Final Results - Year Ended 31 Dec 1999, Part 1

Amlin PLC
18 May 2000



Part 1
                                   AMLIN plc
                                       
                    PRELIMINARY RESULTS FOR THE YEAR ENDED
                         31 DECEMBER 1999 (UNAUDITED)


HIGHLIGHTS


* Major improvements in operating ratios

* Total dividend increased by 8.6% to 3.8p

* Improving rates
  -    Fleet motor renewal rates up by 24%
  -    Property catastrophe rates hardening
  -    Property insurance recovering

* Better focus through disposal of:
  -    Whittington Group (run-off services)
  -    Amlin Private Capital (Members Agency)
  -    Non-aligned Lloyd's capacity

* B2B internet credit insurer growing strongly

* Annual accounting adopted for first time in 1999


                                                 Restated
                                      1999        1998(1)
                                        £m             £m
Gross written premium                                    
     -    continuing operations      161.4           52.7
     -    discontinued                91.4          170.3
          operations
                                                         
Operating profit(2)                                      
     -    continuing operations        7.2          (3.1)
     -    discontinued                 5.3           15.4
          operations

Profit on ordinary                    18.3           18.0
activities before taxation                               
Earnings per share                    5.9p           5.6p

Dividend per share                    3.8p           3.5p

Net assets per share                110.0p         107.5p

(1) The comparative period is for the seven months to 31
December 1998.
(2)  Operating profit is based upon longer term
investment returns.




Roger Taylor, Chairman, commented:

'1999  was  a challenging year for Amlin but one from which our Group  emerges
stronger, more clearly focused and with a sound platform from which to grow.'

Charles Philipps, Chief Executive, commented:

'We  achieved an operating profit from continuing operations of £7.2  million,
up  by £10.3 million from 1998.  Our claims ratio was 7% better at 71% and our
expense  ratio was 2% better at 37%.  It was particularly encouraging that  we
delivered  these  results despite 1999 being the second worst  ever  year  for
world-wide insured catastrophe losses.'

'We  now focus purely on underwriting, having sold our non-core activities  of
Whittington, Amlin Private Capital and our spread capacity, for total proceeds
of  £13.4 million. This clarity is essential to our achieving our objective of
building a high quality specialist insurance company.'

'We  have  streamlined the Group and improved its efficiency  by  merging  our
managing agencies, consolidating all our London Market operations into one set
of  premises and  rationalising our finance and administration functions.   We
have also invested in technology, syndicate monitoring and compliance.'

'Amlin Insurance Services, our motor and UK insurance business, took advantage
of  the  withdrawal  of competitive capacity from the fleet  motor  market  by
achieving  average  rate increases of 24% on business  renewed  in  1999,  and
adding £6.9 million of new fleet motor business in the first quarter of 2000.'

'Our young e-commerce business, Creditinsure.com, has grown significantly with
premium income almost doubling.  This business has exciting potential  and  we
are currently exploring new product opportunities in the small business market
with partners in the UK and continental Europe.'

'Amlin has come through the down cycle with a strong balance sheet.  With  our
increased focus, a more streamlined operation and terms of business moving  in
our  favour,  we are confident of being able to grow our business successfully
over the coming years.'

Enquiries:

Charles Philipps         020 7860 8222
Richard Hextall          020 7860 8916
David Haggie             020 7417 8989



FINANCIAL RESULTS

The  1999  results  are presented on an annual accounting basis.   This  is  a
change  from prior years when a three year fund method of accounting has  been
used  and  reflects  the  refocusing  of  our  business  on  our  own  managed
syndicates.

Consolidated operating profit, after applying a longer term rate of investment
return consistent with usual insurance company accounting policies, was  £12.5
million  (1998 : £12.3 million).  Pre-tax profits were £18.3 million  (1998  :
£18.0 million) and earnings per share were 5.9p (1998 : 5.6p).

£7.2 million (1998 : loss of £3.1 million) of the operating profit referred to
above  was  from continuing operations and £5.3 million (1998: £15.4  million)
was  from  discontinued operations, comprising the Whittington Group,  Amlin's
former  members'  agency business and non-aligned capacity.   These  increased
operating profits reflect our ownership of managed capacity, which was 38%  in
1999  compared to 24.6% in 1998, and a better underlying result by our managed
syndicates.

DIVIDEND

The  Board  is  proposing a final dividend of 2.5p per share, making  a  total
dividend of 3.8p per share for the year (1998 : 3.5p).  This 8.6% increase  is
in line with the progressive dividend policy set out in last year's report and
accounts.

