Final Results

Amlin PLC
26 April 2001



                                  AMLIN plc
                    PRELIMINARY RESULTS FOR THE YEAR ENDED
                         31 DECEMBER 2000 (UNAUDITED)



HIGHLIGHTS

*       Improved combined ratio of 103% excluding Syndicate 1141 (1999: 108%)

*       Total dividend increased by 5% to 4.0p

*       Hardening rates in all business areas

-         Fleet motor renewal rates up by 25% in first quarter
-         Most recent XL renewal rates up by 20%
-         2001 airline renewals up by 30%
-         Marine rates beginning to move in the first quarter

*       New operational structure delivering real benefits

-         Enhancement of underwriting quality
-         Stronger market positions and greater client focus
-         More effective reinsurance programme
-         Lower cost base

                                                                 2000      1999
                                                                   £m        £m
Gross written premium
-          continuing operations                                340.7     161.4
-          discontinued operations                               22.6      91.4

Operating (loss)/profit(1)
-          continuing operations                                (3.5)       7.2
-          discontinued operations                              (2.4)       5.3

(Loss) profit on ordinary activities before taxation (2)       (26.4)      18.3

Earnings per share                                             (9.6)p      5.9p

Dividend per share                                               4.0p      3.8p

Net assets per share                                           102.0p    110.0p

(1) Operating profit is based upon longer term investment returns.
(2) Loss before tax impacted by negative equity return and goodwill adjustment


Roger Taylor, Chairman, commented:

'I am pleased to report another year of progress at Amlin as we continued to
focus successfully on driving improvements through our core businesses. A
great deal has been achieved which will impact positively on our performance
as we emerge from the difficult market conditions which have existed over the
past three years.

The strengthening of reserves in respect of Syndicate 1141 has impacted the
results more than initially expected.  However, our remaining businesses
performed ahead of expectations.  We are confident that the 2000 year of
account will see a return to profit for our combined underwriting operations
and, with rates continuing to harden, we look to the future with increasing
optimism.'



Enquiries:

Charles Philipps                        020 7746 1050
Richard Hextall                         020 7746 1054
David Haggie                            020 7417 8989


FINANCIAL PERFORMANCE

The Group's reported loss on ordinary activities before tax of £26.4 million
(1999: profit of £18.3 million) masks the improvement in the underlying
profitability of our underwriting operations and was affected by the
following:

*        First, the investment return for the year was £14.7 million lower
         than in 1999, due to the performance of our FTSE 350 portfolio.
*        Second, we strengthened syndicate 1141's reserving mainly in respect
         of US casualty and binding authority business. This impacted the       
         Group's pre-tax result by £6.2 million.
*        Third, new business strain that arises from increased ownership of
         our managed capacity.  Future profits will be boosted as and when our
         ownership of syndicate 2001 stabilises.
*        Fourth, the results include a goodwill charge of £9.4 million arising
         from the sale of our Members' agency business. This has no impact on   
         our net assets as we make a corresponding adjustment, in accordance    
         with accounting standards, in the balance sheet.
*        Finally, one off costs incurred in 2000, of £2.4 million, associated
         mainly with the reorganisation of our operations and the co-location of
         our London Market operations.

The combined ratio for 2000 including syndicate 1141 was 111% compared to 108%
in 1999. Excluding syndicate 1141, which is now substantially discontinued,
our combined ratio improved significantly to 103% from 108%, notwithstanding
that our businesses continued to trade in a challenging environment.

DIVIDENDS

Given our confidence in the strength of our continuing business the Board has
proposed a final dividend of 2.6p, bringing the total dividend for 2000 to
4.0p, an increase of 5% over 1999.

Underwriting performance

During 2000, each of our London Market businesses was beginning to benefit
from improving fundamentals. However the pace of improvement varied from class
to class and the operating environment remained challenging.

Amlin Insurance Services continued to achieve renewal rate increases on its
main commercial motor account of in excess of 20% throughout the year which
more than compensated for the effect on claims of a changed legal environment.
Its combined ratio improved by 8% to 106%.

Coles' performance benefited from the low level of catastrophes in 2000, as
reflected in a net incurred loss ratio on XL business incepting in that year
of 20% at 31 December 2000. Little improvement in conditions was experienced
in its marine classes where it maintained a defensive posture. Its overall
combined ratio improved by 10% to 88%.

Amlin Aviation achieved average rate increases on its airline renewals of 20%
and did not have a material exposure to a number of the major losses such as
Singapore Airlines and Air France Concorde. Its combined ratio remained at
94%, an encouragingly low level given market conditions.

The Harvey Bowring Division's overall performance was disappointing with its
combined ratio deteriorating by 8% to 120%. The poor results were caused by
syndicate 1141's US casualty and direct insurance accounts and syndicate
2001's US casualty account.  Other areas performed well given market
conditions.  The difference in performance is illustrated by an analysis of
combined ratios:

*        the syndicate 2001 element improved its combined ratio from 116% to
         105%; and
*        Syndicate 1141's ratio was 144% compared to 112% in 1999.

