Interim Results

RNS Number : 3327P

Amlin PLC

18 August 2014

AMLIN PLC

PRESS RELEASE

For immediate release

18 August 2014

Interim Results for the

six months ended 30 June 2014

Strong performance in more competitive markets demonstrates strength of Amlin's franchise

Highlights

§ Profit before tax of £148.5 million (H1 2013: £161.4 million), after adverse foreign exchange swing of £24.6 million

§ First half return on equity of 8.1% (H1 2013: 9.3%), 16.2% annualised

§ Healthy increase of 7.3% in net written premium to £1,637.2 million (H1 2013: £1,525.2 million), supported by strong reinsurance franchise and improved reinsurance purchase

§ Combined ratio of 87% (H1 2013: 85%), with underlying claims ratio improving to 53% (H1 2013: 56%)

§ Large catastrophe losses incurred of £48.9 million (H1 2013: £32.2 million)

§ Average overall rate decrease of 3.3% (H1 2013: flat), with renewal retention rate healthy at 86% (H1 2013: 87%)

§ Solid investment return of 1.3% (H1 2013: 1.4%)

§ Agreement in principle to increase interest in Leadenhall Capital Partners from 40% to 75%

§ Interim dividend increased 3.9% to 8.1 pence per share (H1 2013: 7.8 pence per share)

Charles Philipps, Chief Executive, commented as follows:

"Amlin continues to generate good returns despite a more competitive trading environment, demonstrating the strength of our franchise and the benefit of a well diversified portfolio. While remaining focused on underwriting discipline, we continue to identify opportunities for profitable growth. With the benefit of previous premium growth and significant savings on outwards reinsurance, Amlin remains well positioned in current market conditions."

Enquiries:
Charles Philipps, Chief Executive, Amlin plc	0207 746 1000
Richard Hextall, Group Finance & Operations Director, Amlin plc	0207 746 1000
Analysts and Investors
Julianne Jessup, Head of Investor Relations, Amlin plc	0207 746 1961
Media
Ed Berry, FTI Consulting	0203 727 1046

Amlin plc

Registered office

St Helen's

1 Undershaft

London EC3A 8ND
Registered in England

No. 2854310

Financial highlights

Financial highlights⁽¹⁾	H1 2014 £m	H1 2013 £m	YE 2013 £m
Gross written premium	1,891.2	1,838.9	2,467.4
Net written premium	1,637.2	1,525.2	2,107.4
Net earned premium	1,114.8	1,058.8	2,077.4
Profit attributable to underwriting	141.6	158.2	283.1
Investment return	54.9	67.4	160.4
Other costs⁽²⁾	(48.0)	(64.2)	(117.8)
Profit before tax	148.5	161.4	325.7
Net assets	1,670.4	1,650.6	1,678.6
Net tangible assets	1,435.7	1,403.4	1,439.5
Per share amounts (in pence)
Earnings	27.3	28.2	60.0
Dividend under IFRS⁽³⁾	18.2	16.5	24.3
Dividends declared for the calendar period/year⁽³⁾	8.1	7.8	26.0
Net assets	334.7	330.7	336.7
Net tangible assets	287.7	281.2	288.7
Group operating ratios
Return on equity	8.1%	9.3%	19.8%
Claims ratio⁽⁴⁾	54%	53%	52%
Expense ratio⁽⁴⁾	33%	32%	34%
Combined ratio⁽⁴⁾	87%	85%	86%

Source: Amlin

(1) The financial highlights are presented on the basis of management information provided to the Group Management Committee. The reconciliation between this information and the International Financial Reporting Standards (IFRS) consolidated statement of profit or loss is included in note 6 to the condensed consolidated interim financial statements on page 23.

(2) Other costs comprise other non-underwriting expenses, finance costs, other operating income and share of profit or loss after tax of associates.

(3) All per share dividends are the actual dividends for each share in issue at the time.

(4) Claims ratio is net claims incurred divided by net earned premium for the period/year. Expense ratio is underwriting expense incurred divided by net earned premium for the period/year. The expense ratio does not include expenses that have not been attributed to underwriting, including employee incentive costs and finance costs. Combined ratio is the total of the claims and expense ratios.

Interim Results Statement

Amlin delivered a good financial performance in the first half of 2014 against the backdrop of continuing rapid change in some of our key markets, notably reinsurance. The underwriting return was healthy, supported by pleasing growth in written premium and changes made to the outwards reinsurance programme. Despite the challenging conditions facing investment markets, the six month investment return was solid at 1.3%.

At 30 June 2014, available capital had increased to £722.2 million above management's assessed capital requirement, with the strong financial performance in 2013 allowing short term borrowings to be repaid.