OUTLOOK AND CURRENT TRADING

2000  will continue to benefit from the rate increases which have resulted  in
the  turnaround  of our UK motor fleet account.  With these increases  we  are
currently  adding good volumes of new fleet motor business and this  class  is
expected  to  represent approximately 17% of our 2000  premium  income  (on  a
Lloyd's year of account basis).

We  are  seeing increased excess of loss reinsurance rates this  year  and  we
expect  this class, which in 1999 represented 21% of our business, to continue
to  strengthen  further as we approach the 2001 renewal season. We  anticipate
that other classes of business will remain difficult during 2000.

We  have  taken  firm action in classes, such as medical malpractice,  medical
expenses  and  US  trucking which worsened in 1999, and we  are  not  renewing
business unless satisfactory rate increases are achieved.

With  this  stance  we are beginning to see evidence of a hardening  of  rates
across  a  wider spectrum of our non-marine accounts, although these increases
will  have  little impact on our 2000 results.  If such increases continue  to
gather momentum, the outlook for 2001 will be encouraging.

As underwriting profitability improves, our results will also benefit from our
increased ownership of managed capacity, which is at 58% for the 2000  Lloyd's
year  of  account (1999 : 38%).  We also have a strong platform from which  to
grow our underlying business.

CORE UNDERWRITING BUSINESS

Amlin manages three Lloyd's syndicates which have £538 million of capacity, of
which  Amlin  owns 58% as shown below.  During the 1999 auction  season  Amlin
successfully  acquired £105 million of its capacity, before de-emption,  at  a
cost  of  7p  per  £.  Amlin intends to reach 100% of its capacity,  but  will
continue to buy capacity in the auctions only at the right price.

Aligned capacity for the 1997 to 2000 years of account

                       1997       1998      1999     2000
                         £m         £m        £m       £m
                                                         
Syndicate 902           5.3       13.2      17.1     21.3
Syndicate 1141          4.7       16.6      39.7     53.2
Syndicate 2001         57.2      128.4     159.3    236.3
                                                         
Total                  67.2      158.2     216.1    310.8
Total    managed      642.4      643.6     568.0    538.0
capacity
Percentage owned      10.5%      24.6%     38.0%    57.8%


To  provide  an  understanding  of the scale  and  trends  of  the  underlying
business,  annual accounts figures are shown below as if Amlin had owned  100%
of its managed capacity.

                                          1999        1998
                                            £m          £m
                                                          
Gross premium written                    446.2       426.4
Net premium written                      340.8       335.6
Earned premium, net of reinsurance       345.3       342.0
                                                          
Claims incurred, net of                (246.6)     (266.5)
reinsurance
                                                          
Claims ratio (%)                           71%         78%
                                                          
Brokerage                               (76.5)      (70.5)
Syndicate expenses                      (39.2)      (47.9)
Lloyd's charges                          (7.7)      (11.4)
Increase in deferred acquisition                     
costs                                     0.2         0.3
Net operating expenses                 (123.2)     (129.5)
                                                          
Expense ratio (%)                          37%         39%
                                                          
Combined ratio (%)                        108%        117%
                                                          
Investment income before smoothing        19.4        37.6
investment return
                                                          
Technical loss                           (7.0)      (20.9)
                                                          

Competition remained intense in 1999 across most of our classes and with  this
there  was the highest frequency of catastrophe losses since 1990.  The period
also  suffered  from  adverse claims development  in  US  liability  business,
particularly on our medical malpractice account.

As  the year progressed, conditions in the motor market improved, particularly
the  fleet  motor  which forms the core part of our Amlin  Insurance  Services
division.  Average rate increases of 24% have been achieved on fleet  business
renewed in 1999, and our premium income in this class increased by over 60% to
£46  million.  Our result also benefited from the closure of a large  part  of
our  non-US liability business which made a 1998 loss of £6.8 million, with  a
combined ratio of 144%.

NON-ALIGNED UNDERWRITING

The  remaining portfolio of non-aligned syndicate participations was  sold  in
1999, realising a gain of £5.0 million which is included in the results as  an
exceptional profit.

Underwriting  profits and losses from non-aligned syndicates  continue  to  be
accounted for on a three year fund basis and will therefore have an impact  on
the Group's results for two more years.  In the year under review, profits and
losses  from the 1997 Lloyd's year of account and movements in provisions  for
the 1998 and 1999 open years are included.