As noted in the interim results, casualty and US direct business were areas of
concern and action was taken to reprice business during 2000.  Following a
detailed review, it became evident that the effect of claims developments on
business written in prior years had been under estimated, with the result that
reserves needed to be materially strengthened.

Further and stronger action was taken in the latter half of 2000 to turn
around the under-performing areas:

*        Changes were made to the casualty underwriting team and this class
         has been downsized.
*        Syndicate 1141's US direct insurance account, which was largely
         written through binding authorities, has been placed under the control 
         of the Syndicate 2001 binding authority underwriter who has achieved an
         unbroken record of underwriting profitability over the past 8 years.   
         The 1141 account has been critically examined and is being selectively 
         renewed.

On a more positive note, the Syndicate 2001 element of the Division grew its
short tail property insurance and reinsurance income.  Incurred loss ratios at
31 December 2000 on business which incepted in 2000 are 13%, better than at
the same stage in 1999, reflecting a hardening of rates and a benign year for
catastrophes.

NEW OPERATIONAL STRUCTURE

In October 2000, we restructured our operations along class of business lines
to allow a greater focus on brokers' and clients' needs and to achieve
operational benefits which will enhance returns.

*        Harvey Bowring's position in the property reinsurance market has been
         significantly reinforced through the combination of its account with   
         the Coles XL account. Combined reinsurance gross premiums for 2001 is  
         estimated at £145 million;
*        The removal of duplication is allowing each of our businesses to
         offer larger line sizes, reinforcing their leadership positions in the 
         market;
*        The removal of duplication in underwriting has also resulted in
         annual payroll savings of £1.5 million for the current year;
*        We are able to channel more effectively future effort and investment
         into the development of service standards, particularly through the use
         of technology; and
*        Integration of the reinsurance programmes of the former composite
         divisions has been achieved, with the purchase for 2001 of one         
         catastrophe programme compared to four in 1999.  This has resulted in  
         better protection at a lower comparative cost. The cost of the main    
         excess of loss protections has reduced from approximately 20% of       
         premium income to 17%.

We are already seeing a positive impact on performance.

CAPACITY OWNERSHIP

During 2000 we acquired a further £71 million, or 12% of our syndicate's
capacity at an average price of 5.6p per £.  In anticipation of the better
trading conditions which are now becoming more evident, we also increased the
regulatory capacity of syndicate 2001 for the first time in four years, by 7%,
after allowing for the effect of its merger with syndicates 902 and 1141.
Therefore, we now own 70% of the £575 million of syndicate 2001's capacity for
the 2001 year of account.

OUTLOOK

Amlin is one of the largest operations in the Lloyd's market with £575 million
of managed capacity spread over a well diversified book of business. We have
leading positions in a number of classes including XL reinsurance, property
insurance, aviation and commercial motor.

As competition is forced out of the market due to losses, we expect that our
position will strengthen and that our leadership positions will be reinforced.
Having downsized our syndicates' business in the recent poor underwriting
climate, particularly in our marine business, we now expect to achieve
significant growth.

The outlook for Amlin is positive:

*        Syndicate 1141's reserves have been strengthened significantly, as
         have casualty account reserves in the original Harvey Bowring, reducing
         the risk of further adverse development. There is now a more consistent
         level of prudence in reserving across all underwriting areas;
*        Underlying performance has improved with a return to profitability
         expected for the 2000 year of account;
*        Overall incurred loss ratios are, on average, 8% better than 1999 at
         the same stage;
*        The changes implemented over the past twelve months, particularly our
         restructuring along class of business lines, will improve syndicate    
         2001's performance and strengthen its market positions;
*        The business mix has been improved with poorer performers removed and
         US casualty business downscaled;
*        Rates are continuing to harden:
         -         first quarter fleet motor renewal rates increased on average 
                   by 25%;
         -         1 April Japanese catastrophe renewals increased on average by
                   20%;
         -         airline renewals in 2001 have seen 30% increases;
         -         marine rates are beginning to improve in the first quarter.
*        Amlin's ownership of syndicate 2001 has been increased into better
         performance and a hardening market;

This will impact positively on the Group's future results.  However the pace
at which this will be reflected in future reported figures will be tempered by
the effect of new business strain which arises from increasing Amlin's
ownership of syndicate 2001.

The current, exceptionally firm retrocessional reinsurance market, combined
with the inability of some of our competition to continue trading, should now
accelerate improvements in conditions across our core lines. If this happens,
the outlook will become all the more encouraging.