The first half of 2014 demonstrates that Amlin is well positioned in a mixed trading environment. While reinsurance markets are under pressure, margin potential remains and we continue to benefit from the strength of our reinsurance franchise. There is scope for longer-term profitable growth arising from the quality and diversity of our business and the investments we have made in broadening our footprint.

Overview of the results

The Group generated a profit before tax of £148.5 million in the period (H1 2013: £161.4 million), after an adverse foreign exchange swing of £24.6 million. Profit after tax was £136.0 million, with an effective tax rate of 8.4% (H1 2013: £140.2 million and 13.1%). Our return on equity for the period was 8.1% (16.2% annualised).

Gross written premium was up 2.8% at £1,891.2 million for the six months ended 30 June 2014 (H1 2013: £1,838.9 million). At constant rates of exchange gross written premium was up 8.2%. Growth includes gross written premium attributable to multi-year reinsurance contracts, typically two years, which uplifts premium by £41.3 million.

Overall, the average renewal rate for the period was a decrease of 3.3%, with reinsurance rates coming under further downward pressure. Renewal retention, however, remained high at 86% (H1 2013: flat and 87%).

Net written premium increased by 7.3% to £1,637.2 million following changes made to the outwards reinsurance programme at the beginning of the year (H1 2013: £1,525.2 million).

Gross written premium has increased by almost 25% over the past three years. Together with disciplined underwriting and changes in business mix, this has provided momentum to net earned premium, which increased by 5.3% to £1,114.8 million (H1 2013: £1,058.8 million).

The underwriting contribution for the six month period was £141.6 million (H1 2013: £158.2 million). The Group combined ratio was 87% (H1 2013: 85%) with the claims ratio at 54% (H1 2013: 53%). Releases from reserves amounted to £40.1 million (H1 2013: £61.4 million), with the margin of carried reserves over the actuarial best estimate remaining broadly similar.

Catastrophe activity in the first half was higher than during the first six months of 2013, with large catastrophe losses, including reinstatement premiums, totalling £48.9 million across the Group (H1 2013: £32.2 million). The most notable loss events were European hailstorms and a Nebraska tornado in June. Excluding the impact of large catastrophe losses and prior period releases, the underlying claims ratio decreased to 53% (H1 2013: 56%).

Our reinsurance businesses in London and Bermuda performed well, showing an ability to retain clients in tough market conditions. Amlin Re Europe continued its build out from start up with growth of 26.3% in gross written premium in the period. Its performance was impacted in the period by summer storm activity but underlying performance continued to develop satisfactorily.

Outside reinsurance, Amlin London's core Property & Casualty and Marine businesses, generated solid returns. Our European commercial business, Amlin Europe, generated excellent returns, despite being impacted by the European storms. In the UK, underlying performance was also satisfactory but winter floods created a small underwriting loss.

With low interest rates prevailing in most developed economies, the investment environment remains challenging. However, performance was good, with investments contributing £54.9 million in the period (H1 2013: £67.4 million), a return of 1.3% (H1 2013: 1.4%) on average funds under management of £4.4 billion (H1 2013: £4.5 billion).

Weakening of the US dollar was largely responsible for a net foreign exchange loss of £10.9 million in the consolidated statement of profit or loss in the period (H1 2013: gain £13.7 million). The loss is predominately due to the translation of net non-monetary items. A net loss of £49.7 million (H1 2013: gain of £79.9 million) on translation of foreign operations, net of designated hedges, was taken through other comprehensive income.

Earnings per share were 27.3 pence (H1 2013: 28.2 pence).

Dividend

The Board has declared an interim dividend of 8.1 pence per share (H1 2013: 7.8 pence per share), an increase of 3.9% over the 2013 interim dividend. The dividend will be paid on 2 October 2014 to shareholders on the register at the close of business on 5 September 2014.

A dividend reinvestment plan, details of which may be obtained from the Company's registrar or from the Company's website, is available to shareholders in respect of this dividend.

Underwriting

The underwriting environment has become more competitive across a number of business lines, most notably for catastrophe reinsurance. However, margins remain available and during the six month period Amlin achieved growth in catastrophe reinsurance gross written premium of 6.9%, despite recording an average renewal rate decline of 10.3%. Income growth of £41.3 million was attributable to multi-year deals. US catastrophe renewal rates reduced by an average of 11.3%, with international catastrophe renewals decreasing on average by 8.9%.

Other reinsurance lines have not come under the same pressure as catastrophe reinsurance. Amlin Re Europe has continued to develop positively, adding £35.6 million of new income in the first half, mostly from growth in non-catastrophe lines which achieved an average rate increase of 0.5%.

In our UK commercial business, fleet motor rates have continued to rise, with an average rate increase of 6.5% in the first six months. Most other UK commercial classes have had modest increases.