The results of our non-aligned portfolio are disappointing.  However, relative
to  Lloyd's  overall result, our portfolio has outperformed the  market.   Our
results  and  forecasts for the 1997 and 1998 years of account are  losses  of
1.6%  and  3.8% respectively.  Six of our 1997 year of account syndicates,  on
which we had a total of £14.9 million of capacity, have been left open and  we
have  provided  for  possible run off  deterioration of £1  million  on  these
syndicates.

We  have  strengthened our provisions for the 1998 year of account  reflecting
the late deterioration of forecasts.  Total provisions in respect of this year
of  account  amount to £8.4 million, which represents 5.4% of 1998 non-aligned
capacity.

The 1999 year of account is still at an early stage of development but we have
provided for potential losses of £2.6 million, which represents 3.1%  of  1999
non-aligned capacity.


Consolidated Profit and Loss Account
for the year ended 31 December 1999

                                       Unaudited
                                                      7 months
                                                            to
                                    1999                    31
                                                      December
                        Continuing Discontinued Total     1998
                        operations operations        (Restated)
                                         
                               £m         £m    £m       £m
Technical                                                     
Account
                                                            
Gross                        161.4       91.4  252.8    223.0
premiums
written
Outward                     (34.6)      (22.7) (57.3)   (47.2)        
reinsurance                     
premiums
                                                             
Net                          126.8       68.7  195.5    175.8
premiums                                          
written
                                                             
Change in the                                               
provision for unearned
premiums
       - gross amount        (22.8)          -  (22.8)  (12.3)
       - reinsurers'           2.4           -    2.4     1.1
         share
                                                             
Earned premiums, net         106.4        68.7  175.1   164.6
of reinsurance                                 
                                                             
Allocated investment                                        
return transferred
from the                     14.8          9.9    24.7    17.8
non-technical
account                                                             
Claims                                                       
paid
       - gross amount        (69.1)     (85.4)  (154.5) (100.1)
       - reinsurers' share   16.9        31.6     48.5    31.0
    
                                                             
Change in the
provision
for claims
       - gross amount        (48.1)     (38.6)   (86.7) (123.9)
                                                 
       - reinsurers'           21.2      25.5     46.7    65.0
       share
                                                             
Claims incurred, net        (79.1)     (66.9)   (146.0) (128.0)
of reinsurance                                
                                                             
Net                        (39.7)     (12.8)     (52.5)   (45.9)
operating
expenses
                                                             
Balance on the technical      2.4      (1.1)       1.3       8.5
account for general                         
business


The  technical  account for the seven months ended 31 December  1998  includes
twelve   months   transactions   in  respect  of   the   Group's   non-aligned
participations and seven months in respect of its aligned participations.


Consolidated Profit and Loss Account
for the year ended 31 December 1999
                                               Unaudited
                                                               7 months
                                                                     to
                                             1999                    31
                                                               December
                                Continuing  Discontinued           1998
                                 operations  operations  Total  (Restated)      
                 
                                         £m       £m      £m       £m
Non-technical                                                      
account
                                                                   
Balance on the                          2.4    (1.1)     1.3      8.5
technical account for
generalbusiness
Investment Inco                        16.5     10.1    26.6     19.8

Unrealised                             10.8        -    10.8      0.3
gains on investments

Investment                             (1.4)    (0.2)   (1.6)    (1.7)
expenses and charges
                                                                   
Allocated investment return          (14.8)    (9.9)   (24.7)   (17.8)         
transferred to the technical                           
account
                                                                   
                                       13.5    (1.1)    12.4      9.1
                                                                   
Other                                   5.8     24.2    30.0     31.1
income
Other                                 (9.9)   (17.8)   (27.7)   (27.0)
charges                                                 
                                                                   
Operating profit                        9.4      5.3    14.7     13.2
Comprising:                                                  
Operating profit based on               7.2      5.3    12.5     12.3
longer term investment return

Short term                             2.2        -      2.2      0.9
fluctuations in
investmentreturn
                                                                   
Profit on sale of syndicate
participations                                           5.0      8.7
Loss on sale of subsidiary                              (1.4)       -           
undertakings
Merger costs                                               -     (3.9)

Profit on ordinary activities                           18.3     18.0
before taxation
    
Taxation on profit on ordinary
activities                                              (6.2)    (6.5)
 
Profit on ordinary activities after
taxation                                                 12.1     11.5
    
Equity dividends                                         (7.8)    (7.2)

Retained profit for the period                            4.3      4.3
  
Earnings per ordinary share
       - basic                                            5.9p     5.6p
       - diluted                                          5.6p     5.2p


Consolidated Statement of Total Recognised Gains and Losses
for the year ended 31 December 1999

                                                          7 Months to
                                                          31 December
                                                    1999         1998
                                                           (Restated)
                                                      £m           £m
                                                                     