Consolidated Profit and Loss Account
for the year ended 31 December 2000


                                                     Unaudited
                                                        2000
                                     Continuing Discontinued  Total     1999
                                     Operations Operations              Total
                         Notes       £m         £m            £m         £m
Technical
Account

Gross premiums                       340.7      22.6         363.3        252.8
written
Outward reinsurance                  (72.7)     (6.5)        (79.2)       (57.3)
premiums

Net premiums written                 268.0      16.1         284.1        195.5

Change in the provision for
unearned premiums
- gross amount                       (55.9)     -            (55.9)       (22.8)
- reinsurers' share                  2.9        -            2.9          2.4

Earned premiums, net of              215.0      16.1         231.1        175.1
reinsurance

Allocated investment return
transferred from
the non-technical            3       23.0       6.5          29.5         24.7
account

Claims paid:
- gross amount                       (144.2)    (81.6)       (225.8)     (154.5)
- reinsurers' share                  37.1       34.2         71.3         48.5

Claims paid:  net of                 (107.1)    (47.4)       (154.5)     (106.0)
reinsurance
Change in the provision for
claims:
- gross amount                       (146.4)    19.0         (127.4)     (86.7)
- reinsurers' share                  76.0       (4.5)        71.5         46.7


Claims incurred, net of              (177.5)    (32.9)       (210.4)     (146.0)
reinsurance

Net operating expenses               (60.7)     7.8          (52.9)      (52.5)

Balance on the technical account for (0.2)      (2.5)        (2.7)        1.3
general business


Consolidated Profit and Loss Account
for the year ended 31 December 2000
                                                      Unaudited

                                                     2000
                                         Continuing Discontinued      1999
                                         operations operations  Total Total
                                         £m          £m         £m    £m
Non-technical                    Notes
account

Balance on the technical                 (0.2)      (2.5)        2.7   1.3
account for general business
Investment                       3       23.7       6.6          30.3  26.6
income
Unrealised (losses)                      (7.0)      -            (7.0) 10.8
gains on investments                                             
Investment                       3       (2.1)      (0.1)        (2.2) (1.6)
expenses and
charges

Allocated investment return      3       (23.0)     (6.5)        (29.5) (24.7)
transferred to the technical
account

                                         (8.6)      (2.5)        (11.1) 12.4
Other                                    1.4        0.7          2.1   30.0
income
Other                                    (9.9)      (0.6)        (10.5) (27.7)
charges

Operating                                (17.1)     (2.4)        (19.5) 14.7
(loss) profit
Comprising:
Operating (loss) profit                  (3.5)      (2.4)        (5.9) 12.5
based on longer term
investment return
Short term                               (13.6)     -            (13.6) 2.2
fluctuations in
investment return

Profit on sale of                                                -      5.0
syndicate
participations
Loss on sale of                                                  (6.9) (1.4)
subsidiary
undertakings

(Loss) profit on ordinary                                        (26.4) 18.3
activities before taxation
Taxation on (loss)                                               7.3   (6.2)
profit on ordinary
activities

(Loss) profit on                                                 (19.1) 12.1
ordinary activities
after taxation
Equity                                                           (7.8) (7.8)
dividends

Retained (loss)                                                  (26.9) 4.3
profit for the
financial year

Earnings per
ordinary share
- basic                          5                               (9.6)p 5.9p
- diluted                        5                               (9.7)p 5.6p


Consolidated Statement of Total Recognised Gains and Losses
for the year ended 31 December 2000

                                                           2000          1999

                                                           £m            £m
(Loss) profit for the financial year                       (19.1)         12.1
Lapse of warrants                                          2.8            -

Total recognised gains for the financial year              (16.3)         12.1

Prior period adjustment                                    -              (9.5)
Total gains and losses recognised                          (16.3)         2.6


Consolidated Balance Sheet
as at 31 December 2000

                                                                      Unaudited

                                                           2000           1999
                                               Notes       £m             £m
ASSETS
Intangible assets                                          15.8           12.4

Investments
Other financial investments                        6       440.5          426.1

Reinsurers' share of technical
provisions
Provision for unearned premiums                            10.2           6.5
Claims outstanding                                         188.8          128.6

                                                           199.0          135.1
Debtors
Debtors arising out of direct insurance                    40.9           42.9
operations
Debtors arising out or reinsurance operations              126.4          108.4
Other debtors                                              84.2           31.3
Deferred tax asset                                         15.2           -

                                                           266.7          182.6

Other assets
Tangible assets                                            9.5            1.5
Cash at bank and in hand                                   30.2           26.8
Own shares                                                 3.5            3.9

                                                           43.2           32.2

Prepayments and accrued income
Deferred acquisition costs                                 22.8           10.7
Other prepayments and accrued income                       9.2            6.1
                                                           32.0           16.8

Total assets                                               997.2          805.2


Consolidated Balance Sheet
as at 31 December 2000

                                                                    Unaudited

                                                      2000            1999

                                          Notes       £m              £m
LIABILITIES

Capital and reserves

Called up share capital                               51.5            54.1
Shares to be issued                                   0.9             1.3
Share premium account                                 55.0            54.6
Merger reserve                                        41.9            41.9
Warrant reserve                                       -               2.8
Capital redemption reserve                            2.7             -
Profit and loss account                               50.1            72.2

Equity shareholders' funds                    7       202.1           226.9

Technical provisions

Provision for unearned premiums                       120.8           64.6
Claims outstanding                                    579.2           396.1

                                                      700.0           460.7

Provisions for other risks and                        9.1             6.8
charges

Creditors
Creditors arising out of direct insurance             34.4            29.8
operations
Creditors arising out of reinsurance                   5.6            23.6
operations
Other creditors including taxation and                31.1            37.2
social security

