates warm for
when a job does come up.
Q: How was 2021
for recruitment?
A: Really tough. I think if you’d
asked me 12 months ago what
the market would look like as
we came out of lockdown, I’d
have said: “Loads of people
looking for employment,
and no jobs”. It’s been the
opposite. It’s a massively
candidate-driven market,
swamped with opportunities
and with very few candidates.
We’ve never seen a market
like it. Applications are
down by around 35% on
pre-pandemic levels.
This is my take: I think a lot
of companies put recruitment
on hold in 2020. Those
vacancies have now opened,
but people are still reluctant
to move. There’s still a real
nervousness around what’s
going to happen, so people are
wary of leaving a settled job and
walking into something new. It’s
not just us experiencing that.
It’s lots of other companies as
well – and it’s global.
Q: What have you had to do
to confront those challenges?
A: We’ve found new
partnerships with specialist
agencies for some niche
roles. We’ve played around
with job descriptions. We’ve
had to refine our messaging
– redefining our employment
proposition and how we sell
the Hiscox brand. Mainly,
though, the team have just
had to work a lot harder to
fill roles. We’ve had to go out
and headhunt a lot more than
in the past.
Q: Presumably it’s now
even more essential that the
business retains people?
A: Absolutely. We know that
our people are in demand.
For example, we develop and
grow very good underwriters,
so we’ve been targeted by a
lot of the start-ups. This does
mean we have vacancies to
fill, but it is manageable and
our recruitment team is really
stepping up to the challenge
of finding the best people for
the roles we have.
Now, I think the biggest
HR challenge is employee
engagement, which has been
falling. We need to inspire
and excite our people. That’s
a major part of what Aki is
doing now, and he talks
so passionately about the
opportunities that Bronek has
left us with for the next ten
years. The biggest thing we’ve
got to do is instil that belief in
our people and keep them
with us on the journey.
Q: How do you see the
human value being
applied at Hiscox?
A: I think Hiscox is a very
human business. It’s a very
caring organisation. It expects
the very highest standards,
but people are treated very,
very fairly. For example, if
you’re not performing, it’s
important that you know, but
when and how you’re told is
what matters.
Q: During the lockdowns of
the past two years, what did
you miss most about being
around other people?
A: It’s those informal
conversations. You can’t pick
up on the chatter, you can’t
hear someone talking about
something over your shoulder
and be like: ‘what was that?’
I miss that. It’s hardest for the
new starters. I had a couple of
people join the team. Working
with someone for 18 months
who you’ve never met face
to face is really tough. We all
worked hard to keep the team
connected, we probably had
more meetings than ever just
so we could check in and
make sure everyone was
okay, but it’s not the same
as doing it in person.
Q&
A:
with Vanessa Newbury
HR Director and Head of Recruitment
Recruitment driver
The pandemic has caused
havoc in the recruitment
market, so attracting and
retaining staff has become
more important than ever.

127Hiscox Ltd Report and Accounts 2021

Chapter 3 52
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
128 Hiscox Ltd Report and Accounts 2021
Directors’ report
The Directors have pleasure in
submitting their Annual Report
and consolidated financial
statements for the year ended
31 December 2021.
Management report
The Company is a holding company for
subsidiaries involved in the business of
insurance and reinsurance in Bermuda,
the USA, the UK, Guernsey, Europe and
Asia. The information found on pages
20 to 33, 38 to 41, 142 to 206 and
208 fulfils the requirements of the
management report as referred to in
Chapter 4 of the Disclosure Guidance
and Transparency Rules (DTR). This
includes additional explanation of
the figures detailed in the financial
statements and the office locations
of the Group in different countries.
The key performance indicators are
shown on pages 4 to 5. Details of
the use of financial instruments are
set out in notes 3.3 and 17 to the
consolidated financial statements.
An analysis of the development and
performance of the business during
the financial year, its position at the
end of the year, any important events
since the end of the year and the likely
future development can be found
within the Chief Executive’s report on
pages 20 to 33. The Chief Executive’s
report also describes the main trends
and factors likely to affect the future
development, performance and
position of the Company’s business.
A description of the Company’s
strategy and business model is set
out on pages 8 to 9. A description of
the principal risks and uncertainties
and how they are managed or mitigated
can be found in the key risks section
on page 10 and the risk management
section on pages 38 to 41. In addition,
note 3 to the consolidated financial
statements provides a detailed
explanation of the principal risks which
are inherent to the Group’s business
and how those risks are managed.
Compliance with the UK Corporate
Governance Code 2018 (the Code)
Details of how the Company has applied
the principles set out in the Code and the
extent to which it has complied with
the provisions of the Code are set out
on pages 76 to 81.
Emerging and principal risks
The confirmation required by Provision 28
of the Code in relation to the Board’s
robust assessment of the Company’s
emerging and principal risks can be
found on page 10.
Corporate governance statement
The information that fulfils the
requirements of the corporate
governance statement as referred
to in DTR 7.2 can be found on pages
69 to 75 in this report.
Diversity
The diversity of the business is outlined
in the Nominations and Governance
Committee report on pages 82 to 88.
Financial results
The Group delivered a pre-tax profit for
the year of $190.8 million (2020: loss
of $268.5 million). Detailed results for
the year are shown in the consolidated
income statement on page 142.
Going concern
A review of the financial performance
of the Group is set out in the Chief
Executive’s report on pages 20 to 33.
The financial position of the Group, its
cash flows and borrowing facilities are
included in the capital section on pages
36 to 37. The Group has considerable
financial resources and a well-balanced
book of business.
The Board has reviewed the Group’s
current and forecast solvency and
liquidity positions for the next twelve
months and beyond. As part of the
consideration of the appropriateness
of adopting the going concern basis,
the Directors use scenario analysis
and stress testing to assess the
robustness of the Group’s solvency
and liquidity positions. Scenarios and
stresses assessed include further
losses from business interruption
claims and reinsurance recoveries,
economic downturn/shocks and
natural catastrophe events. A number
of potential mitigating factors and
management actions have been
identified to address the potential
adverse effects on the Group’s solvency
and liquidity. Stress and scenario
testing is based on expert opinion
and as such is highly subjective.
Multiple experts within the business
review the provisional results in order
to reduce individual biases and to
try and ensure all possibilities are
considered and captured.
In undertaking this analysis, no material
uncertainty in relation to going concern
has been identified. This is due to the
Group’s strong capital and liquidity
positions, which provide resilience to
shocks, underpinned by the Group’s
approach to risk management which
is described in note 3.
After making enquiries, the Directors
have a reasonable expectation that
the Group has adequate resources to
continue in operational existence over a
period of at least 12 months from the date
of this report. For this reason, the Group

129Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Directors’ report
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
continues to adopt the going concern
basis in preparing the consolidated
financial statements.
Longer-term viability statement
The preparation of the longer-term
viability statement includes an
assessment of the Group’s long-term
prospects in addition to an assessment
of the ability to meet future commitments
and liabilities as they fall due.
It is fundamental to the Group’s
longer-term strategy that the Directors
manage and monitor risk, taking into
account all key risks the Group faces,
including insurance risks, so that it
can continue to meet its obligations
to policyholders. The Group is also
subject to extensive regulation and
supervision including Bermuda
Solvency Capital Requirement.
Against this background, the Directors
have assessed the prospects of the
Group in accordance with Provision 31
of the UK Corporate Governance Code
2018, with reference to the Group’s
current position and prospects, its
strategy, risk appetite and key risks,
as detailed in the key risks section
on page 10 and the risk management
section on pages 38 to 41, as well
as note 3 to the consolidated
financial statements.
The assessment of the Group’s
prospects by the Directors covers the
three years to 2024 and is underpinned
by management’s 2022-2024 business
plan. It includes projections of the
Group’s capital, liquidity and solvency
and reflects the Group’s risk profile
of a portfolio of diversified short-tailed
and medium-tailed insurance liabilities.
In making the viability statement, the
Board carried out, as part of the
Group’s solvency self-assessment
process, a robust assessment using
scenario analysis and stress testing
to consider the Group’s capacity
to respond to a series of relevant
financial, insurance-related or
operational shocks should future
circumstances or events differ
from these current assumptions.
Stresses to liquidity include a 1-in-200
catastrophic event with the impact
on Group funding forecast to December
2023. These allow the Board to review
and challenge the risk management
strategy and consider potential
mitigating actions. Based on these
assessments, the Board confirms that
it has reasonable expectation that
the Group will be able to continue in
operation and meet its liabilities as
they fall due over the three-year
assessment period. Longer term,
the Group’s viability is underpinned
by the Group’s strategy of balancing
big-ticket with retail business, market
growth opportunities and underwriting
expertise. See pages 8 to 9 for further
details of the business model and
longer-term prospects.
Dividends
The Board took the decision to
resume paying dividends with the
2021 interim results, following a 2020
financial loss and uncertainty arising
from Covid-19. An interim dividend
of 11.5 cents per share was paid
on 22 September 2021 and, as in
previous years, a Scrip Dividend
alternative was offered. The Board
is also proposing payment of a final
dividend in respect of the year ended
31 December 2021 (subject to
shareholder approval) of 23.0 cents
per share, to be paid on 13 June 2022
to shareholders on the register at
6 May 2022.
Bye-laws
The Company’s Bye-laws contain
no specific provisions relating to their
amendment and any such amendments
are governed by Bermuda Company
Law and subject to the approval of
shareholders in a general meeting.
Share capital
Details of the structure of the Company’s
share capital and changes in the share
capital during the year are disclosed in
note 22 to the consolidated financial
statements. The ordinary shares of
6.5p each are the only class of shares
presently in issue and carry voting rights.
There is power under Bye-law 45 of the
Company’s Bye-laws for voting rights
to be suspended if calls on shares are
unpaid. However, there are no nil or
partly paid shares in issue on which calls
could be made. The Bye-laws also allow
the Company to investigate interests
in its shares and apply restrictions
including suspending voting rights
where information is not provided.
No such restrictions are presently in
place. The Company was authorised by
shareholders at the 2021 Annual General
Meeting to purchase in the market up to
10% of the Company’s issued ordinary
shares. No shares have been bought
back under this authority as at the date
of this report.
Directors
The names and details of all Directors
of the Company who served during the
year and up to the date of this report are
set out on pages 62 to 65. Details of the
Chairman’s professional commitments
are included in his biography on page 62.
The Bye-laws of the Company govern
the appointment and replacement of
Directors. In accordance with the Code,
the Directors will submit themselves
for re-election at the Annual General

Chapter 3 52
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Directors’ report
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
130 Hiscox Ltd Report and Accounts 2021
Meeting. Biographical details of the
Directors are set out on pages 62
to 63, as are the reasons why the
Board believes their contribution is
(and continues to be) important to the
Company’s long-term sustainable
success. This information will also be set
out in the circular which will accompany
the notice of Annual General Meeting.
Major interests in shares
The Company has been notified of the
interests of 5% or more of voting rights
in its ordinary shares, which are outlined
in the table above.
Any acquisitions or disposals of major
shareholdings notified to the Company
in accordance with DTR 5.1 are
announced and those announcements
are available on the Company’s website,
hiscoxgroup.com.
Political donations and
charitable contributions
The Group made no political
donations during the year (2020: $nil).
Information concerning the Group’s
charitable activities is contained in the
environmental, social and governance
(ESG) section on pages 44 to 53 and at
hiscoxgroup.com/responsibility.
Climate-related matters
In preparing and signing off this report,
the Board has considered the relevance
of material climate-related matters.
Climate-related matters are regularly
discussed by the Board, and most
recently this included Board approval
of a new ESG exclusions policy for
underwriting and investments and
new greenhouse gas targets for the
Group. The Company also aligns its
climate-related activities to the TCFD
framework, details of which can be
found on pages 54 to 59.
Power of Directors
The powers given to the Directors are
contained in the Company’s Bye-laws
and are subject to relevant legislation
and, in certain circumstances (including
in relation to the issuing and buying back
by the Company of its shares), approval
by shareholders in a general meeting.
At the Annual General Meeting in 2021,
the Directors were granted authorities
to allot and issue shares and to make
market purchases of shares and intend
to seek renewal of these authorities
in 2022.
Disclosure under LR 9.8.4 of the
Listing Rules
The information that fulfils the reporting
requirements relating to the following
matters can be found at the pages
identified in the table above.
Annual General Meeting
The notice of the Annual General
Meeting, to be held on 12 May 2022, will
be contained in a separate circular to be
sent to shareholders. The deadline for
submission of proxies is 48 hours before
the meeting.
By order of the Board
Marc Wetherhill
Company Secretary
Chesney House
96 Pitts Bay Road
Pembroke HM 08
Bermuda
2 March 2022
Major interests in shares
The Company has been notified of the following interests of 5% or more of voting
rights in its ordinary shares:
Number
of shares
% of issued
share capital
as at
31 January
2022*
Fidelity Investments 33,141,6 3 5 9.57
Capital Research Global Investors 25, 947, 28 5 7.4 9
Columbia Threadneedle Investments 18,115,429 5.23
*There were 346,464,055 shares in issue (excluding Treasury shares) as at 31 January 2022.
As at 1 March 2022, no changes have been notified to the Company.
Disclosure under LR 9.8.4 of the
Listing Rules
Details of
long-term
incentive schemes
Annual report
on remuneration
(page 104)
Allotment of shares
for cash pursuant
to employee
share schemes
Note 22 to the
consolidated
financial statements
on employee
share schemes
(page 189)

131Hiscox Ltd Report and Accounts 2021
Chapter 3 62
Governance
Chapter 4 94
Remuneration
Chapter 5 128
Shareholder
information
Chapter 6 134
Financial
summary
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Directors’ responsibilities statement Advisors
The Board is responsible for ensuring
the maintenance of proper accounting
records which disclose with reasonable
accuracy the financial position of the
Group. It is required to ensure that the
financial statements present a fair
view for each financial period. The
Directors explain in the Annual Report
their responsibility for preparing the
Annual Report and Accounts.
We confirm that to the best of
our knowledge:
—
the financial statements, prepared
in accordance with UK-adopted
international accounting standards,
give a true and fair view, in all
material respects, of the assets,
liabilities, financial position and
profit or loss of the Company and
the undertakings included in the
consolidation taken as a whole; and
—
the management report includes
a fair review of the development
and performance of the business
and the position of the Company
and the undertakings included in
the consolidation taken as a whole,
together with a description of the
principal risks and uncertainties
that they face.
Hiscox Ltd
Secretary
Marc Wetherhill
Registered office
Chesney House
96 Pitts Bay Road
Pembroke HM 08
Bermuda
Registered number
38877
Auditors
PricewaterhouseCoopers Ltd.
Washington House
4th Floor, 16 Church Street
Hamilton HM 11
Bermuda
Stockbrokers
UBS Limited
1 Finsbury Avenue
London EC2M 2PP
United Kingdom
Registrars
Equiniti (Jersey) Limited
c/o Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
United Kingdom
The Directors responsible for authorising
the responsibility statement on behalf
of the Board are the Chairman,
Robert Childs, and the Group Chief
Executive Officer, Aki Hussain. The
statements were approved for issue
on 2 March 2022.
The Directors consider that the Annual
Report and Accounts, taken as a whole,
is fair, balanced and understandable and
provides the information necessary for
shareholders to assess the Company’s
and the Group’s position, performance,
business model and strategy.

132 Hiscox Ltd Report and Accounts 2021132 Hiscox Ltd Report and Accounts 2021
Since joining Hiscox in
1999, Rob Caton has led
a number of analytics
and modelling teams and
is now responsible for
underwriting risk across
the Group, including natural
catastrophe risk, casualty
risk, cyber risk and the
outwards reinsurance
purchasing needed to
hedge those risks.
Q: In 2021, what were the
major areas of focus for
you and your team?
A: Covid-19 has, of course,
been a really meaningful
issue for our area and a major
contributor to our workload
as we reassess our view of
pandemic risk after such an
unprecedented event. Then
on the natural catastrophe
side of things, we’ve seen
an ongoing pattern of
increased frequency of
events and sources of loss
from non-typical areas.
One area of particular focus
has been the question of
‘social inflation’ in property
catastrophe claims. This
relates to practices involving
third parties who seek to
inflate property claims for
theirs and their client’s
benefit. This is particularly
evident in Florida where the
impact has been recognised
by legal reform. Prior to
these reforms, we captured
these increased costs in our
‘view of risk’ which drives
our pricing, risk, and capital.
While legislative changes
improve the situation, the risk
doesn’t fully go away as the
same motivations exist albeit
with more limited scope to
increase claims costs. Our job,
then, has been to understand
the implications and ensure
our pricing models and risk
assessment tools represent
the best view of the risk.
Q: What is your approach to
modelling climate risk?
A: I first took responsibility for
the natural catastrophe team
in 2005. That was a seminal
year for us, with Hurricanes
Katrina, Rita and Wilma
coming hot on the heels of
Charley, Frances, Ivan and
Jeanne in the previous year –
it certainly caused us to reflect
on our approach. There was
a sense in the industry that
frequent major landfalling
hurricanes would happen
each year and ‘something
had changed’. The years since
have seen both sustained
quiet and busy periods.
The relatively quiet period
between 2012 and 2017 had
some commentators talking
about a ‘hurricane drought’.
What this teaches us is to
look past the noise and try
to identify the pattern.
The climate models we
use are provided by third
parties who are better placed
than we are to build them.
They’ve got even more PhDs
on the job than us, and more
access to data. Also, by
using third-party models,
you get the ‘herd benefit’ – if
you’ve got 100 organisations
all licensing a model, and
there’s something in there that
doesn’t make sense, at least
one company is likely to find it
and then you all benefit.
While these models are
invaluable in our approach
and provide the foundation
for much of our thinking, it
is important that where we
believe we understand parts
of our risk better that we
adapt the results. This led to
us building a research team
and developing the Hiscox
view of risk. Examples include
incorporating new research
and academic literature
– particularly relevant in a
changing climate, but the
biggest impacts come from
our close analysis of claims
data. We’ve had lots of events,
particularly over the past few
years, that have enabled us
to build out this Hiscox view
of risk, as ultimately each new
claim represents a new data
point for our work.
Q: How do you assess
whether a heightened
frequency of events
constitutes an ongoing
change to the risk profile?
A: When it comes to natural
catastrophes, the noise is
often bigger than the signal.
What we have to decide is
whether the signal is strong
enough. If you’re looking back
at three years of an unusually
high frequency of hurricanes,
are they going to stay that
frequent or drop back down
next year? Is what you’re
seeing a pattern of climate
clustering, or a climate trend?
We have to disentangle that
into something that can drive
our business decisions. These
are not pieces of academic
interest for us, they’re things
that have real commercial
impact – if we believe the risk
is higher, we have to reflect
that in our pricing, our risk
appetite, our capital or our
reinsurance strategy, so we
have to be very confident
that we can justify moving
in that direction. We do the
work ourselves, but we
also talk to other parties
who do this for a living. We
want the best information
to make the best decisions.
To support this work, we
have developed the Hiscox
climate change framework.
This allows us to assess for
each peril the confidence in
the climate change signal,
the magnitude of the impact
and also the materiality of
the peril to Hiscox. It allows
us to focus our research
efforts where it will most
influence our decisions.
Recent publications from the
IPCC and COP26 have been
instructive in this assessment.
Q: How do you see the
human value being
applied at Hiscox?
A: Recently, I think it’s been
most visible in the warmth and
enjoyment that people have
got from being back together
in the office. Our teams have
worked incredibly effectively
remotely, they responded
to the challenge, they really
stepped up, but there’s
been an obvious energy
and buzz that comes from
people seeing each other in
person and having proper
conversations. It’s great to
see, and I think it reflects
really well the human nature
of this business.
Q&
A:
with Robert Caton
Director of Underwriting Risk and Reinsurance
Model citizen
Last year’s high frequency
of natural catastrophe
events and the ongoing
impact of the pandemic
make abundantly clear
the importance of testing
and adapting the Group’s
risk models.

133Hiscox Ltd Report and Accounts 2021

134 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
Independent auditor’s report
to the Board of Directors and the Shareholders of Hiscox Ltd
Report on the audit of the consolidated financial statements
Our opinion
In our opinion, the consolidated financial statements present
fairly, in all material respects, the consolidated financial position
of Hiscox Ltd (the Company) and its subsidiaries (together
the Group) as at 31 December 2021, and their consolidated
financial performance and their consolidated cash flows for the
year then ended in accordance with UK-adopted international
accounting standards.
What we have audited
The Group’s consolidated financial statements comprise:
A
the consolidated income statement for the year ended
31December2021;
A
the consolidated statement of comprehensive
income for the year ended 31December2021;
A the consolidated balance sheet as at
31December2021;
A
the consolidated statement of changes in equity
for the year then ended;
A
the consolidated statement of cash flows for the year
then ended; and
A
the notes to the consolidated financial statements,
which include significant accounting policies and
other explanatory information.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the ‘auditor’s responsibilities
for the audit of the consolidated financial statements’ section of
our report.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the
International Code of Ethics for Professional Accountants
(including International Independence Standards) issued by
the International Ethics Standards Board for Accountants
(IESBA Code) and the ethical requirements of the Chartered
Professional Accountants of Bermuda Rules of Professional
Conduct (CPA Bermuda Rules) that are relevant to our audit
of the consolidated financial statements in Bermuda. We have
fulfilled our other ethical responsibilities in accordance with
the IESBA Code and the ethical requirements of the CPA
Bermuda Rules.
Audit scope
As part of designing our audit, we determined materiality and
assessed the risks of material misstatement in the consolidated
financial statements. In particular, we considered where
management made subjective judgements; for example,
in respect of significant accounting estimates that involved
making assumptions and considering future events that are
inherently uncertain. As in all of our audits, we also addressed
the risk of management override of internal controls,
including, among other matters, consideration of whether
there was evidence of bias that represented a risk of material
misstatement due to fraud.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient
work to enable us to provide an opinion on the consolidated
financial statements as a whole, taking into account the
structure of the Group, the accounting processes and controls,
and the industry in which the Group operates.
The Group is structured into four segments (see note 4 to the
consolidated financial statements) and is a consolidation of
over 50 separate legal entities.

135Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Independent
auditor’s report
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
The Group is a global specialist insurer and reinsurer, and
its operations primarily consist of the legal entity operations
in the United Kingdom, Europe, the United States and
Bermuda. A full scope audit was performed for four
components located in the United Kingdom, and Bermuda.
Financial statement line item audit procedures were also
performed over components in the United Kingdom, United
States, and Bermuda. Taken together this work provided
over 80% coverage of the Group’s gross premiums written
and over 80% of the Group’s total assets.
The four full scope audit components are:
i) Hiscox Dedicated Corporate Member Syndicate no. 33;
ii) Hiscox Dedicated Corporate Member Syndicate no. 3624;
iii) Hiscox Insurance Company Limited; and
iv) the parent company, Hiscox Ltd (including consolidation).
For certain other components, we identified account
balances which were considered to be significant in size or
audit risk at the financial statement line item level in relation
to the consolidated financial statements, and performed
financial statement line item audit procedures over these
specified balances. Analytical procedures over the remaining
components that were not inconsequential were performed
by the Group engagement team.
In establishing the overall approach to the Group audit,
we determined the type of work that needed to be performed
at the reporting units by us, as the Group engagement team,
or by the component audit teams within the PwC United
Kingdom, PwC United States and PwC Bermuda firms
operating under our instruction. Where the work was
performed by component audit teams, we determined
the level of involvement we needed to have in the audit
work at those reporting units to be able to conclude whether
sufficient appropriate audit evidence had been obtained.
The Group engagement team had regular interaction
with the component teams during the audit process.
The engagement leader and senior members of the
Group engagement team reviewed in detail all reports
with regards to the audit approach and findings submitted
by the component auditors. This together with additional
procedures performed at the Group level, as described
above, gave us the evidence we needed for our opinion
on the consolidated financial statements as a whole.
Our audit approach
Overview
Materiality
Group
scoping
Key audit
matters
A Overall Group materiality: $35 million, which represents
approximately 0.8% of the gross premiums written for
the year ended 31 December 2021
A We performed full scope audit procedures over
four components.
A For certain other components, we performed audit
procedures over specified financial statement line
item balances.
A For the remaining components that were not
inconsequential, analytical procedures were
performed by the Group engagement team.
A Valuation of gross claims liabilities.
A Valuation of reinsurance claims recoverable.

136 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Independent
auditor’s report
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
As part of our audit, we made enquiries of management (both
within and outside of the Group’s finance function) in order
to understand the extent of the potential impact of climate
change risks and opportunities, on the Group’s consolidated
financial statements. As part of this, we reviewed minutes of
meetings of the Group’s Sustainability Steering Committee,
submissions to regulators and read the Group’s climate report
2021. We also assessed the risk in respect of the climate
change commitments made by the Group and how these
may affect the consolidated financial statements and the
audit procedures that we perform. We assessed the risks
of material misstatement to the consolidated financial
statements as a result of climate change and concluded
that for the year ended 31 December 2021, there was no
impact on our key audit matters or our assessment of the
risk of material misstatement.
Materiality
The scope of our audit was influenced by our application
of materiality. An audit is designed to obtain reasonable
assurance whether the consolidated financial statements are
free from material misstatement. Misstatements may arise due
to fraud or error. They are considered material if, individually or
in aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of the
consolidated financial statements.
Based on our professional judgement, we determined certain
quantitative thresholds for materiality, including the overall
group materiality for the consolidated financial statements as
a whole as set out in the table opposite. These, together with
qualitative considerations, helped us to determine the scope
of our audit and the nature, timing and extent of our audit
procedures and to evaluate the effect of misstatements, both
individually and in aggregate, on the consolidated financial
statements as a whole.
We use performance materiality to reduce to an appropriately
low level the probability that the aggregate of uncorrected
and undetected misstatements exceeds overall materiality.
Specifically, we use performance materiality in determining
the scope of our audit and the nature and extent of our testing
of account balances, classes of transactions and disclosures,
for example in determining sample sizes. Our performance
materiality was 75% of overall materiality, amounting to
$26 million for the consolidated financial statements.
In determining performance materiality, we considered
a number of factors – the history of misstatements, risk
assessment and aggregation risk and the effectiveness
of controls – and concluded that 75% of overall materiality
was appropriate.
We agreed with the Audit Committee that we would report
to them misstatements identified during our audit above
$1.7 million, as well as misstatements below that amount that,
in our view, warranted reporting for qualitative reasons.

Materiality
137Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Independent
auditor’s report
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
Key audit matters
Key audit matters are those matters that, in the auditors’
professional judgement, were of most significance in the audit
of the consolidated financial statements of the current period
and include the most significant assessed risks of material
misstatement (whether or not due to fraud) identified by the
auditors, including those which had the greatest effect on:
the overall audit strategy; the allocation of resources in the
audit; and directing the efforts of the engagement team.
These matters, and any comments we make on the results
of our procedures thereon, were addressed in the context of
our audit of the consolidated financial statements as a whole,
and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
‘The impact of Covid-19 on the Group’ and ‘assessment of the
carrying value of certain finite lived intangible assets’, which
were key audit matters last year, are no longer included as key
audit matters for the current year. With respect to ‘the impact
of Covid-19 on the Group’, the uncertainty caused by Covid-19
on inwards (re)insurance exposures have been incorporated
into the ‘valuation of gross claims liabilities’ and the ‘valuation
of reinsurance claims recoverable’ key audit matters. With
respect to ‘assessment of the carrying value of certain finite
lived intangible assets’ the relative risk of impairment has
reduced over the prior year. Finally, we have bifurcated the
prior year key audit matter entitled ‘valuation of gross incurred
but not reported (IBNR) loss reserves and the associated
reinsurers share of IBNR loss reserves’ into two separate key
audit matters entitled ‘valuation of gross claims liabilities’ and
‘valuation of reinsurance claims recoverable’.
Overall Group materiality
How we determined it
Rationale for the materiality
benchmark applied
$35 million
Approximately 0.8% of gross
premiums written for the year
ended 31 December 2021.
In determining our materiality,
we have considered financial
metrics which we believe to
be relevant to the primary
users of the consolidated
financial statements. We
concluded a premium
based metric was the
most relevant to the users.
A premium based
metric provides a good
representation of the size
and complexity of the
business and it is not
distorted by insured
catastrophe events
to which the Group is
exposed or to the levels
of external reinsurance
purchased by the Group.

138 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Independent
auditor’s report
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
Key audit matter
1. Valuation of gross claims liabilities
Refer to note 2.13, 2.21 and 23 to the consolidated financial
statements for disclosures of related accounting policies
and balances.
As at 31 December 2021, gross claims liabilities comprised
$2.5 billion of claims reported and claims adjustment expenses,
and $4.5 billion of claims incurred but not reported (IBNR).
Insurance claims liabilities are inherently uncertain and contain
material estimates, the most subjective element being IBNR.
Management base the estimate of IBNR on the estimated
ultimate cost of all unsettled claims, inclusive of the related
claims handling costs. There is also uncertainty in elements
of the reported but not settled claims including those related
to Covid-19.
For IBNR, the methodologies and assumptions used to
estimate insurance liabilities involve a significant degree of
judgement. As a result, we focused on this area as the valuation
can be materially impacted by numerous factors including:
A
the underlying volatility attached to estimates for
certain classes of business, where small changes in
assumptions can lead to large changes in the levels of the
estimate held, including the change to reserving classes
implemented this year;
A
the risk of inappropriate assumptions used in determining
current year estimates. Given that limited data is available,
especially for ‘long-tailed’ classes of business, there is a
greater reliance on expert judgement in management’s
estimates; and
A
the risk that key assumptions in respect of natural
catastrophes and other large claims losses (specific
claims reserves), including those reserving estimates
associated with classes of business exposed to
claims and potential claims arising from Covid-19, are
inappropriate. There is significant judgement involved
in these loss estimates, particularly as they are often
based on limited data.
How our audit addressed the key audit matter
We have understood, evaluated and tested the design and
operational effectiveness of key controls in place in respect
of the valuation of insurance claims liabilities.
In addition, we performed the following procedures:
A
tested the completeness and accuracy of premiums
data used in the actuarial projections for IBNR;
A
tested the completeness and accuracy of claims
data used in the actuarial projections for IBNR,
the establishment of large loss reserves, and the
determination of reported but not settled claims;
A
tested the completeness and accuracy of policy data,
where applicable, used to establish large loss reserves
including those related to Covid-19; and
A
reconciled the gross claims liabilities from the
underlying financial records to the consolidated
financial statements.
In performing our work over the valuation of IBNR we used
PwC actuarial specialists, where appropriate. Our procedures
included the following:
A
development of independent point estimates for classes
of business considered to be higher risk, particularly
focusing on the largest and most uncertain classes,
as well as for certain other classes to introduce
unpredictability, as at 30 September 2021 and
performed a roll-forward test to 31 December 2021;
A
tested specific claims reserves including those impacted
by Covid-19, natural catastrophes and other large claims
by understanding and challenging the methodology and
assumptions used by management and, where available,
comparing to data reported by counterparties, industry
benchmarks and other publicly available information;
A
performed key-indicator testing procedures over
the remaining classes of business to evaluate gross
IBNR reserves;
A
evaluated the appropriateness of the booked gross
loss reserve margin, taking into account estimation
uncertainty inherent in the underlying insurance
business; and
A
inspected the supporting evidence produced by
management on changes made to reserving classes.
For those classes subject to independent re-projection,
we assessed the appropriateness of the loss
reserving classes.
The results of our procedures indicated that the valuation
of gross claims liabilities was supported by the evidence
we obtained.
Key audit matters

139Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Independent
auditor’s report
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
Key audit matters
Key audit matter
2. Valuation of reinsurance claims recoverable
Refer to note 2.13, 2.21 and 23 to the consolidated financial
statements for disclosures of related accounting policies
and balances.
The valuation of the reinsurance claims recoverable is uncertain
due to the significant degree of judgement applied in valuing the
associated gross claims liabilities that have been reinsured, the
complexity of the application and coverage of the reinsurance
programme, and the willingness and ability of the reinsurers
to pay. As at 31 December 2021, claims recoverable are
$3.5 billion in the consolidated financial statements. For
the year ended 31 December 2021, there are additional
circumstances contributing to the degree of uncertainty
for elements of reinsurance claims recoverable as follows:
A
reinsurance recoverables associated with policies
affected by Covid-19, as cedants and reinsurers continue
to evaluate how losses will be applied to (re)insurance
contracts; and
A
the execution of loss portfolio transfer (LPTs) contracts
with external counterparties during the year. Such
transactions require judgement on the accounting
for the contracts, in particular the degree of risk transfer
and the presentation of the amounts in the consolidated
financial statements.
How our audit addressed the key audit matter
We have understood, evaluated and tested the design and
operational effectiveness of key controls in place in respect
of the valuation of reinsurance claims recoverable.
In addition, we performed the following procedures:
A
tested the accuracy of application of reinsurance
contract terms;
A
tested the netting down of reinsurance on gross paid,
outstanding, and specific claims reserves;
A
for the Covid-19-related recoverables, inspected
communications with reinsurers where available and
assessed management’s estimation on the recoverability
of the reinsurers’ share of Covid-19 losses;
A
for those classes of business selected for independent
projections on a gross basis, we used our actuarial
specialists to develop independent point estimates for
the associated reinsurer’s share of IBNR loss reserves;
A
for the remaining classes of business where our
actuarial specialists performed key-indicator testing on
a gross basis, they performed testing on the associated
reinsurer’s share of IBNR loss reserves;
A
evaluated management’s assessment of risk transfer
for each of the LPT contracts executed in the year using
our actuarial specialists; and
A
assessed management’s accounting policy for
retroactive reinsurance contracts which has been
applied to the LPT contracts.
The results of our procedures indicated that the valuation
of reinsurance claims recoverable was supported by the
evidence we obtained.