Amlin London's Property & Casualty business added £44.3 million of new income, across classes, despite rates recording an average decrease of 1.7% in the period. Rates for our London Marine & Aviation business decreased by an average of 3.7%, with the energy class experiencing an average rate decrease of 10.3%.

Although Continental European insurance markets remain competitive, rates have been broadly stable.

Table 1: Average renewal and retention rates

	Gross written premium H1 2014 £m	Gross written premium H1 2013 £m	Average renewal rate change H1 2014 %	Average renewal rate change H1 2013 %	Average renewal retention ratio H1 2014 %	Average renewal retention ratio H1 2013 %
Amlin London⁽¹⁾	868.3	808.2	(5.0)	(0.4)	86	87
Reinsurance	392.4	368.5	(7.5)	(1.6)	86	88
Property & Casualty	247.0	218.7	(1.7)	1.4	86	86
Marine & Aviation	228.9	221.0	(3.7)	0.1	84	84
Amlin UK	187.3	212.6	2.8	3.5	79	88
Amlin Bermuda⁽¹⁾	292.8	281.6	(7.7)	(2.8)	85	85
Amlin Re Europe⁽¹⁾	215.4	171.8	(0.9)	2.6	93	90
Amlin Europe⁽¹⁾	327.4	364.7	0.2	0.1	90	90
Total/average	1,891.2	1,838.9	(3.3)	0.0	86	87

Source: Amlin

(1) Excludes the impact of intra-group transactions.

Our rating indices table below illustrates the pricing trends for a number of major classes.

Table 2: Rating indices for major classes (based on renewal)⁽¹⁾

Rating indices in key Group classes	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	H1 2014
Reinsurance
US catastrophe reinsurance	143	144	185	188	167	185	175	176	190	182	161
International catastrophe reinsurance	145	131	138	131	119	124	123	131	149	147	134
Other property reinsurance	170	146	170	144	126	127	115	109	110	104	101

Property & Casualty
Property insurance	143	136	165	143	133	142	141	144	153	156	152
US casualty	234	239	237	223	203	199	197	197	201	201	197
Fleet motor	141	137	135	134	137	144	148	159	175	192	204
UK employers' liability	159	144	135	123	115	114	115	114	119	126	128
UK professional indemnity	181	165	154	140	129	128	127	127	128	130	129
UK property and commercial combined	126	126	117	110	109	107	106	112	113	114	115
Amlin Europe property						100	97	95	95	95	95
Amlin Europe liability						100	95	95	95	95	96
Amlin Europe fleet motor						100	99	99	99	99	99

Marine & Aviation
Marine hull	183	189	191	192	192	205	208	209	209	209	206
Cargo	135	133	131	124	118	119	116	112	112	111	108
Amlin Europe marine						100	104	104	104	104	103
Offshore energy	170	175	262	243	209	256	247	262	262	254	228
War	220	206	191	175	160	156	153	153	149	146	141
Airline hull and liabilities	216	201	158	122	127	141	132	124	107	96	87
Source: Amlin
Index = 100% at 31 December 2000. Bold indicates peak levels. Certain classes experienced peak levels pre 2004.

(1) This table is completed by our underwriters and covers their assessment of rate movements from year to year, as recorded on Amlin's underwriting systems. Subjective judgement is used to account for subtle changes in exposure or terms and conditions. Claims inflation is not systematically taken into account in the calculation of these rate movements and therefore, particularly in relation to long tail business, some of the benefit of rate increases has been eroded. 2014 rate levels are for the six month period to 30 June 2014.

Outwards reinsurance

Reinsurance expenditure for the six months was £254.0 million, representing 13.4% of gross written premium (H1 2013: £313.7 million and 17.1%). The reduction reflects the closure of Special Purpose Syndicate 6106, which accounted for £30.3 million of reinsurance expenditure in the prior period, together with improved retrocessional purchase, with lower rates and greater cover available on attractive terms. In addition, outwards reinsurance expenditure for insurance classes has been reduced. With the assistance of more sophisticated modelling, we decided to internalise a proportion of a number of programmes. Given the diversifying nature of many of our insurance classes, we believe that this has the effect of increasing mean expected profitability while only modestly increasing extreme tail risk.

Claims

The Group claims ratio was 54% (H1 2013: 53%). Excluding the impact of large catastrophe losses and reserve releases, the underlying claims ratio improved to 53% (H1 2013: 56%) reflecting improvements in performance for Amlin London's Reinsurance and Marine businesses, Amlin Re Europe and Amlin Europe.

Large catastrophe losses in the period were £48.9 million (H1 2013: £32.2 million), as summarised in the table below:

Large catastrophe losses ⁽¹⁾	Event date	Estimated net loss⁽²⁾ £m
European hail storms	June 2014	25.1
Nebraska tornado	June 2014	23.8
Total		48.9
Source: Amlin (1) Large catastrophe losses are defined as those losses with a total gross loss to the Group of £20 million or more. (2) The estimated net loss includes reinstatement premiums.