                                                      71.1            90.6

Creditors: amounts falling due after more             7.4             9.9
than one year

Accruals and deferred income                          7.5             10.3

Total liabilities                                     997.2           805.2


Net assets per ordinary share                 5       102.0p          110.0p


CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2000

                                                          2000          1999
                                               Notes      £m            £m
Net cash inflow                                 8         105.7         62.2

Servicing of finance
Interest paid on loan capital                             (1.8)         (0.8)
Interest paid on finance leases                           (0.2)         (0.3)
Net cash outflow from servicing of finance                (2.0)         (1.1)

Taxation
Corporation tax paid                                      (7.8)         (21.4)

Capital expenditure
Purchase of tangible assets                               (9.6)         (0.8)
Disposal of tangible assets                                  -          2.2
Purchase of intangible assets                             (4.0)         (7.5)
Disposal of intangible assets                             -             5.2
Net (purchases) sales of tangible and intangible          (13.6)        (0.9)
assets

Acquisitions and disposals
Disposal of subsidiaries                                  (1.2)         (2.6)
Adjustment in respect of acquisitions in prior            -             0.9
periods
Net disposals of subsidiary undertakings                  1.2           (1.7)
Equity dividends paid                                     (7.7)         (9.9)

Financing
Issue of new shares net of issue costs                    -             0.1
Repurchase of ordinary share capital                      (7.4)         -
Drawdown (repayment) of borrowings                        (1.6)         0.6
Net Cash (outflow) inflow from financing                  (9.0)         0.7
activities
Net cash flows                                            66.8          27.9

Cash flows were invested as follows
Decrease in cash holdings                                 (0.2)         (5.7)
Increase (decrease) in deposits                           10.9          (7.0)
Early releases from Lloyd's premium trust funds           -             (0.2)
                                                          (10.7)        (12.9)
Net portfolio investment
Purchase of investments                                   312.4         287.7
Sale of investments                                       (256.3)       (246.9)
Net purchases of investments                              56.1          40.8
Net investment of cash flows                              66.8          27.9


Cash flows relating to non-aligned participations are included only to the
extent that cash is transferred between the Premium Trust Funds and the Group.


Notes to the Preliminary Results
for the year ended 31 December 2000

1        ACCOUNTING POLICIES

Basis of preparation and consolidation

The consolidated financial statements have been prepared in accordance with
applicable accounting standards and under the historical cost accounting
rules, modified to include the revaluation of investments, in accordance with
the provisions of Section 255A, Schedule 9A and other requirements of the
Companies Act 1985. The Group has also adopted the recommendations of the
Statement of Recommended Practice on Accounting for Insurance Business, issued
by the Association of British Insurers ('ABI SORP').

The financial statements consolidate the accounts of the Company, its wholly
owned subsidiary undertakings, and the Group's underwriting through
participation on Lloyd's syndicates.  The accounting information in respect of
non-aligned syndicate participations has been provided by the managing agents
of those syndicates through an information exchange facility operated by
Lloyd's and has been audited by the respective syndicates' auditors.

The results of subsidiary undertakings disposed of in the year are included in
the consolidated profit and loss account until the date of disposal. Goodwill
arising on consolidation on acquisitions prior to 31 May 1998, representing
the excess of the fair value of the consideration over the fair value of the
assets acquired, has been written off against reserves.

Aligned syndicate participations

The Group's aligned syndicate participations are presented on an annual
accounting basis.

Premiums

Written premiums comprise premiums on contracts incepting during the financial
year. Premiums are disclosed gross of brokerage and exclude taxes and duties
levied on them. Estimates are included for 'pipeline' premiums, representing
amounts due to the Group but not yet notified, as well as adjustments made in
the year to premiums written in prior accounting periods.

Outward reinsurance premiums are accounted for in the same accounting period
as the related direct insurance or inwards reinsurance business.

Unearned premiums

A provision for unearned premiums represents that part of premiums written,
and reinsurers' share of premiums written, which is estimated to be earned in
following financial years. It is calculated separately for each insurance
contract on the 24ths or 365ths basis, where the incidence of risk is the same
throughout the contract. Where the incidence of risk varies during the term of
the contract, the provision is based on the estimated risk profile of business
written.

Acquisition costs

Acquisition costs comprise brokerage incurred on insurance contracts written
during the financial year. They are spread over an equivalent period to that
over which the premiums on the underlying business are earned. Deferred
acquisition costs represent the proportion of acquisition costs incurred in
respect of unearned premiums at the balance sheet date.

Claims

Claims incurred comprise claims and claims handling expenses paid during the
financial year together with the movement in the provision for claims
outstanding and settlement expenses, including claims incurred but not
reported.

Outward reinsurance recoveries are accounted for in the same accounting period
as the associated incurred claims.

Claims outstanding comprise provisions for the estimated cost of settling all
claims incurred but unpaid at the balance sheet date whether reported or not,
and include the related internal and external claims handling expenses.

Provisions for claims outstanding are based on information available to the
directors and the eventual outcome may vary from the original assessment.