140 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Independent
auditor’s report
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
Other information
Management is responsible for the other information. The
other information comprises the Report and Accounts (but
does not include the consolidated financial statements and our
auditor’s report thereon). The other information also includes
reporting based on the Task Force on Climate-related Financial
Disclosures (TCFD) recommendations. Our opinion on the
consolidated financial statements does not cover the other
information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the consolidated financial
statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other
information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit,
or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that
there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report
in this regard.
Responsibilities of management and those charged with
governance for the consolidated financial statements
Management is responsible for the preparation and fair
presentation of the consolidated financial statements in
accordance with UK-adopted international accounting
standards and for such internal control as management
determines is necessary to enable the preparation of
consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements,
management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using
the going concern basis of accounting unless management
either intends to liquidate the Group or to cease operations,
or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing
the Group’s financial reporting process.
Auditor’s responsibilities for the audit of the consolidated
financial statements
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance
with ISAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with ISAs, we exercise
professional judgement and maintain professional scepticism
throughout the audit. We also:
A
identify and assess the risks of material misstatement
of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the
override of internal control;
A
obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the
Group’s internal control;
A
evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management;
A
conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability
to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures
in the consolidated financial statements or, if such
disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report.
However, future events or conditions may cause the
Group to cease to continue as a going concern;
A
evaluate the overall presentation, structure and content
of the consolidated financial statements, including the
disclosures, and whether the consolidated financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation; and
A
obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business
activities within the Group to express an opinion on the
consolidated financial statements. We are responsible for
the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, actions taken to eliminate threats or
safeguards applied.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.

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Chapter 4 94
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Report on other legal and regulatory requirements
Directors’ remuneration
The Company voluntarily prepares a report on Directors’
remuneration in accordance with the provisions of the UK
Companies Act 2006. The Directors have requested that
we audit the part of the report on Directors’ remuneration
specified by the UK Companies Act 2006 to be audited as
if the Company were a UK registered company.
In our opinion, the part of the report on Directors’
remuneration to be audited has been properly prepared
in accordance with the UK Companies Act 2006.
Corporate governance statement
Under the United Kingdom’s Listing Rules we are required
to review the part of the Corporate Governance Statement
relating to the provisions of the UK Corporate Governance
Code (the Code) specified for auditor review and the Directors
have requested that we also review their statements on going
concern and the longer-term viability of the Group as required
for UK registered companies with a premium listing on the
London Stock Exchange. Our additional responsibilities with
respect to the Corporate Governance Statement and the
statements on going concern and the longer-term viability
of the Group as other information are described in the
Other information section of this report. Based on the work
undertaken as part of our audit, we have concluded that
each of the following elements of the corporate governance
statement is materially consistent with the consolidated
financial statements and our knowledge obtained during the
audit, and we have nothing material to add or draw attention
to in relation to:
A
the Directors’ statement as to whether they considered
it appropriate to adopt the going concern basis of
accounting in preparing them, and their identification
of any material uncertainties to the Group’s ability
to continue to do so over a period of at least twelve
months from the date of approval of the consolidated
financial statements;
A
the Directors’ statement as to whether they have a
reasonable expectation that the Group will be able to
continue in operation and meet its liabilities as they fall
due over the period of its assessment, including any
related disclosures drawing attention to any necessary
qualifications or assumptions.
Our review of the Directors’ statement regarding the
longer-term viability of the Group was substantially less in
scope than an audit and only consisted of making inquiries
and considering the Directors’ process supporting their
statements; checking that the statements are in alignment
with the relevant provisions of the Code; and considering
whether the statements are consistent with the knowledge
and understanding of the Group and its environment obtained
in the course of the audit.
Other matter
In due course, as required by the Financial Conduct Authority
Disclosure Guidance and Transparency Rule 4.1.14R,
these consolidated financial statements will form part
of the ESEF-prepared annual financial report filed on the
National Storage Mechanism of the Financial Conduct
Authority in accordance with the ESEF Regulatory Technical
Standard (ESEF RTS). This auditor’s report provides no
assurance over whether the annual financial report will be
prepared using the single electronic format specified in the
ESEF RTS.
The engagement partner on the audit resulting in this
independent auditor’s report is Arthur Wightman.
PricewaterhouseCoopers Ltd.
Chartered Professional Accountants
Bermuda
2 March 2022

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Consolidated income statement
For the year ended 31 December 2021 Note
2021
$m
2020
$m
Income
Gross premiums written
4 4 ,26 9. 2 4 , 0 3 3 .1
Outward reinsurance premiums
4, 23.2 (1, 3 14 . 2) (1, 2 8 2 . 7)
Net premiums written 2,9 5 5.0 2,75 0 . 4
Gross premiums earned 4 , 24 6 . 9 4 , 0 7 1. 2
Premiums ceded to reinsurers (1, 3 2 7. 0) (1, 3 1 9 . 0)
Net premiums earned
4, 23.2 2,91 9.9 2,752. 2
Investment result
4, 7 51. 2 19 7. 5
Other income
4, 9 56.8 5 0.2
Total income 3 , 0 2 7. 9 2 ,999 .9
Expenses
Claims and claim adjustment expenses
23.2 (2, 1 8 5.5) (2,966.5)
Reinsurance recoveries
23.2 7 5 5 .1 1, 0 4 3 . 8
Claims and claim adjustment expenses, net of reinsurance
4, 23.2 (1, 4 3 0 . 4) (1, 9 2 2 .7)
Expenses for the acquisition of insurance contracts
15 (1 , 0 1 7. 9) (1, 0 0 2 . 9)
Reinsurance commission income
15 28 3. 2 28 9.0
Operational expenses
4, 9 (622. 7) (573 .0)
Net foreign exchange gain/(loss) 0 .7 (1 4.5)
Total expenses (2,787 . 1) (3 , 2 2 4 .1)
Results of operating activities 24 0 . 8 (2 24 . 2)
Finance costs
4, 10 (50.8) (4 4.0)
Share of profit/(loss) of associates after tax
4, 14 0. 8 (0. 3)
Profit/(loss) before tax 19 0 . 8 (268.5)
Tax expense
25 (1. 3) (25. 2)
Profit/(loss) for the year (all attributable to owners of the Company) 189.5 (2 9 3 .7)
Earnings per share on profit/(loss) attributable to owners of the Company
Basic
28 55.3¢ (9 1. 6)¢
Diluted
28 5 4 .7¢ (9 0.6)¢
Consolidated statement of comprehensive income
For the year ended 31 December 2021 Note
2021
$m
2020
$m
Profit/(loss) for the year 189.5 (2 9 3 .7)
Other comprehensive income
Items that will not be reclassified to the income statement:
Remeasurements of the net defined benefit obligation 27 3 1. 6 (38 .0)
Income tax effect (3 .4) 8.8
28. 2 (2 9.2)
Items that may be reclassified subsequently to the income statement:
Exchange (losses)/gains on translating foreign operations (18 . 5) 55.5
(18 . 5) 55.5
Other comprehensive income net of tax 9.7 26.3
Total comprehensive income for the year (all attributable to owners of the Company) 1 9 9. 2 (2 6 7. 4)
The notes on pages 146 to 206 are an integral part of these consolidated financial statements.

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Consolidated balance sheet
At 31 December 2021 Note
2021
$m
2020
$m
Assets
Goodwill and intangible assets
12 3 1 3 .1 298.9
Property, plant and equipment
13 9 0.4 10 9 . 4
Investments in associates
14 5 .7 4.9
Deferred tax assets
26 6 7. 3 70 .7
Deferred acquisition costs
15 4 36 .9 4 39. 2
Financial assets carried at fair value
17 6 , 0 41. 3 6 ,116 . 8
Reinsurance assets
16, 23 3,9 08.0 3,64 4.6
Loans and receivables including insurance receivables
18 1, 6 7 8 . 2 1 ,591 .2
Current tax assets 4.9 3.3
Cash and cash equivalents
21 1, 3 0 0 . 7 1, 5 7 7. 2
Total assets 1 3,846.5 13,856.2
Equity and liabilities
Shareholders’ equity
Share capital
22 3 8 .7 3 8 .7
Share premium
22 5 1 6.8 5 1 6.5
Contributed surplus
22 18 4 . 0 18 4 . 0
Currency translation reserve (28 9.3) (270.8)
Retained earnings 2,0 8 8. 0 1 ,884 .4
Equity attributable to owners of the Company 2,5 3 8. 2 2, 35 2. 8
Non-controlling interest 1 .1 1 .1
Total equity 2,5 39.3 2 ,353. 9
Employee retirement benefit obligations
27 3 5 .1 73 .5
Deferred tax liabilities
26 0 .1 2 .7
Insurance liabilities
23 8,8 68.4 9 ,11 3 . 4
Financial liabilities
17 74 6 . 7 9 4 6 .7
Current tax liabilities 2 1. 3 3 0.4
Trade and other payables
24 1, 6 3 5 . 6 1, 3 3 5 . 6
Total liabilities 11, 3 0 7. 2 11, 5 0 2 . 3
Total equity and liabilities 1 3,846.5 13,856.2
The notes on pages 146 to 206 are an integral part of these consolidated financial statements.
The consolidated financial statements were approved by the Board of Directors on 2 March 2022 and signed on its behalf by:
Aki Hussain
Group Chief Executive Officer

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Consolidated statement of changes in equity
Note
Share
capital
$m
Share
premium
$m
Contributed
surplus
$m
Currency
translation
reserve
$m
Retained
earnings
$m
Equity
attributable to
owners of the
Company
$m
Non-controlling
interest
$m
Total
equity
$m
Balance at 1 January 2020 3 4 .1 70 .5 18 4 . 0 (3 26.3) 2 ,226.3 2,188.6 1 .1 2,189.7
Loss for the year
(all attributable to owners
of the Company) – – – (2 9 3 .7) (2 9 3 .7) – (2 9 3 .7)
Other comprehensive income
net of tax (all attributable to
owners of the Company) – – – 5 5.5 (29. 2) 26 .3 – 26. 3
Employee share options:
Equity settled
share-based payments – – – – 10 . 3 10 . 3 – 10 . 3
Deferred and current tax on
employee share options
– – – – (5 .4) (5 .4) – (5.4)
Net movements of treasury
shares held by Trust – – – – (23 .9) (23.9) – (23.9)
Shares issued in the period
22 4.6 4 46.0 – – – 4 50.6 – 4 50.6
Balance at 31 December 2020 3 8 .7 5 1 6.5 18 4 . 0 (270.8) 1 ,884 .4 2, 3 52. 8 1 .1 2 ,353. 9
Profit for the year
(all attributable to
owners of the Company) – – – – 189.5 189.5 – 189.5
Other comprehensive income
net of tax (all attributable to
owners of the Company) – – – (18 . 5) 28. 2 9.7 – 9.7
Employee share options:
Equity settled
share-based payments – – – – 24 .0 24. 0 – 24. 0
Proceeds from
shares issued
22 – 0 .1 – – – 0 .1 – 0 .1
Deferred and current tax on
employee share options
– – – – 1. 3 1. 3 – 1. 3
Shares issued in relation
to Scrip Dividend
22, 29 – 0. 2 – – – 0.2 – 0. 2
Dividends paid to owners
of the Company
29 – – – – (3 9.4) (39. 4) – (39. 4)
Balance at 31 December 2021 38 .7 5 1 6.8 18 4 . 0 (289. 3) 2, 08 8 .0 2, 5 38 . 2 1 .1 2, 53 9.3
The notes on pages 146 to 206 are an integral part of these consolidated financial statements.

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Consolidated statement of cash flows
For the year ended 31 December 2021 Note
2021
$m
2020
$m
Profit/(loss) before tax 19 0 . 8 (268.5)
Adjustments for:
Net foreign exchange (gain)/loss (0.7) 14 . 5
Interest and equity dividend income
7 (8 8 .1) (1 0 7. 4)
Interest expense
10 50.8 44.0
Net fair value losses/(gains) on financial assets
7 5 7. 9 (51. 2)
Depreciation, amortisation and impairment
9, 12, 13 58.3 56.8
Charges in respect of share-based payments
9, 22 24 .0 10 . 3
Realised gain on sale of subsidiary undertaking and intangible assets (6. 5) –
Changes in operational assets and liabilities:
Insurance and reinsurance contracts (264. 2) 6 33 .6
Financial assets carried at fair value (30.0) (475 . 4)
Financial liabilities carried at fair value (0 .4) (0 .1)
Financial liabilities carried at amortised cost 0 .7 0.8
Other assets and liabilities (6 .7) 33 .3
Cash paid to the pension fund
27 – (3 0 .4)
Interest received 90. 5 10 2 . 5
Equity dividends received 1. 9 1. 6
Interest paid (4 9.6) (42. 4)
Current tax paid (12.1) (3 9 .1)
Net cash flows from/(used in) operating activities 16 . 6 (11 7. 1)
Cash flows from the sale of subsidiaries 2 1. 4 –
Purchase of property, plant and equipment (5. 4) (9.0)
Proceeds from the sale of property, plant and equipment 0.2 8.6
Purchase of intangible assets (53.5) (62.5)
Proceeds from the sale of intangible assets 0 .7 10 . 2
Net cash used in investing activities (36.6) (5 2.7)
Proceeds from the issue of ordinary shares
22 0 .1 4 50.6
Shares repurchased
22 – (23.9)
Distributions made to owners of the Company
22, 29 (39. 2) –
Proceeds from drawdown of short-term borrowings – 47 0 . 0
Repayment of short-term borrowings
17 (19 5 .7) (28 9.4)
Principal elements of lease payments (11 . 4) (1 4.5)
Net cash flows (used in)/from financing activities (24 6 . 2) 5 92. 8
Net (decrease)/increase in cash and cash equivalents (26 6 . 2) 423. 0
Cash and cash equivalents at 1 January 1, 5 7 7. 2 1,11 5 . 9
Net (decrease)/increase in cash and cash equivalents (26 6 . 2) 423. 0
Effect of exchange rate fluctuations on cash and cash equivalents (10 . 3) 38.3
Cash and cash equivalents at 31 December
21 1, 3 0 0 . 7 1, 5 7 7. 2
The purchase, maturity and disposal of financial assets is part of the Group’s insurance activities and is therefore classified as
an operating cash flow. The purchase, maturity and disposal of derivative contracts is also classified as an operating cash flow.
Included within cash and cash equivalents held by the Group are balances totalling $2 1 5 million (2020: $1 72 million) not
available for immediate use by the Group outside of the Lloyd’s syndicate within which they are held. Additionally, $7million
(2020:$9million) is pledged cash held against Funds at Lloyd’s, and $0. 4 million (2020: $0.5 million) held within trust funds
against reinsurance arrangements.
The notes on pages 146 to 206 are an integral part of these consolidated financial statements.

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Notes to the consolidated financial statements
1 General information
The Hiscox Group, which is headquartered in Hamilton,
Bermuda, comprises Hiscox Ltd (the parent company,
referred to herein as the ‘Company’) and its subsidiaries
(collectively, the ‘Hiscox Group’ or the ‘Group’). For the
period under review the Group provided insurance
and reinsurance services to its clients worldwide. It has
operations in Bermuda, the UK, Europe, Asia and the
USA and currently has over 3,000 staff.
The Company is registered and domiciled in Bermuda and
its ordinary shares are listed on the London Stock Exchange.
The address of its registered office is: Chesney House,
96 Pitts Bay Road, Pembroke HM 08, Bermuda.
2 Basis of preparation
On 31 December 2020, IFRS as adopted by the European
Union at that date was brought into UK law and became
UK-adopted International Accounting Standards, with
future changes being subject to endorsement by the UK
Endorsement Board. The Group transitioned to UK-adopted
International Accounting Standards in its consolidated financial
statements on 1 January 2021. This change constitutes a
change in accounting framework. However, there is no impact
on recognition, measurement or disclosure in the period
reported as a result of the change in framework.
The financial statements of the Group have been prepared
in accordance with UK-adopted International Accounting
Standards, Section 4.1 of the Disclosure and Transparency
Rules and the Listing Rules, both issued by the Financial
Conduct Authority (FCA) and in accordance with the provisions
of the Bermuda Companies Act 1981.
The consolidated financial statements have been prepared
under the historical cost convention, except that pension
scheme assets included in the measurement of the employee
retirement benefit obligation which is determined using
actuarial analysis, and certain financial instruments including
derivative instruments, are measured at fair value.
The consolidated financial statements have been prepared
on a going concern basis. In adopting the going concern basis,
the Board has reviewed the Group’s current and forecast
solvency and liquidity positions for the next 12 months and
beyond. As part of the consideration of the appropriateness
of adopting the going concern basis, the Directors use scenario
analysis and stress testing to assess the robustness of the
Group’s solvency and liquidity positions.
In undertaking this analysis, no material uncertainty in relation
to going concern has been identified, due to the Group’s strong
capital and liquidity positions providing resilience to shocks,
underpinned by the Group’s approach to risk management
described in note 3.
After making enquiries, the Directors have a reasonable
expectation that the Group has adequate resources to
continue in operational existence over a period of at least
12 months from the date of this report. For this reason, the
Group continues to adopt the going concern basis in
preparing the consolidated financial statements.
In accordance with IFRS 4 Insurance Contracts, the Group
continues to apply the existing accounting policies that
were applied prior to the adoption of IFRS (‘grandfathered’)
or the date of the acquisition of the entity. IFRS accounting
for insurance contracts in UK companies was grandfathered
at the date of transition to IFRS and determined in accordance
with accounting principles generally accepted in the UK.
Items included in the financial statements of each of the
Group’s entities are measured in the currency of the primary
economic environment in which that entity operates (the
functional currency). The consolidated financial statements
are presented in US Dollars millions ($m) and rounded to the
nearest hundred thousand Dollars, unless otherwise stated.
The balance sheet of the Group is presented in order of
increasing liquidity. All amounts presented in the income
statement and statement of comprehensive income relate
to continuing operations.
The financial statements were approved for issue by the
Board of Directors on 2March2022.
2.1 Significant accounting policies
The principal accounting policies applied in the preparation
of these consolidated financial statements are set out below.
The most critical individual components of these financial
statements that involve the highest degree of judgement
or significant assumptions and estimations are identified
in note 2.21.

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Except as described below and overleaf, the accounting policies
adopted are consistent with those of the previous financial year.
(a) New accounting standards, interpretations and
amendments to published standards
New standards, amendments to standards and interpretations,
as adopted by the UK, that are effective for annual periods
beginning on 1 January 2021 have been applied in preparing
these consolidated financial statements and had no material
impact on the Group.
A
Amendments to IFRS 7, IFRS 9, IAS 39, IFRS 4 and
IFRS 16 Interest Rate Benchmark Reform – Phase 2
The amendments require insurers who apply the
temporary exemption from IFRS 9 to apply the
amendments in IFRS 9 in accounting for modifications
directly required by the IBOR reform.
A Amendments to IFRS 4 Insurance Contracts – deferral
of IFRS 9
The effective date of IFRS 17, which will be replacing
IFRS 4, is 1January2023; the fixed expiry date for the
temporary exemption in IFRS 4 from applying IFRS 9
has also been deferred to 1January2023.
A Covid-19-related rent concessions beyond 30 June 2021
amendments to IFRS 16.
(b) Future accounting developments
The following new standards, and amendments to
standards, are effective for annual periods beginning after
1January2021 and have not been applied in preparing
these financial statements:
A
IFRS 9 Financial Instruments
This standard incorporates new classification and
measurement requirements for financial assets, the
introduction of an expected credit loss impairment model
which will replace the incurred loss model of IAS 39 and
new hedge accounting requirements. The Group satisfies
the criteria set out in IFRS 4 Insurance Contracts for the
temporary exemption from IFRS 9. At 31December2015
(the date specified by IFRS 4), the carrying value of the
Group’s liabilities connected with insurance comprised
over 90% of the total liabilities. These include significant
insurance liabilities; the subordinated debt as this
debt counts towards the Group’s regulatory and rating
agency capital requirements; and creditors arising from
insurance operations. The activities of the Group remain
predominantly connected with insurance.
Under the current requirements (IAS 39), a majority
of the Group’s investments were designated as at fair
value through profit or loss on initial recognition and
subsequently remeasured to fair value at each reporting
date, reflecting the Group’s business model for managing
and evaluating the investment portfolio. Adoption of
IFRS 9 is not expected to result in any material changes
to the measurement of the Group’s investments, which
continues to be at fair value through profit or loss.
Financial assets within the scope of IFRS 17 Insurance
Contracts such as premiums receivable and reinsurance
and other recoveries on paid claims, which together
form the majority of the carrying value of the Group’s
loans and receivables, and reinsurance recoveries on
outstanding claims, are outside the scope of IFRS 9.
Loans and receivables also includes amounts due from
brokers, agents and intermediaries and other financial
assets which are within the scope of IFRS 9. Under IFRS
9, these assets continue to be recognised at amortised
cost less impairment, with the measurement of impairment
reflecting expected credit losses. The Group expects a
recognition of an earlier and higher loss allowance under this
approach compared to the current incurred loss approach,
resulting in a negative impact on equity on adoption. IFRS 9
has been endorsed by the UK Endorsement Board.
A
IFRS 17 Insurance Contracts
IFRS 17 will significantly change the accounting for
insurance contracts. The adoption of the standard will
result in changes compared to the Group’s current
accounting policies including the following:
Ainsurance contracts assets and liabilities are
measured based on a current estimate of future cash
flows, including a risk adjustment and a contractual
service margin. As a result, the claims and the
reinsurance recoveries will be recognised on
a present value basis with the unwind of the
discounting recognised in the income statement;
Athe premium allocation approach, an optional
simplified measurement model for an eligible group of
insurance contracts, will be adopted. This approach
does not require separate identification of the risk
adjustment and the contractual service margin until
a claim is incurred. The premium is recognised over
the coverage period on the basis of the passage of
time unless the expected pattern of release from risk
differs significantly from the passage of time, in which
case it is recognised based on the expected timing of
incurred claims and benefits;
Aany expected losses arising from loss-making
contracts and the corresponding expected
recoveries from reinsurance contracts held are to
be accounted for in the income statement when
the entity determines that losses are expected;
Areinsurance commission income that is contingent
on claims is treated as a reduction of claims
recoveries cash flows and those that are not
contingent on claims is accounted for as part
of premium paid cash flows;
Aall insurance contract assets and liabilities are
monetary items. As a result, those account balances
denominated in foreign currencies are subject to
revaluation, with the impact of changes in foreign
exchange rates recognised in the income statement.
The presentation of the income statement will also change,
with premium and claims figures being replaced with
insurance contract revenue, insurance service expense
and insurance finance income and expense.
The cash flow and economic value generated by the
Group’s insurance business does not change. No
significant effects on the Group’s regulatory capital
position, nor the ability of subsidiaries to pay dividends
to Group, are expected. The Bermuda Solvency Capital
Requirements and Solvency II will continue to drive the
business’s ability to pay dividends to the Group.
The requirements of IFRS 17 are complex and
interpretations thereof are subject to change as the
2 Basis of preparation continued
2.1 Significant accounting policies continued

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project progresses and as the Group continues to analyse
the impacts of the standard and recent amendments.
Group-wide accounting guidance and application
methodologies continue to be developed, and a project
team has been mobilised to progress the detailed design
and implementation of required changes to financial
reporting systems. Market developments also continue
to be monitored in order to assess the impact of evolving
interpretations and other changes.
IFRS 17 is effective on 1 January 2023 and has not yet
been endorsed by the UK Endorsement Board.
A
Initial application of IFRS 17 and IFRS 9 –
comparative information
This narrow-scope amendment is not expected to be
used by the Group.
2.2 Basis of consolidation
(a) Subsidiaries
Subsidiaries are those entities controlled by the Group.
Control exists when the Group has power over an entity,
exposure or rights to variable returns from its involvement
with the investee and ability to use its power to affect those
returns. The consolidated financial statements include the
assets, liabilities and results of the Group up to 31December
each year. The financial statements of subsidiaries are included
in the consolidated financial statements only from the date
that control commences until the date that control ceases.
The Group applies the acquisition method to account for
business combinations. The consideration transferred for
the acquisition of a subsidiary is the fair value of the assets
transferred, the liabilities incurred to the former owners of the
acquiree and the equity interests issued by the Group. The
consideration transferred also includes the fair value of any
asset or liability resulting from a contingent consideration
arrangement. Identifiable assets acquired, liabilities and
contingent liabilities assumed in a business combination
are measured initially at their fair values at the acquisition
date. The Group recognises any non-controlling interest in
the acquiree on an acquisition-by-acquisition basis, either at
fair value or at the non-controlling interest’s proportionate share
of the recognised amounts of acquiree’s identifiable net assets.
Transactions with non-controlling interests that do not result in
loss of control are accounted for as equity transactions – that
is, as transactions with the owners in their capacity as owners.
The difference between fair value of any consideration paid and
the relevant share acquired of the carrying value of net assets of
the subsidiary is recorded in equity. Gains or losses on disposals
to non-controlling interests are also recorded in equity.
(b) Associates
Associates are those entities in which the Group has significant
influence but not control over the financial and operating
policies. Significant influence is generally identified with a
shareholding of between 20% and 50% of an entity’s voting
rights. The consolidated financial statements include the
Group’s share of the total recognised gains and losses of
associates on an equity-accounted basis from the date that
significant influence commences until the date that significant
influence ceases.
The Group’s share of its associates’ post-acquisition profits
or losses after tax is recognised in the income statement for
each period, and its share of the movement in the associates’
net assets is reflected in the investments’ carrying values
on the balance sheet. When the Group’s share of losses
equals or exceeds the carrying amount of the associate,
the carrying amount is reduced to nil and recognition of
further losses is discontinued except to the extent that the
Group has incurred obligations in respect of the associate.
(c) Transactions eliminated on consolidation
Intragroup balances, transactions and any unrealised gains
arising from intragroup transactions are eliminated in preparing
the consolidated financial statements. Unrealised losses are
also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Foreign currency gains and
losses on intragroup monetary assets and liabilities may not
fully eliminate on consolidation when the intragroup monetary
item concerned is transacted between two Group entities
that have different functional currencies. Unrealised gains
arising from transactions with associates are eliminated to the
extent of the Group’s interest in the entity. Unrealised losses
are eliminated in the same way as unrealised gains, but only
to the extent that there is no evidence of impairment.
2.3 Foreign currency translation
(a) Functional currency
Items included in the financial statements of each of the
Group’s entities are measured using the currency of the
primary economic environment in which the entity operates (the
‘functional currency’). Entities operating in France, Germany,
The Netherlands, Spain, Portugal, Ireland and Belgium have
functional currency of Euros; those subsidiary entities operating
from the USA, Bermuda, Guernsey and Syndicates have
functional currency of US Dollars with the exception of Hiscox Ltd,
a public company incorporated and domiciled in Bermuda with
functional currency of Sterling. Functional currencies of entities
operating in Asia include US Dollars, Singapore Dollars and Thai
Baht. All other entities have functional currency of Sterling.
(b) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the
retranslation at year-end exchange rates of monetary assets
and liabilities denominated in foreign currencies are recognised
in the income statement, except when deferred in equity as
IAS 39 effective net investment hedges or when the underlying
balance is deemed to form part of the Group’s net investment
in a subsidiary operation and is unlikely to be settled in the
foreseeable future. Non-monetary items carried at historical
cost are translated on the balance sheet at the exchange rate
prevailing on the original transaction date. Non-monetary items
measured at fair value are translated using the exchange rate
ruling when the fair value was determined.
(c) Group companies
The results and financial position of all the Group entities that
have a functional currency different from the presentation
currency are translated into the presentation currency
as follows:
A
assets and liabilities for each balance sheet presented
are translated at the closing rate at the date of that
balance sheet;
2 Basis of preparation
2.1 Significant accounting policies
(b) Future accounting developments continued

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Remuneration
A income and expenses for each income statement are
translated at average exchange rates (unless this average
is not a reasonable approximation of the cumulative effect
of the rates prevailing on the transaction dates, in which
case income and expenses are translated at the date of
the transactions); and
A
all resulting exchange differences are recognised as a
separate component of equity.
When a foreign operation is sold, such exchange differences
are recognised in the income statement as part of the gain,
or loss, on sale.
2.4 Property, plant and equipment
Property, plant and equipment are stated at historical cost less
depreciation and any impairment loss. Historical cost includes
expenditure that is directly attributable to the acquisition of the
items. Subsequent costs are included in the asset’s carrying
amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated
with the item will flow to the Group and the cost of the item can
be measured reliably. All other repairs and maintenance items
are charged to the income statement during the financial period
in which they are incurred.
Land is not depreciated as it is deemed to have an indefinite
useful economic life. The cost of leasehold improvements
is amortised over the unexpired term of the underlying
lease or the estimated useful life of the asset, whichever is
shorter. Depreciation on other assets is calculated using the
straight-line method to allocate their cost, less their residual
values, over their estimated useful lives.
The rates applied are as follows:
A
buildings 20–50 years
A vehicles 3 years
A leasehold improvements including
fixtures and fittings 10–15 years
A furniture, fittings and equipment 3–15 years
The assets’ residual values and useful lives are reviewed at
each balance sheet date and adjusted if appropriate.
An asset’s carrying amount is written down immediately to its
recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount. Gains and losses on
disposals are determined by comparing proceeds with the
carrying amount. These are included in the income statement.
2.5 Intangible assets
(a) Goodwill
Goodwill represents amounts arising on acquisition of
subsidiaries and associates. In respect of acquisitions that
have occurred since 1January2004, goodwill represents
the excess of the fair value of consideration of an acquisition
over the fair value of the Group’s share of the net identifiable
assets and contingent liabilities assumed of the acquired
subsidiary or associate at the acquisition date.
In respect of acquisitions prior to 1January2004, goodwill is
included on the basis of its deemed cost, which represents
the amount recorded under previous generally accepted
accounting principles.
Goodwill on acquisition of subsidiaries is included in intangible
assets. Goodwill on acquisition of associates is included in
investments in associates.
Goodwill is not amortised but is tested at least annually
for impairment and carried at cost less accumulated
impairment losses.
Goodwill is allocated to the Group’s cash-generating units
identified according to the smallest identifiable unit to which
cash flows are generated.
The impairment review process examines whether or not
the carrying value of the goodwill attributable to individual
cash-generating units exceeds its recoverable amount.
Any excess of goodwill over the recoverable amount arising
from the review process indicates impairment. Any impairment
charges are presented as part of operational expenses.
Gains and losses on the disposal of an entity include the
carrying amount of goodwill relating to the entity sold.
(b) Other intangible assets
Intangible assets acquired separately from a business are
carried initially at cost. An intangible asset acquired as part of
a business combination is recognised outside of goodwill if
the asset is separable or arises from contractual or other legal
rights and its fair value can be measured reliably. Customer
relationships, syndicate capacity and software acquired are
capitalised at cost, being the fair value of the consideration
paid. Software is capitalised on the basis of the costs incurred
to acquire and bring it into use. Intangible assets with indefinite
lives such as syndicate capacity are subsequently valued at
cost and are subject to annual impairment assessment.
Intangible assets with finite useful lives are consequently
carried at cost, less accumulated amortisation and impairment.
The useful life of the asset is reviewed annually. Any changes
in estimated useful lives are accounted for prospectively with
the effect of the change being recognised in the current and
future periods, if relevant.
Amortisation is calculated using the straight-line method
to allocate the cost over the estimated useful lives of the
intangible assets.
Subsequent expenditure on other intangible assets is
capitalised only when it increases the future economic
benefits embodied in the specific asset to which it relates.
All other expenditure is expensed as incurred.
Those intangible assets with finite lives are assessed for
indicators of impairment at each reporting date. Where there
is an indication of impairment then a full impairment test is
performed. An impairment loss recognised for an intangible
asset in prior years should be reversed if, and only if, there
has been a change in the estimates used to determine the
asset’s recoverable amount since the last impairment loss
was recognised.
2.6 Fair value
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date,
regardless of whether that price is directly observable or
estimated using another valuation technique.
2 Basis of preparation
2.3 Foreign currency translation
(c) Group companies continued