Claims attributable to UK floods, in Amlin UK's property account, amounted to £9.9 million. Large risk losses in the period were limited with only modest exposure to Malaysian Airlines MH370 and the Sewol Korean passenger vessel disasters.

Releases from reserves in the period amounted to £40.1 million (H1 2013: £61.4 million), largely driven by favourable claims development in Amlin Europe, but also for Amlin London and Amlin UK.

We estimate that the Group as a whole holds reserves on an accident year basis of at least £160 million in excess of an actuarial best estimate (31 December 2013: at least £160 million).

Segmental commentary

Table 3: Divisional combined ratios

	Amlin London	Amlin UK	Amlin Bermuda	Amlin Re Europe	Amlin Europe	Intra Group/ Other	Total
Gross written premium (£m)	868.6	187.3	460.6	218.3	341.6	(185.2)	1,891.2
Net earned premium (£m)	434.3	137.1	259.1	94.1	194.5	(4.3)	1,114.8
Reserve releases (£m)	7.5	4.9	(5.0)	1.3	31.4	-	40.1
Profit attributable to underwriting (£m)	62.1	(2.7)	67.8	(7.6)	11.9	10.1	141.6
Combined ratio
Claims ratio	43%	66%	53%	83%	54%	-	54%
Expense ratio	43%	36%	21%	25%	39%	-	33%
Combined ratio H1 2014	86%	102%	74%	108%	93%	-	87%
Combined ratio H1 2014 (excluding FX)	81%	102%	74%	109%	93%	-	86%
Combined ratio H1 2013	76%	97%	75%	102%	100%	-	85%
Combined ratio H1 2013 (excluding FX)	82%	97%	73%	102%	101%		87%

Source: Amlin

Amlin London

Gross written premium was £868.6 million (H1 2013: £811.2 million), an increase of 7.1% on the prior period, with good growth in London's Reinsurance and Property & Casualty businesses. Multi-year contracts amounted to £42.1 million (H1 2013: £13.4 million). Net earned premium was up 19.8% at £434.3 million (H1 2013: £362.5 million).

The average rate decrease for the six months was 5.0%, with a retention ratio of 86% (H1 2013: decrease 0.4%, 87%).

The combined ratio increased to 86% (H1 2013: 76%), largely due to an 11% adverse net foreign exchange movement. The claims ratio was modestly up at 43% (H1 2013: 41%) driven by large catastrophe losses of £15.7 million (H1 2013: £8.0 million) and lower prior period reserve releases of £7.5 million (H1 2013: £22.4 million). The improvement in the underlying claims ratio reflects better performance from the Reinsurance and Marine businesses.

The expense ratio was 43% (H1 2013: 35%). However, excluding the impact of foreign exchange, the expense ratio improved to 38% (H1 2013: 41%). Foreign exchange losses were predominately due to the translation of net non-monetary items.

Amlin UK

Gross written premium was lower at £187.3 million (H1 2013: £210.3 million). The reduction reflects the transfer of the professional indemnity and financial institutions book to Amlin London. The retention ratio was 79% with an average rate increase of 2.8% (H1 2013: increase 3.5%, 88%). Net earned premium was £137.1 million (H1 2013: £144.6 million).

The combined ratio was 102% (H1 2013: 97%). The higher claims ratio of 66% (H1 2013: 58%) was largely due to UK flood claims, which added 7%. Prior period reserve releases improved the result by £4.9 million (H1 2013: £9.1 million).

The improved expense ratio of 36% (H1 2013: 39%) reflects the transfer of the professional indemnity and financial institutions book to Amlin London with above average acquisition cost ratios. The core expense ratio was stable at 12%, with the impact of reduced net earned premium offset by action taken to realise operational expense savings.

Amlin Bermuda

Amlin Bermuda wrote £292.8 million (H1 2013: £281.7 million) of direct business. Quota share and other reinsurances of other Group entities increased its overall written premium to £460.6 million (H1 2013: £416.6 million). Average rate decreases on the direct account for the period were 7.7% (H1 2013: decrease 2.8%),but growth in direct business was achieved through proportional reinsurance, catastrophe and special risks classes, which together added £48.4 million of new business. Multi-year contracts amounted to £29.7 million (H1 2013: £17.1 million). The retention ratio was 85% (H1 2013: 85%).

Net earned premium decreased by 4.6% to £259.1 million (H1 2013: £271.7 million), reflecting revisions to earning patterns for proportional reinsurance business.