Unexpired risks provision

Provision is made for unexpired risks where, at the balance sheet date, the
costs of outstanding claims and related deferred acquisition costs are
expected to exceed the unearned premium provision. The unexpired risks
provision is included within technical provisions in the balance sheet.

Notes to the Preliminary Results

1        ACCOUNTING POLICIES Continued

Non-aligned syndicate participations

The Group's non-aligned syndicate participations, which are presented as a
discontinued operation, are reported on a three year accounting basis.

Premiums

Written premiums comprise premiums on contracts incepting during the financial
year. Premiums are disclosed gross of brokerage payable and exclude taxes and
duties levied on them. Estimates are made for 'pipeline' premiums,
representing accounts due to the Group but not yet notified, as well as
adjustments made in the year to premiums written in prior accounting periods.

Outward reinsurance premiums are accounted for in the same accounting period
as the related direct insurance or inwards reinsurance business.

Claims

Claims incurred comprise claims and claims handling expenses paid during the
financial year together with the movement in the provision for claims
outstanding and settlement expenses, including claims incurred but not
reported.

The excess of premiums written and syndicate investment income over the claims
and syndicate expenses paid in respect of business incepting in an
underwriting year, is carried forward for two years in a fund and no profit is
recognised until the end of the third year following the start of each
underwriting year, when the account is normally closed. The fund is included
in 'claims outstanding'.

Loss provisions on open years

Provision is also made for losses on each open year of account when it is
considered that profits in corporate member subsidiaries may be insufficient
to meet these losses. In addition, provision is made for the estimated future
deterioration of any year of account of any syndicate that has gone into
run-off. While the directors make every effort to ensure that adequate
provision is made for losses on open years of account, their view of the
ultimate loss may vary in later periods as a result of subsequent information
and events. This in turn may require adjustment of the original provisions.
These adjustments are reflected in the financial statements for the period in
which the related adjustments are made.


Other accounting policies

Exchange rates

Income and expenditure in US dollars or Canadian dollars is translated at
average rates of exchange for the period. Underwriting transactions
denominated in other foreign currencies are included at their historical
rates.

Syndicate assets and liabilities, expressed in US dollars or Canadian dollars
are translated into sterling at the rates of exchange at the balance sheet
date. Differences arising on translation of foreign currency amounts in
syndicates are included in the technical account. Other assets, liabilities,
income and expenditure expressed in foreign currencies have been translated at
the rates of exchange at the balance sheet date unless contracts to sell
currency for sterling have been entered into prior to the year end, in which
case the contracted rates have been used. Differences arising on translation
of foreign currency amounts on such items are included in the non-technical
account.

Refund of special contributions

Refunds of the special contributions made towards the 1996 Lloyd's market
settlement are being repaid, subject to the approval of the Council of
Lloyd's, broadly in instalments equal to the corporate members' contribution
to the Central Fund commencing with the 1997 year of account.  Where these
refunds are in respect of non-trading corporate member subsidiaries, the
refund has been recognised in the year  ended 31 December 2000.

Investments

Listed investments are stated at market value at the close of business on the
balance sheet date. Unlisted investments are valued by the directors on a
prudent basis with regard to their likely realisable value.

Syndicate investments and investment income

Syndicate investments and cash are held on a pooled basis, the return from
which is allocated to underwriting years of account proportionately to the
funds contributed by the year of account.


Notes to the Preliminary Results

1        ACCOUNTING POLICIES Continued

Investment return

All dividends and any related tax credits are recognised as income on the date
the related listed investments are marked ex-dividend. Other investment
income, interest receivable, expenses and interest payable is recognised on an
accruals basis.

Realised gains or losses are calculated as the difference between the net
sales proceeds and their purchase price in the financial year or their
valuation at the commencement of the year. Unrealised gains and losses are
calculated as the difference between the valuation of investments at the
balance sheet date and their purchase price in the financial year or valuation
at the commencement of the year.

In the Company's accounts, realised gains and losses on investments are
included in the profit and loss account and unrealised gains and losses are
taken directly to capital reserve-unrealised.

Allocation of investment return

All of the investment return arising in the year is reported initially in the
non-technical account.  A transfer is made from the non-technical account to
the technical account representing:

*         for the aligned syndicate participations, the longer term
          investment return on investments supporting the technical provisions  
          and related shareholders' funds. The longer term investment return is 
          an estimate of the expected return over time for each relevant        
          category of investments having regard to past performance, current    
          trends and future expectations; and
*         for the non-aligned syndicate participations, the actual return on
          investments supporting the technical provisions and related           
          shareholders' funds.

Intangible fixed assets

Goodwill on transactions completed prior to 31 May 1998 has been written off
to reserves and has not been reinstated.  Goodwill arising since 1 June 1998
is amortised and written off over its useful economic life. On the subsequent
disposal of the underlying investment, any goodwill not yet amortised is taken
to the profit and loss account when calculating the profit or loss on
disposal.