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This presumes that the transaction takes place in the
principal (or most advantageous) market under current
market conditions. Fair value is a market-based measure
and in the absence of observable market prices in an active
market, it is measured using the assumptions that market
participants would use when pricing the asset or liability.
The fair value of a non-financial asset is determined based
on its highest and best use from a market participant’s
perspective. When using this approach, the Group takes into
account the asset’s use that is physically possible, legally
permissible and financially feasible. The best evidence of
the fair value of a financial instrument at initial recognition
is normally the transaction price, i.e. the fair value of the
consideration given or received.
If an asset or a liability measured at fair value has a bid
price and an ask price, the price within the bid-ask spread
that is most representative of fair value in the circumstances
is used to measure fair value. An analysis of fair values of
financial instruments and further details as to how they
are measured are provided in note 20.
2.7 Financial assets and liabilities including loans
and receivables
The Group classifies its financial assets as a) financial
assets at fair value through profit or loss, and b) loans
and receivables. Management determines the
classification of its financial assets based on the purpose
for which the financial assets are held at initial recognition.
The decision by the Group to designate debt and fixed
income holdings, equities and investment funds and
deposits with credit institutions, at fair value through
profit or loss, reflects the fact that the investment portfolios
are managed, and their performance evaluated, on a fair
value basis.
Purchases and sales of investments are accounted
for at the trade date. Financial assets and liabilities are
initially recognised at fair value. Subsequent to initial
recognition, financial assets and liabilities are measured
as described below. Financial assets are derecognised
when the right to receive cash flows from them expires
or where they have been transferred and the Group
has also transferred substantially all risks and rewards
of ownership.
(a) Financial assets at fair value through profit or loss
A financial asset is classified into this category at inception
if it is managed and evaluated on a fair value basis in
accordance with a documented strategy, if acquired
principally for the purpose of selling in the short term,
or if it forms part of a portfolio of financial assets in which
there is evidence of short-term profit taking.
(b) Loans and receivables
Loans and receivables are non-derivative financial assets
with fixed or determinable payments that are not quoted
on an active market. Receivables arising from insurance
contracts are included in this category and are reviewed
for impairment as part of the impairment review of loans
and receivables. Loans and receivables are carried at
amortised cost less any provision for impairment in value.
(c) Borrowings
All borrowings are initially recognised at fair value.
Subsequent to initial recognition, borrowings are
measured at amortised cost. Any difference between
the value recognised at initial recognition and the ultimate
redemption amount is recognised in the income statement
over the period to redemption using the effective
interest method.
2.8 Cash and cash equivalents
The Group has classified cash deposits and short-term
highly-liquid investments as cash and cash equivalents.
These assets are readily convertible into known amounts of
cash and are subject to inconsequential changes in value.
Cash equivalents are financial investments with less than
three months to maturity at the date of acquisition.
2.9 Impairment of assets
Assets that have an indefinite useful life are not subject to
amortisation and are tested annually or whenever there is
an indication of impairment. Assets that are subject to
amortisation are reviewed for impairment whenever events
or changes in circumstances indicate that the carrying
amount may not be recoverable.
(a) Non-financial assets
Objective factors that are considered when determining
whether a non-financial asset (such as goodwill, an intangible
asset or item of property, plant and equipment) or group of
non-financial assets may be impaired include, but are not
limited to, the following:
A
adverse economic, regulatory or environmental
conditions that may restrict future cash flows and
asset usage and/or recoverability;
A
the likelihood of accelerated obsolescence arising from
the development of new technologies and products; and
A
the disintegration of the active market(s) to which the
asset is related.
(b) Financial assets
Objective factors that are considered when determining
whether a financial asset or group of financial assets may
be impaired include, but are not limited to, the following:
A
negative rating agency announcements in respect of
investment issuers, reinsurers and debtors;
A
significant reported financial difficulties of investment
issuers, reinsurers and debtors;
A
actual breaches of credit terms such as persistent late
payments or actual default;
A
the disintegration of the active market(s) in which a
particular asset is traded or deployed;
A
adverse economic or regulatory conditions that may
restrict future cash flows and asset recoverability; and
A
the withdrawal of any guarantee from statutory
funds or sovereign agencies implicitly supporting
the asset.
(c) Impairment loss
An impairment loss is recognised for the amount by which
the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value
less costs to sell and value in use. For the purpose of assessing
impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash flows (cash-generating
units). For financial assets, the amount of the impairment loss
2 Basis of preparation
2.6 Fair value continued

151Hiscox Ltd Report and Accounts 2021
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Governance
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Performance
and purpose
Chapter 4 94
Remuneration
is measured as the difference between the asset’s carrying
amount and the value of the estimated future cash flows
discounted at the financial asset’s original effective interest
rate. Where an impairment loss subsequently reverses, the
carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the extent that
the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment
loss been recognised for the asset in prior periods. A reversal
of an impairment loss is recognised as income immediately.
Impairment losses recognised in respect of goodwill are
not subsequently reversed.
2.10 Derivative financial instruments
Derivatives are initially recognised at fair value on the date
on which a derivative contract is entered into and are
subsequently valued at fair value at each balance sheet
date. Fair values are obtained from quoted market values
and, if these are not available, valuation techniques including
option pricing models are used as appropriate. The method
of recognising the resulting gain or loss depends on whether
the derivative is designated as a hedging instrument and,
if so, the nature of the item being hedged. For derivatives
not formally designated as a hedging instrument, fair
value changes are recognised immediately in the income
statement. Changes in the value of derivatives and other
financial instruments formally designated as hedges of net
investments in foreign operations are recognised in the
currency translation reserve to the extent they are effective;
gains or losses relating to the ineffective portion of the hedging
instruments are recognised immediately in the consolidated
income statement.
The Group had no derivative instruments designated for
hedge accounting during the current and prior financial year.
2.11 Own shares
Where any Group company purchases the Parent Company’s
equity share capital (own shares), the consideration paid,
including any directly attributable incremental costs (net of
income taxes) is deducted from equity attributable to the
Company’s owners on consolidation. Where such shares are
subsequently sold, reissued or otherwise disposed of, any
consideration received is included in equity attributable to the
Company’s owners, net of any directly attributable incremental
transaction costs and the related tax effects.
2.12 Revenue
Revenue comprises insurance and reinsurance premiums
earned on the rendering of insurance protection, net of
reinsurance, together with profit commission, investment
returns, agency fees and other income. The Group’s
share of the results of associates is reported separately.
The accounting policies for insurance premiums are set
out in note 2.13.
Other revenue is recognised when, or as, the control of
the goods or services is transferred to a customer, i.e.
performance obligations are fulfilled at an amount that reflects
the consideration to which the Group expects to be entitled
in exchange for those goods or services. See note 9 for
further details.
2.13 Insurance contracts
(a) Classification
Insurance contracts are defined as those containing significant
insurance risk if, and only if, an insured event could cause
an insurer to make significant additional payments in
any scenario, excluding scenarios that lack commercial
substance, at the inception of the contract. Such contracts
remain insurance contracts until all rights and obligations are
extinguished or expire. The Group issues short-term casualty
and property insurance contracts that transfer significant
insurance risk.
(b) Recognition and measurement
Gross premiums written comprise premiums on business
incepting in the financial year together with adjustments to
estimates of premiums written in prior accounting periods.
Estimates are included for pipeline premiums and an allowance
is also made for cancellations. Premiums are stated before
the deduction of brokerage and commission but net of taxes
and duties levied. Premiums are recognised as revenue
(premiums earned) proportionally over the period of coverage.
The portion of premium received on in-force contracts that
relate to unexpired risks at the balance sheet date is reported
as the unearned premium liability.
Claims and associated expenses are charged to profit or loss
as incurred, based on the estimated liability for compensation
owed to contract holders or third parties damaged by the
contract holders. They include direct and indirect claims
settlement costs and arise from events that have occurred
up to the balance sheet date even if they have not yet been
reported to the Group.
The Group does not discount its liabilities for unpaid claims.
Liabilities for unpaid claims are determined based on the
best estimate of the cost of future claim payments plus an
allowance for risk and uncertainty. Any estimate represents
a determination within a range of possible outcomes using,
as inputs, the assessments for individual cases reported to
the Group, statistical analysis for the claims incurred but not
reported, an estimate of the expected ultimate cost of more
complex claims that may be affected by external factors, for
example, court decisions, and an allowance for quantitative
uncertainties not otherwise approved.
(c) Deferred acquisition costs (DAC)
Commissions and other direct and indirect costs that vary
with and are related to securing new contracts and renewing
existing contracts are capitalised as deferred acquisition costs.
All other costs are recognised as expenses when incurred.
DAC are amortised over the terms of the insurance contracts
as the related premium is earned.
(d) Liability adequacy tests
At each balance sheet date, liability adequacy tests are
performed by each business unit to ensure the adequacy of
the contract liabilities net of related DAC. In performing these
tests, current best estimates of future contractual cash flows
and claims handling and administration expenses, as well as
investment income from assets backing such liabilities, are
used. Any deficiency is charged to profit or loss initially by
writing-off DAC and by subsequently establishing a provision
for losses arising from liability adequacy tests (‘the unexpired
risk reserve’). Any DAC written-off as a result of this test is
not subsequently reinstated.
2 Basis of preparation
2.9 Impairment of assets
(c) Impairment loss continued

152 Hiscox Ltd Report and Accounts 2021
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Performance
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Chapter 4 94
Remuneration
(e) Outwards reinsurance contracts held
Contracts entered into by the Group with reinsurers, under
which the Group is compensated for losses on one or more
insurance or reinsurance contracts and that meet the
classification requirements for insurance contracts, are
classified as reinsurance contracts held. Contracts that
do not meet these classification requirements are classified
as financial assets.
The benefits to which the Group is entitled under outwards
reinsurance contracts are recognised as reinsurance assets.
These assets consist of short-term balances due from
reinsurers (classified within loans and receivables) as well
as longer-term receivables (classified as reinsurance assets)
that are dependent on the expected claims and benefits
arising under the related reinsured insurance contracts.
Amounts recoverable from or due to reinsurers are measured
consistently with the amounts associated with the reinsured
insurance contracts and in accordance with the terms of
each reinsurance contract.
Reinsurance liabilities primarily comprise premiums payable
for outwards reinsurance contracts. The Group assesses its
reinsurance assets on a regular basis and, if there is objective
evidence, after initial recognition, of an impairment in value,
the Group reduces the carrying amount of the reinsurance
asset to its recoverable amount and recognises the
impairment loss in the income statement.
(f) Retroactive reinsurance transactions
Retroactive insurance contracts that contain significant
insurance risk and that have an insurance component and
a deposit component are unbundled providing the deposit
component can be measured separately. The deposit
component is recorded directly into the balance sheet within
reinsurers’ share of insurance liabilities with a corresponding
amount in creditors arising out of reinsurance operations.
The reinsurers’ share of insurance liabilities relating to the
contracts is remeasured at each reporting period with
movements taken to the reinsurance recoveries in the
income statement.
Reinsurance transactions that transfer risk but are retroactive
are included in reinsurance assets. The excess of estimated
liabilities for claims and claim expenses over the consideration
paid is established as a deferred credit at inception. The
deferred amounts are subsequently amortised using the
recovery method over the settlement period of the reserves
and reflected through the claims and claim adjustment
expenses line. In transactions where the consideration
paid exceeds the estimated liabilities for claims and claim
adjustment expenses, a loss is recognised immediately.
(g) Reinsurance commission income
Reinsurance commission income represents commission
earned from ceding companies which is earned over the
terms of the underlying reinsurance contracts and presented
separately in the consolidated income statement.
(h) Receivables and payables related to insurance contracts
Receivables and payables are recognised when due. These
include amounts due to, and from, agents, brokers and
insurance contract holders. If there is objective
evidence that the insurance receivable is impaired, the
Group reduces the carrying amount of the insurance
receivable accordingly and recognises the impairment
loss in the income statement.
(i) Salvage and subrogation reimbursements
Some insurance contracts permit the Group to sell property
acquired in settling a claim (i.e. salvage). The Group may
also have the right to pursue third parties for payment of
some or all costs (i.e. subrogation). Estimates of salvage
recoveries are included as an allowance in the measurement
of the insurance liability for claims and salvage property
is recognised in other assets when the liability is settled.
The allowance is the amount that can reasonably be
recovered from the disposal of the property. Subrogation
reimbursements are also considered as an allowance in
the measurement of the insurance liability for claims and
are recognised in other assets when the liability is settled.
The allowance is the assessment of the amount that can
be recovered from the action against the liable third party.
2.14 Taxation
Current tax, including corporation tax and foreign tax, is
provided at amounts expected to be paid (or recovered) using
the tax rates and laws that have been enacted or substantively
enacted by the balance sheet date. A provision is recognised
for those matters for which the tax determination is uncertain
but it is considered probable that there will be a future outflow
of funds to a tax authority. The provisions are measured at the
best estimate of the amount expected to become payable.
The assessment is based on the judgement of tax professionals
within the Group supported by previous experience in respect
of such activities and in certain cases based on advice sought
from specialist tax advisors.
Deferred tax is provided in full, using the liability method,
on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial
statements. However, if the deferred income tax arises from
initial recognition of an asset or liability in a transaction other
than a business combination that at the time of the transaction
affects neither accounting nor taxable profit or loss, it is not
recognised. Deferred tax is determined using tax rates and
laws that have been enacted or substantively enacted by
the balance sheet date and are expected to apply when the
related deferred tax asset is realised or the deferred tax liability
is settled. Deferred tax assets are recognised to the extent that
it is probable that future taxable profit will be available against
which the temporary differences can be utilised. Deferred tax
is provided on temporary differences arising on investments in
subsidiaries and associates, except where the Group controls
the timing of the reversal of the temporary difference and it is
probable that the temporary difference will not reverse in the
foreseeable future.
2.15 Employee benefits
(a) Pension obligations
The Group operated both defined contribution and defined
benefit pension schemes during the year under review.
The defined benefit scheme closed to future accrual with
effect from 31December2006 and active members were
offered membership of the defined contribution scheme
from 1January2007. A defined contribution plan is a pension
plan under which the Group pays fixed contributions into a
separate entity and has no further obligation beyond the agreed
2 Basis of preparation
2.13 Insurance contracts continued

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A closer look
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Performance
and purpose
Chapter 4 94
Remuneration
contribution rate. A defined benefit plan is a pension plan
that defines an amount of pension benefit that an employee
will receive on retirement, usually dependent on one or more
factors such as age, years of service and compensation.
For defined contribution plans, the Group pays contributions
to publicly or privately administered pension insurance plans
on a contractual basis. The contributions are recognised as
an employee benefit expense when they are due. Prepaid
contributions are recognised as an asset to the extent that
a cash refund or a reduction in future payments is available.
The amount recognised on the balance sheet in respect of
defined benefit pension plans is the present value of the defined
benefit obligation at the balance sheet date, less the fair
value of plan assets. The calculation of the defined benefit
obligation is performed annually by a qualified actuary using
the projected unit method. As the plan is closed to all future
benefit accrual, each participant’s benefits under the plan are
based on their service to the date of closure or earlier leaving,
their final pensionable earnings at the measurement date and
the service cost is the expected administration cost during
the year. Past service costs are recognised immediately in
the income statement.
Remeasurements of the net defined benefit liability, which
comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling (if any,
excluding interest), are recognised immediately in other
comprehensive income. The Group determines the net interest
expense (income) on the net defined benefit liability (asset)
for the period by applying the discount rate used to measure
the defined benefit obligation at the beginning of the annual
period to the then net defined benefit liability (asset), taking
into account any changes in the net defined benefit liability
(asset) during the period as a result of contributions and benefit
payments. Net interest expense and other expenses related to
defined benefit plans are recognised in the income statement
through operating expenses.
To the extent that a surplus emerges on the defined benefit
obligation, it is only recognisable as an asset when it is
probable that future economic benefits will be recovered
by the Group in the form of refunds.
(b) Other long-term employee benefits
The Group provides sabbatical leave to employees on
completion of a minimum service period of ten years.
The present value of the expected costs of these benefits
is accrued over the period of employment. In determining
this liability, consideration is given to future increases in
salary levels, experience with employee departures and
periods of service.
(c) Share-based compensation
The Group operates a number of equity settled share-based
employee compensation plans. These include the share option
schemes, and the Group’s Performance Share Plans, outlined
in the Directors’ remuneration report together with the Group’s
Save As You Earn (SAYE) schemes. The fair value of the
employee services received, measured at grant date, in exchange
for the grant of the awards is recognised as an expense, with
the corresponding credit being recorded in retained earnings
within equity. The total amount to be expensed over the vesting
period is determined by reference to the fair value of the awards
granted, excluding the impact of any non-market vesting
conditions (for example, profitability or net asset growth targets).
Non-market vesting conditions are included in assumptions
about the number of awards that are expected to become
exercisable. At each balance sheet date, the Group revises its
estimates of the number of awards that are expected to vest.
The Group recognises the impact of the revision of original
estimates, if any, in the income statement, and a corresponding
adjustment to equity, in periods in which the estimates are revised.
When the terms and conditions of an equity settled
share-based employee compensation plan are modified,
and the expense to be recognised increases as a result of the
modification, then the increase is recognised evenly over the
remaining vesting period. When a modification reduces the
expense to be recognised, there is no adjustment recognised
and the pre-modification expense continues to be applied.
The proceeds received net of any directly attributable
transaction costs are credited to share capital and share
premium when the options are exercised.
(d) Termination benefits
Termination benefits are payable when employment is
terminated before the normal retirement date, or whenever
an employee accepts voluntary redundancy in exchange for
these benefits. The Group recognises termination benefits
when it is demonstrably committed to either: terminating the
employment of current employees according to a detailed
formal plan without possibility of withdrawal; or providing
termination benefits as a result of an offer made to encourage
voluntary redundancy.
(e) Profit sharing and bonus plans
The Group recognises a liability and an expense for bonuses
and profit sharing, based on a formula that takes into
consideration the profit attributable to the Company’s
shareholders after certain adjustments. The Group
recognises a provision where a contractual obligation to
employees exists or where there is a past practice that
has created a constructive obligation.
(f) Accumulating compensation benefits
The Group recognises a liability and an expense for
accumulating compensation benefits (for example, holiday
entitlement), based on the additional amount that the
Group expects to pay as a result of the unused entitlement
accumulated at the balance sheet date.
2.16 Net investment hedge accounting
In order to qualify for hedge accounting, the Group is required
to document in advance the relationship between the item
being hedged and the hedging instrument. The Group is
also required to document and demonstrate an assessment
of the relationship between the hedged item and the hedging
instrument, which shows that the hedge will be highly
effective on an ongoing basis. This effectiveness testing is
reperformed at each period end to ensure that the hedge
remains highly effective. The Group hedged elements of
its net investment in certain foreign entities through foreign
currency borrowings that qualified for hedge accounting
from 3January2007 until their replacement on 6May2008;
2 Basis of preparation
2.15 Employee benefits
(a) Pension obligations continued

154 Hiscox Ltd Report and Accounts 2021
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Governance
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A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
accordingly gains or losses on retranslation are recognised
in equity to the extent that the hedge relationship was effective
during this period. Accumulated gains or losses will be
recycled to the income statement only when the foreign
operation is disposed of. The ineffective portion of any
hedge is recognised immediately in the income statement.
2.17 Finance costs
Finance costs consist of interest charges accruing on the
Group’s borrowings and bank overdrafts together with
commission fees charged in respect of Letters of Credit
and interest in respect of lease liabilities. Arrangement
fees in respect of financing arrangements are charged
over the life of the related facilities.
2.18 Provisions
Provisions are recognised where there is a present
obligation (legal or constructive) as a result of a past
event that can be measured reliably and it is probable
that an outflow of economic benefits will be required to
settle that obligation.
2.19 Leases
(a) Hiscox as lessee
The Group recognises right-of-use assets at the commencement
date of the lease (i.e. the date the underlying asset is available
for use). Right-of-use assets are measured at cost, less any
accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments
made at or before the commencement date less any lease
incentives received. Unless the Group is reasonably certain
to obtain ownership of the leased asset at the end of the lease
term, the recognised right-of-use assets are depreciated on
a straight-line basis over the shorter of its estimated useful
life and the lease term. Right-of-use assets are subject
to impairment. Right-of-use assets are presented on the
balance sheet as ‘property, plant and equipment’.
At the commencement date of the lease, the Group recognises
lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments
include fixed payments (including in-substance fixed payments)
less any lease incentives receivable, variable lease payments
that depend on an index or a rate, and amounts expected to
be paid under residual value guarantees. The lease payments
also include the exercise price of a purchase option reasonably
certain to be exercised by the Group and payments of penalties
for terminating a lease, if the lease term reflects the Group
exercising the option to terminate. The variable lease payments
that do not depend on an index or a rate are recognised as
an expense in the period in which the event or condition that
triggers the payment occurs. Lease liabilities are included in
‘trade and other payables’ on the balance sheet.
In calculating the present value of lease payments, the
Group uses the incremental borrowing rate at the lease
commencement date if the interest rate implicit in the lease
is not readily determinable. After the commencement date,
the amount of lease liabilities is increased to reflect the
accretion of interest and reduced for the lease payments
made. In addition, the carrying amount of lease liabilities is
remeasured if there is a modification that is not accounted
for as a separate lease: future lease payments that are
linked to a rate or index, a change in the lease term, a
change in the in-substance fixed lease payments, a change
in the assessment to purchase the underlying asset or a
change in the amounts expected to be payable under a
residual value guarantee.
The Group applies the short-term lease recognition
exemption to its short-term leases (i.e. those leases
that have a lease term of 12 months or less from the
commencement date and do not contain a purchase option).
It also applies the lease of low-value assets recognition
exemption to leases of office equipment that are considered
of low value. Lease payments on short-term leases and
leases of low-value assets are recognised as expense
on a straight-line basis over the lease term.
(b) Hiscox as lessor
Rental income from operating leases is recognised
on a straight-line basis over the term of the relevant
contractual agreement.
2.20 Dividend distribution
Dividend distribution to the Company’s shareholders is
recognised as a liability in the Group’s financial statements
in the period in which the dividends are approved.
2.21 Use of significant judgements, estimates
and assumptions
The preparation of financial statements requires the
Group to select accounting policies and make judgements,
estimates and assumptions that affect the reported
amounts of assets, liabilities, income and expenses
in the consolidated financial statements.
The Audit Committee reviews the reasonableness of critical
judgements, estimates and assumptions applied and the
appropriateness of significant accounting policies. The
significant issues considered by the Committee in the year are
included within the Audit Committee report on pages 89 to 91.
Significant accounting judgements
The following accounting policies are those considered to
have a significant impact on the amounts recognised in the
consolidated financial statements, with those judgements
involving estimation summarised thereafter.
A Consolidation: assessment of whether the Group controls
an underlying entity, for example, the treatment of
insurance-linked securities funds including consideration
of its decision-making authority and its rights to the
variable returns from the entity;
A
Insurance contracts: assessment of the significance
of insurance risk transferred to/from the Group in
determining whether a contract should be accounted
for as an insurance contract or as a financial instrument.
This includes assessing the risk transferred on loss
portfolio transfers and the appropriate presentation
of retroactive reinsurance transactions;
A
Financial investments: classification and measurement of
investments including the application of the fair value option.
Significant accounting estimates
All estimates are based on management’s knowledge of
current facts and circumstances, assumptions based
2 Basis of preparation
2.16 Net investment hedge accounting continued

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Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
on that knowledge and their predictions of future
events. Actual results may differ from those estimates,
possibly significantly.
Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future
periods affected.
The following describes items considered particularly
susceptible to changes in estimates and assumptions.
The most critical estimate included within the Group’s
balance sheet is the measurement of insurance liabilities and
reinsurance assets on the balance sheet, and in particular
the estimate of losses incurred but not reported (IBNR)
within these balances. The total gross estimate of IBNR as at
31December2021 is $4,539.8 million (2020: $4,571.9million).
The total estimate for reinsurers’ share of losses IBNR as at
31 December 2021 is $2,349.5million (2020:$2,227.7 million).
Estimates of IBNR are continually evaluated, based on
entity-specific historical experience and contemporaneous
developments observed in the wider industry when relevant,
and are also updated for expectations of prospective future
developments. Between the reporting and final settlement
of a claim circumstances may change, which may result in
changes to the established liability. The overall reserving risk
is discussed in more detail in note 3.2 and the procedures
used in estimating the cost of settling insured losses at
the balance sheet date including losses incurred but not
reported are detailed in note 23.
The Group tests the adequacy of its unearned premium
liability by comparing current estimates of future claims
and claims handling expenses attributable to the unexpired
periods of policies at the balance sheet date to the unearned
premium liability net of acquisition costs. As set out in note
2.13(d), any deficiency is recognised in the income statement.
The related deferred acquisition costs are first written down
and any additional liability required is then recognised as an
unexpired risk reserve (URR).
Another key estimate contained within the Group’s
consolidated financial statements is an estimate of gross
premiums written during the year. For certain contracts,
premium is initially recognised based on estimates of ultimate
premium. This occurs where pricing is based on variables,
which are not known with certainty at the point of binding the
policy. In determining the estimated premium, the Group
uses information provided by brokers and coverholders,
past underwriting experience, the contractual terms
of the policy and prevailing market conditions. Subsequently,
adjustments to those estimates arise as updated information
relating to those pricing variables becomes available, for
example due to declarations obtained on binding authority
contracts, reinstatement premium on reinsurance contracts
or other policy amendments. Such adjustments are recorded
in the period in which they are determined and impact gross
premiums written in the consolidated income statement and
premiums receivable from insureds and cedants recorded on
the consolidated balance sheet.
The Group carries its financial investments at fair value
through profit or loss, with fair values determined using
published price quotations in the most active financial markets
in which the assets trade, where available. Where quoted
market prices are not available, valuation techniques are
used to value financial instruments. These include third-party
valuation reports and models utilising both observable and
unobservable market inputs. Valuation techniques involve
judgement, including the use of valuation models and their
inputs, which can lead to a range of plausible valuations for
financial investments. Note 3.3 discusses the reliability of
the Group’s fair values.
The employee retirement benefit scheme obligations are
calculated and valued with reference to a number of actuarial
assumptions including mortality, inflation rates and discount
rate, many of which have been subject to specific recent
volatility. This complex set of economic variables can have
a significant impact on the financial statements, as shown
in note 27.
The Group operates in a complex multinational environment,
and legislation concerning the determination of taxation
assets and liabilities is complex and continually evolving.
In preparing the financial statements, the Group applies
significant judgements in identifying uncertainties over
tax treatments and in the measurement of the provision
being the best estimate of the amount expected to become
payable. The assessment is based on the judgement of
tax professionals within the Group supported by previous
experience in respect of such activities and based on
advice sought from specialist tax advisors.
A deferred tax asset can be recognised only to the extent
that it is recoverable. The recoverability of deferred tax
assets in respect of carry forward losses requires consideration
of the future levels of taxable profit in the Group. In preparing
the Group’s financial statements, management estimates
taxation assets and liabilities after taking appropriate
professional advice, as shown in note 25. Significant estimates
and assumptions used in the valuation of deferred tax relate
to the forecast taxable profits, taking into account the Group’s
financial and strategic plans. See note 26 for further details
of adjustments made to deferred tax during the year.
The determination and finalisation of agreed taxation assets
and liabilities may not occur until several years after the
reporting date and consequently the final amounts payable
or receivable may differ from those presented in these
financial statements.
2.22 Reporting of additional performance measures
The Directors consider that the combined ratio measures
reported in respect of operating segments and the Group
overall in note 4 and net asset value per share and return on
equity measures disclosed in notes 5 and 6, provide useful
information regarding the underlying performance of the
Group’s businesses. These measures are widely recognised
by the insurance industry and are consistent with the internal
performance measures reviewed by senior management
including the chief operating decision-maker. However, these
measures are not defined within the accounting standards and
interpretations, and therefore may not be directly comparable
with similarly titled additional performance measures reported
by other companies.
2 Basis of preparation
2.21 Use of significant judgements, estimates
and assumptions
Significant accounting estimates continued

156 Hiscox Ltd Report and Accounts 2021
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Governance
Chapter 5 128
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Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
3 Management of risk
The Group’s overall appetite for accepting and managing
varying classes of risk is defined by the Group’s Board
of Directors. The Board has developed a governance
framework and has set Group-wide risk management
policies and procedures which include risk identification,
risk management and mitigation and risk reporting. The
objective of these policies and procedures is to protect
the Group’s shareholders, policyholders and other
stakeholders from negative events that could hinder
the Group’s delivery of its contractual obligations and
its achievement of sustainable profitable economic and
social performance.
The Board exercises oversight of the development and
operational implementation of its risk management policies
and procedures through the Risk Committee and ongoing
compliance therewith, through a dedicated internal audit
function, which has operational independence, clear terms
of reference influenced by the Board’s Non Executive Directors
and aclear upwards reporting structure back into the Board.
The Group, in line with the non-life insurance industry generally,
is fundamentally driven by adesire to originate, retain and
service insurance contracts to maturity. The Group’s cash flows
are funded mainly through advance premium collections and
the timing of such premium inflows is reasonably predictable.
In addition, the majority of material cash outflows are typically
triggered by the occurrence of insured events, although the
timing, frequency and severity of claims can fluctuate.
The Group continues to monitor and respond to Covid-19
as required, in particular any continued developments and
the impacts related to our operations, insurance claims,
reinsurance assets and investments on the Group’s capital
and liquidity positions.
The principal sources of risk relevant to the Group’s operations
and its financial statements fall into three broad categories:
operational risk, insurance risk and financial risk, which are
described in notes 3.1, 3.2 and 3.3 below. The Group also
actively manages its capital risks as detailed in note 3.4 and tax
risks as detailed in note 3.5. Additional unaudited information is
also provided in the corporate governance, risk management
and capital sections of this Report and Accounts.
3.1 Operational risk
The Group demonstrated continued resilience, underscoring
the benefits of its business model, disciplined risk management
and ongoing investment in technology and infrastructure. The
measures the Group has implemented to adapt to the Covid-19
pandemic have proven largely effective in addressing the
relevant challenges and operational risks and some of these
measures represent an acceleration of longer-term plans.
3.2 Insurance risk
The predominant risk to which the Group is exposed is insurance
risk which is assumed through the underwriting process.
Insurance risk can be sub-categorised into i) underwriting risk
including the risk of catastrophe and systemic insurance losses
and the insurance competition and cycle, and ii) reserving risk.
i) Underwriting risk
The Board sets the Group’s underwriting strategy and risk
appetite, seeking to exploit identified opportunities in light
of other relevant anticipated market conditions.
The Board requires all underwriters to operate within an overall
Group appetite for individual events. This defines the maximum
exposure that the Group is prepared to retain on its own
account for any one potential catastrophe event or disaster.
In addition, the Group’s overall underwriting risk appetite
seeks to ensure that in a 1-in-200 bad year we are within the
underwriting risk limit. The limit is calibrated each year based
on exposure, expected profit and the size of other correlated
risks to enable us to continue in business and take advantage
of market opportunities that arise. This approach is still being
refined and is expected to be further updated for 2022.
Specific underwriting objectives such as aggregation limits,
reinsurance protection thresholds and geographical disaster
event risk exposures are prepared and reviewed by the
Group Chief Underwriting Officer in order to translate the Board’s
summarised underwriting strategy into specific measurable
actions and targets. These actions and targets are reviewed
and approved by the Board in advance of each underwriting
year. The Board continually reviews its underwriting strategy
throughout each underwriting year in light of the evolving market
pricing and loss conditions and as opportunities present
themselves. The Group’s underwriters and management
consider underwriting risk at an individual contract level, and also
from a portfolio perspective where the risks assumed in similar
classes of policies are aggregated and the exposure evaluated
in light of historical portfolio experience and prospective factors.
To assist with the process of pricing and managing
underwriting risk, the Group routinely performs a wide
range of activities including the following:
A
regularly updating the Group’s risk models;
A documenting, monitoring and reporting on the Group’s
strategy to manage risk;
A
developing systems that facilitate the identification of
emerging issues promptly;
A
utilising sophisticated computer modelling tools to
simulate catastrophes and measure the resultant
potential losses before and after reinsurance;
A
monitoring legal developments and amending the
wording of policies when necessary;
A
regularly aggregating risk exposures across individual
underwriting portfolios and known accumulations of risk;
A
examining the aggregated exposures in advance of
underwriting further large risks; and
A
developing processes that continually factor market
intelligence into the pricing process.
The delegation of underwriting authority to specific individuals,
both internally and externally, is subject to regular review.
All underwriting staff and binding agencies are set strict
parameters in relation to the levels and types of business
they can underwrite, based on individual levels of experience
and competence. These parameters cover areas such as the
maximum sums insured per insurance contract, maximum
gross premiums written and maximum aggregated exposures
per geographical zone and risk class. Regular meetings are held
between the Group Chief Underwriting Officer and aspecialist
team in order to monitor claims development patterns and
discuss individual underwriting issues as they arise. The Group
compiles estimates of losses arising from extreme loss events
using statistical models alongside input from its underwriters.
These require significant management judgement. The extreme
loss scenarios, shown on page 41, represent hypothetical
major events occurring in areas with large insured values.