The combined ratio improved to 74% (H1 2013: 75%). The claims ratio was 53%, and includes large catastrophe losses of £10.1 million (2013: 53% and £16.2 million). Prior period reserves were strengthened by £5.0 million (H1 2013: strengthening of £1.0 million). The underlying claims ratio was broadly stable.

The expense ratio was relatively stable at 21% (H1 2013: 22%). Expenses remain low relative to Amlin London due to high operational gearing.

Amlin Re Europe

Gross written premium increased 26.3% to £218.3 million (H1 2013: £172.8 million). New business of £35.6 million was added, including growth in non-catastrophe lines, which achieved an average rate increase of 0.5%. The retention ratio was 93% (H1 2013: 90%). Net earned premium was up 12.4% at £94.1 million (H1 2013: £83.7 million).

The combined ratio was 108% (H1 2013: 102%) with a claims ratio of 83% (H1 2013: 74%). This reflects net claims of £16.2 million attributable to European hail and floods, adding 17% to the claims ratio. Hail activity was severe, impacting Paris, which led to large motor and catastrophe reinsurance claims. As more income is earned in the second half of the year, the effect of this event on the claims ratio will naturally decline. The underlying claims ratio improved to 66% (H1 2013: 68%).

The expense ratio was 25% (H1 2013: 28%) as growth in income continued to provide greater efficiency.

Amlin Europe

Gross written premium was down 9.5% at £341.6 million (H1 2013: £377.4 million). The reduction includes £28.2 million of income from RaetsMarine, which is now being recognised as the underlying contracts incept. Prior to the acquisition of RaetsMarine, this income was treated as a binding authority and booked up front. Limited impact is expected for the full year.

Rates were generally flat and retention ratio was maintained at 90% (H1 2013: flat and 90%). Net earned premium was £194.5 million (H1 2013: £203.3 million).

The business generated an underwriting profit of £11.9 million for the period, with a combined ratio of 93% (H1 2013: £0.2 million and 100%). The claims ratio was 54% (H1 2013: 61%) and includes net claims of £6.8 million due to European hail and floods. Prior period reserve releases amounted to £31.4 million (H1 2013: £29.7 million), reflecting favourable claims development, particularly within the marine business. Reserve margins remained healthy and stable. The underlying claims ratio improved to 67% (H1 2013: 74%).

The expense ratio was 39% (H1 2013: 39%). The core expense ratio, excluding RaetsMarine, was 19% (H1 2013: 20%) reflecting progress made under a cost reduction programme. We expect further reduction in the underlying expense ratio as the business expands and the expense programme continues.

Investments

Table 4: H1 2014 investment mix and returns

	Average balance in H1 2014				Total assets at 31 Dec 2013 %	H1 2014 Actual return %
	Policyholder's assets £m	Capital assets £m	Total assets £m	%	Total assets at 31 Dec 2013 %	H1 2014 Actual return %
Bonds	2,392.9	845.4	3,238.3	74.0	66.2	0.9
Other liquid investments	230.9	132.0	362.9	8.3	18.0	0.2
Global equities	-	569.4	569.4	13.0	11.7	3.2
Property funds	-	207.0	207.0	4.7	4.1	3.6
Total/average	2,623.8	1,753.8	4,377.6	100.0	100.0	1.3

Source: Amlin

The investment return on the £4.4 billion average assets held during the first half of the year was a satisfactory 1.3%, producing an investment contribution of £54.9 million (H1 2013: £4.5 billion, 1.4% and £67.4 million).

The investment return was at the top end of expectations helped by solid equity and property returns. Our bond portfolios remained defensively positioned for interest rate risk, so we did not capture the entire decline in sovereign bond yields during the period. However, we did benefit from lower credit spreads.

We anticipate higher UK and US sovereign bond yields as economic growth is likely to result in the emergency levels of interest rates no longer being necessary.

Expenses

Total expenses were £425.7 million (H1 2013: £403.9 million). Underwriting expenses, excluding foreign exchange movements, amounted to £360.6 million (H1 2013: £353.6 million). Non-underwriting expenses, excluding foreign exchange movements, were £54.2 million (H1 2013: £64.0 million).

Taxation

The effective rate of tax for the period is 8.4% (H1 2013: 13.1%). It is below the UK rate of corporation tax primarily due to the relatively good performance of Amlin Bermuda in the period, which operates locally with no corporation tax.

Balance sheet strength

Net assets at 30 June 2014 were £1,670.4 million (31 December 2013: £1,678.6 million). The movement reflects retained profit for the period of £136.0 million, offset by the 2013 dividend of £90.8 million and £53.9 million of other reserve movements, which include £49.7 million of foreign exchange losses resulting from sterling strength.

Net tangible assets were at £1,435.7 million at the period end, equivalent to 287.7 pence per share (31 December 2013: £1,439.5 million and 288.7 pence per share).