The cost of syndicate participations which have been purchased in the Lloyd's
capacity auctions is capitalised and amortised on a straight line basis over
its useful economic life of twenty years beginning in the underwriting year in
which the purchased syndicate participation commences.

Other income and charges

Agency fees are recognised on an accruals basis. Profit commission receivable
is recognised when the relevant Lloyd's underwriting year closes.

Tangible fixed assets

The cost of fixed assets is depreciated over their expected useful lives on a
straight line basis.   The cost of other fixed assets is depreciated over
their expected useful lives on a straight line basis.

Depreciation rates are within the following ranges:

Leasehold land & buildings               over period of lease
Motor vehicles                           25-33% per annum
Computer hardware & software             33-50% per annum
Furniture & office equipment             20-50% per annum
Internal property improvements           20-33% per annum

Pensions

Pension contributions to defined benefit schemes are charged to the profit and
loss account so as to spread the cost of pensions over employees' working
lives with the Group. Pension contributions to employees' money purchase
schemes are charged to the profit and loss account when due.

Deferred tax

Deferred taxation, calculated on the liability method, is provided on items,
which are recognised for accounts and tax purposes in different periods, to
the extent that the liability or asset is expected to crystallise.

Leased assets

Assets held under finance leases and hire purchase transactions are
capitalised in the balance sheet and depreciated over their useful lives. The
outstanding instalments are included in creditors and the interest element is
charged against profits over the period of the contract.

Payments made under operating leases are charged to the profit and loss
account in the period in which they become payable except when there are rent
free periods in property leases for which the cost of the lease is spread
evenly up to the period of the first rent review.


Notes to the Preliminary Results

2        ANALYSIS OF CONTINUING AND DISCONTINUED OPERATIONS

Discontinued operations

The results of discontinued operations are reported separately.

Technical account

During 1999, the Group disposed of its remaining participations on non-aligned
syndicates. The results deriving from this activity are disclosed as
discontinued operations.

Non-technical account

The results of subsidiary undertakings disposed of in the year are included up
to the date of disposal. Discontinued operations represent the results of the
Group's members' agency companies.


Notes to the Preliminary Results

ANALYSIS OF CONTINUING AND DISCONTINUED OPERATIONS continued


                                2000                          1999
                    Continuing Discontinued       Continuing Discontinued
                    operations   operations Total operations   Operations Total
Technical Account           £m           £m    £m         £m           £m    £m

Gross premiums      340.7      22.6         363.3 161.4      91.4         252.8
written
Outward reinsurance (72.7)     (6.5)        (79.2)(34.6)     (22.7)      (57.3)
premiums

Net premiums        268.0      16.1         284.1 126.8      68.7         195.5
written
Change in the
provision for
unearned premiums:
- gross amount      (55.9)     -            (55.9) (22.8)     -           (22.8)
- reinsurers' share 2.9        -            2.9    2.4        -           2.4

Earned premiums,    215.0      16.1         231.1  106.4     68.7         175.1
net of reinsurance
                    
Allocated
investment return
transferred from
the non-technical
account             23.0       6.5          29.5   14.8      9.9          24.7

Claims paid:
- gross amount      (144.2)    (81.6)       (225.8)(69.1)    (85.4)      (154.5)
- reinsurers' share 37.1       34.2         71.3   16.9      31.6        48.5

Claims paid, net of (107.1)    (47.4)       (154.5)(52.2)    (53.8)      (106.0)
reinsurance
Change in the
provision for
claims:
- gross amount      (146.4)    19.0         (127.4)(48.1)    (38.6)      (86.7)
- reinsurers' share 76.0       (4.5)        71.5   21.2      25.5        46.7

Claims incurred,
net of reinsurance  (177.5)    (32.9)       (210.4)(79.1)    (66.9)      (146.0)
Net operating       (60.7)     7.8          (52.9) (39.7)    (12.8)      (52.5)
expenses

Balance on the
technical account
for general         (0.2)      (2.5)        (2.7) 2.4        (1.1)        1.3
business

Non-technical account  
                    £m        £m            £m    £m         £m           £m
Balance on the 
technical account
for general 
business            (0.2)     (2.5)         (2.7) 2.4        (1.1)        1.3
                                            
Investment income   23.7      6.6           30.3  16.5       10.1         26.6
Unrealised gains
on investments      (7.0)     -             (7.0) 10.8       -            10.8
Investment expenses
and charges         (2.1)     (0.1)         (2.2) (1.4)      (0.2)        (1.6)
Allocated 
investment return 
transferred to
the technical 
account             (23.0)    (6.5)         (29.5)(14.8)     (9.9)        (24.7)

                    (8.6)     (2.5)         (11.1)13.5       (1.1)        12.4

Other income        1.4       0.7           2.1   5.8        24.2         30.0
Other charges       (9.9)     (0.6)         (10.5)(9.9)      (17.8)       (27.7)

Operating (loss)
profit              (17.1)    (2.4)         (19.5)9.4        5.3          14.7

Comprising:
Operating (loss)
profit based on 
longer term 
investment return   (3.5)     (2.4)         (5.9) 7.2        5.3          12.5
                                            