157Hiscox Ltd Report and Accounts 2021
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Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
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Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
They also represent areas of potentially significant exposure for
Hiscox. In addition to understanding the loss Hiscox may suffer
from an event, it is important to ensure that the risk models
used are calibrated to the risks faced today. This includes
updating trends in claims payments, and capturing climate
change-related impacts. Hiscox has a climate risk framework,
which is used to assess where research resources should be
focused, and models updated, and as a result improves not
only the Group’s understanding of the potential impact of a
changing climate but also the Group’s ability to respond.
The selection of extreme loss scenario events is adjusted
each year and they are not therefore necessarily directly
comparable from one year to the next. The events are extreme
and unprecedented, and as such these estimates may prove
inadequate as a result of incorrect assumptions, model
deficiencies, or losses from unmodelled risks. This means that
should an extreme loss event actually occur, the Group’s final
ultimate losses could materially differ from those estimates
modelled by management. The Group’s insurance contracts
include provisions to contain losses, such as the ability to impose
deductibles and demand reinstatement premiums in certain
cases. In addition, in order to manage the Group’s exposure
to repeated catastrophic events (both man-made and natural
catastrophes), relevant policies frequently contain payment
limits to cap the maximum amount payable from these insured
events over the contract period. In the case of climate-exposed
risks specifically, the vast majority of contracts written by the
Group are annual in nature and thus can be revised frequently.
This flexibility is a key tool for managing the multi-decade
challenge of climate risks holistically.
The Group also manages underwriting risk by purchasing
reinsurance. Reinsurance protection is purchased at an entity
level and is also considered at an overall Group level to mitigate
the effect of catastrophes and unexpected concentrations of
risk. However, the scope and type of reinsurance protection
purchased may change depending on the extent and
competitiveness of cover available in the market. Below is
asummary of the gross and net insurance liabilities for each
category of business.
The estimated liquidity profile to settle the gross claims
liabilities is given in note 3.3(e).
The specific insurance risks accepted by the Group fall
broadly into the following main categories: reinsurance
inwards, marine and major asset property, other property
risks, casualty professional indemnity and casualty other
insurance risks. These specific categories are defined for risk
review purposes only, as each contains risks specific to the
nature of the cover provided. They are not exclusively aligned
to any specific reportable segment in the Group’s operational
structure or to the primary internal reports reviewed by the
chief operating decision-maker. The Group also considers
climate change to be a cross-cutting risk with potential to
impact each existing risk type, rather than a standalone
risk. By design, the established and embedded Group risk
management framework provides a controlled and consistent
system for the identification, measurement, mitigation,
monitoring and reporting of risks (both current and emerging)
and so is structured in a way that allows us to continually and
consistently manage the various impacts of climate risk on the
risk profile. This is supported by equally robust processes and
policies that address climate-related underwriting risks, such
as the Group-wide ESG exclusions policy which represents
a commitment to reduce steadily and eliminate by 2030 both
underwriting and investment exposure to coal-fired power
plants and coal mines; Arctic energy exploration, beginning
with the Arctic National Wildlife Refuge; oil sands; and
controversial weapons such as landmines. More information
on the strategy and governance structures in place to manage
climate-related risks can be found on pages 44 to 59. The
following describes the policies and procedures used to
identify and measure the risks associated with each individual
category of business.
Reinsurance inwards
The Group’s reinsurance inwards acceptances are primarily
focused on large commercial property, homeowner and marine
and short-tail specialty exposures held by other insurance
companies predominantly in North America and other
developed economies. This business is characterised more
by large claims arising from individual events or catastrophes
than the high-frequency, low-severity attritional losses
associated with certain other business written by the Group.
Multiple insured losses can periodically arise out of asingle
natural or man-made occurrence. The main circumstances
that result in claims against the reinsurance inwards book are
conventional catastrophes, such as earthquakes or storms,
but also includes other events including fires, explosions and
cyber events. The occurrence and impact of these events
3 Management of risk
3.2 Insurance risk
i) Underwriting risk continued
Estimated concentration of gross and net insurance liabilities on the balance sheet as at 31December 2021
Types of insurance risk in the Group
Reinsurance
inwards
$m
Property –
marine and
major assets
$m
Property –
other
assets
$m
Casualty –
professional
indemnity
$m
Casualty –
other risks
$m
Other*
$m
Total
$m
Total Gross 2,349.4 281.9 1,505.7 2,705.3 1,298.9 727. 2 8,868.4
Net 633.2 127.6 926.4 2,172.1 6 0 8.1 493.0 4,960.4
Estimated concentration of gross and net insurance liabilities on the balance sheet as at 31December 2020
Types of insurance risk in the Group
Reinsurance
inwards
$m
Property –
marine and
major assets
$m
Property –
other
assets
$m
Casualty –
professional
indemnity
$m
Casualty –
other risks
$m
Other*
$m
Total
$m
Total Gross 2,592.7 286.7 1,3 0 8.1 2,650.4 1,576.5 699.0 9,113.4
Net 812.8 13 8.1 671.3 2,268.6 1,0 97.0 481.0 5,468.8
*Includes a diverse mix of certain specialty lines such as kidnap and ransom, terrorism and other risks which contain amix of property and casualty exposures.

158 Hiscox Ltd Report and Accounts 2021
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Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
are very difficult to predict over the short term, which
complicates attempts to anticipate claims frequencies
on an annual basis. In those years where there is alow
incidence of severe catastrophes, claims frequencies on
the reinsurance inwards book can be relatively low.
A significant proportion of the reinsurance inwards business
provides cover on an excess of loss basis for individual
events. The Group agrees to reimburse the cedant once
their losses exceed aminimum level. Consequently the
frequency and severity of reinsurance inwards claims are
related not only to the number of significant insured events
that occur but also to their individual magnitude. If numerous
catastrophes occurred in any one year, but the cedant’s
individual loss on each was below the minimum stated,
then the Group would have no liability under such contracts.
Maximum gross line sizes and aggregate exposures are
set for each type of programme.
The Group writes reinsurance risks for periods of mainly
one year so that contracts can be assessed for pricing
and terms and adjusted to reflect any changes in market
conditions and the evolving impact of climate change.
Property risks – marine and major assets
The Group directly underwrites a diverse range of
property risks. The risk profile of the property covered
under marine and major asset policies is different to that
typically contained in the other classes of property
(such as private households and contents insurance)
covered by the Group.
Typical property covered by marine and other major
property contracts includes fixed and moveable assets
such as ships and other vessels, cargo in transit, energy
platforms and installations, pipelines, other subsea assets,
satellites, commercial buildings and industrial plants
and machinery. These assets are typically exposed to
a blend of catastrophic and other large loss events and
attritional claims arising from conventional hazards such
as collision, flooding, fire and theft. Climate change may
give rise to more frequent and severe extreme weather
events (for example windstorms and river flooding) and it
may be expected that their frequency will increase over time.
For this reason, the Group accepts major property insurance
risks for periods of mainly one year so that each contract
can be repriced on renewal to reflect the continually evolving
risk profile. The most significant risks covered for periods
exceeding one year are certain specialist lines such as
marine and offshore construction projects which can
typically have building and assembling periods of between
three and four years. These form a small proportion of the
Group’s overall portfolio.
Marine and major property contracts are normally underwritten
by reference to the commercial replacement value of the
property covered. The cost of repairing or rebuilding assets,
of replacement or indemnity for contents and time taken to
restart or resume operations to original levels for business
interruption losses are the key factors that influence the level
of claims under these policies. The Group’s exposure to
commodity price risk in relation to these types of insurance
contracts is very limited, given the controlled extent of business
interruption cover offered in the areas prone to losses of
asset production.
Other property risks
The Group provides home and contents insurance, together
with cover for artwork, antiques, classic cars, jewellery,
collectables and other assets. The Group also extends cover
to reimburse certain policyholders when named insureds or
insured assets are seized for kidnap and aransom demand is
subsequently met. Events which can generate claims on these
contracts include burglary, kidnap, seizure of assets, acts of
vandalism, fires, flooding and storm damage. Losses on most
classes can be predicted with agreater degree of certainty as
there is arich history of actual loss experience data and the
locations of the assets covered, and the individual levels of
security taken by owners, are relatively static from one year to
the next. The losses associated with these contracts tend to
be of a higher frequency and lower severity than the marine
and other major property assets covered above.
The Group’s home and contents insurance contracts are
exposed to weather and climate-related risks such as floods
and windstorms and their consequences. As outlined earlier,
the frequency and severity of these losses do not lend
themselves to accurate prediction over the short term.
Contract periods are therefore not normally more than
one year at a time to enable risks to be regularly repriced.
Contracts are underwritten by reference to the commercial
replacement value of the properties and contents insured.
Claims payment limits are always included to cap the amount
payable on occurrence of the insured event.
Casualty insurance risks
The casualty underwriting strategy attempts to ensure that
the underwritten risks are well diversified in terms of type and
amount of potential hazard, industry and geography. However,
the Group’s exposure is more focused towards professional,
general, technological and marine liability risks rather than
human bodily injury risks, which are only accepted under
limited circumstances. Claims typically arise from incidents
such as errors and omissions attributed to the insured,
professional negligence and specific losses suffered as
aresult of electronic or technological failure of software
products and websites.
The provision of insurance to cover allegations made against
individuals acting in the course of fiduciary or managerial
responsibilities, including directors and officers’ insurance,
is one example of a casualty insurance risk.
The Group’s casualty insurance contracts mainly experience
low-severity attritional losses. By nature, some casualty losses
may take longer to settle than other categories of business.
In addition, there is increased potential for accumulation
in casualty risk due to the growing complexity of business,
technological advances, and greater interconnectivity and
interdependency across the world due to globalisation.
The Group’s pricing strategy for casualty insurance policies
is typically based on historical claim frequencies and
average claim severities, adjusted for inflation and
extrapolated forwards to incorporate projected changes
3 Management of risk
3.2 Insurance risk
i) Underwriting risk
Reinsurance inwards continued

159Hiscox Ltd Report and Accounts 2021
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Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
in claims patterns. In determining the price of each policy,
an allowance is also made for acquisition and administration
expenses, reinsurance costs, investment returns and the
Group’s cost of capital.
The market for cyber insurance is still a relatively immature
one, complicated by the fast-moving nature of the threat, as
the world becomes even more connected. The risks associated
with cyber insurance are multiplying in both diversity and scale,
with associated financial and reputational consequences of
failing to prepare for them. The Group has focused its cyber
expertise on prevention, in addition to the more traditional
recovery product. Cyber products are sold through our
businesses in the UK, USA and Europe, and the product is
sold both direct to consumers and through a more traditional
broker channel.
ii) Reserving risk
The Group’s procedures for estimating the outstanding costs
of settling insured losses at the balance sheet date, including
claims incurred but not yet reported, are detailed in note 23.
The Group’s provision estimates are subject to rigorous
review by senior management from all areas of the business.
The managed Syndicates and US business receive a review of
their estimates from independent actuaries. The final provision
is approved by the relevant boards on the recommendation of
dedicated reserving committees.
Similar to the underwriting risk detailed above, the Group’s
reserve risks are well diversified. Short-tailed claims are
normally notified and settled within 12 to 24 months of the
insured event occurring. Those claims taking the longest
time to develop and settle typically relate to casualty risks,
where legal complexities occasionally develop regarding
the insured’s alleged omissions or negligence. The length
of time required to obtain definitive legal judgments and
make eventual settlements exposes the Group to adegree
of reserving risk in an inflationary environment.
The final quantum for casualty claims may not be established
for many years after the event. A significant proportion of the
casualty insurance amounts reserved on the balance sheet
may not be expected to settle within 24 months of the balance
sheet date. Consequently, our approach is not to recognise
favourable experience in the early years of development in the
reserving process when setting the best estimate.
Certain marine and property insurance contracts, such as
those relating to subsea and other energy assets and the
related business interruption risks, can also take longer
than normal to settle. This is because of the length of time
required for detailed subsea surveys to be carried out and
damage assessments agreed, together with difficulties
in predicting when the assets can be brought back into
full production.
For the inwards reinsurance lines, there is often a time lag
between the establishment and re-estimate of case reserves
and reporting to the Group. The Group works closely with the
reinsured to ensure timely reporting and also centrally analyses
industry loss data to verify the reported reserves.
In addressing specific aspects of the impact of Covid-19 on
Hiscox in relation to insurance risk, the Group focuses on:
A
handling claims arising from the Covid-19 pandemic
in a fair, consistent and efficient way. Actively settling
claims for business interruption, event cancellation
and abandonment, media and entertainment and
other segments including travel;
A working with reinsurers to finalise the
reinsurance recoveries.
Following the Supreme Court Judgment in January 2021,
the Group began paying claims in line with the judgment.
The Group has increased its claims handling capacity, and the
process of collecting information from customers who have
cover and settling their claims progresses well. Settling these
claims remains a high priority for the Group. Further, the UK
business interruption book has now been re-underwritten
under the appropriate pandemic exclusion terms.
While the Group incurred additional losses early in 2021 due
to additional UK lockdown measures in January, we have also
benefitted from positive prior-year development on first order
Covid-19-related losses in our events and contingency book.
Consequently, there has been no material movement in Covid-19
losses for the year. The ultimate amounts of these claims
remain subject to a higher than normal level of uncertainty in the
best estimate at this stage of development. Consequentially, in
measuring the liabilities, the Group has included an allowance
for risk and uncertainties that is above the best estimate.
In determining the Covid-19-related net claims, the Group
estimates the reinsurers’ share of the claims by applying
a consistent set of assumptions with those in determining
the gross claims, considering the individual wording of the
reinsurance treaties, and assessing the potential for default
or dispute risks. Changes to this set of assumptions and
estimates could materially affect the amount of reinsurers’
share of the claims.
3.3 Financial risk
Overview
The Group is exposed to financial risk through its ownership
of financial instruments including financial liabilities. These
items collectively represent asignificant element of the Group’s
net shareholder funds. The Group invests in financial assets in
order to fund obligations arising from its insurance contracts
and financial liabilities.
The key financial risk for the Group is that the proceeds from
its financial assets and investment result generated thereon
are not sufficient to fund the Group’s obligations. The most
important elements and economic variables that could result in
such an outcome relate to the reliability of fair value measures,
equity price risk, interest rate risk, credit risk, liquidity risk and
currency risk. The Group’s policies and procedures for managing
exposure to these specific categories of risk are detailed below.
(a) Reliability of fair values
The Group has elected to carry loans and receivables at
amortised cost and all financial investments at fair value
through profit or loss as they are managed and evaluated on
afair value basis in accordance with adocumented strategy.
With the exception of any unquoted investments shown in
note 20, all of the financial investments held by the Group are
3 Management of risk
3.2 Insurance risk
i) Underwriting risk
Casualty insurance risks continued

160 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
available to trade in markets and the Group therefore seeks
to determine fair value by reference to published prices or as
derived by pricing vendors using observable quotations in the
most active financial markets in which the assets trade.
The fair value of financial assets is measured primarily with
reference to their closing market prices at the balance sheet
date. The ability to obtain quoted market prices may be reduced
in periods of diminished liquidity. In addition, those quoted prices
that may be available may represent an unrealistic proportion
of market holdings or individual trade sizes that could not be
readily available to the Group. In such instances, fair values may
be determined or partially supplemented using other observable
market inputs such as prices provided by market makers such
as dealers and brokers, and prices achieved in the most recent
regular transaction of identical or closely-related instruments
occurring before the balance sheet date but updated for
relevant perceived changes in market conditions.
The Group did not experience any material defaults on
debt securities during the year.
Valuation of securities will continue to be impacted by external
market factors including default rates, rating agency actions and
liquidity. The Group will make adjustments to the investment
portfolio as appropriate as part of its overall portfolio strategy,
but its ability to mitigate its risk by selling or hedging its
exposures may be limited by the market environment.
The Group’s future results may be impacted, both positively and
negatively, by the valuation adjustments applied to securities.
Note 20 provides an analysis of the measurement
attributes of the Group’s financial instruments.
(b) Price risk
The Group is exposed to price risk through its holdings of
equities and investment funds. This is limited to a relatively
small and controlled proportion of the overall investment
portfolio and the equities and investment funds involved
are diversified over a number of companies and industries.
The fair value of equities and investment fund assets in the
Group’s balance sheet at 31December2021 was $461million
(2020:$464million). A 10% downward correction in equities
and investment fund prices at 31December2021 would have
been expected to reduce Group equity and profit after tax by
approximately $41million (2020:$38 million).
These may be analysed as follows:
Nature of equity and investment fund holdings
2021
% weighting
2020*
% weighting
Directly held equity securities 10 10
Equity funds 55 60
Hedge funds 35 30
Geographic focus
Specific UK mandates 38 46
Global mandates 62 54
* Certain debt and bond funds have been reallocated from investment funds to
debt and fixed income holdings to better reflect the nature of the investments.
The allocation of price risk is not heavily confined to any one
market index so as to reduce the Group’s exposure to individual
sensitivities. We make allocations to diversifying and less
volatile strategies, such as absolute return strategies, so as to
balance our desire to maximise returns with the need to ensure
capital is available to support our underwriting throughout any
downturn in financial markets.
(c) Interest rate risk
Debt and fixed income investments represent asignificant
proportion of the Group’s assets and the Board continually
monitors investment strategy to minimise the risk of afall in
the portfolio’s market value which could affect the amount
of business that the Group is able to underwrite or its ability
to settle claims as they fall due. The fair value of the Group’s
investment portfolio of debt and fixed income holdings is
normally inversely correlated to movements in market interest
rates. If market interest rates rise, the fair value of the Group’s
debt and fixed income investments would tend to fall and
vice versa if credit spreads remained constant. Debt
and fixed income assets are predominantly invested in
high-quality corporate, government and asset-backed bonds.
The investments typically have relatively short durations and
terms to maturity. The portfolio is managed to minimise the
impact of interest rate risk on anticipated Group cash flows.
The Group may also, from time to time, enter into interest
rate future contracts in order to reduce interest rate risk on
specific portfolios. The fair value of debt and fixed income
assets in the Group’s balance sheet at 31December2021
was $5,528million (2020*: $5,588million). These may be
analysed below as follows:
Nature of debt and fixed income holdings
2021
% weighting
2020*
% weighting
Government issued 16 20
Agency and government supported 6 5
Asset-backed securities 2 –
Mortgage-backed instruments 7 6
Corporate bonds 65 64
Lloyd’s deposits and bond funds 2 3
Credit funds 2 2
* Certain debt and bond funds have been reallocated from investment funds to
debt and fixed income holdings to better reflect the nature of the investments.
One method of assessing interest rate sensitivity is through
the examination of duration-convexity factors in the underlying
portfolio. Using a duration-convexity-based sensitivity analysis,
if market interest rates had increased or decreased by 100
basis points at the balance sheet date, the Group equity
and profit after tax for the year might have been expected to
decrease or increase by approximately $94million respectively
(2020:$90million) assuming that the balance sheet area
impacted was debt and fixed income financial assets excluding
interest rate futures. Duration is the weighted average length
of time required for an instrument’s cash flow stream to be
recovered, where the weightings involved are based on the
discounted present values of each cash flow. Aclosely related
concept, modified duration, measures the sensitivity of the
instrument’s price to a change in its yield to maturity. Convexity
measures the sensitivity of modified duration to changes in
the yield to maturity. Using these three concepts, scenario
modelling derives the above estimated impact on instruments’
3 Management of risk
3.3 Financial risk
(a) Reliability of fair values continued

Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
161Hiscox Ltd Report and Accounts 2021
fair values for a 100 basis point change in the term structure
of market interest rates.
Insurance contract liabilities are not directly sensitive to the
level of market interest rates, as they are undiscounted
and contractually non-interest-bearing. The Group’s debt
and fixed income assets are further detailed in note 17.
At 31December2021, the Group had borrowings of
£550million (2020:£691million). The borrowings
comprised of £nil drawn on the Group’s borrowing facility
(2020:£141million) and £550million (2020:£550million)
of long-term debt. The £550million includes two listed
instruments of £275million each, as explained in note 17:
the first being fixed-to-floating rate notes where the
floating rate becomes effective from November2025; the
second being fixed rate notes maturing in December2022.
The Group has no other significant borrowings or other
assets or liabilities carrying interest rate risk, other than the
facilities and Letters of Credit (LOCs) outlined in note 30.
(d) Credit risk
The Group has exposure to credit risk, which is the risk
that acounterparty will suffer adeterioration in actual or
perceived financial strength and be unable to pay amounts
in full when due, or that for any other reason they renege
on a contract or alter the terms of an agreement. The
concentrations of credit risk exposures held by insurers
may be expected to be greater than those associated with
other industries, due to the specific nature of reinsurance
markets and the extent of investments held in financial
markets. In both markets, the Group interacts with anumber
of counterparties who are engaged in similar activities with
similar customer profiles, and often in the same geographical
areas and industry sectors. Consequently, as many of these
counterparties are themselves exposed to similar economic
characteristics, one single localised or macroeconomic change
could severely disrupt the ability of a significant number of
counterparties to meet the Group’s agreed contractual terms
and obligations.
Key areas of exposure to credit risk include:
A
reinsurers’ share of insurance liabilities;
A
amounts due from reinsurers in respect of claims
already paid;
A
amounts due from insurance contract holders; and
A counterparty risk with respect to cash and cash
equivalents, and investments including deposits,
derivative transactions and catastrophe bonds.
The Group’s maximum exposure to credit risk is
represented by the carrying values of financial assets
and reinsurance assets included in the consolidated
balance sheet at any given point in time. The Group does
not use credit derivatives or other products to mitigate
maximum credit risk exposures on reinsurance assets,
but collateral may be requested to be held against these
assets. The Group structures the levels of credit risk
accepted by placing limits on its exposure to a single
counterparty, or groups of counterparties, and having
regard to geographical locations. Such risks are subject
to an annual or more frequent review.
3 Management of risk
3.3 Financial risk
(c) Interest rate risk continued
There is no significant concentration of credit risk with respect
to loans and receivables, as the Group has alarge number of
internationally dispersed debtors with unrelated operations.
Reinsurance is used to contain insurance risk. This does
not, however, discharge the Group’s liability as primary
insurer. If areinsurer fails to pay a claim for any reason, the
Group remains liable for the payment to the policyholder.
The creditworthiness of reinsurers is therefore continually
reviewed throughout the year.
The Group Credit Committee assesses the creditworthiness
of all reinsurers by reviewing credit grades provided by rating
agencies and other publicly available financial information
detailing their financial strength and performance, as well as
detailed analysis from the Group’s analysis team. The financial
analysis of reinsurers produces an assessment categorised
by factors including their S&P rating (or equivalent when not
available from S&P).
Despite the rigorous nature of this assessment exercise, and
the resultant restricted range of reinsurance counterparties
with acceptable strength and credit credentials that emerges
therefrom, some degree of credit risk concentration
remains inevitable.
The Committee considers the reputation of its reinsurance
partners and also receives details of recent payment history
and the status of any ongoing negotiations between Group
companies and these third parties.
This information is used to update the reinsurance
purchasing strategy.
Individual operating units maintain records of the payment
history for significant brokers and contract holders with
whom they conduct regular business. The exposure
to individual counterparties is also managed by other
mechanisms, such as the right of offset, where counterparties
are both debtors and creditors of the Group, and obtaining
collateral from unrated counterparties. Management
information reports detail provisions for impairment on
loans and receivables and subsequent write-off. Exposures
to individual intermediaries and groups of intermediaries
are collected within the ongoing monitoring of the controls
associated with regulatory solvency.
The Group also mitigates counterparty credit risk by
concentrating debt and fixed income investments in a portfolio
of typically high-quality corporate and government bonds.

162 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
An analysis of the Group’s major exposures to counterparty credit risk excluding loans and receivables, and equities and units in
unit trusts, based on S&P or equivalent rating, is presented below:
As at 31 December 2021 Note
AAA
$m
AA
$m
A
$m
BBB
$m
Other/
non-rated
$m
Total
$m
Debt and fixed income holdings 17 660.5 1,326.7 1,556.2 1,6 0 4.1 380.6 5,528.1
Reinsurance assets
16 959.2 1,029.9 1,760.8 123.4 34.7 3,908.0
Cash and cash equivalents
21 141.4 35.7 1,122.4 0.3 0.9 1,300.7
Total 1,761.1 2,392.3 4,439.4 1,727. 8 416.2 10,736.8
As at 31 December 2020 Note
AAA
$m
AA
$m
A
$m
BBB
$m
Other/
non-rated
$m
Total
$m
Debt and fixed income holdings* 17 411.3 1,948.2 1,586.7 1,426.8 215.3 5,588.3
Reinsurance assets
16 1,079.7 946.7 1,396.0 188.7 33.5 3,644.6
Cash and cash equivalents
21 134.0 98.9 1,339.6 3.5 1.2 1,577. 2
Total 1,625.0 2,993.8 4,322.3 1,619.0 250.0 10,810.1
*The 2020 figures have been re-presented for the re-allocation of certain equities to debt holdings.
Within the debt and fixed income holdings, which include debt securities, deposits with credit institutions, credit funds and cash
equivalent assets, there are exposures to a range of government borrowers, on either a direct or guaranteed basis, and banking
institutions. The Group, together with its investment managers, closely manages its geographical exposures across government
issued and supported debt.
The largest aggregated counterparty exposure related to debt and fixed income holdings at 31December2021 of $712million is
to the US Treasury (2020:$920million).
The Group is exposed to concentrations of risk with individual reinsurers due to the nature of the reinsurance market and the
restricted range of reinsurers that have acceptable credit ratings. The largest counterparty exposure included in reinsurance
assets at 31December2021 is to Munich Re. The recoverable from Munich Re represents 11% (2020: Kiskadee 19%) of this
category of assets.
For the current period and prior period, the Group did not experience any material defaults on debt securities. The Group’s AAA
rated reinsurance assets include fully collateralised positions at 31December2021 and 2020.
3 Management of risk
3.3 Financial risk
(d) Credit risk continued

163Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
(e) Liquidity risk
The Group is exposed to daily calls on its available cash resources, mainly from claims arising from insurance and reinsurance
contracts. Liquidity risk is the risk that cash may not be available to pay obligations when due at a reasonable cost. The Board
sets limits on the minimum level of cash and maturing funds available to meet such calls and on the minimum level of borrowing
facilities that should be in place to cover unexpected levels of claims and other cash demands.
A significant proportion of the Group’s investments is in highly liquid assets which could be converted to cash in aprompt fashion
and at minimal expense. The Group’s exposure to equities is concentrated on shares and funds that are traded on internationally
recognised stock exchanges.
The main focus of the investment portfolio is on high-quality, short-duration debt and fixed income securities and cash. There
are no significant holdings of investments with specific repricing dates. Notwithstanding the regular interest receipts and also
the Group’s ability to liquidate these securities and the majority of its other financial instrument assets for cash in aprompt and
reasonable manner, the contractual maturity profile of the fair value of these securities at 31December is as follows.
Fair values at balance sheet date analysed by contractual maturity
Less than
one year
$m
Between one
and two years
$m
Between two
and five years
$m
Over
five years
$m
2021
total
$m
2020*
total
$m
Debt and fixed income holdings 1,111.2 1,26 3.1 2,510.7 643.1 5,528.1 5,588.3
Cash and cash equivalents 1,300.7 – – – 1,300.7 1,577. 2
Total 2,411.9 1,26 3.1 2,510.7 643.1 6,828.8 7,16 5.5
*The 2020 figures have been re-presented for the re-allocation of certain debt and bond funds to debt and fixed income holdings.
The Group’s equities, equity funds, hedge funds and credit funds and other non-dated instruments have no contractual maturity
terms but predominantly could be liquidated in an orderly manner for cash in a prompt and reasonable time frame within one year
of the balance sheet date.
During the year, the Group has repaid all of the cash borrowings that were drawn as contingency funds during the peak of the
Covid-19 pandemic.
The available headroom of working capital is monitored through the use of a detailed Group cash flow forecast which is reviewed
by management quarterly, or more frequently as required.
Average contractual maturity analysed by denominational currency of investments as at 31 December
2021
years
2020
years
US Dollar 4.89 3.04
Sterling 2.66 2.82
Euro 3.05 2.71
Canadian Dollar 2.47 2.02
3 Management of risk
3.3 Financial risk continued