In the period to 30 June 2014, total borrowings decreased by 26.4% to £288.4 million (31 December 2013: £391.6 million) and at 30 June 2014, there was no draw down on the revolving credit facility (31 December 2013: £101.4 million).

As demonstrated in table 5, the Group's balance sheet remains strong.

Table 5: Amlin capital analysis

	At 30 Jun 2014 £m	At 31 Dec 2013 £m
Net tangible assets	1,435.7	1,439.5
Subordinated debt	287.8	289.5
Undrawn bank facilities⁽¹⁾	300.0	198.6
Available capital	2,023.5	1,927.6
Assessed capital⁽²⁾	1,301.3	1,353.7
	722.2	573.9

Source: Amlin

(1) Bank facilities are subject to a number of restrictive covenants. Facilities may be used to support repayment of intra-group loans.

(2) Assessed capital represents management's estimate of required capital for current trading purposes.

Foreign exchange

Table 6: Net foreign exchange gains and losses in the consolidated statement of profit or loss

	H1 2014 £m	H1 2013 £m
Net (losses)/gains on underwriting transactions and translation of underwriting assets and liabilities at closing rates	(12.2)	16.8
Underwriting exchange (losses)/gains	(12.2)	16.8
Net gains/(losses) on non-underwriting transactions and translation of non-underwriting assets and liabilities at closing rates	1.3	(3.1)
Non-underwriting exchange gains/(losses)	1.3	(3.1)
Total foreign exchange (loss)/gain in consolidated statement of profit or loss	(10.9)	13.7

Source: Amlin

The Group's investment in foreign operations, principally Amlin Bermuda and Amlin Europe, generated a net foreign exchange loss, after hedging, of £49.7 million in the period (H1 2013: gain of £79.9 million). The net decrease was recognised in the consolidated statement of other comprehensive income.

The consolidated statement of profit or loss includes a net foreign exchange loss of £10.9 million in the period (H1 2013: gain of £13.7 million). With weakening of the US dollar, underwriting assets decreased by £12.2 million (H1 2013: gain of £16.8 million). The loss is largely attributable to the translation of net non-monetary items. Non-underwriting assets produced a gain of £1.3 million (H1 2013: loss of £3.1 million).

Principal risks and uncertainties

There are a number of risks and uncertainties which could impact upon the Group's performance over the remaining six months of the financial year and cause actual results to differ materially from expected and historical results. The Directors consider that the principal risks and uncertainties described on page 44 and explained in detail in the risk disclosures note on pages 127 to 161 of the 2013 Annual Report continue to reflect the principal risks and uncertainties of the Group over the remaining six months of the financial year, except where specifically mentioned in the Interim Report. Amlin categorises risks closely to those laid out by the FCA.

A summary of each of the Group's principal risks and uncertainties is provided below.

• The Group accepts underwriting risks through a range of classes of business. In underwriting insurance or reinsurance policies the Group's underwriters use their skill and knowledge to assess each risk and they use exposure information and data on past claims experience to evaluate the likely claims costs and therefore the premium that should be sufficient (across a portfolio of risks) to cover claims costs, expenses and to produce an acceptable profit. However, due to the nature of insurance risk there is no guarantee that the premium charged will be sufficient to cover claims costs. This shortfall may originate either from insufficient premium being calculated and charged or may result from an unexpected, or unprecedented, high level of claims.

From our standard set of realistic disaster scenarios, one of the largest modelled losses at 1 July 2014 was a North East US Windstorm with an estimated net loss of £296 million, equivalent to 20.6% of net tangible assets at 30 June 2014 (1 January 2014: £279 million; 31 December 2013: 19.4%). The Group's event risk tolerance, which determines the maximum net loss that the Group intends to limit its exposure to a major modelled catastrophe event, is currently set at a maximum of £350 million to the Group.

• Market risk is the risk that fluctuations in the fair value or future cash flows of the Group's financial instruments have an adverse financial impact. Market risk results from valuation risk, interest rate risk and foreign exchange risk. The Group is exposed to market risk in its investment portfolio.

• Credit risk is the risk that the Group becomes exposed to loss if a specific counterparty fails to perform its contractual obligations in a timely manner, impacting the Group's ability to meet its claims as they fall due. Credit risk can also arise from underlying causes that have an impact upon the creditworthiness of all counterparties of a particular description or geographical location. The Group is exposed to credit risk in its investment portfolio and with its premium and reinsurance receivables.

• Liquidity risk is the risk arising from insufficient financial resources being available to meet liabilities as they fall due. This includes the risk of being forced sellers of any of the Group's assets, which may result in realising prices below fair value, especially in periods of below normal investment market liquidity.