Short term 
fluctuations 
in investment       (13.6)    -             (13.6)2.2        -            2.2
return

Profit on sale of 
syndicate 
participations                                    -                       5.0

Loss on sale 
of subsidiary 
undertakings                                      (6.9)                   (1.4)

(Loss) profit 
on ordinary 
activities 
before                                            (26.4)                  18.3
taxation


Notes to the Preliminary Results

3        INVESTMENT RETURN

Investment income and expenditure reported in the non-technical account is as
follows:
                                                          2000       1999
                                                          £m         £m
Income from investments                                   30.3       22.4
Gains on realisation of investments                       -          4.2

                                                          30.3       26.6

Unrealised (losses) gains on investments                  (7.0)      10.8

Investment management fees                                1.1        (0.4)
Interest on loan stock and bank loans                     (0.7)      (0.8)
Other finance charges                                     (0.4)      (0.4)

                                                          (2.2)      (1.6)

Total investment return                                   21.1       35.8

In respect of equity investments and fixed interest securities the longer term
rate of return has been determined by having regard to the Group's historical
and expected returns and current portfolio strategy. The rates of return are:

                                                           2000      1999
UK equities                                                8.0%      8.0%
Fixed interest securities                                  6.0%      6.0%


These returns are applied to the average, over the year, of the investments
attributable to the shareholders and insurance technical provisions of the
aligned syndicate participations. The attributable shareholders' funds are
based on the Funds at Lloyd's which represent the estimated risk based capital
supporting the insurance business.

The actual return on investments since 1 June 1995, compared with the
aggregate longer term return over the same period, is set out below. All
figures are gross of expenses.

                                                      1 June 1995   1 June 1995
                                                        to 31 Dec     to 31 Dec
                                                             2000          1999
                                                               £m            £m

Actual return attributable to the technical account          89.1          75.7
Longer term return attributable to the technical             97.4          74.0
account

Effect of short term fluctuations over the period            (8.3)         1.7


Notes to the Preliminary Results

4        PRIOR YEARS' CLAIMS PROVISIONS

Material (under)/over provisions for claims at the beginning of the year as
compared with net payments and provisions at the end of the year in respect of
prior years' claims for continuing business are as follows:

                                                             2000          1999
                                                              £m           £m
Syndicate 2001                                                0.6           1.6
Syndicate 902                                                 0.1           0.2
Syndicate 1141                                                (6.2)         -

                                                              (5.5)         1.8

5        EARNINGS AND NET ASSETS PER ORDINARY SHARE

Earnings per share is based on the loss attributable to shareholders for the
year ended 31 December 2000 of £19.1 million (1999: profit of £12.1 million)
and the weighted average number of shares in issue during the period. Shares
held by the Employee Share Ownership Trust ('ESOT') are excluded from the
weighted average number of shares.

Basic and diluted earnings per share are as follows:
                                                                2000       1999
(Loss) profit for the financial year                        (£19.1m)     £12.1m
Weighted average number of shares in issue                   200.0m      206.5m
Dilutive shares to be issued                                 (5.5m)      6.3m
Adjusted average number of shares in issue                   194.5m      212.8m
Basic earnings per share                                     (9.6)p      5.9p
Diluted earnings per share                                   (9.7)p      5.6p

Basic net assets per share are as follows:
                                                               2000        1999
Net assets at 31 December                                    £202.1m     £226.9m
Number of shares in issue at 31 December                     206.1m      215.8m
Adjustment for ESOT shares                                   (7.7m)      (9.4m)
Basic number of shares after ESOT adjustment                 198.4m      206.4m
Basic net assets per share                                   102.0p      110.0p


6        OTHER FINANCIAL INVESTMENTS

                                                            At        At cost
                                                         valuation
                                                         2000  1999  2000  1999
Group                                                      £m    £m    £m    £m

Shares and other variable yield securities              113.4 117.3 101.2 103.9
Debt securities and other fixed income securities       284.3 244.0 283.0 243.3
Participation in investment pools                       25.0  11.7  25.0  11.7
Loans secured by mortgages                              0.5   0.7   0.7   0.7
Deposits with credit institutions                       8.1   45.6  7.8   44.0
Overseas deposits                                       7.0   5.1   7.0   5.1
Other                                                   2.2   1.7   2.0   1.7

                                                        440.5 426.1 426.7 410.4

In Group owned companies                                221.8 265.4 214.8 251.7
In aligned syndicates                                   165.3 72.3  163.0 73.5
In non-aligned syndicates                               53.4  88.4  48.9  85.2

                                                        440.5 426.1 426.7 410.4

Listed investments included in Group owned total are as
follows:
Shares and other variable yield securities              105.7 115.2 99.8  100.7
Debt securities and other fixed income securities       109.2 107.7 108.1 108.5

                                                        214.9 222.9 207.9 209.2


                                                    At valuation     At cost
                                                      2000    1999  2000  1999
Company                                               £m      £m    £m    £m

Debt securities and other fixed income securities     14.9    13.9  14.8  14.7
Participation in Investment pools                     4.0     8.4   4.0   8.4
Deposits with credit institutions                     2.9     30.8  2.9   30.8