164 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
The following is an analysis by liability type of the estimated timing of net cash flows based on the gross claims liabilities held.
The Group does not discount claims liabilities. The estimated phasing of settlement is based on current estimates and historical
trends and the actual timing of future settlement cash flows may differ materially from the disclosure below.
Liquidity requirements to settle estimated profile of gross claim liabilities on balance sheet
2021
Within
one year
$m
Between one
and two years
$m
Between two
and five years
$m
Over
five years
$m
2021
total
$m
Reinsurance inwards 1,126.4 471.0 416.9 140.2 2,154.5
Property – marine and major assets 85.8 48.3 50.6 18.1 202.8
Property – other assets 456.0 353.9 153.2 59.8 1,022.9
Casualty – professional indemnity 828.5 517.0 553.7 145.8 2,045.0
Casualty – other risks 553.4 266.3 238.1 75.3 1,133.1
Other* 282.2 92.0 84.9 28.5 487.6
Total 3,332.3 1,748.5 1,497.4 467.7 7,0 4 5. 9
2020
Within
one year
$m
Between one
and two years
$m
Between two
and five years
$m
Over
five years
$m
2020
total
$m
Reinsurance inwards 1,16 8. 2 561.4 5 07. 5 154.1 2,391.2
Property – marine and major assets 78.3 55.8 46.8 14.8 195.7
Property – other assets 444.0 364.0 151.8 52.6 1,012.4
Casualty – professional indemnity 730.2 490.0 519.2 137.1 1,876.5
Casualty – other risks 650.7 338.7 278.5 74.3 1,342.2
Other* 265.2 95.3 87.4 25.5 473.4
Total 3,336.6 1,905.2 1,591.2 458.4 7, 291. 4
*Includes a diverse mix of certain specialty lines such as kidnap and ransom, terrorism and other risks which contain a mix of property and casualty exposures.
Details of the payment profile of the Group’s borrowings, derivative instruments and other liabilities are given in notes 17, 19 and 24.
(f) Currency risk
Currency risk is the risk of loss resulting from fluctuations in exchange rates. The Group operates internationally and therefore is
exposed to the financial impact of fluctuations in the exchange rates of various currencies.
The Group’s exposures to foreign exchange risk arise mainly with respect to the US Dollar, Sterling and the Euro. These exposures
may be classified in two main categories:
A
operational foreign exchange exposure arises from the conversion of foreign currency transactions resulting from the
activities of entering into insurance, investment and operational contracts in a currency that is different to each respective
entity’s functional currency; and
A
structural foreign exchange exposure arises from the translation of the Group’s net investment in foreign operations to the
US Dollar, the Group’s presentation currency.
Operational currency risk
Operational foreign exchange risk is principally managed within the Group’s individual entities by broadly matching assets
and liabilities by currency and liquidity. Due attention is paid to local regulatory solvency and risk-based capital requirements.
All foreign currency derivative transactions with external parties are managed centrally.
The Group does not hedge operational foreign exchange risk arising from the accounting mismatch due to the translation of
monetary and non-monetary items. Non-monetary items including unearned premiums, deferred acquisition costs and reinsurers’
share of unearned premiums are recorded at historical transaction rates and are not remeasured at the reporting date. Monetary
items including claims reserves, reinsurers’ share of claims reserves, and investments are remeasured at each reporting date at
the closing rates.
3 Management of risk
3.3 Financial risk
(e) Liquidity risk continued

165Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
Structural currency risk
The Group’s exposure to structural currency risks mainly relates to Sterling and the Euro net investments in businesses operating
in the UK and Europe. The Group’s risk appetite permits the acceptance of structural foreign exchange movements within defined
aggregate limits and exchange rate parameters which are monitored centrally. However, the Group does not ordinarily seek to use
derivatives to mitigate the structural risk because:
A
the currency translation gains and losses are accounted for in the currency translation reserve (a component of equity)
and do not affect the income statement unless the related foreign operation is disposed of;
A
the currency translation gains and losses have no cash flow.
In periods of significant volatility that are expected to persist for an extended period of time, the Group may elect to utilise
derivatives to mitigate or reduce the risk in order to preserve capital.
The currency profile of the Group’s assets and liabilities is as follows:
As at 31 December 2021
US Dollar
$m
Sterling
$m
Euro
$m
Other
$m
2021
$m
Goodwill and intangible assets 141.7 136.0 29.3 6.1 313.1
Property, plant and equipment 20.1 47.9 17.0 5.4 90.4
Investments in associates – 5.5 0.2 – 5.7
Deferred income tax 27. 3 33.6 6.4 – 67. 3
Deferred acquisition costs 243.3 111.3 61.3 21.0 436.9
Financial assets carried at fair value 4,147.8 1,180.9 496.4 216.2 6,041.3
Reinsurance assets 2,982.6 573.9 224.9 126.6 3,908.0
Loans and receivables including insurance receivables 795.6 607.4 154.5 120.7 1,678.2
Current tax assets 4.4 – 0.5 – 4.9
Cash and cash equivalents 612.5 425.0 156.9 106.3 1,300.7
Total assets 8,975.3 3,121.5 1,147.4 602.3 13,846.5
Employee retirement benefit obligations – 35.1 – – 35.1
Deferred tax – – 0.1 – 0.1
Insurance liabilities 6,093.8 1,679.0 833.5 262.1 8,868.4
Financial liabilities – 746.5 – 0.2 746.7
Current tax 2.8 13.6 4.8 0.1 21.3
Trade and other payables 931.3 353.0 239.9 111.4 1,635.6
Total liabilities 7,027.9 2,827.2 1,078.3 373.8 11, 307. 2
Total equity 1,947.4 294.3 69.1 228.5 2,539.3
As at 31 December 2020
US Dollar
$m
Sterling
$m
Euro
$m
Other
$m
2020
$m
Goodwill and intangible assets 141.1 146.0 7.7 4.1 298.9
Property, plant and equipment 35.3 49.1 22.4 2.6 109.4
Investments in associates – 4.9 – – 4.9
Deferred income tax 26.4 37.1 7. 2 – 70.7
Deferred acquisition costs 240.0 116.3 63.5 19.4 439.2
Financial assets carried at fair value 4,159.3 1,221.9 6 07. 0 128.6 6,116.8
Reinsurance assets 2,525.4 746.7 221.2 151.3 3,644.6
Loans and receivables including insurance receivables 938.6 5 3 3.1 99.7 84.0 1,655.4
Current tax assets 2.3 – 1.0 – 3.3
Cash and cash equivalents 754.0 493.0 197.7 132.5 1,57 7. 2
Total assets 8,822.4 3,348.1 1,2 27.4 522.5 13,920.4
Employee retirement benefit obligations – 73.5 – – 73.5
Deferred tax – – 2.7 – 2.7
Insurance liabilities 6,133.5 1,771.3 9 07.0 301.6 9,113.4
Financial liabilities 125.0 821.3 0.4 – 946.7
Current tax – 10.0 20.4 – 30.4
Trade and other payables 706.4 456.4 154.3 82.7 1,399.8
Total liabilities 6,964.9 3,132.5 1,084.8 384.3 11,566.5
Total equity 1,857.5 215.6 142.6 138.2 2,353.9
3 Management of risk
3.3 Financial risk
(f) Currency risk continued

166 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
Sensitivity analysis
As at 31December2021, the Group used closing rates of exchange of $1: £0.74 and $1: €0.88 (2020:$1: £0.73 and $1: €0.82).
The Group performs sensitivity analysis based on a 10% strengthening or weakening of the US Dollar against Sterling and
the Euro.
This analysis assumes that all other variables, in particular interest rates, remain constant and that the underlying valuation of
assets and liabilities in their base currency is unchanged. The process of deriving the undernoted estimates takes account of the
linear retranslation movements of foreign currency monetary assets and liabilities together with the impact on the retranslation of
those Group entities with non-US Dollar functional currency financial statements.
During the year, the Group transacted in a number of over-the-counter forward currency derivative contracts. The impact of these
contracts on the sensitivity analysis is negligible.
As at 31 December
December 2021
effect on equity
after tax
$m
December 2021
effect on profit
before tax
$m
December 2020
effect on equity
after tax
$m
December 2020
effect on profit
before tax
$m
Strengthening of Sterling 49.0 10.2 83.6 8.9
Weakening of Sterling (40.1) (8.4) (68.4) ( 7.3)
Strengthening of Euro 8.6 (18.5) 27. 2 (0.9)
Weakening of Euro (7.1) 15.2 (22.3) 0.7
(g) Limitations of sensitivity analysis
The sensitivity information given in notes 3.3 (a) to (f) demonstrates the estimated impact of achange in amajor input assumption
while other assumptions remain unchanged. In reality, there are normally significant levels of correlation between the assumptions
and other factors. It should also be noted that these sensitivities are non-linear, and larger or smaller impacts should not be
interpolated or extrapolated from these results. The same limitations exist in respect to the retirement benefit scheme sensitivities
presented in note 27 to these financial statements. Furthermore, estimates of sensitivity may become less reliable in unusual
market conditions such as instances when risk-free interest rates fall towards zero.
The sensitivity analysis does not take into consideration that the Group’s assets and liabilities are actively managed. Additionally,
the financial position of the Group may vary at the time that any actual market movement occurs. For example, the Group’s
financial risk management strategy aims to manage the exposure to market fluctuations. As investment markets move past
various trigger levels, management actions could include selling investments, changing investment portfolio allocation and
taking other protective action.
3.4 Capital risk management
The Group’s primary objectives when managing its capital position are:
A
to safeguard its ability to continue as agoing concern, so that it can continue to provide long-term growth and progressive
dividend returns for shareholders;
A
to provide an adequate return to the Group’s shareholders by pricing its insurance products and services commensurately
with the level of risk;
A
to maintain an efficient cost of capital;
A to comply with all regulatory requirements by an appropriate margin;
A to maintain financial strength ratings of A in each of its insurance entities; and
A to settle policyholders’ claims as they arise.
The Group sets the amount of capital required in its funding structure in proportion to risk. The Group then manages the capital
structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying
assets. In order to obtain or maintain an optimal capital structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares, assume debt, or sell assets to reduce debt.
The Group measures its capital requirements against its available capital. Available capital is defined by the Group as the total of
net tangible asset value and subordinated debt.
The subordinated debt issued by the Group is hybrid in nature, which means it counts towards regulatory and rating agency
capital requirements.
At 31December2021, the available capital under IFRS was $2,599million (2020:$2,431million), comprising net tangible asset
value of $2,226million (2020:$2,055million) and subordinated debt of $373million (2020: $376million).
3 Management of risk
3.3 Financial risk
(f) Currency risk continued

167Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
The Group can source additional funding from revolving credit and Letter of Credit (LOC) facilities. Standby funding from these
sources comprised $941million at 31December2021 (2020:$946million).
The Group’s borrowing facilities include financial covenants that are standard in such arrangements, including certain balance
sheet measures. These are monitored on a regular basis, at least quarterly, but more frequently where necessary.
The Board ensures that the use and allocation of capital are given a primary focus in all significant operational actions. With that
in mind, the Group has developed and embedded capital modelling tools within its business.
These join together short-term and long-term business plans and link divisional aspirations with the Group’s overall strategy.
The models provide the basis of the allocation of capital to different businesses and business lines, as well as the regulatory
and rating agency capital processes.
Gearing
The Group currently utilises gearing as an additional source of funds to maximise the opportunities from strong markets and to
reduce the risk profile of the business in weaker markets, particularly with respect to the more volatile business. The Group’s
gearing is obtained from a number of sources, including:
A
LOC and revolving credit facility – the Group’s main facility may be drawn in cash up to £450 million (under a revolving
credit facility) and utilised as LOC up to $266 million. The facility was renewed during 2020, enabling the Group to utilise
the LOC as Funds at Lloyd’s to support underwriting on the 2020, 2021 and 2022 years of account. The revolving
credit facility is available until the end of 2022. As at 31 December 2021, $266 million was utilised by way of LOC to
support the Funds at Lloyd’s requirement and $nil cash drawings outstanding to support general trading activities
(2020: $266 million and $193.4 million respectively);
A
In 2020, the Group sourced an additional $65 million of funding in the form of a Funds at Lloyd’s facility. Under this facility
assets are pledged with the Corporation of Lloyd’s on the Group’s behalf, providing regulatory tier 1 capital. As at
31 December 2021 the facility was fully drawn;
A £275million of fixed-to-floating rate subordinated notes that are classified as Tier 2 debt. This was raised in November2015
and matures in 2045. The debt is rated BBB- by S&P and Fitch;
A
£275million of fixed rate senior notes raised in March2018 and maturing in 2022. The debt is rated BBB+ by S&P and Fitch;
A External Names – 27.4% of Syndicate 33’s capacity is capitalised by third parties, who also pay aprofit share of
approximately 20%;
A
Syndicate 6104 at Lloyd’s – with a capacity of £13million for the 2022 year of account (2021 year of account: £23million).
This Syndicate is wholly backed by external members and takes pure year of account quota share of Syndicate 33’s property
catastrophe, terrorism and cyber reinsurance accounts;
A
gearing quota shares – historically the Group has used reinsurance capital to fund its capital requirement for short-term
expansions in the volume of business underwritten by the Syndicate; and
A
qualifying quota shares and loss portfolio transfers – these are reinsurance arrangements that allow the Group to increase
the amount of premium it writes.
Financial strength
The financial strength ratings of the Group’s significant insurance company subsidiaries are outlined below:
A.M. Best Fitch S&P
Hiscox Insurance Company Limited A (Excellent) A+ A (Strong)
Hiscox Insurance Company (Bermuda) Limited A (Excellent) A+ A (Strong)
Hiscox Insurance Company (Guernsey) Limited A (Excellent) A+ –
Hiscox Insurance Company Inc. A (Excellent) – –
Hiscox Société Anonyme – – A (Strong)
Syndicate 33 benefits from an A.M. Best rating of A (Excellent). In addition, the Syndicate also benefits from the Lloyd’s ratings of
A(Excellent) from A.M. Best, A+ (Strong) from S&P, AA- (Very strong) from Fitch and AA- from Kroll Bond Rating Agency.
Capital performance
The Group’s main capital performance measure is the achieved return on equity (ROE). This marker aligns the aspirations of
employees and shareholders. As variable remuneration relates directly to ROE and it is used as a key metric within the business
planning process, this concept is embedded in the workings and culture of the Group. The Group seeks to maintain its cost of
capital levels and its debt to overall equity ratios in line with others in the non-life insurance industry.
3 Management of risk
3.4 Capital risk management continued

168 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
Capital modelling and regulation
The capital requirements of an insurance group are determined by its exposure to risk and the solvency criteria established by
management and statutory regulations.
The Group’s capital requirements are managed both centrally and at a regulated entity level. The assessed capital requirement
for the business placed through Hiscox Insurance Company Limited, Hiscox Insurance Company (Bermuda) Limited, Hiscox
Insurance Company (Guernsey) Limited, Hiscox Insurance Company Inc., Hiscox Société Anonyme and Direct Asia Insurance
(Singapore) Pte Limited is driven by the level of resources necessary to maintain regulatory requirements.
The Group’s regulatory capital is supervised by the Bermuda Monetary Authority (BMA). The Group had sufficient capital at all
times throughout the year to meet the BMA’s requirements. The BMA will complete phasing in capital requirements changes at
the 2021 year-end. The Group expects to maintain an appropriate margin of solvency after these changes have taken effect.
The Solvency II regime came into force in Europe on 1January2016. This requires insurance companies to calculate their
capital requirements using either an internal model or a standard formula. Hiscox Insurance Company Limited and Hiscox
Société Anonyme use the standard formula to calculate their regulatory capital requirements. Their risk profiles are sufficiently
well represented by the standard formula not to warrant going through the internal model approval process. Hiscox’s Lloyd’s
operations use the internal model that has been built to meet the requirements of the Solvency II regime. The model is
concentrated specifically on the particular product lines, market conditions and risk appetite of each risk carrier.
For Syndicate 33 and Syndicate 3624, internal model results are uplifted by Lloyd’s to the level of capital required to support its
ratings. Capital models are used more widely across the Group to monitor exposure to key risk types, inform decision-making
and measure ROE across different segments of the business. From the 2016 year-end, the Group has been required to publish
a financial condition report, as part of its regulatory filing with the BMA. This is a public document and sets out the financial
performance and solvency position of the Group in accordance with the economic balance sheet return filed with the BMA.
It is intended to provide the public with certain information to be able to make informed assessments about the Group. In the
Group’s other geographical territories, including the USA and Asia, its subsidiaries underwriting insurance business are
required to operate within broadly similar risk-based externally imposed capital requirements when accepting business.
During the year the Group was in compliance with capital requirements imposed by regulators in each jurisdiction where the
Group operates.
3.5 Tax risk
The Group is subject to income taxes levied by the various jurisdictions in which the Group operates, and the division of taxing
rights between these jurisdictions results in the Group tax expense and effective rate of income tax disclosed in these financial
statements. Due to the Group’s operating model, there is an unquantifiable risk that this division of taxing rights could be altered
materially, either by a change to the tax residence, or permanent establishment profile, of Hiscox Ltd or its principal subsidiaries;
or due to the re-pricing or re-characterisation for tax purposes of transactions between members of the Group, under local
transfer pricing or related tax legislation. The Group seeks to manage this risk by:
A
maintaining appropriate internal policies and controls over its operations worldwide;
A
monitoring compliance with these policies on an ongoing basis;
A
adhering to internationally recognised best practice in determining the appropriate division of profits between
taxing jurisdictions;
A
taking additional advice and obtaining legal opinions from local third-party professionals with the necessary experience
in the particular area.
Various jurisdictions in which the Group operates are currently considering implementation of OECD ‘Pillar 2’ rules, which,
if legislation is substantively enacted, could change the existing division of taxing rights to which the Group is subject, and
consequently have a material impact on the Group’s tax expense and effective rate of income tax in future periods.
The Group seeks to maintain an open dialogue with the relevant tax authorities and to resolve any issues arising promptly.
The Group recognises uncertain tax provisions where there is uncertainty that a tax treatment will be accepted under local law,
including matters which are under discussion with the tax authorities. Based on facts and circumstances at the balance sheet
date, the range of the total exposure is estimated between $25million and $83million. The estimate is subject to review on an
ongoing basis and is susceptible to the progress of the settlement discussions with the tax authorities. Matters under discussion
which could affect the estimate include the Hiscox Group’s policy on the allocation of expenses between companies within the
Group, the allocation of income and expenses between branches of the same company, and the period subject to re-assessment.
3 Management of risk
3.4 Capital risk management continued

169Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
4 Operating segments
The Group’s operating segment reporting follows the organisational structure and management’s internal reporting systems,
which form the basis for assessing the financial reporting performance of, and allocation of resources to, each business segment.
In January2021, the Hiscox Special Risks division was restructured, integrating its locally written European and US kidnap and
ransom activities with Hiscox Europe and Hiscox USA, and including its activities in Guernsey, Miami and London in a newly
created Crisis Management division in Hiscox London Market. Comparative figures have been re-presented to reflect this change,
along with the previously reported figures where Special Risks was fully allocated to Hiscox Retail. The legal entity structure is not
impacted by this re-presentation.
The Group’s four primary business segments are identified as follows:
A
Hiscox Retail brings together the results of the Group’s retail business divisions in the UK, Europe, USA and Asia. Hiscox UK
and Hiscox Europe underwrite personal and commercial lines of business through Hiscox Insurance Company Limited and
Hiscox Société Anonyme (Hiscox SA), together with the fine art and non-US household insurance business written through
Syndicate 33. Hiscox USA comprises commercial, property and specialty business written by Hiscox Insurance Company
Inc. and Syndicate 3624.
A
Hiscox London Market comprises the internationally traded insurance business written by the Group’s London-based
underwriters via Syndicate 33, including lines in property, marine and energy, casualty and other specialty insurance lines.
In addition, the segment includes elements of business written by Syndicate 3624 being auto physical damage and aviation,
however, these are in run-off.
A
Hiscox Re & ILS is the reinsurance division of the Hiscox Group, combining the underwriting platforms in Bermuda and
London. The segment comprises the performance of Hiscox Insurance Company (Bermuda) Limited, excluding the
internal quota share arrangements, with the reinsurance contracts written by Syndicate 33. In addition, the healthcare and
casualty reinsurance contracts written in Bermuda on Syndicate capacity are also included. The segment also includes the
performance and fee income from the ILS funds, along with the gains and losses made as a result of the Group’s investment
in the funds.
A
Corporate Centre comprises finance costs and administrative costs associated with Group management activities and
intragroup borrowings, as well as all foreign exchange gains and losses. The segment includes results from run-off portfolios
where the Group has ceded all insurance risks to a third-party reinsurer.
All amounts reported on the following pages represent transactions with external parties only. In the normal course of trade,
the Group’s entities enter into various reinsurance arrangements with one another. The related results of these transactions are
eliminated on consolidation and are not included within the results of the segments. This is consistent with the information used by
the chief operating decision-maker when evaluating the results of the Group. Performance is measured based on each reportable
segment’s profit or loss before tax.

170 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
(a) Profit before tax by segment
Year to 31 December 2021 Year to 31 December 2020*
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
Corporate
Centre
$m
Total
$m
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
Corporate
Centre
$m
Total
$m
Gross premiums
written 2,290.0 1,171.4 8 07.8 – 4,269.2 2,18 0.0 1,10 9.7 74 3.4 – 4,03 3.1
Net premiums
written 1,969.3 711.5 274.2 – 2,955.0 1, 9 07. 8 649.9 192.7 – 2,750.4
Net premiums
earned 1,958.6 690.3 271.0 – 2,919.9 1,886.5 637.6 228.1 – 2,752.2
Investment result 26.9 15.8 8.8 (0.3) 51.2 103.4 60.5 33.6 – 197.5
Other income 22.8 19.1 11.3 3.6 56.8 20.3 14.9 12.5 2.5 50.2
Total income 2,008.3 725.2 291.1 3.3 3,0 27.9 2,010.2 713.0 274.2 2.5 2,999.9
Claims and claim
adjustment
expenses, net
of reinsurance (985.9) (333.9) (110.6) – (1,430.4) (1,409.2) (280.8) (232.7) – (1,922.7)
Expenses for
the acquisition
of insurance
contracts (524.9) (193.9) (15.9) – (734.7) (50 3.1) (184.3) (26.5) – (713.9)
Operational
expenses (435.7) (92.0) (64.7) (30.3) (622.7) (392.2) (92.6) (49.1) (39.1) (573.0)
Net foreign
exchange
gains/(losses) – – – 0.7 0.7 – – – (14.5) (14.5)
Total expenses (1,946.5) (619.8) (191.2) (29.6) (2,787.1) (2,304.5) ( 5 57.7 ) (308.3) (53.6) (3,224.1)
Results of
operating activities 61.8 105.4 99.9 (26.3) 240.8 (294.3) 155.3 (34.1) (51.1) (224.2)
Finance costs (6.9) (0.6) (1.4) (41.9) (50.8) (1.3) (0.1) (1.0) (41.6) (44.0)
Share of profit/
(loss) of associates
after tax – – – 0.8 0.8 – – – (0.3) (0.3)
Profit/(loss)
before tax 54.9 104.8 98.5 ( 67.4) 190.8 (295.6) 155.2 (3 5.1) (93.0) (268.5)
* See Note 4 on page 169 for further details.
Year to 31 December 2020
As previously reported
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
Corporate
Centre
$m
Total
$m
Gross premiums written 2,266.3 1,023.4 74 3.4 – 4,0 3 3.1
Net premiums written 1,986.8 570.9 192.7 – 2,750.4
Net premiums earned 1,975.5 548.6 228.1 – 2,752.2
Investment result 107. 3 56.6 33.6 – 197.5
Other income 21.4 13.8 12.5 2.5 50.2
Total income 2,104.2 619.0 274. 2 2.5 2,999.9
Claims and claim adjustment expenses, net of reinsurance (1,395.6) (294.4) (232.7) – (1,922.7)
Expenses for the acquisition of insurance contracts (539.0) (148.4) (26.5) – (713.9)
Operational expenses (405.9) (78.9) (49.1) (39.1) (573.0)
Net foreign exchange (losses) – – – (14.5) (14.5)
Total expenses (2,340.5) (521.7) (308.3) (53.6) (3, 224.1)
Results of operating activities (236.3) 97. 3 (3 4.1) (51.1) (224.2)
Finance costs (1.3) (0.1) (1.0) (41.6) (44.0)
Share of (loss) of associates after tax – – – (0.3) (0.3)
(Loss)/profit before tax (237.6) 97.2 (35.1) (93.0) (268.5)
4 Operating segments continued

171Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
(a) Profit before tax by segment continued
The following charges are included within the consolidated income statement:
Year to 31 December 2021 Year to 31 December 2020
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
Corporate
Centre
$m
Total
$m
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
Corporate
Centre
$m
Total
$m
Depreciation 16.1 2.2 2.0 0.5 20.8 16.4 2.6 2.7 0.1 21.8
Amortisation of
intangible assets 32.5 3.7 1.0 – 37. 2 26.4 4.2 1.0 – 31.6
Impairment of
intangible assets 0.3 – – – 0.3 0.2 – – – 0.2
Total 48.9 5.9 3.0 0.5 58.3 43.0 6.8 3.7 0.1 53.6
The Group’s wholly owned subsidiary, Hiscox Syndicates Limited, oversees the operation of Syndicate 33 at Lloyd’s. The Group’s
percentage participation in Syndicate 33 can fluctuate from year-to-year and, consequently, presentation of the results at the
100% level removes any distortions arising therefrom.
Year to 31 December 2021 Year to 31 December 2020*
Hiscox
Retail
Hiscox
London
Market
Hiscox
Re & ILS
Corporate
Centre Total
Hiscox
Retail
Hiscox
London
Market
Hiscox
Re & ILS
Corporate
Centre Total
100% ratio analysis
Claims ratio (%) 50.0 49.5 40.0 – 48.9 75.9 47.8 99.0 – 70.0
Expense ratio (%) 48.9 39.6 28.0 – 44.3 47. 5 41.4 32.8 – 44.5
Combined ratio (%) 98.9 89.1 68.0 – 93.2 123.4 89.2 131.8 – 114.5
*See note 4 on page 169 for further details.
Year to 31 December 2020
As previously reported
Hiscox
Retail
Hiscox
London
Market
Hiscox
Re & ILS
Corporate
Centre Total
100% ratio analysis
Claims ratio (%) 72.2 54.1 99.0 – 70.0
Expense ratio (%) 47.8 39.6 32.8 – 44.5
Combined ratio (%) 120.0 93.7 131.8 – 114.5
4 Operating segments

172 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
(a) Profit before tax by segment continued
The claims ratio is calculated as claims and claim adjustment expenses, net of reinsurance, as aproportion of net premiums
earned. The expense ratio is calculated as the total of expenses for the acquisition of insurance contracts, operational
expenses, including profit-related pay, as aproportion of net premiums earned. The combined ratio is the total of the claims
and expenses ratios. All ratios are calculated using the 100% results and excludes a run-off portfolio, where the Group has
ceded all insurance risks to a third-party reinsurer, included within Corporate Centre.
Costs allocated to Corporate Centre are non-underwriting-related costs and are not included within the combined ratio. The
impact on profit before tax of a1% change in each component of the segmental combined ratios is shown in the following table.
Any further ratio change is linear in nature.
Year to 31 December 2021 Year to 31 December 2020*
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
At 100% level (note 4(b))
1% change in claims or expense ratio 19.9 9.2 3.1 19.1 8.5 2.7
At Group level
1% change in claims or expense ratio 19.6 6.9 2.7 18.9 6.4 2.3
*See note 4 on page 169 for further details.
Year to 31 December 2020
As previously reported
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
At 100% level (note 4(b))
1% change in claims or expense ratio 20.1 7. 5 2.7
At Group level
1% change in claims or expense ratio 19.8 5.5 2.3
(b) 100% operating result by segment
Year to 31 December 2021 Year to 31 December 2020*
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
Corporate
Centre
$m
Total
$m
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
Corporate
Centre
$m
Total
$m
Gross premiums
written 2,323.7 1,583.5 887. 9 – 4,795.1 2,210.9 1,502.9 818.5 – 4,532.3
Net premiums
written 1,995.7 958.8 324.4 – 3,278.9 1,929.9 873.3 224.9 – 3,028.1
Net premiums
earned 1,985.0 924.1 313.3 – 3,222.4 1,910.7 850.0 269.4 – 3,0 3 0.1
Investment result 26.7 15.7 8.7 (0.3) 50.8 109.7 64.2 35.6 – 209.5
Other income 19.1 11.9 10.0 2.4 43.4 16.6 10.3 11.3 2.4 40.6
Claims and claim
adjustment
expenses, net
of reinsurance (991.7) (457.8) (125.2) – (1,574.7) (1,449.8) (406.6) (266.7) – (2,123.1)
Expenses for the
acquisition of
insurance contracts (531.8) (252.5) (16.6) – (800.9) (511.8) (238.8) (32.9) – (783.5)
Operational
expenses (439.1) (114.0) (71.1) (28.6) (652.8) (395.3) (113.0) (55.6) (38.9) (602.8)
Net foreign
exchange
(losses)/gains – – – (1.2) (1.2) – – – (12.6) (12.6)
Results of operating
activities 68.2 127.4 119.1 (27.7 ) 287.0 (319.9) 166.1 (38.9) (49.1) (241.8)
*See note 4 on page 169 for further details.
4 Operating segments

173Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
4 Operating segments
(b) 100% operating result by segment continued
Year to 31 December 2020
As previously reported
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
Corporate
Centre
$m
Total
$m
Gross premiums written 2,303.3 1,410.5 818.5 – 4,532.3
Net premiums written 2,015.1 78 8.1 224.9 – 3,0 28.1
Net premiums earned 2,007.6 753.1 269.4 – 3,030.1
Investment result 113.8 6 0.1 35.6 – 209.5
Other income 16.6 10.3 11.3 2.4 40.6
Claims and claim adjustment expenses, net of reinsurance (1,449.1) (4 07. 3) (266.7) – (2,123.1)
Expenses for the acquisition of insurance contracts (550.6) (200.0) (32.9) – (783.5)
Operational expenses (409.8) (98.5) (55.6) (38.9) (602.8)
Net foreign exchange (losses)/gains – – – (12.6) (12.6)
Results of operating activities (271.5) 117.7 (38.9) (49.1) (241.8)
Segment results at the 100% level presented above differ from those presented at the Group’s share at note 4(a) solely as aresult
of the Group not owning 100% of the capacity of Syndicate 33 at Lloyd’s.
(c) Geographical information
The Group’s operational segments underwrite business domestically in Bermuda and from locations in the UK, USA, Guernsey,
France, Germany, Belgium, The Netherlands, Spain, Portugal, Ireland, Singapore and Thailand.
The following table provides an analysis of the Group’s gross premium revenues earned by material geographical location from
external parties:
Gross premium revenues earned from external parties
Year to 31 December 2021 Year to 31 December 2020*
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
Corporate
Centre
$m
Total
$m
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
Corporate
Centre
$m
Total
$m
UK 815.7 90.8 31.9 – 938.4 759.2 63.8 28.8 – 851.8
Europe 456.1 70.9 33.6 – 560.6 426.1 6 6.1 24.5 – 516.7
USA 934.3 719.4 4 87. 2 – 2,140.9 903.2 710.6 512.9 – 2,126.7
Rest of world 71.4 271.8 263.8 – 607.0 58.5 280.6 236.9 – 576.0
2,277.5 1,152.9 816.5 – 4,246.9 2,147.0 1,121.1 8 03.1 – 4,071.2
*See note 4 on page 169 for further details.
Year to 31 December 2020
As previously reported
Hiscox
Retail
$m
Hiscox
London
Market
$m
Hiscox
Re & ILS
$m
Corporate
Centre
$m
Total
$m
UK 768.9 54.1 28.8 – 851.8
Europe 438.7 53.5 24.5 – 516.7
USA 918.7 695.1 512.9 – 2,126.7
Rest of world 113.4 225.7 236.9 – 576.0
2,239.7 1,028.4 8 0 3.1 – 4,071.2

174 Hiscox Ltd Report and Accounts 2021
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Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
4 Operating segments
(c) Geographical information continued
The following table provides an analysis of the Group’s non-current assets by material geographical location excluding financial
instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts:
Non-current assets
2021
total
$m
2020
total
$m
UK 222.5 250.5
Europe 46.5 12.8
USA 128.7 138.6
Rest of world 11.5 11.3
409.2 413.2
5 Net asset value per share and net tangible asset value per share
2021
net asset value
(total equity)
$m
2021
net asset value
per share
cents
2020
net asset value
(total equity)
$m
2020
net asset value
per share
cents
Net asset value 2,539.3 739.8 2,353.9 689.0
Net tangible asset value 2,226.2 648.6 2,055.0 601.5
The net asset value per share is based on 343,232,855 shares (2020:341,647,634 shares), being the shares in issue at
31December2021, less those held in treasury and those held by the Group Employee Benefit Trust.
Net tangible assets comprise total equity excluding intangible assets. The net asset value per share expressed in pence is
546.2p (2020:503.9p).
6 Return on equity
2021
$m
2020
$m
Profit/(loss) for the year (all attributable to owners of the Company) 189.5 (293.7)
Opening total equity 2,353.9 2,18 9.7
Adjusted for the time-weighted impact of capital distributions and issuance of shares (11.3) 307.8
Adjusted opening total equity 2,342.6 2,4 97. 5
Return on equity (%) 8.1 (11.8)
The return on equity is calculated by using profit for the period divided by the adjusted opening total equity. The adjusted opening
total equity represents the equity on 1January of the relevant year as adjusted for time-weighted aspects of capital distributions
and issuing of shares or treasury share purchases during the period. The time-weighted positions are calculated on a daily basis
with reference to the proportion of time from the transaction to the end of the period.

175Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
7 Investment result
The total investment result for the Group comprises:
Note
2021
$m
2020
$m
Investment income including interest receivable 88.1 107.4
Net realised gains on financial investments at fair value through profit or loss 25.2 45.5
Net fair value (losses)/gains on financial investments at fair value through profit or loss (57.9) 51.2
Investment result – financial assets
8 55.4 204.1
Net fair value gains/(losses) on derivative financial instruments
19 1.7 (2.1)
Investment expenses (5.9) (4.5)
Total result 51.2 197.5
8 Analysis of return on financial investments
(a) The weighted average return on financial investments for the year by currency, based on monthly asset values, was:
2021
%
2020
%
US Dollar 0.4 3.3
Sterling 1.5 2.3
Euro 1.1 0.3
Other 0.0 2.1
(b) Investment return
2021
return
$m
2021
yield
%
2020*
return
$m
2020*
yield
%
Debt and fixed income holdings (11.4) (0.2) 154.6 3.0
Equities and investment funds 66.2 11.6 45.1 10.5
Deposits with credit institutions/cash and cash equivalents 0.6 0.0 4.4 0.3
Investment result – financial assets 55.4 0.7 20 4.1 2.8
*Returns from certain debt and bond funds have been reallocated from investment funds to debt and fixed income to better reflect the nature of the investments.
There is no impact on the total investment result.

176 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
9 Other income and operational expenses
2021
$m
2020
$m
Agency-related income 27.7 22.1
Profit commission 4.8 1.5
Other underwriting income 0.2 2.5
Other income 24.1 24.1
Other income 56.8 50.2
Wages and salaries 228.9 188.7
Social security costs 30.8 33.1
Pension cost – defined contribution 17.3 13.1
Pension cost – defined benefit 1.0 1.1
Share-based payments 24.0 10.3
Temporary staff costs 39.6 40.2
Travel and entertainment 5.6 6.2
Legal and professional 71.6 63.0
Office costs 13.6 15.7
Computer costs 53.8 58.6
Depreciation, amortisation and impairment 58.3 56.8
Other expenses 78.2 86.2
Operational expenses 622.7 573.0
Agency-related income relates to commission received from a non-Group insurer by an insurance intermediary (‘agency’) for
placement services and in limited cases claims handling services. Commission income associated with the placement services
is recognised at the point in time when the agency has satisfied its performance obligation. That is when the terms of the insurance
policy have been agreed contractually by the insurer and policyholder and the insurer has a present right to payment from the
policyholder. Where the agency also provides the insurer with claims handling services, the commission income associated with
these services is recognised over time in line with the terms of the contractual arrangements.
Profit-commission income attributed to non-insurance entities, for example Lloyd’s managing agent and ILS investment
managers, is determined based on a best estimate of the variable consideration. The income is recognised to the extent
that it is highly probable that it will not be subject to significant reversal.
Other underwriting income represents results from the insurance-linked securities managed by the Group and other income
includes management fees which are recognised when the investment management services are rendered to the ILS funds.
As a result of the disposal of Crystal Ridge subsidiary for $21.4 million on 1 June 2021, the Group has de-recognised the relevant
assets and liabilities and made a gain on disposal of $5.2 million reported in other income.
Other expenses include marketing, VAT expense, other staff costs, Lloyd’s costs and subscriptions. Total marketing
expenditure (included in operational expenses and expenses for the acquisition of insurance contracts) for the year was
$56.6 million (2020: $59.4 million).
10 Finance costs
Note
2021
$m
2020
$m
Interest charge associated with borrowings 17 30.7 28.6
Interest and expenses associated with bank borrowing facilities 7.5 10.7
Interest and charges associated with Letters of Credit
30 5.0 2.4
Other interest expenses* 7.6 2.3
Finance costs 50.8 44.0
*Including interest expenses on lease liabilities of $1.2 million (2020: $1.4 million) and interest and charges associated with funds withheld balances.

177Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
11 Auditor’s remuneration
Fees payable to the Group’s external auditor, PwC, its member firms and its associates (exclusive of VAT) include the following
amounts recorded in the consolidated income statement:
Group
2021
$m
2020
$m
Amounts receivable by the auditor and its associates in respect of:
The auditing of the accounts of the Group and its subsidiaries 4.6 3.3
All audit-related assurance services 0.3 0.4
All other non-audit services – 0.1
4.9 3.8
The auditing of the Group and its subsidiaries in 2021 includes audit work relating to the implementation of IFRS 17 Insurance
Contracts of $0.3 million (2020: $nil) and $0.5 million relating to the audit of subsidiaries for the year-end 2020. The full audit fee
payable for the Syndicate 33 and Syndicate 6104 audit has been included above, although an element of this is borne by the
third-party participants in the Syndicate.
12 Goodwill and intangible assets
Goodwill
$m
Syndicate
capacity
$m
State
authorisation
licences
$m
Software and
development
costs
$m
Other
$m
Total
$m
At 1 January 2020
Cost 13.4 33.1 8.5 269.3 66.5 390.8
Accumulated amortisation and impairment
(5.1) – – ( 67. 2) (40.5) (112.8)
Net book amount 8.3 33.1 8.5 202.1 26.0 278.0
Year ended 31 December 2020
Opening net book amount 8.3 33.1 8.5 202.1 26.0 278.0
Additions – – – 62.5 – 62.5
Disposals – – – – (12.8) (12.8)
Amortisation charges – – – (27. 3 ) (4.3) (31.6)
Impairment charge – – – – (0.2) (0.2)
Foreign exchange movements 0.5 – – 4.6 (2.1) 3.0
Closing net book amount 8.8 33.1 8.5 241.9 6.6 298.9
At 31 December 2020
Cost 13.9 33.1 8.5 336.4 40.4 432.3
Accumulated amortisation and impairment (5.1) – – (94.5) (33.8) (133.4)
Net book amount 8.8 33.1 8.5 241.9 6.6 298.9
Year ended 31 December 2021
Opening net book amount 8.8 33.1 8.5 241.9 6.6 298.9
Additions – – – 53.5 – 53.5
Disposals – – – – – –
Amortisation charges – – – (35.3) (1.9) ( 37. 2)
Impairment charge (0.3) – – – – (0.3)
Foreign exchange movements (0.2) – – (1.3) (0.3) (1.8)
Closing net book amount 8.3 33.1 8.5 258.8 4.4 313.1
At 31 December 2021
Cost 11.5 33.1 8.5 386.4 20.2 459.7
Accumulated amortisation and impairment (3.2) – – (127.6) (15.8) (146.6)
Net book amount 8.3 33.1 8.5 258.8 4.4 313.1

178 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
Goodwill
Goodwill is allocated to the Group’s cash-generating units (CGUs) identified according to the smallest identifiable unit to which
cash flows are generated. $7.2million (2020:$7.6million) is allocated to the Lloyd’s corporate member entity CGU and $1.1million
(2020:$1.2million) is allocated to the CGUs within the Hiscox Retail business segment. Goodwill is considered to have an
indefinite life and as such is tested annually for impairment based on the recoverable amount which is considered to be the
higher of the fair value less cost to sell or value in use. During 2021, there was an impairment charge on goodwill of $0.3 million
(2020: $nil).
Value in use is considered to be the best indication of the recoverable amount for goodwill. Value in use calculations are performed
using cash flow projections based on financial forecasts. A discount factor, based on a weighted average cost of capital (WACC)
for the Group of 8.0% to 8.5%, depending on the underlying currency (2020:7.0% to 8.5%), has been applied to the projections to
determine the net present value. The outcome of the value in use calculation is measured against the carrying value of the asset
and, where the carrying value is in excess of the value in use, the asset is written down to this amount.
Impairment assessments
To test the sensitivity to variances, management flexed the key assumptions within a reasonably expected range. Within this
range, goodwill and other intangible assets recoveries were stress tested and remain supportable across all cash-generating
units or assets.
Intangible assets
All intangible assets have afinite useful life except for the Syndicate capacity and US state authorisation licences.
(a) Syndicate capacity
The cost of purchasing the Group’s participation in the Lloyd’s insurance syndicates is not amortised but is tested annually for
impairment and is carried at cost less accumulated impairment losses. Having considered the future prospects of the London
insurance market, the Board believes that the Group’s ownership of Syndicate capacity will provide economic benefits over an
indefinite number of future periods. This assumption is reviewed annually to determine whether the asset continues to have an
indefinite life.
The Group’s intangible asset relating to Syndicate capacity has been allocated, for impairment testing purposes, to one
individual CGU, being the active Lloyd’s corporate member entity. The asset is tested annually for impairment based on its
recoverable amount which is considered to be the higher of the asset’s fair value less costs to sell or its value in use. The fair
value of Syndicate capacity can be determined from the Lloyd’s Syndicate capacity auctions. The value in use is determined
using cash flow projections based on business plans approved by management and discounted at the applicable WACC rate.
At 31 December 2021, the value in use or the fair value less cost to sell exceeded the carrying value of Syndicate capacity
recognised on the balance sheet.
(b) US state authorisation licences
As part of a business combination in 2007, the Group acquired insurance authorisation licences for 50 US states. This
intangible asset has been allocated for impairment testing purposes to one individual CGU, being the Group’s North American
underwriting business.
The asset is not amortised, as the Group considers that economic benefits will accrue to the Group over an indefinite number
of future periods due to the stability of the US insurance market. This assumption is reviewed annually to determine whether the
asset continues to have an indefinite life.
The licences are tested annually for impairment, and accumulated impairment losses are deducted from the historical cost.
The carrying value of this asset is tested for impairment based on its value in use. The value in use is calculated using a projected
cash flow based on business plans approved by management and discounted at the WACC rate. Key assumptions include new
business growth, retention rates, market cycle and claims inflation. The results of the test show there is no impairment.
12 Goodwill and intangible assets continued

179Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
12 Goodwill and intangible assets
Intangible assets continued
(c) Software and development costs
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring into use the
specific software. These costs are amortised over the expected useful life of the software of between three and ten years
on a straight-line basis.
Internally developed computer software is only capitalised when it is probable that the expected future economic benefits that
are attributable to the asset will flow to the Group and the cost of the asset can be measured reliably. Amortisation of internally
developed computer software begins when the software is available for use and is allocated on a straight-line basis over the
expected useful life of the asset.
The useful life of the asset is reviewed annually and, if different from previous estimates, is changed accordingly with the change
being accounted for as a change in accounting estimates in accordance with IAS 8.
The carrying value of software and development costs is reviewed for impairment on an ongoing basis by reference to the stage
and expectation of aproject. Additionally, at the end of each reporting period, the Group reviews the positions for any indication
of impairment, and as a result of this no impairment was provided for 2021 (2020:$nil).
At 31December2021 there were $27.3 million of assets under development on which amortisation has yet to be charged
(2020:$16.4million).
The assets are expected to be recovered or settled more than 12 months after the reporting date and as such are considered to
be non-current.
(d) Rights to customer contractual relationships (included in other)
Costs directly attributable to securing the intangible rights to customer contractual relationships are recognised as an intangible
asset where they can be identified separately and measured reliably and it is probable that they will be recovered by directly
related future profits. These costs are amortised on a straight-line basis over the useful economic life which is deemed to be ten
years and are carried at cost less accumulated amortisation and impairment losses.
At the end of each reporting period, an assessment is made on whether there is any indication that customer contractual
relationships may be impaired. Where indications of impairment are identified, the carrying value is tested for impairment based
on the recoverable amount which is considered to be the higher of the fair value less costs to sell or value in use. The asset’s value
in use is considered to be the best indication of its recoverable amount. Value in use is calculated using the same method as
described above for goodwill and the same discount rate used. The results of this test led to no impairment charge on intangible
rights to customer contractual relationships in 2021 (2020: $0.2 million).

180 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
13 Property, plant and equipment
Land and
buildings
$m
Leasehold
improvements
$m
Furniture
fittings and
equipment
and art
$m
Right-of-use
assets:
property
$m
Right-of-use
assets:
other
$m
Total
$m
Year ended 31 December 2020
Opening net book amount 24.9 7.3 29.0 66.2 1.0 128.4
Additions – 0.3 8.8 3.2 1.0 13.3
Disposals (0.5) (3.6) (4.5) (4.1) – (12.7)
Depreciation charge (1.2) (1.3) (5.6) (13.1) (0.6) (21.8)
Foreign exchange movements – (0.1) 1.1 1.2 – 2.2
Closing net book amount 23.2 2.6 28.8 53.4 1.4 109.4
At 31 December 2020
Cost 30.2 13.6 61.1 79.7 2.7 187. 3
Accumulated depreciation ( 7.0 ) (11.0) (32.3) (26.3) (1.3) ( 77.9 )
Net book amount 23.2 2.6 28.8 53.4 1.4 109.4
Year ended 31 December 2021
Opening net book amount 23.2 2.6 28.8 53.4 1.4 109.4
Additions – – 5.4 4.2 0.3 9.9
Disposals – – (0.2) (6.2) 0.1 (6.3)
Depreciation charge (1.3) (0.7) (4.6) (13.5) (0.7) (20.8)
Foreign exchange movements (0.1) – (0.4) (1.0) (0.3) (1.8)
Closing net book amount 21.8 1.9 29.0 36.9 0.8 90.4
At 31 December 2021
Cost 29.9 13.6 65.8 68.2 2.7 180.2
Accumulated depreciation (8.1) (11.7) (36.8) (31.3) (1.9) (89.8)
Net book amount 21.8 1.9 29.0 36.9 0.8 90.4
The Group’s land and buildings assets relate to freehold property in the UK. There was an impairment charge during the year of
$nil (2020:$nil).
The assets are expected to be recovered or settled more than 12 months after the reporting date and as such are considered to
be non-current.
The income from subleasing right-of-use assets amounted to $0.7million (2020:$0.8million).
14 Subsidiaries, associates and interests in other entities
This note provides details of the Syndicates and Special Purpose Insurers (SPI) managed by the Group, the acquisition and
disposal of subsidiaries and associates during the year and investments in associates.
(a) Subsidiaries
Hiscox Dedicated Corporate Member Limited (HDCM) underwrites as a corporate member of Lloyd’s on the main Syndicates
managed by Hiscox Syndicates Limited (the main managed Syndicates numbered 33 and 3624).
As at 31December2021, HDCM owned 72.6% of Syndicate 33 (2020:72.6%), and 100% of Syndicate 3624 (2020:100%). In view
of the several but not joint liability of underwriting members at Lloyd’s for the transactions of Syndicates in which they participate,
the Group’s attributable share of the transactions, assets and liabilities of these Syndicates has been included in the financial
statements. The Group manages the underwriting of, but does not participate as a member of, Syndicate 6104 at Lloyd’s which
provides reinsurance to Syndicate 33 on a normal commercial basis. Consequently, aside from the receipt of managing agency
fees, defined profit commissions as appropriate and interest arising on effective assets included within the experience account,
the Group has no share in the assets, liabilities or transactions of Syndicate 6104. The position and performance of that Syndicate
is therefore not included in the Group’s financial statements.
(b) SPIs
The Kiskadee Diversified Fund and Kiskadee Select Fund were launched in 2014 to provide investment opportunities to
institutional investors in property catastrophe reinsurance and insurance-linked strategies. The funds are managed by
Hiscox Re Insurance Linked Strategies Ltd (formerly known as Kiskadee Investment Managers Ltd) which is a wholly owned
subsidiary of the Group.

181Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
14 Subsidiaries, associates and interests in other entities
(b) SPIs continued
The Kiskadee Latitude Fund was launched in 2019 to give investors access to a more diverse portfolio of insurance and
reinsurance risks, with less focus on pure property catastrophe risk. The fund is managed by Hiscox Re Insurance Linked
Strategies Ltd which is a wholly owned subsidiary of the Group.
The Group determined that it does not control the Kiskadee Diversified Fund, the Kiskadee Select Fund and the Kiskadee
Latitude Fund. Hence they are not consolidated.
The Kiskadee Cadence Fund was launched in December2019 to achieve attractive risk-adjusted returns by investing primarily in
a worldwide reinsurance and retrocession portfolio and the Kiskadee Select Plus Fund was launched in January 2021 to achieve
attractive risk-adjusted returns that have low correlation to broader financial markets by investing primarily in a diversified,
worldwide property catastrophe reinsurance and retrocession portfolio, including a portion of non-catastrophe reinsurance.
These funds are segregated accounts of Kiskadee ILS Fund SAC Ltd, which is managed by Hiscox Re Insurance Linked
Strategies Ltd, a wholly owned subsidiary of the Group. The Group determined that it does control these funds and hence
they are consolidated.
As at 31December2021, the Group recognised a financial asset at fair value of $50.9million (2020:$63.2million) in relation to
its investment in the unconsolidated funds (note 17). In assessing the maximum exposure to loss from its interest in the funds,
the Group has determined it is no greater than the fair value recognised as at the balance sheet date. The total size of the
unconsolidated funds was $593million at 31December2021 (2020:$899million). In addition to the return on the financial
asset, the Group also receives fee income through Hiscox Re Insurance Linked Strategies Ltd and Hiscox Insurance Company
(Bermuda) Limited, both wholly owned subsidiaries, under normal commercial terms.
The Group is exposed to credit risk associated with reinsurance recoverables on risks fronted for the SPIs. Note 3.3(d) discusses
how the Group manages credit risk associated with reinsurance assets. The operations of the funds and SPIs are financed
through the issuance of preference shares to external investors. The Group does not intend to provide any further financial
support to the funds or SPIs.
(c) Investments in associates
Year ended 31 December
2021
$m
2020
$m
At beginning of year 4.9 8.6
Impairments – (3.2)
Distributions received (0.2) (0.2)
Net profit/(loss) from investments in associates 0.8 (0.3)
Foreign exchange movements 0.2 –
At end of year 5.7 4.9
The Group’s interests in its principal associates, all of which are unlisted, were as follows:
100% results
% interest held at 31 December
Assets
$m
Liabilities
$m
Revenues
$m
Profit after tax
$m
2021
Associates incorporated in the UK and USA from 29% to 35% 20.3 17.0 13.6 0.2
Associates incorporated in Europe 26% 5.6 3.5 2.4 1.1
Total at the end of 2021 25.9 20.5 16.0 1.3
2020
Associates incorporated in the UK and USA from 29% to 35% 18.6 15.9 12.2 (2.1)
Associates incorporated in Europe 26% 4.4 2.3 2.5 1.2
Total at the end of 2020 23.0 18.2 14.7 (0.9)
The equity interests held by the Group in respect of associates do not have quoted market prices and are not traded regularly in
any active recognised market. The associates concerned have no material impact on the results or assets of the Group.
The assets are expected to be recovered or settled more than 12 months after the reporting date and as such are considered to
be non-current.

182 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
15 Deferred acquisition costs
2021 2020
Gross
$m
Reinsurance
$m
Net
$m
Gross
$m
Reinsurance
$m
Net
$m
Balance deferred at 1 January 439.2 (106.9) 332.3 456.1 (124.7) 331.4
Acquisition costs incurred in relation to insurance
contracts written 1,021.3 (288.2) 733.1 97 7. 3 (269.8) 707. 5
Acquisition costs expensed to the income statement* (1,017.9) 283.2 (734.7) (1,002.9) 289.0 (713.9)
Foreign exchange and other adjustments (5.7) 1.9 (3.8) 8.7 (1.4) 7.3
Balance deferred at 31 December 436.9 (110.0) 326.9 439.2 (106.9) 332.3
* Including unexpired risk reserve write-off of $nil million (2020: $6.6 million).
The deferred amount of insurance contract acquisition costs attributable to reinsurers of $110.0 million (2020:$106.9 million) is not
eligible for offset against the gross balance sheet asset and is included separately within trade and other payables (note 24).
The net amounts expected to be recovered before and after one year are estimated as follows:
2021
$m
2020
$m
Within one year 245.6 236.7
After one year 81.3 95.6
326.9 332.3
16 Reinsurance assets
Note
2021
$m
2020
$m
Reinsurers’ share of insurance liabilities 3,908.5 3,645.0
Provision for non-recovery and impairment (0.5) (0.4)
Reinsurance assets
23 3,908.0 3,644.6
The amounts expected to be recovered before and after one year, based on historical experience, are estimated as follows:
Within one year 1,919.5 1,79 8.1
After one year 1,988.5 1,846.5
3,908.0 3,644.6
Amounts due from reinsurers in respect of outstanding premiums and claims already paid by the Group are included in loans and
receivables (note 18). The Group recognised a loss during the year of $0.1 million (2020: gain of $0.4 million) due to movement on
the provision for non-recovery and impairment.
During the year, the Group completed two loss portfolio transfer (LPT) agreements. Details of these transactions are disclosed in
note 23.
17 Financial assets and liabilities
Financial assets designated at fair value through profit or loss are measured at fair values, with all changes from one accounting
period to the next being recorded through the income statement.
Note
2021
$m
2020*
$m
Debt and fixed income holdings 5,528.1 5,588.3
Equities and investment funds 461.2 464.5
Total investments 5,989.3 6,052.8
Insurance-linked funds 50.9 63.2
Derivative financial instruments
19 1.1 0.8
Total financial assets carried at fair value 6,041.3 6,116.8
* The 2020 figures have been re-presented for the re-allocation of certain debt and bond funds to debt and fixed income holdings.

183Hiscox Ltd Report and Accounts 2021
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Financial
summary
Notes to the
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financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
17 Financial assets and liabilities continued
The effective maturity of the debt and fixed income holdings due within and after one year are as follows:
2021
$m
2020*
$m
Within one year 1,111.2 1,673.8
After one year 4,416.9 3,914.5
5,528.1 5,588.3
* The 2020 figures have been re-presented for the re-allocation of certain debt and bond funds to debt and fixed income holdings.
Equities, investment funds and insurance-linked securities do not have any maturity dates. The effective maturity of all other
financial assets are due within one year.
An analysis of the credit risk and contractual maturity profiles of the Group’s financial instruments is given in notes 3.3(d) and 3.3(e).
Financial liabilities of the Group are:
Note
2021
$m
2020
$m
Derivative financial instruments 19 0.2 0.6
Financial liabilities carried at fair value 0.2 0.6
2021
$m
2020
$m
Borrowings 743.7 943.3
Accrued interest on borrowings 2.8 2.8
Financial liabilities carried at amortised cost 746.5 946.1
Total financial liabilities 746.7 946.7
All of the financial liabilities carried at fair value are due within one year. The amounts owed to credit institutions relate to
outstanding investment trades in trust funds that are not available for offset against the same counterparty under cash
and cash equivalents. These positions would be rated A had they have been recorded under cash and cash equivalents.
The long-term debt issued on 14 March 2018 is due within one year, and the remaining long-term debt is due after one year.
Accrued interest on long-term debt is due within one year.
On 24November2015, the Group issued £275.0million 6.125% fixed-to-floating rate callable subordinated notes due 2045,
with a first call date of 2025.
The notes bear interest from, and including, 24November2015 at afixed rate of 6.125% per annum annually in arrears starting
24November2016 up until the first call date in November 2025 and thereafter at a floating rate of interest equal to the sum of
compounded daily Sterling Overnight Index Average (SONIA), the reference rate adjustment of 0.1193% and a margin of 5.076%
payable quarterly in arrears on each floating interest payment date.
On 25November2015, the notes were admitted for trading on the London Stock Exchange’s regulated market. The notes were
rated BBB- by S&P as well as by Fitch.
On 14March2018, the Group issued £275.0million 2% notes due December2022. The notes will be redeemed on the maturity
date at their principal amount together with accrued interest.
The notes bear interest from, and including, 14March2018 at a fixed rate of 2% per annum annually in arrears starting
14December2018 until maturity on 14December2022.
On 14March2018, the notes were admitted for trading on the Luxembourg Stock Exchange’s Euro MTF. The notes were rated
BBB+ by S&P as well as by Fitch.
The fair value of the borrowings is estimated at $797.3million (2020:$822.6million). The fair value measurement is classified
within Level 1 of the fair value hierarchy. The fair value is estimated by reference to the actively traded value on the stock exchanges.
The decrease in the carrying value of the borrowings and accrued interest during the year comprises repayment of short-term
borrowings of $195.7million (2020:addition of $180.6million), the amortisation of the difference between the net proceeds
received and the redemption amounts of $0.8million (2020:$0.8million), the reduction in accrued interest of $0.1million
(2020:increase of $0.1million) less exchange movements of $4.6million (2020:plus exchange movements of $36.4million).
Note 10 includes details of the interest expense for the year included in finance costs.

184 Hiscox Ltd Report and Accounts 2021
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Notes to the
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Governance
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Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
17 Financial assets and liabilities continued
Investments at 31December are denominated in the following currencies at their fair value:
2021
$m
2020*
$m
Debt and fixed income holdings
US Dollars 3,890.0 3, 887. 8
Sterling 957. 9 990.4
Euro and other currencies 680.2 710.1
5,528.1 5,588.3
Equities and investment funds
US Dollars 206.9 209.5
Sterling 223.0 229.3
Euro and other currencies 31.3 25.7
461.2 464.5
Total investments 5,989.3 6,052.8
* The 2020 figures have been re-presented for the re-allocation of certain debt and bond funds to debt and fixed income holdings.
18 Loans and receivables including insurance receivables
2021
$m
2020
$m
Gross receivables arising from insurance and reinsurance contracts 1,568.9 1,453.8
Provision for impairment (7. 3) (5.1)
Net receivables arising from insurance and reinsurance contracts 1,561.6 1,448.7
Due from contract holders, brokers, agents and intermediaries 918.3 880.2
Due from reinsurance operations 643.3 568.5
1,561.6 1,448.7
Prepayments and accrued income 26.0 26.9
Other loans and receivables:
Net profit commission receivable 4.9 8.1
Accrued interest 23.7 26.5
Share of Syndicates’ other debtors’ balances 25.3 43.0
Other debtors including related party amounts 36.7 38.0
Total loans and receivables including insurance receivables 1,678.2 1,591.2
The amounts expected to be recovered before and after one year are estimated as follows:
Within one year 1,500.4 1,517.4
After one year 177. 8 73.8
1,678.2 1,591.2
There is no significant concentration of credit risk with respect to loans and receivables as the Group has alarge number of
internationally dispersed debtors. The Group has recognised aloss of $2.2million (2020: release of $2.3million) for the impairment
of receivables during the year ended 31December2021. This is recorded under operational expenses in the consolidated income
statement. The carrying amounts disclosed above are reasonably approximate to the fair value at the reporting date.

185Hiscox Ltd Report and Accounts 2021
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Financial
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Notes to the
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financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
19 Derivative financial instruments
The Group entered into both exchange-traded and over-the-counter derivative contracts for a number of purposes during 2021.
The Group had the right and intention to settle each contract on a net basis. The assets and liabilities of these contracts at
31December2021 all mature within one year of the balance sheet date and are detailed below:
31 December 2021
Gross contract
notional amount
$m
Fair value
of assets
$m
Fair value
of liabilities
$m
Net balance
sheet position
$m
Derivative financial instruments included on balance sheet
Foreign exchange forward contracts 24.4 0.4 (0.2) 0.2
Interest rate futures contracts 148.2 0.7 – 0.7
The foreign exchange forward contracts are represented by gross fair value of assets and liabilities as detailed below:
Gross fair value of assets 11.6 14.8 26.4
Gross fair value of liabilities (11.2) (15.0) (26.2)
0.4 (0.2) 0.2
31 December 2020
Gross contract
notional amount
$m
Fair value
of assets
$m
Fair value
of liabilities
$m
Net balance
sheet position
$m
Derivative financial instruments included on balance sheet
Foreign exchange forward contracts 56.2 0.8 (0.5) 0.3
Interest rate futures contracts 86.2 – (0.1) (0.1)
The foreign exchange forward contracts are represented by gross fair value of assets and liabilities as detailed below:
Gross fair value of assets 41.4 13.4 54.8
Gross fair value of liabilities (40.6) (13.9) (54.5)
0.8 (0.5) 0.3
Foreign exchange forward contracts
During the current and prior year, the Group entered into aseries of conventional over-the-counter forward contracts in order to
secure translation gains made on Euro, US Dollar and other non-Sterling denominated monetary assets. The contracts require
the Group to forward sell afixed amount of the relevant currency for Sterling at pre-agreed future exchange rates. The Group
made again on these forward contracts of $0.2 million (2020: loss of $1.7million) as included in the investment result in note 7.
There was no initial purchase cost associated with these instruments.
Interest rate futures contracts
To substantially hedge the interest rate risk the Group is exposed to, it continued to sell a number of government bond futures
denominated in a range of currencies. All contracts are exchange traded and the Group made again on these futures contracts
of $1.5million(2020:loss of $0.4million) as included in the investment result in note 7.
Equity index options
During the year, no equity index futures were purchased.