Profit for the period                               12.1         11.5
Total recognised gains for the period               12.1         11.5
                                                                     
Prior period adjustment                            (9.5)
Total gains and losses recognised                                    


Consolidated Balance Sheet
as at 31 December 1999                                                    
                                                  Unaudited
                                                          1998
                                              1999      (Restated)
                                              
                                                 £m          £m
ASSETS                                                         
                                                               
Intangible assets                               12.4         5.3
                                                           
                                                               
Investments
               Other                           426.1       400.6
           financial
         investments
                                                               
Reinsurers' share of  technical
provisions
       Provision for                             6.5         4.0
       unearned premiums
       Claims outstanding                      128.6       107.1
                                                               
                                               135.1       111.1
                                                               
Debtors                                                         
       Debtors arising out of                   42.9        54.9
       direct insurance operations      
       Debtors arising out or                  108.4       115.6
       reinsurance operations
       Other debtors                            31.3        15.4
                                                               
                                               182.6       185.9
                                                               
Other assets
       Tangible assets                           1.5         3.5
       Cash at bank and in hand                 26.8        31.8
       Own shares                                3.9         2.4
                                                               
                                                32.2        37.7
Prepayments and accrued income
       Deferred                                 10.7         6.4
       acquisition costs
       Other prepayments                         6.1        16.1
       and accrued income
                                                               
                                                               
Total assets                                  805.2       763.1

                                                               
                                                               

Consolidated Balance Sheet
as at 31 December 1999

                                                               
                                                      Unaudited
                                                               
                                               1999        1998
                                                      (Restated)
                                                             
                                                 £m          £m
LIABILITIES                                                      
                                                                 
Capital and reserves                                                            
   
        Called up share                          54.1        53.9
        capital
        Share premium                            54.6        54.2
        account
        Shares to be                              1.3         1.8
        issued
        Merger reserve                           41.9        42.1
        Warrant reserve                           2.8         2.8
        Profit and loss                          72.2        66.8
        account
                                                                 
                                                                 
Equity shareholders' funds                      226.9       221.6
                                                                 
Technical provisions
        Provision for                            64.6        39.5
        unearned premiums
        Claims outstanding                      396.1       394.3
                                                                 
                                                460.7       433.8
                                                                 
                                                                 
Provisions for other risks and charges            6.8         5.1
                                                                 
Creditors
        Creditors arising out of direct          29.8         7.3
        insurance operations
        Creditors                                23.6        13.4
        arising out
        of reinsurance operations
        Other creditors including                37.2        52.8
        taxation and social security    
                                                                
                                                 90.6        73.5
                                                                
Creditors: amounts falling due after              9.9        14.8
           more than one year
                                                                
Accruals and deferred income                     10.3        14.3
                                                                
                                                                
Total liabilities                               805.2       763.1

Consolidated net assets per share                               
        - basic                                 110.0p      107.5p
        - diluted                               106.9p      102.2p

Reconciliation of movements in equity shareholders' funds

                                                                   
                                                             At 31
                                                          December
                                                              1998
                                                   1999  (restated)
                                                     £m         £m
                                                                 
                                                                   
Profit attributable to                              12.1       11.5
shareholders
Less dividends                                      (7.8)      (7.2)
Retained profit for the period                       4.3        4.3
Issue of capital                                     0.6        2.1
Share to be issued                                  (0.5)       1.2
Goodwill previously written off                      1.1          -
Goodwill                                            (0.2)      (0.8)
Net addition to shareholders'                        5.3        6.8
funds
Shareholders' funds brought forward                221.6      214.8
Shareholders' funds carried forward                226.9      221.6

Reserves
                                    Share Merger   Warrant     Profit
                                  premium reserve  reserve     and loss
                                  account                      account
                                                               (Restated)
                                       £m     £m     £m          £m
                                       
                                                          
At 1 January 1999 as previously       54.2   42.1    2.8        76.3
reported
Prior period adjustment                  -      -      -       (9.5)
At 1 January 1999 restated            54.2   42.1    2.8       66.8             
  
                                                          
Movement in period:                                       
                                                          
Issues of shares on exercise of        0.1      -      -          -
warrants
Issue of shares in respect of          0.3      -      -          -
deferred consideration
Adjustment to goodwill in respect                         
of acquisition in a prior period         -  (0.2)      -          -
Goodwill previously written off on       -      -      -        1.1
disposals in the year
Retained profit for                      -             -        4.3
the year
                                                          
At 31 December 1999                   54.6   41.9    2.8       72.2
                                                          

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