                                                      21.8    53.1  21.7  53.9


Notes to the Preliminary Results

7        RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS' FUNDS

                                         Group      Group Company    Company
                                          2000       1999    2000       1999

                                          £m         £m      £m         £m
(Loss) profit attributable to             (19.1)     12.1   (11.1)      78.4
shareholders
Less dividends                            (7.8)      (7.8)  (7.8)       (7.8)
Retained (loss) profit for                (26.9)     4.3    (18.9)      70.6
the financial year
Issue of                                  0.5        0.6    0.5         0.6
share
capital
Share to be                               (0.4)      (0.5)  (0.4)       (0.5)
issued
Share buyback                             (7.4)       -     (7.4)       -
Goodwill written back                     9.4        1.1    -           -
on disposal
Goodwill charged in the year              -          (0.2)  -           -
Unrealised capital profit (loss)          -          -      0.2         (1.2)
Net (reduction) addition to shareholders' (24.8)     5.3   (26.0)       69.5
funds
Shareholders' funds at 1 January          226.9      221.6 283.1        213.6
Shareholders' funds at                    202.1      226.9 257.1        283.1
31 December

8        RECONCILIATION OF PROFIT BEFORE TAXATION TO NET CASH INFLOW FROM
         OPERATING ACTIVITIES

                                                                  2000   1999
                                                                  £m     £m
(Loss) profit on ordinary activities before taxation              (26.4) 18.3

Profit from sale of syndicate participations                      -      (5.0)
Net movement on Premium Trust Funds for non-aligned               1.0    14.6
participations
Depreciation charge                                               1.1    0.6
Syndicate capacity amortisation charge                            0.6    0.3
Profit on sale of subsidiary                                      (2.5)  -
Goodwill previously written off on disposals                      9.4    -
Realised gains less losses on investments                         1.5    (8.1)
Unrealised losses (gains) on investments                          7.0    (10.8)
(Increase) in debtors                                             (55.9) (3.8)
(Increase) decrease in prepayments and accrued income             (2.3)  11.0
Increase in insurance debtors, prepayments and accrued income     (72.4) (27.5)
Increase in technical provisions                                  294.1  87.1
Increase in reinsurers' share of technical provisions             (95.4) (32.3)
Decrease increase in provisions for other risks and charges       (2.8)  1.7
Increase in insurance creditors, accruals and deferred income     37.3   30.0
(Increase) decrease in other creditors relating to operating      10.9   (11.2)
activities
Decrease in accruals and deferred income                          (1.5)  (3.8)
Interest expense                                                  2.0    1.1

Net cash inflow                                                   105.7  62.2


Cash flows relating to non-aligned participations are included only to the
extent that cash is transferred between the Premium Trust Funds and the Group.


9        GROUP OWNED NET ASSETS

The assets and liabilities attributable to Group owned companies as opposed to
the Group's syndicate participations, are summarised below:

                                    2000                         1999
                         In Group                     In Group
                            owned                        owned
                        companies         In         Companies         In
                                  syndicates                   syndicates
                                             Total                        Total
                      £m          £m         £m      £m        £m         £m
Investments

Other financial       221.8       218.7      440.5   265.4     160.7      426.1
investments
Debtors

Other debtors         9.4         74.8       84.2    12.7      18.6       31.3
Other assets

Deferred tax asset    15.2        -          15.2    -         -          -
Intangible assets     15.8        -          15.8    12.4      -          12.4
Tangible assets       9.5         -          9.5     1.5       -          1.5
Cash at bank and in   1.3         28.9       30.2    2.4       24.4       26.8
hand
Own shares            3.5         -          3.5     3.9       -          3.9
Prepayments and       2.9         6.3        9.2     4.3       1.8        6.1
accrued income
Other syndicate       -           389.1      389.1   -         297.1      297.1
assets

Total assets          279.4       717.8      997.2   302.6     502.6      805.2

Provisions for other  (9.1)       -          (9.1)   (6.8)     -          (6.8)
risks and charges

Creditors

Other creditors due   (15.8)      (15.3)     (31.1)) (19.1)    (18.1)     (37.2)
within one year
Amounts due after     (7.4)       -          (7.4)   (9.9)     -          (9.9)
more than one year
Accruals and deferred (5.2)       (2.3)      (7.5)   (9.7)     (0.6)      (10.3)
income
                      (28.4)      (17.6)     (46.0)  (38.7)    (18.7)     (57.4)
Other syndicate       -           (740.0)    (740.0) -         (514.1)   (514.1)
liabilities

Consolidated          241.9       (39.8)     202.1   257.1     (30.2)     226.9
shareholders' funds
at 31 December


The assets of the syndicates included above are only available to pay
syndicate related expenditure.


10    FINANCIAL INFORMATION

The financial information set out above does not constitute the Company's
statutory accounts for year ended 31 December 2000, but is derived from those
accounts.  Statutory accounts for the period ended 31 December 1999 have been
delivered, and those for the year ended 31 December 2000 will be delivered, to
the Registrar of Companies.