186 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
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Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
20 Fair value measurements
In accordance with IFRS 13 Fair Value Measurement, the fair value of financial instruments, based on athree-level fair value
hierarchy that reflects the significance of the inputs used in measuring the fair value, is set out below.
As at 31 December 2021
Level 1
$m
Level 2
$m
Level 3
$m
Total
$m
Financial assets
Debt and fixed income holdings 858.5 4,639.5 30.1 5,528.1
Equities and investment funds – 416.5 44.7 461.2
Insurance-linked funds – – 50.9 50.9
Derivative financial instruments – 1.1 – 1.1
Total 858.5 5,057.1 125.7 6,041.3
Financial liabilities
Derivative financial instruments – 0.2 – 0.2
Total – 0.2 – 0.2
As at 31 December 2020*
Level 1
$m
Level 2
$m
Level 3
$m
Total
$m
Financial assets
Debt and fixed income holdings 1,191.4 4,396.9 – 5,588.3
Equities and investment funds – 419.0 45.5 464.5
Insurance-linked funds – – 63.2 63.2
Derivative financial instruments – 0.8 – 0.8
Total 1,191.4 4,816.7 108.7 6,116.8
Financial liabilities
Derivative financial instruments – 0.6 – 0.6
Total – 0.6 – 0.6
* The 2020 figures have been re-presented for the re-allocation of certain debt and bond funds to debt and fixed income holdings and corporate bond levels, see
detail below.
The levels of the fair value hierarchy are defined by the standard as follows:
A
Level 1 – fair values measured using quoted prices (unadjusted) in active markets for identical instruments;
A Level 2 – fair values measured using directly or indirectly observable inputs or other similar valuation techniques for
which all significant inputs are based on market observable data;
A
Level 3 – fair values measured using valuation techniques for which significant inputs are not based on market observable data.
The fair values of the Group’s financial assets are typically based on prices from numerous independent pricing services. The
pricing services used by the investment manager obtain actual transaction prices for securities that have quoted prices in active
markets. For those securities which are not actively traded, the pricing services use common market valuation pricing models.
Observable inputs used in common market valuation pricing models include, but are not limited to, broker quotes, credit ratings,
interest rates and yield curves, prepayment speeds, default rates and other such inputs which are available from market sources.
Investments in mutual funds comprise aportfolio of stock investments in trading entities which are invested in various quoted
and unquoted investments. The fair value of these investment funds is based on the net asset value of the fund as reported by
independent pricing sources or the fund manager.
Management has refined the criteria for financial assets being allocated to Level 1, and certain corporate bonds considered to
have quoted prices in active markets are now included in Level 1. Previously no corporate bonds were included in Level 1. In 2021,
$32.6 million of corporate bonds have been recognised in Level 1 and $72.6 million have been re-presented from Level 2 to
Level 1 for 2020. There is no impact on profit in current or future periods. There were no transfers in or out of Level 3 of the fair
value hierarchy.
Included within Level 1 of the fair value hierarchy are certain government bonds, treasury bills, corporate bonds and
exchange-traded equities which are measured based on quoted prices in active markets.
The fair value of the borrowings carried at amortised cost is estimated at $797.3million (2020:$822.6million) and is considered
as Level 1 in the fair value hierarchy.
Level 2 of the hierarchy contains certain government bonds, US government agencies, corporate securities, asset-backed
securities and mortgage-backed securities. The fair value of these assets is based on the prices obtained from independent
pricing sources, investment managers and investment custodians as discussed above. The Group records the unadjusted price

187Hiscox Ltd Report and Accounts 2021
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Financial
summary
Notes to the
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financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
provided and validates the price through anumber of methods including acomparison of the prices provided by the investment
managers with the investment custodians and the valuation used by external parties to derive fair value. Quoted prices for US
government agencies and corporate securities are based on alimited number of transactions for those securities and as such
the Group considers these instruments to have similar characteristics to those instruments classified as Level 2. Also included
within Level 2 are units held in collective investment vehicles investing in traditional and alternative investment strategies and
over-the-counter derivatives.
Level 3 contains investments in alimited partnership, unquoted equity securities and insurance-linked funds which have limited
observable inputs on which to measure fair value. Unquoted equities, including equity instruments in limited partnerships, are
carried at fair value. Fair value is determined to be net asset value for the limited partnerships, and for the equity holdings it is
determined to be the latest available traded price. The effect of changing one or more inputs used in the measurement of fair
value of these instruments to another reasonably possible assumption would not be significant. At 31December2021,
the insurance-linked funds of $50.9million represent the Group’s investment in the unconsolidated Kiskadee Funds
(2020:$63.2million) as described in note 14.
The fair value of the Kiskadee funds is estimated to be the net asset value as at the balance sheet date. The net asset value
is based on the fair value of the assets and liabilities in the fund. The majority of the assets of the funds are cash and cash
equivalents. Significant inputs and assumptions in calculating the fair value of the assets and liabilities associated with reinsurance
contracts written by the Kiskadee funds include the amount and timing of claims payable in respect of claims incurred and periods
of unexpired risk. The Group has considered changes in the net asset valuation of the Kiskadee funds if reasonably different inputs
and assumptions were used and has found that a 12% change to the fair value of the liabilities would increase or decrease the fair
value of funds by $2.9 million.
In certain cases, the inputs used to measure the fair value of afinancial instrument may fall into more than one level within the fair
value hierarchy. In this instance, the fair value of the instrument in its entirety is classified based on the lowest level of input that is
significant to the fair value measurement.
The Group’s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the relevant reporting
period during which the transfers are deemed to have occurred.
The following table sets forth areconciliation of opening and closing balances for financial instruments classified under Level 3
of the fair value hierarchy:
Financial assets
31 December 2021
Debt and fixed
income holdings
$m
Equities and
investment funds
$m
Insurance-
linked funds
$m
Total
$m
Balance at 1 January – 45.5 63.2 108.7
Fair value gains or losses through profit or loss* 0.1 (0.3) – (0.2)
Foreign exchange gains/(losses) – (0.4) 0.1 (0.3)
Purchases 30.0 0.2 – 30.2
Settlements – (0.3) (12.4) (12.7)
Closing balance 30.1 44.7 50.9 125.7
Unrealised gains and (losses) in the year on securities held
at the end of the year 0.1 – (0.4) (0.3)
* Fair value gains/(losses) are included within the investment result in the income statement for debt and fixed income holdings, and for equities and investment
funds and through other income for the insurance-linked funds.
Financial assets
31 December 2020
Equities and
investment funds
$m
Insurance-
linked funds
$m
Total
$m
Balance at 1 January 18.5 61.2 79.7
Fair value gains or losses through profit or loss* (5.4) 2.7 (2.7)
Foreign exchange gains 1.9 – 1.9
Purchases 30.8 2.6 33.4
Settlements (0.3) (3.3) (3.6)
Closing balance 45.5 63.2 108.7
Unrealised gains and (losses) in the year on securities held at the end of the year (0.4) 2.7 2.3
* Fair value gains/(losses) are included within the investment result in the income statement for equities and investment funds and through other income for the
insurance-linked funds.
20 Fair value measurements continued

188 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
21 Cash and cash equivalents
2021
$m
2020
$m
Cash at bank and in hand 1, 287.3 1,448.8
Short-term deposits 13.4 128.4
Total 1,300.7 1, 57 7.2
The Group holds its cash deposits with awell-diversified range of banks and financial institutions. Cash includes overnight deposits.
Short-term deposits include debt securities with an original maturity date of less than three months and money market funds.
22 Share capital
31 December 2021 31 December 2020
Group
Share
capital
$m
Number
of shares
000
Share
capital
$m
Number
of shares
000
Authorised ordinary share capital of 6.5p (2020: 6.5p) 425.8 3,692,308 425.8 3,692,308
Issued ordinary share capital of 6.5p (2020: 6.5p) 38.7 353,986 38.7 353,955
The amounts presented in the equity section of the Group’s consolidated balance sheet relate to Hiscox Ltd, the legal
parent company.
Changes in Group share capital and contributed surplus
Ordinary share
capital
$000
Share
premium
$000
Contributed
surplus
$000
At 1 January 2020 34,051 70,503 183,969
Equity raise – May 2020 4,595 444,503 –
Employee share option scheme – proceeds from shares issued 13 1,446 –
At 31 December 2020 38,659 516,452 183,969
Employee share option scheme – proceeds from shares issued – 107 –
Scrip Dividends to owners of the Company 2 258 –
At 31 December 2021 38,661 516,817 183,969
Contributed surplus is adistributable reserve and arose on the reverse acquisition of Hiscox plc on 12December2006.
The Company relies on dividend streams from its subsidiary companies to provide the cash flow required for distributions to be
made to shareholders. The ability of the subsidiaries to pay dividends is subject to regulatory restrictions within the jurisdiction
from which they operate.
Share repurchase
The trustees of the Group’s Employee Benefit Trust purchased nil shares (2020: 1,958,864 shares) to facilitate the settlement of
vesting awards under the Group’s Performance Share Plan. As the Trust is consolidated into the Group financial results, these
purchases have been accounted for in the same way as treasury shares and have been charged against retained earnings.
The shares are held by the trustees for the beneficiaries of the Trust.
Equity structure of Hiscox Ltd Note
Number of
ordinary shares
in issue
(000)
2021
Number of
ordinary shares
in issue
(000)
2020
At 1 January 353,955 296,10 8
Equity raise – May 2020 – 5 7, 6 9 3
Employee share option scheme – ordinary shares issued 11 154
Scrip Dividends to owners of the Company
29 20 –
At 31 December 353,986 353,955
All issued shares are fully paid.

189Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
Share options and Performance Share Plan awards
Performance Share Plan awards are granted to Directors and senior employees. No exercise price is attached to performance
plan awards, although their attainment is conditional on the employee completing three years’ service (the vesting period) and
the Group achieving targeted levels of returns on equity for pre-2018 awards and net asset value targets for awards from 2018 to
2020. Awards granted in 2021 require both net asset value and total shareholder return targets to be met. Share options are also
conditional on the employees completing two or three years’ service (the vesting period) or less under exceptional circumstances
(death, disability, retirement or redundancy). The options are exercisable starting three years from the grant date only if the Group
achieves its targets of return on equity or net asset value; the options have acontractual option term of ten years. The Group has
no legal or constructive obligation to repurchase or settle the options in cash.
In accordance with IFRS 2, the Group recognises an expense for the fair value of share options and Performance Share Plan
award instruments issued to employees, over their vesting period through the income statement. The amount recognised in the
consolidated income statement during the year was an expense of $24.0 million (2020: expense of $10.3 million). This comprises
an expense of $16.6 million (2020: expense of $10.1 million) in respect of Performance Share Plan awards and an expense of
$7.4 million (2020:expense of $0.2 million) in respect of share option awards. The Group has applied the principles outlined
in the Black-Scholes option pricing model when determining the fair value of each share option instrument. For the fair value
pricing of performance share plans, the Group uses the share price on the date of grant of the options. In 2021, for any options
contingent on achieving targets linked to total shareholder returns, the fair value price on date of grant is adjusted to take
account of the probability of achieving the performance targets.
The range of principal Group assumptions applied in determining the fair value of share-based payment instruments granted
during the year under review are:
Assumptions affecting inputs to fair value models 2021 2020
Annual risk-free rates of return and discount rates (%) 0.18-0.26 (0.12)-0.08
Long-term dividend yield (%) 1.46 2.19
Expected life of options (years) 3.25 3.25
Implied volatility of share price (%) 46.2 41.0
Weighted average share price (p) 865.3 819.7
The weighted average fair value of each share option granted during the year was 317.5p (2020:225.1p). The weighted average
fair value of each Performance Share Plan award granted during the year was 862.3p (2020:836.5p).
Movements in the number of share options and Performance Share Plan awards during the year and details of the balances
outstanding at 31December2021 for the Executive Directors are shown in the annual report on remuneration 2021. The total
number of options and Performance Share Plan awards outstanding is 9,743,754 (2020:9,349,986) of which 1,629,224 are
exercisable (2020:1,979,101). The total number of SAYE options outstanding is 2,414,729 (2020:2,642,893).
The implied volatility assumption is based on historical data for periods of between five and ten years immediately preceding
grant date.
For options issued after 1January2006, the assumptions regarding long-term dividend yield have been aligned to the progressive
dividend policy announced during the 2005 Rights Issue.
22 Share capital continued

190 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
23 Insurance liabilities and reinsurance assets
Note
2021
$m
2020
$m
Gross
Claims reported and claim adjustment expenses 2,50 6.1 2,688.0
Unexpired risk reserve – 31.5
Claims incurred but not reported 4,539.8 4,571.9
Unearned premiums 1,822.5 1,822.0
Total insurance liabilities, gross 8,868.4 9,113.4
Recoverable from reinsurers
Claims reported and claim adjustment expenses 1,143.3 976.7
Unexpired risk reserve – 8.6
Claims incurred but not reported 2,349.5 2, 2 27.7
Unearned premiums 415.2 431.6
Total reinsurers’ share of insurance liabilities
16 3,908.0 3,644.6
Net
Claims reported and claim adjustment expenses 1,362.8 1,711.3
Unexpired risk reserve – 22.9
Claims incurred but not reported 2,190.3 2,344.2
Unearned premiums 1,407. 3 1,390.4
Total insurance liabilities, net 4,960.4 5,468.8
The net amounts expected to be recovered and settled before and after one year, based on historical experience, are estimated
as follows:
2021
$m
2020
$m
Within one year 3,155.1 3,323.8
After one year 1,805.3 2,145.0
4,960.4 5,468.8
The gross claims reported and claim adjustment expenses liability and the liability for claims incurred but not reported are net
of expected recoveries from salvage and subrogation. The amounts for salvage and subrogation at the end of 2021 and 2020
are not material.

191Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
23.1 Insurance contracts assumptions
(a) Process used to decide on assumptions
There are many risks associated with insurance contracts, and this means that there is a considerable amount of uncertainty in
estimating the future settlement cost of claims. There is uncertainty in both the amounts and the timing of future claim payment
cash flows.
Claims paid are claims transactions settled up to the reporting date including settlement expenses allocated to those transactions.
Unpaid claims reserves are made for known or anticipated liabilities which have not been settled up to the reporting date.
Included within the provision is an allowance for the future costs of settling those claims.
The Group relies on actuarial analysis to estimate the settlement cost of future claims. Via a formal governed process, there is
close communication between the actuaries and other key stakeholders, such as the underwriters, claims and finance teams
when setting and validating the assumptions. The unpaid claims reserve is estimated based on past experience and current
expectations of future cost levels. Allowance is made for the current premium rating and inflationary environment.
The claims reserves are estimated on a best estimate basis, taking into account current market conditions and the nature of risks
being underwritten.
Under certain insurance contracts, the Group may be permitted to sell property acquired in settling a claim (for example, salvage).
The Group may also have the right to pursue third parties for payment of some or all costs (for example, subrogation). If it is certain
a recovery or reimbursement will be made at the valuation date, specific estimates of these salvage and/or subrogation amounts
are included as allowances in the measurement of the insurance liability for unpaid claims. This is then recognised in insurance
and reinsurance receivables when the liability is settled.
Estimates of where claims liabilities will ultimately settle are adjusted each reporting period to reflect emerging claims experience.
Changes in expected claims may result in a reduction or an increase in the ultimate claim costs and a release or an increase in
reserves in the period in which the change occurs.
Booked reserves are held above the best estimate to help mitigate the uncertainty within the reserve estimates. As the best
estimate matures and becomes more certain, the management margin is gradually released in line with the reserving policy.
This approach is consistent with last year. The margin included in the insurance liabilities at 31 December 2021 was 11.7%
above the best estimate (2020: 9.8%). This includes margin for the uncertainty in Covid-19 claims estimates.
(b) Claims development tables
The development of insurance liabilities provides ameasure of the Group’s ability to estimate the ultimate value of claims.
The Group analyses actual claims development compared with previous estimates on an accident year basis. This exercise
is performed to include the liabilities of Syndicate 33 at the 100% level regardless of the Group’s actual level of ownership.
Analysis at the 100% level is required in order to avoid distortions arising from reinsurance to close arrangements which
subsequently increase the Group’s share of ultimate claims for each accident year, three years after the end of that accident year.
The top half of each table, on the following pages, illustrates how estimates of ultimate claims costs for each accident year have
changed at successive year ends. The bottom half reconciles cumulative claims costs to the amounts still recognised as liabilities.
Areconciliation of the liability at the 100% level to the Group’s share, as included in the Group balance sheet, is also shown.
23 Insurance liabilities and reinsurance assets continued

192 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
23 Insurance liabilities and reinsurance assets
23.1 Insurance contracts assumptions
(b) Claims development tables continued
Insurance claims and claim adjustment expenses reserves – gross at 100%
Accident year
2012
$m
2013
$m
2014
$m
2015
$m
2016
$m
2017
$m
2018
$m
2019
$m
2020
$m
2021
$m
Total
$m
Estimate of ultimate
claims costs as
adjusted for foreign
exchange* at end
of accident year: 1,656.5 1,328.7 1,451.2 1,560.9 1,942.0 3,390.2 3,139.3 3,36 8.1 3,800.5 3,046.5 24,683.9
one year later 1,711.6 1,211.3 1, 237.7 1,422.1 1,724.0 3,102.9 3,592.1 3,104.5 3,806.6 – 20,912.8
two years later 1,602.6 1,083.3 1,146.0 1,285.4 1,632.2 3,068.2 3,411.2 2,889.8 – – 16,118.7
three years later 1,6 07.1 1,019.4 1,096.7 1,280.7 1,663.3 2,986.4 3,179.4 – – – 12,833.0
four years later 1,593.9 966.3 1,071.8 1,296.8 1,698.9 2,902.9 – – – – 9,530.6
five years later 1,3 37.1 942.6 1,052.9 1,325.4 1,691.6 – – – – – 6,349.6
six years later 1,343.4 9 37.1 1, 0 37.5 1,318.4 – – – – – – 4,636.4
seven years later 1,320.6 938.5 1, 0 37. 3 – – – – – – – 3,296.4
eight years later 1,290.6 936.7 – – – – – – – –
2,227.3
nine years later 1,272.7 – – – – – – – – – 1,272.7
Current estimate of
cumulative claims 1,272.7 936.7 1,0 37. 3 1,318.4 1,691.6 2,902.9 3,179.4 2,889.8 3,806.6 3,046.5 22,081.9
Cumulative
payments to date (1,223.3) (898.9) (955.0) (1,142.4) (1,426.4) (2,338.1) (2,305.6) (1,685.9) (1,656.9) (525.3) (14,157. 8 )
Liability recognised
at 100% level 49.4 37.8 82.3 176.0 265.2 564.8 873.8 1,203.9 2,149.7 2,521.2 7,924.1
Liability recognised
in respect of accident
years before 2012
at 100% level 124.9
Total gross liability to external parties at 100% level 8,049.0
*The foreign exchange adjustment arises from the retranslation of the estimates at each date using the exchange rate ruling at 31 December 2021.
Reconciliation of 100% disclosures above to Group’s share – gross
Accident year
2012
$m
2013
$m
2014
$m
2015
$m
2016
$m
2017
$m
2018
$m
2019
$m
2020
$m
2021
$m
Total
$m
Current estimate of
cumulative claims 1,272.7 936.7 1,0 37.3 1,318.4 1,691.6 2,902.9 3,179.4 2,889.8 3,806.6 3,046.5 22,081.9
Less: attributable
to external Names (163.4) (97.8) (107.8 ) (138.4) (18 5.1) (399.8) (3 97. 8) (399.2) (445.9) (363.2) (2,698.4)
Group’s share of
current ultimate
claims estimate 1,109.3 838.9 929.5 1,180.0 1,506.5 2,50 3.1 2,781.6 2,490.6 3,360.7 2,683.3 19,383.5
Cumulative
payments to date (1,223.3) (898.9) (955.0) (1,142.4) (1,426.4) (2,338.1) (2,305.6) (1,685.9) (1,656.9) (525.3) (14,157. 8 )
Less: attributable
to external Names 156.3 93.4 10 0.1 118.5 152.6 323.7 284.6 234.5 198.7 65.5 1,727. 9
Group’s share of
cumulative payments (1, 0 67. 0 ) (805.5) (854.9) (1,023.9) (1,273.8) (2,014.4) (2,021.0) (1,451.4) (1,458.2) (459.8)(12,429.9)
Liability recognised
on Group’s
balance sheet 42.3 33.4 74.6 156.1 232.7 488.7 760.6 1,039.2 1,902.5 2,223.5 6,953.6
Liability for accident
years before
2012 recognised
on Group’s
balance sheet 92.3
Total Group liability to external parties included in balance sheet – gross 7,04 5.9

193Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
23 Insurance liabilities and reinsurance assets
23.1 Insurance contracts assumptions
(b) Claims development tables continued
Insurance claims and claim adjustment expenses reserves – net of reinsurance at 100%
Accident year
2012
$m
2013
$m
2014
$m
2015
$m
2016
$m
2017
$m
2018
$m
2019
$m
2020
$m
2021
$m
Total
$m
Estimate of ultimate
claims costs as
adjusted for foreign
exchange* at end
of accident year: 1,198.2 1,13 3.3 1,176.8 1,255.2 1,471.6 1,852.2 1,799.4 1,786.1 2,204.2 1,754.6 15,631.6
one year later 1,058.3 1,006.3 1,034.8 1,16 0.0 1,334.0 1,654.1 1,814.0 1,725.3 2,058.9 – 12,845.7
two years later 982.3 904.7 939.7 1,064.0 1,262.4 1,633.8 1,777.8 1,518.8 – – 10,083.5
three years later 9 47.0 838.3 884.1 1,056.9 1,285.1 1,621.5 1,593.5 – – – 8,226.4
four years later 9 37.3 834.4 8 57.0 1,056.0 1,324.8 1,4 97.5 – – – – 6,507.0
five years later 957.6 8 07.4 834.3 1,084.4 1,258.0 – – – – – 4,941.7
six years later 946.9 804.7 828.8 1,0 4 3.1 – – – – – – 3,623.5
seven years later 927.0 805.0 816.0 – – – – – – – 2,548.0
eight years later 917.5 789.3 – – – – – – – –
1,706.8
nine years later 910.1 – – – – – – – – – 910.1
Current estimate of
cumulative claims 910.1 789.3 816.0 1,043.1 1,258.0 1,4 97. 5 1,593.5 1,518.8 2,058.9 1,754.6 13,239.8
Cumulative
payments to date (861.2) ( 76 7. 8) (730.0) (889.3) (1,070.7) (1, 317.6 ) (1,256.8) (1,078.7) (975.2) (373.3) (9,320.6)
Liability recognised
at 100% level 48.9 21.5 86.0 153.8 187.3 179.9 336.7 4 40.1 1,083.7 1,381.3 3,919.2
Liability recognised
in respect of accident
years before 2012
at 100% level 103.9
Total net liability to external parties at 100% level 4,023.1
*The foreign exchange adjustment arises from the retranslation of the estimates at each date using the exchange rate ruling at 31 December 2021.
Current estimate of cumulative claims in the table above has been impacted by the loss portfolio transfer arrangements taken out
in 2021, see note 23.2.
Reconciliation of 100% disclosures above to Group’s share – net of reinsurance
Accident year
2012
$m
2013
$m
2014
$m
2015
$m
2016
$m
2017
$m
2018
$m
2019
$m
2020
$m
2021
$m
Total
$m
Current estimate of
cumulative claims 910.1 789.3 816.0 1,04 3.1 1,258.0 1, 4 97. 5 1,593.5 1,518.8 2,058.9 1,754.6 13,239.8
Less: attributable
to external Names (93.7) (79.5) (81.3) (112.3) (133.0) (15 4.1) (157.0 ) (188.3) (208.9) (183.9) (1,392.0)
Group’s share of
current ultimate
claims estimate 816.4 709.8 734.7 930.8 1,125.0 1,343.4 1,436.5 1,330.5 1,850.0 1,570.7 11,8 47.8
Cumulative
payments to date (861.2) ( 76 7. 8) (730.0) (889.3) (1,070.7) (1, 317.6 ) (1,256.8) (1,078.7) (975.2) (373.3) (9,320.6)
Less: attributable
to external Names 87. 3 75.6 74.8 93.3 105.0 131.2 116.9 128.4 95.9 39.2 947.6
Group’s share of
cumulative payments (773.9) (692.2) (655.2) (796.0) (965.7) (1,186.4) (1,139.9) (950.3) (879.3) (334.1) (8,373.0)
Liability recognised
on Group’s
balance sheet 42.5 17.6 79.5 134.8 159.3 157.0 296.6 380.2 970.7 1,236.6 3,474.8
Liability for accident
years before
2012 recognised
on Group’s
balance sheet 78.3
Total Group liability to external parties included in balance sheet – net* 3,553.1
*This represents the claims element of the Group’s insurance liabilities and reinsurance assets.

194 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
23 Insurance liabilities and reinsurance assets continued
23.2 Movements in insurance claims liabilities and reinsurance claims assets
A reconciliation of the insurance claims liabilities is as follows:
2021 2020
Year ended 31 December
Gross
$m
Reinsurance
$m
Net
$m
Gross
$m
Reinsurance
$m
Net
$m
Total at beginning of year 7, 2 91.4 (3,213.0) 4,078.4 6,276.0 (2,921.0) 3,355.0
Claims and claim adjustment expenses for the year 2,185.5 ( 755.1) 1,430.4 2,966.5 (1,043.8) 1,922.7
Cash (paid)/received for claims settled in the year (2,331.8) 1,082.8 (1,249.0) (2,085.0) 768.8 (1,316.2)
Acquisitions, divestments and transfers – (639.0) (639.0) – – –
Foreign exchange and other adjustments (99.2) 31.5 (67.7 ) 133.9 (17.0 ) 116.9
Total at end of year 7,0 45.9 (3,492.8) 3,553.1 7, 291.4 (3,213.0) 4,078.4
Claims reported and claim adjustment expenses 2,50 6.1 (1,143.3) 1,362.8 2,688.0 (976.7) 1,711.3
Claims incurred but not reported 4,539.8 (2,349.5) 2,190.3 4,571.9 (2, 2 27.7 ) 2,344.2
Unexpired risk reserve – – – 31.5 (8.6) 22.9
Total at end of year 7,0 45.9 (3,492.8) 3,553.1 7, 291.4 (3,213.0) 4,078.4
The insurance claims expense reported in the consolidated income statement is comprised as follows:
2021
2020*
(restated)
Year ended 31 December
Gross
$m
Reinsurance
$m
Net
$m
Gross
$m
Reinsurance
$m
Net
$m
Current year claims and claim adjustment expenses 2,775.0 (1,172.8) 1,602.2 3,448.0 (1,516.2) 1,931.8
Over-provision in respect of prior-year claims and claim
adjustment expenses (558.0) 409.1 (148.9) (513.0) 481.0 (32.0)
Unexpired risk reserve (31.5) 8.6 (22.9) 31.5 (8.6) 22.9
Total at end of year 2,185.5 (755.1) 1,430.4 2,966.5 (1,043.8) 1,922.7
* Restated for incorrect allocation of current year claims and claims adjustment expenses and over-provision in respect of prior-year claims and claim adjustment
expenses. This has no impact on the total insurance claims expense, profit, insurance liabilities or reinsurance assets presented in the comparative period.
A reconciliation of the unearned premium reserves is as follows:
2021 2020
Gross
$m
Reinsurance
$m
Net
$m
Gross
$m
Reinsurance
$m
Net
$m
Balance deferred at 1 January 1,822.0 (431.6) 1,390.4 1,818.5 (465.9) 1,352.6
Premiums written 4,269.2 (1,314.2) 2,955.0 4,0 33.1 (1,282.7) 2,750.4
Premiums earned through the income statement (4,246.9) 1,327.0 (2,919.9) (4,071.2) 1,319.0 (2,752.2)
Foreign exchange and other adjustments (21.8) 3.6 (18.2) 41.6 (2.0) 39.6
Balance deferred at 31 December 1,822.5 (415.2) 1,407. 3 1,822.0 (431.6) 1,390.4
The amounts expected to be recovered before and after one year, based on historical experience, are included in the first table to
this note 23.
A reconciliation of the gross premiums written to net premiums earned is as follows:
2021
$m
2020
$m
Gross premiums written 4,269.2 4,0 33.1
Outward reinsurance premiums (1,314.2) (1,282.7)
Net premiums written 2,955.0 2,750.4
Change in gross unearned premium reserves (22.3) 38.1
Change in reinsurers’ share of unearned premium reserves (12.8) (36.3)
Change in net unearned premium reserves (35.1) 1.8
Net premiums earned 2,919.9 2,752.2

195Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
23 Insurance liabilities and reinsurance assets
23.2 Movements in insurance claims liabilities and reinsurance claims assets continued
In determining the net claims, the Group estimates the reinsurers’ share of the claims by applying a consistent set of assumptions
with those in determining the gross claims, considering the individual wording of the reinsurance treaties, and estimating default
risks, as described in note 3.3(d). Changes to this set of assumptions and estimate could materially affect the amount of
reinsurers’ share of the claims.
During the year, the Group completed loss portfolio transfers (LPTs) securing coverage for potential adverse development on
historical liabilities for selected lines of business, including the majority of Hiscox USA’s surplus lines broker business. The Group
concluded that the LPTs transfer significant risks and accounts for the arrangements by recognising a reinsurance asset, a
funds-withheld balance in trade and other payables, and a net loss at inception in reinsurance premium ceded. The impact on
reinsurance assets is presented in the acquisitions, divestment and transfers line in the relevant table.
While the Group incurred additional losses early in 2021, due to additional UK lockdown measures in January, we have also
benefitted from positive prior year development on first order Covid-19-related losses in our events and contingency book.
Consequently there has been no material movement in Covid-19 losses for the year.
Lloyd’s Part VII transfer
On 30December2020, the members and former members of the Syndicate, as comprised for each of the relevant years of
account between 1993 and April 2019, transferred all relevant policies (and related liabilities) underwritten by them for those
years of account to Lloyd’s Insurance Company S.A. (‘Lloyd’s Brussels’), in accordance with Part VII of the Financial Services
and Markets Act 2000. On the same date, the members of the Syndicate entered into a 100% quota share reinsurance
agreement whereby Lloyd’s Brussels reinsured all risks on the same policies back to the relevant open years of account of the
Syndicate, which wrote the transferring policies and/or inherited liabilities on transferring policies through reinsurance to close
of earlier years of account.
Following the sanction of the scheme by the High Court on 25November2020, the scheme took effect on 30December2020
and the members and former members of the Syndicate transferred the impacted EEA policies and related liabilities to Lloyd’s
Brussels, together with cash of $154.8million. On the same date, under the reinsurance agreement, Lloyd’s Brussels reinsured the
same risks back, together with an equal amount of cash of $154.8million and non-cash assets relating to the transferred liabilities.
The combined effect of the two transactions had no economic impact for the Syndicate, and accordingly there is no impact on the
Syndicate’s income statement and no net impact on the balance sheet.
No adjustment has been made in the segmental note for transactions that occurred in respect of the transferred business up to
the date of the transfer, which is consistent with the income statement presentation. Outstanding debtor and creditor balances
in respect of the transferred business that were previously classified as arising out of direct reinsurance operations have been
reclassified as arising out of reinsurance operations.
Current year underwriting results are reported under the inwards reinsurance class of business, reflecting the new contractual
arrangement with Lloyd’s Brussels.

196 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
24 Trade and other payables
Note
2021
$m
2020
$m
Creditors arising out of direct insurance operations 96.3 101.0
Creditors arising out of reinsurance operations 1,152.2 836.0
1,248.5 9 37. 0
Share of Syndicates’ other creditors’ balances 2.6 1.8
Social security and other taxes payable 49.3 51.7
Lease liabilities 46.5 59.7
Other creditors 19.8 3 0.1
118. 2 143.3
Reinsurers’ share of deferred acquisition costs
15 110.0 106.9
Accruals and deferred income 158.9 148.4
Total 1,635.6 1,335.6
Included within accruals and deferred income is $nil (2020:$4.9million) of deferred gain on retroactive reinsurance contracts.
The amounts expected to be settled before and after one year are estimated as follows:
2021
$m
2020
$m
Within one year 1,062.3 1,239.2
After one year 573.3 96.4
1,635.6 1,335.6
The amounts expected to be settled after one year of the balance sheet date primarily relate to reinsurance creditors.
The carrying amounts disclosed above are reasonably approximate to the fair value at the reporting date.
The Group acts as both lessee and lessor in relation to various offices in the UK and overseas, which are held under non-cancellable
lease agreements. The leases have varying terms, escalation clauses and renewal terms.
Extension and termination options were taken into account on recognition of the lease liability if the Group was reasonably certain
that these options would be exercised in the future. As a general rule, the Group recognises non-lease components, such as
services, separately to lease payments.
Maturity analysis – contractual undiscounted cash flows:
2021
$m
2020
$m
Not later than one year 15.7 16.5
Later than one year and not later than five years 30.2 38.9
Later than five years 7.8 13.6
Total undiscounted lease liabilities at 31 December 53.7 69.0
The cost relating to variable lease payments that do not depend on an index or a rate amounted to $nil in the year ended
31December2021 (2020: $nil).
There were no leases with residual values guarantees (2020: none). The leases not yet commenced to which the Group is
committed amounted to $60.0 million (2020: $55.2million).
Payments associated with short-term leases amounting to $1.2 million (2020:$1.2million) and leases of low-value assets
amounting to $0.1 million (2020: $nil) are recognised on a straight-line basis as an expense in profit or loss.

197Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
25 Tax expense
The Company and its subsidiaries are subject to enacted tax laws in the jurisdictions in which they are incorporated and
domiciled. The principal subsidiaries of the Company and the country in which they are incorporated are listed in note 32.
The amounts charged in the consolidated income statement comprise the following:
2021
$m
2020
$m
Current tax
Expense for the year 9.5 11.5
Adjustments in respect of prior years (5.1) 1.7
Total current tax expense 4.4 13.2
Deferred tax
Expense/(credit) for the year 3.6 (12.3)
Adjustments in respect of prior years (3.7) 26.4
Effect of rate change (3.0) (2.1)
Total deferred tax (credit)/expense (3.1) 12.0
Total tax charged to the income statement 1.3 25.2
The standard rate of corporation tax in Bermuda is 0% whereas the effective rate of tax for the Group is 1% (2020: -9%).
A reconciliation of the difference is provided below:
2021
$m
2020
$m
Profit/(loss) before tax 190.8 (268.5)
Tax calculated at the standard corporation tax rate applicable in Bermuda: 0% (2020: 0%)
Effects of Group entities subject to overseas tax at different rates 2.3 (20.6)
Impact of overseas tax rates on:
Effect of rate change (3.0) (2.1)
Expenses not deductible for tax purposes 2.5 2.7
Tax losses for which no deferred tax asset is recognised 9.3 8.6
Other (1.5) 8.7
Adjustment for share-based payments 0.5 (0.2)
Prior year tax adjustments (8.8) 28.1
Tax charge for the year 1.3 25.2
Included within the current tax, a provision is recognised for those matters for which the tax determination is uncertain but it is
considered probable that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate
of the amount expected to become payable.
The Group companies’ tax filings include transactions which are subject to transfer pricing legislation and the taxation authorities
may challenge the tax treatment of those transactions. The Directors are proactively engaged in discussions with the tax
authorities regarding these tax positions. The Group determines, based on tax and transfer pricing advice provided by external
specialist tax advisors, that: it is probable that the tax authorities will assess additional taxes in respect of these filings, for which
provisions have been made; the amount recognised at the balance sheet date represents the best estimate of the amount
expected to be settled, taking into account the range of potential outcomes and the current progression of discussions with
tax authorities.

198 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
26 Deferred tax
Net deferred tax assets
2021
$m
2020
$m
Trading losses in overseas entities 29.1 31.8
Deferred tax assets 97.9 140.6
Deferred tax liabilities (59.7) (101.7)
Total deferred tax asset 67.3 70.7
Net deferred tax liabilities
Deferred tax assets (0.1) (2.0)
Deferred tax liabilities 0.2 4.7
Total net deferred tax liability 0.1 2.7
Deferred tax assets and deferred tax liabilities relating to the same tax authority are presented net in the Group’s balance sheet.
Net Group deferred tax assets/(liabilities) analysed by balance sheet headings
At 31 December
2020
$m
Income
statement
(charge)
/credit
$m
Recognised
in other
comprehensive
income/equity
$m
Foreign
exchange
$m
2021
$m
Tangible assets (1.1) 1.1 – – –
Trade and other payables 1.7 – – – 1.7
Intangible assets – Syndicate capacity 1.5 0.1 – – 1.6
Retirement benefit obligations 16.5 (0.1) (3.4) (0.3) 12.7
Open years of account 80.2 (22.1) – (1.2) 56.9
Unearned premium 9.7 1.5 – – 11. 2
Loss reserve discounting 6.9 1.4 – – 8.3
Insurance contracts – technical reserves – 5.2 – (0.2) 5.0
Other items (4.5) 4.3 – 0.7 0.5
Total deferred tax assets 110.9 (8.6) (3.4) (1.0) 97.9
Tangible assets – (0.5) – 0.1 (0.4)
Financial assets (0.9) (0.3) – – (1.2)
Insurance contracts – equalisation provision (2.2) 2.2 – – –
Reinsurance premiums (47.7 ) 11.7 – 0.7 (35.3)
Deferred acquisition costs (19.3) (3.1) – – (22.4)
Other items (1.9) 1.4 – 0.1 (0.4)
Total deferred tax liabilities (72.0) 11.4 – 0.9 (59.7)
Net total deferred tax assets/(liabilities) 38.9 2.8 (3.4) (0.1) 38.2
Trading losses in overseas entities 31.8 (2.3) – (0.4) 29.1
Net total deferred tax assets/(liabilities) 38.9
2.8 (3.4) (0.1) 38.2
Net deferred tax position asset/(liability) 70.7 0.5 (3.4) (0.5) 67.3
Intangible assets (2.0) 2.0 – – –
Technical reserves (0.8) 0.6 – – (0.2)
Other 0.1 – – – 0.1
Net total deferred tax position (liabilities)/assets (2.7) 2.6 – – (0.1)
Net Group deferred tax asset/(liability) 68.0 3.1 (3.4) (0.5) 67. 2

199Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
26 Deferred tax
Net Group deferred tax assets/(liabilities) analysed by balance sheet headings continued
Movements in deferred and current tax relating to tax deductions arising on employee share options are recognised in the
statement of changes in equity to the extent that the movement exceeds the corresponding charge to the income statement.
Movements in deferred tax relating to the employee retirement benefit obligation are recognised in the statement of comprehensive
income to the extent that the movement corresponds to actuarial gains and losses recognised in the statement of comprehensive
income. The total expense recognised outside the income statement is $2.1 million (2020: income of $3.5 million), comprising
$3.4 million deferred tax expense and $1.3 million current tax income (2020: $2.1 million deferred tax income and
$1.4 million current tax income).
Deferred tax assets of $29.1 million (2020: $31.8 million), relating to losses arising in overseas entities, which depend on the
availability of future taxable profits, have been recognised. Business projections indicate it is probable that sufficient future
taxable income will be available against which to offset these recognised deferred tax assets within five years. $27.7 million
(2020: $20.6 million) of the tax losses to which these assets relate will expire within ten years; a further $1.4 million
(2020: $11.2 million) will expire after ten years or will be available indefinitely. The Group has not provided for deferred tax assets
totalling $52.9 million (2020: $44.0 million) in relation to losses in overseas companies of $266.3 million (2020: $224.7 million).
In accordance with IAS 12, all deferred tax assets and liabilities are classified as non-current. The amount of deferred tax asset
expected to be recovered after more than 12 months is $67.2 million (2020: $68.0 million).
Factors affecting tax charges in future years
An increase to the UK corporate tax rate to 25% from 1 April 2023 was substantively enacted on 24 May 2021. This will have
a consequential effect on the company’s future tax charge, and deferred tax assets in relation to the UK have increased by
$8.2 million. The impact of these changes in future periods will be dependent on the level of taxable profits in those periods.
27 Employee retirement benefit obligations
The Company’s subsidiary Hiscox plc operates a defined benefit pension scheme based on final pensionable salary. The scheme
closed to future accruals with effect from 31December2006 and active members were offered membership of adefined
contribution scheme from 1January2007. The funds of the defined benefit scheme are controlled by the trustee and are held
separately from those of the Group. 61% of any scheme surplus or deficit is recharged to Syndicate 33. The full pension obligation
of the Hiscox defined benefit pension scheme is recorded and the recovery from the third-party Names for their share of the
Syndicate 33 recharge is shown as aseparate asset.
The gross amount recognised in the Group balance sheet in respect of the defined benefit scheme is determined as follows:
2021
$m
2020
$m
Present value of scheme obligations 404.1 417. 9
Fair value of scheme assets (369.0) (344.4)
Net amount recognised as adefined benefit obligation 35.1 73.5
As the present value of scheme obligations exceeds the fair value of the scheme assets, the scheme reports a deficit.
The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit actuarial cost
method. A formal full actuarial valuation is performed on atriennial basis, most recently at 31December2020, and updated
at each intervening balance sheet date by the actuaries. The present value of the defined benefit obligation is determined by
discounting the estimated future cash flows using interest rates of AA rated corporate bonds that have terms to maturity that
approximate to the terms of the related pension liability.

200 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
27 Employee retirement benefit obligations continued
The scheme assets are invested as follows:
At 31 December
2021
$m
2020
$m
Investment assets
Pooled investment vehicles 145.3 222.7
Equities 36.3 75.0
Bonds 182.2 12.1
Derivatives 0.2 0.2
Cash 5.0 34.4
369.0 344.4
The amounts recognised in total comprehensive income are as follows:
Note
2021
$m
2020
$m
Past service cost –
–
Interest cost on defined benefit obligation 5.6 7.6
Interest income on plan assets (4.6) (6.5)
Net interest cost 1.0 1.1
Administrative expenses and taxes – –
Total expense recognised in operational expenses in the income statement
9 1.0 1.1
Remeasurements
Effect of changes in actuarial assumptions (6.5) 52.1
Return on plan assets (excluding interest income) (31.4) (6.5)
Remeasurement of third-party Names’ share of defined benefit obligation 6.3 ( 7.6 )
Total remeasurement included in other comprehensive income (31.6) 38.0
Total defined benefit (credit)/charge recognised in comprehensive income (30.6) 39.1
In October 2018, the High Court in the UK issued a ruling to address inequalities in the calculation of guaranteed minimum
pensions (GMPs) for members of pension schemes. This ruling requires pension funds to increase the benefits of some members
of the pension scheme.
The Group has completed an estimate of the impact of the ruling on the scheme using one of the methods identified by the
High Court (C2) for equalising GMPs and has recognised a charge of £nil ($nil) during the year (2020:£15,000($20,000)).
The movement in liability recognised in the Group’s balance sheet is as follows:
2021
$m
2020
$m
Group defined benefit liability at beginning of year 73.5 55.1
Third-party Names’ share of liability (18.8) (10.5)
Net defined benefit liability at beginning of year 54.7 44.6
Defined benefit cost included in net income 1.0 1.1
Contribution by employer – (30.4)
Credit from third-party Names (0.2) (0.2)
Foreign exchange movements (1.1) 1.6
Total remeasurement included in other comprehensive income (31.6) 38.0
Net defined benefit liability at end of year 22.8 54.7
Third-party Names’ share of liability 12.3 18.8
Group defined benefit liability at end of year 35.1 73.5

201Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
27 Employee retirement benefit obligations continued
A reconciliation of the fair value of scheme assets is as follows:
2021
$m
2020
$m
Opening fair value of scheme assets 344.4 311.6
Interest income 4.6 6.5
Cash flows
Contribution by the employer – 30.4
Benefit payments (8.8) (21.4)
Remeasurements
Return on plan assets (excluding interest income) 31.4 6.5
Foreign exchange movements (2.6) 10.8
Closing fair value of scheme assets 369.0 344.4
A reconciliation of the present value of obligations of the scheme is as follows:
2021
$m
2020
$m
Opening present value of scheme obligations 417.9 366.7
Past service cost – –
Interest expense 5.6 7.6
Cash flows
Benefit payments (8.8) (21.4)
Remeasurements
Changes in actuarial assumptions (6.5) 52.1
Foreign exchange movements (4.1) 12.9
Closing present value of scheme obligations 404.1 417. 9
Assumptions regarding future mortality experience are set based on the S3PA (2020: S2PA) light tables. Reductions in future
mortality rates are allowed for by using the CMI 2019 (2020: CMI 2107) projections (core model) with 1.25% p.a. long-term trend
for improvements.
The average life expectancy in years of a pensioner retiring at age 60 on the balance sheet date is as follows:
2021 2020
Male 28.9 28.0
Female 30.7 29.1
The average life expectancy in years of a pensioner retiring at 60, 15 years after the balance sheet date, is as follows:
2021 2020
Male 29.3 29.1
Female 30.8 30.2
The weighted average duration of the defined benefit obligation at 31 December 2021 was 19.9 years (2020: 20.1 years).

202 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
27 Employee retirement benefit obligations continued
Other principal actuarial assumptions are as follows:
2021
%
2020
%
Discount rate 1.80 1.40
Inflation assumption (RPI) 3.30 2.90
Inflation assumption (CPI) 2.70 2.50
Pension increases 3.10 2.75
The scheme operates under UK Trust law and the Trust is aseparate legal entity from the Group. The scheme is governed by
aboard of trustees, comprised of member-nominated and employer-appointed trustees. The trustees are required by law to act
in the best interests of scheme members and are responsible for setting certain policies together with the principal employer.
The scheme is funded by the Group when required. Funding of the scheme is based on aseparate actuarial valuation for funding
purposes for which the assumptions may differ from the assumptions above. Funding requirements are formally set out in the
statement of funding principles, schedule of contributions and recovery plan agreed between the trustees and the Group.
The triennial valuation was carried out as at 31 December 2020 and resulted in a deficit position of £78.0 million ($106.6 million)
on a funding basis. On 21 January 2022, the Group and the scheme’s trustees agreed a recovery plan to reduce the deficit and
to eliminate the deficit by 2027. No contributions were paid in 2021, following the advance payment made in December 2020
of £20.0 million ($26.7 million) in respect of contributions due in 2021. Under the recovery plan, and taking into account the
material improvement in the funding position since the valuation date, there will be six payments of £10.0 million ($13.5 million),
commencing in January 2022 and annually thereafter. The funding plan will be reviewed again following the next triennial funding
valuation which will have an effective date of 31 December 2023.
While management believes that the actuarial assumptions are appropriate, any significant changes to those could affect the
balance sheet and income statement. For example, an additional one year of life expectancy for all scheme members would
increase the scheme obligations by £12.2million ($16.5million) at 31December2021 (2020:£14.1million ($19.3million)), and
would increase the recorded net deficit on the balance sheet by the same amounts.
The most sensitive and judgemental financial assumptions are the discount rate and inflation. These are considered further below.
CPI revaluation in deferment is used for contracted-out members. Contracted-in members are linked to RPI as well as for all
pension in payment increases.
The Group has estimated the sensitivity of the net obligation recognised in the consolidated balance sheet to isolated changes
in these assumptions at 31December2021 as follows:
Present value
of unfunded
obligations
before change
in assumption
$m
Present value
of unfunded
obligations
after change
$m
(Increase)
/decrease
in obligation
recognised on
balance sheet
$m
Effect of a change in discount rate
Use of discount rate of 2.05% 35.1 15.8 19.3
Use of discount rate of 1.55% 35.1 55.8 (20.7)
Effect of a change in inflation
Use of RPI inflation assumption of 3.55% 35.1 42.7 ( 7.6)
Use of RPI inflation assumption of 3.05% 35.1 30.1 5.0

203Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
28 Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the year, excluding ordinary shares held by the Group and held in treasury
as own shares.
Basic 2021 2020
Profit/(loss) for the year attributable to the owners of the Company ($m) 189.5 (293.7)
Weighted average number of ordinary shares (thousands) 342,551 320,562
Basic earnings per share (cents per share) 55.3¢ (91.6)¢
Basic earnings per share (pence per share) 40.2p (71.5)p
Diluted
Diluted earnings per share is calculated by adjusting for the assumed conversion of all dilutive potential ordinary shares. The
Company has one category of dilutive potential ordinary shares: share options and awards. For the share options, acalculation
is made to determine the number of shares that could have been acquired at fair value (determined as the average annual market
share price of the Company’s shares) based on the monetary value of the subscription rights attached to outstanding share
options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming
the exercise of the share options.
2021 2020
Profit/(loss) for the year attributable to the owners of the Company ($m) 189.5 (293.7)
Weighted average number of ordinary shares in issue (thousands) 342,551 320,562
Adjustments for share options (thousands) 3,740 3,498
Weighted average number of ordinary shares for diluted earnings/(loss) per share (thousands) 346,291 324,060
Diluted earnings per share (cents per share) 54.7¢ (90.6)¢
Diluted earnings per share (pence per share) 39.8p (70.7)p
Diluted earnings per share has been calculated after taking account of 3,611,707 (2020:3,431,623) Performance Share Plan
awards and 128,080 (2020:66,010) options under SAYE schemes.
29 Dividends paid to owners of the Company
2021
$m
2020
$m
Interim dividend for the year ended:
31 December 2021 of 11.5¢ (net) per share 39.4 –
39.4 –
There was no interim or final dividend declared for the year ended 31 December 2020.
The interim dividend for 2021 was paid either in cash or issued as a Scrip Dividend at the option of the shareholder. The interim
dividend for the year ended 31 December 2021 was paid in cash of $39.2 million and 20,231 shares for a Scrip Dividend.
The Board has recommended a final dividend of 23.0¢ per share to be paid, subject to shareholder approval, on 13 June 2022
to shareholders registered on 6 May 2022, taking the ordinary dividend per share for the year to 34.5¢ (2020: nil). The dividends
will be paid in Sterling unless shareholders elect to be paid in US Dollars. The foreign exchange rates at which future dividends
declared in US Dollars will be calculated is based on the average exchange rate in the five business days prior to the Scrip
Dividend price being determined. On this occasion, the period will be between 23 May 2022 and 27 May 2022 inclusive.
A Scrip Dividend alternative will be offered to the owners of the Company.
When determining the level of dividend each year, the Board considers the ability of the Group to generate cash; the availability of
that cash in the Group, while considering constraints such as regulatory capital requirements and the level required to invest in the
business. This is a progressive policy and is expected to be maintained for the foreseeable future.

204 Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
30 Contingencies and guarantees
The Group’s parent company and subsidiaries may become involved in legal proceedings, claims and litigation in the normal
course of business. The Group reviews and, in the opinion of the Directors, maintains sufficient provision, capital and reserves
in respect of such claims.
The following guarantees have also been issued:
(a) Hiscox Dedicated Corporate Member Limited (HDCM) and Hiscox Insurance Company (Bermuda) Limited (Hiscox Bermuda)
provide assets under a Security and Trust Deed charged to Lloyd’s of London, to meet any liabilities that occur from their
interest in Syndicates 33 and 3624. At 31December2021, HDCM held $245.3million of investments (2020:$316.1million),
$1.8million of cash (2020:$8.8million) and a $241.0 million LOC (2020:$241.0million) in favour of Lloyd’s of London under
this arrangement. At 31December2021, Hiscox Bermuda held $695.5million of investments (2020:$884.6million),
$26.4million of cash (2020:$25.9million) and a $25.0 million LOC (2020:$25.0million) in favour of Lloyd’s of London
under this arrangement.
(b) In 2020, HDCM entered into a $65million FAL agreement under which the lending bank provides assets on HDCM’s behalf
under a security and trust deed charged to Lloyd’s of London as part of the Company’s Fund’s at Lloyd’s provision.
At 31December2021 the full $65million was utilised.
(c) Hiscox plc continued with its LOC and revolving credit facility with Lloyds Banking Group, as agent for a syndicate of banks,
which may be drawn in cash up to £450million under a revolving credit facility (2020:£450 million) or LOC up to $266 million
(2020: $266 million). The terms also provide that the facility may be drawn in USD, GBP or EUR, or another currency with the
agreement of the banks. At 31December2021, $266.0million (2020:$266.0million) was utilised by way of LOC to support
the Funds at Lloyd’s requirement and $nil cash drawings were outstanding (2020:$193.4million).
(d) Hiscox Insurance Company Limited has arranged a LOC of £50,000 (2020:£50,000) with NatWest Bank plc to support its
consortium activities with Lloyd’s; the arrangement is collateralised with cash of £50,000 (2020:£50,000).
(e) The Council of Lloyd’s has the discretion to call a contribution of up to 3% (increasing to 5% from 2022) of capacity if required
from the managed syndicates.
(f) As Hiscox Bermuda is not an admitted insurer or reinsurer in the USA, the terms of certain US insurance and reinsurance
contracts require Hiscox Bermuda to provide LOCs or other terms of collateral to clients. Hiscox Bermuda has in place
a LOC reimbursement and pledge agreement with Citibank for the provision of a LOC facility in favour of USA ceding
companies and other jurisdictions, and also LOC facility agreements with National Australia Bank and Commerzbank AG.
The agreements combined are a three-year secured facility that allowed Hiscox Bermuda to request the issuance of up
to $470.0million in LOCs (2020:$470.0million).
LOCs issued under these facilities are collateralised by cash, US government and corporate securities of Hiscox
Bermuda. LOCs under these facilities totalling $183.1million were issued with an effective date of 31December2021
(2020:$140.1million on a $470million facility) and these were collateralised by US government and corporate securities
with a fair value of $201.7 million (2020:$169.5million). In addition, Hiscox Bermuda maintained assets in trust accounts
to collateralise obligations under various reinsurance agreements. At 31December2021, total cash and marketable
securities with a carrying value of approximately $23.6 million (2020:$18.4million) were held in external trusts. Cash
and marketable securities with an approximate market value of $554.3 million (2020:$598.7million) were held in trust
in respect of internal quota share arrangements.
(g) Hiscox SA has arranged bank guarantees with respect to their various office deposits for a total of €266,624 (2020: €266,336).
These guarantees are held with ING Bank (Belgium) €23,460 (2020: €23,000), ABN Amro (Holland) €44,749 (2020: €45,000),
HypoVereinsbank – UniCredit (Germany) €156,435 (2020: €156,336) and ING Bank (Luxembourg) €41,980 (2020: €42,000).
As a consequence of the cross-border merger with Hiscox Europe Underwriting Limited effective 1 January 2019, Hiscox SA
has the obligations under guarantees that were previously held by Hiscox Europe Underwriting Limited during 2018.
(h) See note 25 for tax-related contingent liabilities.

205Hiscox Ltd Report and Accounts 2021
Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
31 Capital commitments and income from subleasing
Capital commitments
Refer to note 24 for lease commitments and note 27 for the Group’s funding contributions to the defined benefit scheme. The
Group’s capital commitments contracted for at the balance sheet date but not yet incurred for property, plant, equipment and
software development was $12.9 million (2020: $9.9 million).
Income from subleasing
Hiscox acts as a lessor and sublets excess capacity of its office space to third parties.
The total future aggregate minimum lease rentals receivable by the Group as lessor under non-cancellable operating property
leases are as follows:
2021
$m
2020
$m
No later than one year 2.0 0.4
Later than one year and no later than five years 4.8 –
6.8 0.4
32 Principal subsidiary companies of Hiscox Ltd at 31 December 2021
Company Nature of business Country
Hiscox plc* Holding company Great Britain
Hiscox Insurance Company Limited General insurance Great Britain
Hiscox Insurance Company (Guernsey) Limited* General insurance Guernsey
Hiscox Holdings Inc. Holding company USA (Delaware)
ALTOHA, Inc. Insurance holding company USA (Delaware)
Hiscox Insurance Company Inc. General insurance USA (Illinois)
Hiscox Inc. Insurance intermediary USA (Delaware)
Hiscox Insurance Company (Bermuda) Limited* General insurance and reinsurance Bermuda
Hiscox Dedicated Corporate Member Limited Lloyd’s corporate Name Great Britain
Hiscox Holdings Limited** Insurance holding company Great Britain
Hiscox Syndicates Limited Lloyd’s managing agent Great Britain
Hiscox ASM Ltd. Insurance intermediary Great Britain
Hiscox Underwriting Group Services Limited Service company Great Britain
Hiscox Underwriting Ltd Underwriting agent Great Britain
Hiscox Société Anonyme* General insurance Luxembourg
Hiscox Assure SAS Insurance intermediary France
Direct Asia Insurance (Holdings) Pte Ltd Holding company Singapore
Direct Asia Insurance (Singapore) Pte Limited General insurance Singapore
*Held directly.
**Hiscox Holdings Limited held nil shares in Hiscox Ltd at 31 December 2021 (2020: 38,030).
All principal subsidiaries are wholly owned. The proportion of voting rights of subsidiaries held is the same as the proportion of
equity shares held.

Chapter 6 134
Financial
summary
Notes to the
consolidated
financial statements
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
206 Hiscox Ltd Report and Accounts 2021
33 Related-party transactions
Details of the remuneration of the Group’s key personnel, presented in Sterling, are shown in the annual report on remuneration
2021 on pages 100 to 107. Anumber of the Group’s key personnel hold insurance contracts with the Group, all of which are on
normal commercial terms and are not material in nature.
The following transactions were conducted with related parties during the year.
(a) Syndicate 33 at Lloyd’s
Related-party balances between Group companies and Syndicate 33 reflect the 27.4% interest (2020: 27.4%) that the Group does
not own, and are as follows.
Transactions in
the income statement
forthe year ended
Balances
outstanding
(payable) at
31 December
2021
$m
31 December
2020
$m
31 December
2021
$m
31 December
2020
$m
Hiscox Syndicates Limited 5.8 5.1 2.3 1.2
Hiscox Group insurance carriers 8.7 15.6 (74.8) (114.8)
Hiscox Group insurance intermediaries 4.2 (1.5) (9.2) (14.4)
Other Hiscox Group companies 35.4 32.8 11.7 22.6
54.1 52.0 (70.0) (105.4)
(b) Transactions with associates
Certain companies within the Group conduct insurance and other business with associates. These transactions arise in the
normal course of obtaining insurance business through brokerages, and are based on arm’s length arrangements.
2021
$m
2020
$m
Gross premium income achieved through associates 17.5 12.1
Commission expense charged by associates 4.3 3.0
There were no material outstanding balance sheet amounts with associates.
Details of the Group’s associates are given in note 14.
(c) Internal reinsurance arrangements
During the current and prior year, there were anumber of reinsurance arrangements entered into in the normal course of trade
between various Group companies. The related results of these transactions have been eliminated on consolidation.
34 Post balance sheet event
In February 2022, a military conflict arose in Ukraine. The Group has some limited direct insurance exposure through certain lines
including terrorism, political violence, war and marine. Management are actively monitoring the situation and assisting Hiscox
policyholders. The Group has negligible exposure to investments in Ukrainian and Russian assets.

Chapter 6 134
Financial
summary
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
207Hiscox Ltd Report and Accounts 2021
Additional performance measures (APMs)
The Group uses, throughout its financial publications,
additional performance measures (APMs) in addition to
the figures that are prepared in accordance with UK-adopted
International Accounting Standards. The Group believes
that these measures provide useful information to enhance
the understanding of its financial performance. These APMs
are: combined, claims and expense ratios, return on equity,
net asset value per share and net tangible asset value per share
and prior-year developments. These are common measures
used across the industry, and allow the reader of our Annual
Report and Accounts to compare across peer companies.
The APMs should be viewed as complementary to, rather
than a substitute for, the figures prepared in accordance
with accounting standards.
A
Combined, claims and expense ratios
The combined, claims and expense ratios are common
measures enabling comparability across the insurance
industry that measure the relevant underwriting profitability
of the business by reference to its costs as a proportion
of its net earned premium. The Group calculates the
combined ratio as if the Group owned all of the business,
including the proportion of Syndicate 33 that the Group
does not own (Group controlled income). The Group
does this to enable comparability from period to period
as the business mix may change in a segment between
insurance carriers, and this enables the Group to measure
all of its underwriting businesses on an equal measure.
The calculation is discussed further in note 4, operating
segments. The combined ratio is calculated as the sum
of the claims ratio and the expense ratio.
A
Return on equity (ROE)
Use of return on equity is common within the financial
services industry, and the Group uses ROE as one of its
key performance metrics. While the measure enables
the Company to compare itself against other peer
companies in the immediate industry, it is also a key
measure internally where it is used to compare the
profitability of business segments, and underpins the
performance-related pay and pre-2018 shared-based
payment structures. The ROE is shown in note 6, along
with an explanation of the calculation.
A
Net asset value (NAV) per share and net tangible asset
value per share
The Group uses NAV per share as one of its key
performance metrics, including using the movement of
NAV per share in the calculation of the options vesting of
awards granted under Performance Share Plans (PSP)
from 2018 onwards. This is a widely used key measure
for management and also for users of the financial
statements to provide comparability across peers in the
market. Net tangible asset value comprises total equity
excluding intangible assets. NAV per share and net
tangible asset value per share are shown in note 5,
along with an explanation of the calculation.
A
Prior-year developments
Prior-year developments are a measure of favourable or
adverse development on claims reserves that existed at
the prior balance sheet date. It enables the users of the
financial statements to compare and contrast the Group’s
performance relative to peer companies. The Group
maintains a prudent approach to reserving, to help
mitigate the uncertainty within the reserve estimates.
The prior-year development is calculated as the positive
or negative movement in ultimate losses on prior accident
years between the current and prior-year balance sheet
date, as shown in note 23.

Chapter 6 134
Financial
summary
Chapter 3 62
Governance
Chapter 5 128
Shareholder
information
Chapter 2 16
A closer look
Chapter 1 4
Performance
and purpose
Chapter 4 94
Remuneration
208 Hiscox Ltd Report and Accounts 2021
Five-year summary
2021
$m
2020
$m
2019
$m
2018
$m
2017
$m
Results
Gross premiums written 4,269.2 4,0 3 3.1 4,030.7 3,778.3 3,286.0
Net premiums written 2,955.0 2,750.4 2,678.8 2,581.5 2,403.0
Net premiums earned 2,919.9 2,752.2 2,635.6 2,573.6 2,416.2
Profit/(loss) before tax 190.8 (268.5) 53.1 135.6 37.8
Profit/(loss) for the year after tax 189.5 (293.7) 48.9 117.9 22.7
Assets employed
Intangible assets 313.1 298.9 278.0 204.6 186.0
Financial assets carried at fair value 6,041.3 6,116.8 5,539.0 5,029.7 5,139.6
Cash and cash equivalents 1,300.7 1, 5 7 7.2 1,115.9 1,288.8 8 67.8
Insurance liabilities and reinsurance assets (4,960.4) (5,468.8) (4,707.6 ) (4,244.9) (4,174.4)
Other net assets (155.4) (170.2) (35.6) (19.2) 298.2
Net assets 2,539.3 2,353.9 2,18 9.7 2,259.0 2, 317. 2
Net asset value per share (¢) 739.8 689.0 768.2 798.6 817.1
Key statistics
Basic earnings/(loss) per share (¢) 55.3 (91.6) 17. 2 41.6 8.1
Basic earnings/(loss) per share (p) 40.2 (71.5) 13.5 31.2 9.3
Diluted earnings/(loss) per share (¢) 54.7 (90.6) 16.9 40.8 11.6
Diluted earnings/(loss) per share (p) 39.8 (70.7) 13.3 30.6 9.0
Combined ratio (%) 93.2 114.5 106.8 94.4 98.8
Return on equity (%) 8.1 (11.8) 2.2 5.3 1.0
Dividends per share (¢) 34.5 – 13.8 41.9 39.8
Dividends per share (p) 25.3 – 11.1 32.8 29.0
Share price – high
†
(p) 1,004.0 1,431.0 1,777.0 1,711.0 1,470.0
Share price – low
†
(p) 770.0 666.4 1,213.0 1,332.0 9 97.5
†
Closing mid-market prices.
The five-year summary is unaudited.

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Disclaimer
This document contains
forward-looking statements
regarding plans, goals and
expectations relating to the
Group’s future financial condition,
performance, results, strategy
or objectives, which by their very
nature involve risk and uncertainty.
Statements that are not historical
facts are based on Hiscox’s beliefs
and expectations. These include
but are not limited to statements
containing the words ‘may’,
‘will’, ‘should’, ‘continue’, ‘aims’,
‘estimates’, ‘projects’, ‘believes’,
‘intends’, ‘expects’, ‘plans’, ‘seeks’
and words of similar meaning.
These statements are based
on current plans, estimates and
projections as at the time they are
made and therefore undue reliance
should not be placed on them.
A number of factors could cause
Hiscox’s actual future financial
condition, performance or other
key performance indicators
to differ materially from those
discussed in any forward-looking
statement. These factors include
but are not limited to future market
conditions; the policies and actions
of regulatory authorities; the impact
of competition, economic growth,
inflation, and deflation; the impact
and other uncertainties of future
acquisitions or combinations within
the insurance sector; the impact
of changes in capital, solvency
standards or accounting standards
or relevant regulatory frameworks,
and tax and other legislation and
regulations in the jurisdictions
in which Hiscox operates; and
the impact of legal actions and
disputes. These and other important
factors could result in changes to
assumptions used for determining
Hiscox results and other key
performance indicators.
Hiscox therefore expressly
disclaims any obligation to update
any forward-looking statements
contained in this document,
except as required pursuant to
the Bermuda Companies Act,
the UK Listing Rules, the UK
Disclosure Guidance and
Transparency Rules or other
applicable laws and regulations.

Hiscox Ltd
Chesney House
96 Pitts Bay Road
Pembroke HM 08
Bermuda
T +1 441 278 8300
E enquiries@hiscox.com
www.hiscoxgroup.com
21700 03/22