• Operational risk results from inadequate or failed internal processes, people and systems, or from external events, including regulatory control failures.

• Strategic risk is the risk of the current and prospective impact on earnings or capital arising from adverse business decisions, improper implementation of decisions or lack of responsiveness to industry changes.

Related parties

Related party transactions are disclosed in note 19 to the condensed consolidated interim financial statements.

Business development

We remain focused on developing our business to drive long term profitable growth. Following review of our medium term strategy we have decided to organise our client facing operations into three global strategic business units: Reinsurance, Marine & Aviation and Property & Casualty. This is in line with our goal to make client intimacy a key differentiator from competitors, and the logical next step of the Practice Board strategy which we started to develop in 2012.

While we will retain our regulated underwriting entities in Lloyd's, Zurich, Bermuda and the Netherlands, the objective is to organise our business around clients' needs rather than capital structure. This will encourage even greater focus on client service and relationships, as well as enabling us to make optimum use of our capacity and expertise through a globally coordinated market approach.

We are already seeing the benefit of this new approach in terms of new business opportunities, particularly in reinsurance. The new structure will also enable Amlin to identify and target market opportunities across the whole business and to further develop Amlin's operating model, making it more readily scaleable in line with business growth.

We are consolidating the management of claims and business support functions, which is expected to yield increased efficiency, and scalability, over the medium term. As part of this initiative, we are reviewing the claims handling process in some categories of business, with a view to further increasing our service proposition.

During January 2014, Amlin Europe opened an office in Hamburg, Germany. The focus is on building a portfolio of specialised, commercial SME Property and Casualty business as part of Amlin's long-term strategy to grow the profit of its Continental European insurance business.

We continue to actively investigate opportunities in developing markets. In the second half of 2014, subject to regulatory approval, Amlin intends to establish its first office in the Middle East. Our current expectation is to support Lloyd's plans to open an office in Dubai within the Dubai International Financial Centre (DIFC) co-locating with other managing agents. The DIFC is an emerging hub for business from across the Middle East North Africa region. The main business opportunities are expected to be in marine (P&I, hull and cargo) as well as some property and casualty classes.

We are also currently establishing an office in Miami to access treaty reinsurance opportunities from Latin America that do not typically come into the London market. The office is expected to be operational by the fourth quarter of 2014, in preparation for commencing underwriting in January 2015. Business will be underwritten on behalf of Syndicate 2001.

Elsewhere, we continue to develop our reinsurance presence in Asia through our Singapore office, which generated £22.6 million of reinsurance premium in the first six months of 2014. Asia is also an important target market for our insurance classes and we continue to build a varied portfolio out of the Singapore office and pursue regional opportunities.

In an increasingly competitive reinsurance market, the combination of Amlin's highly respected traditional reinsurance offering, with that of Leadenhall Capital Partners (LCP), has strengthened Amlin's client proposition, placing Amlin firmly in the top tier of reinsurers gaining market share at the expense of smaller players.

During the first half of the year, the benefit of this enhanced market position was evident in preferential signings, access to business not available in the open market and, on some business, better pricing. Over time, we expect that LCP's growth, and its ability to supplement Amlin's reinsurance capacity, will help us to grow our share of the global reinsurance market.

On 7 July, we announced that Amlin had reached non-binding agreement in principle to increase its existing interest in LCP. Under the terms of the agreement, Amlin will increase its current 40% interest in LCP to 75%. The consideration will be determined by the profitability of LCP, subject to a cap, and will be payable in three instalments from 2014 to 2016. The remaining 25% interest will continue to be held by the individual partners of LCP on an ongoing basis.

The transaction remains subject to the execution of definitive legal documentation and relevant regulatory consents.

LCP's assets under management have grown to approximately US$1.8 billion at 30 June 2014 (31 December 2013: US$1.6 billion). Since Amlin's original seed investment in LCP, LCP and Amlin have developed significant synergies, which have helped to differentiate Amlin's (re)insurance client proposition from its competitors as well as strengthening LCP's market position. As alternative capital becomes an increasingly prominent feature of (re)insurance markets, we expect Amlin's increased interest in LCP to support its continued growth and further enhance co-operation and synergies between our businesses.

Outlook

The underwriting environment has undoubtedly become more competitive across a number of business lines, most notably for catastrophe reinsurance. However, the average renewal rate decrease for the six month period was relatively contained at 3.3%. With the exception of catastrophe reinsurance and marine energy, rate reductions were single digits and UK commercial classes, notably fleet motor, achieved rate increases.

Year to date catastrophe rates have continued to weaken from recent peak levels, partly reflecting a further influx of capital into the market, but also limited recent loss activity. In the absence of material catastrophe activity in the second half, reinsurance markets are expected to remain challenging but margin potential exists and our market position and extent of product offering supports healthy retention of our client base.

Importantly, we have grown our non-catastrophe reinsurance accounts over recent years and these, which now represent approximately 55% of our reinsurance portfolio, are not subject to the same downward pressure as catastrophe reinsurance.

Taken together with the changes made to our outwards reinsurance programme, we expect to increase reinsurance account net income for 2014 and we are in a strong position to generate good reinsurance returns.

We also believe that there is scope to further improve our market positions in each of our strategic business units through more active marketing and as brokers seek to direct business to fewer, stronger carriers.

Amlin Europe continues to make positive progress. Its claims ratio is now at a satisfactory level and we expect recent action taken to address its expense ratio to continue to bear fruit. The business is now able to look forward, targeting opportunities for profitable growth where market conditions allow. Specifically, we anticipate growth in property and casualty business, with new strategies for regional markets in the Netherlands and a new binder offering in Belgium.

In the period since 30 June, there have been a number of large risk losses, including Malaysian Airlines MH17 and Tripoli Airport. At this early stage, we estimate that Amlin's net exposure to these events is less than £25 million.

While our investment allocations have produced strong returns over recent years, returns in the short term are likely to be muted. Valuations of risk assets, such as equities and property, are now less attractive and we expect further upward pressure on bond yields. However, we will continue to target optimal risk adjusted returns through a flexible investment approach.

We are pleased that rating agencies have upgraded ratings or outlook for some of Amlin's key businesses, further enhancing our franchise and market position. The capital position of the Group remains strong and able to support profitable growth in favourable trading conditions. We will review capital levels more fully alongside our full year results.

With our diversified business model, both by class of business and by geography, a proven strategy and strong underwriting discipline, we continue to believe that Amlin is capable of delivering healthy, long-term returns to shareholders.

Consolidated statement of profit or loss

For the six months ended 30 June 2014

	Note	6 months 2014 (Unaudited) £m	6 months 2013 (Unaudited) £m	12 months 2013 (Audited) £m
Gross earned premium	6	1,240.6	1,227.9	2,440.6
Reinsurance premium ceded	6	(122.6)	(166.4)	(346.0)
Net earned premium	6	1,118.0	1,061.5	2,094.6

Investment return	7	51.7	64.7	143.2
Other operating income		3.0	1.9	4.3
Total income		1,172.7	1,128.1	2,242.1

Insurance claims and claims settlement expenses	8	(617.2)	(607.5)	(1,153.1)
Insurance claims and claims settlement expenses recoverable from reinsurers	8	16.8	43.7	60.0
Net insurance claims	8	(600.4)	(563.8)	(1,093.1)

Expenses for the acquisition of insurance contracts		(240.2)	(233.2)	(450.9)
Other operating expenses	9	(171.9)	(156.0)	(347.3)
Total expenses		(412.1)	(389.2)	(798.2)

Results of operating activities		160.2	175.1	350.8
Finance costs		(13.6)	(14.7)	(29.0)
Share of profit after tax of associates		1.9	1.0	3.9
Profit before tax		148.5	161.4	325.7
Tax	10	(12.5)	(21.2)	(27.0)
Profit for the period/year		136.0	140.2	298.7

Attributable to:
Owners of the Parent Company		136.1	140.2	298.7
Non-controlling interests		(0.1)	-	-
		136.0	140.2	298.7

Earnings per share attributable to owners of the Parent Company
Basic	13	27.3p	28.2p	60.0p
Diluted	13	26.8p	27.7p	59.1p

The attached notes form an integral part of these condensed consolidated interim financial statements

Consolidated statement of other comprehensive income

For the six months ended 30 June 2014

	6 months 2014 (Unaudited) £m	6 months 2013 (Unaudited) £m	12 months 2013 (Audited) £m
Profit for the period/year	136.0	140.2	298.7
Items that will not be reclassified to profit or loss
Defined benefit pension fund (losses)/gains	(1.1)	4.1	9.4
Deferred tax relating to items that will not be reclassified	0.2	(0.9)	(2.3)
	(0.9)	3.2	7.1
Items that may be reclassified subsequently to profit or loss
Foreign exchange (losses)/gains on translation of foreign operations, net of designated hedges	(49.7)	79.9	(16.0)
Current tax relating to items that may be reclassified	(1.0)	0.8	0.5
	(50.7)	80.7	(15.5)

Other comprehensive (expenses)/income for the period/year, net of tax	(51.6)	83.9	(8.4)

Total comprehensive income for the period/year	84.4	224.1	290.3

Attributable to:
Owners of the Parent Company	84.5	224.1	290.3
Non-controlling interests	(0.1)	–	–
	84.4	224.1	290.3

The attached notes form an integral part of these condensed consolidated interim financial statements.

Consolidated statement of changes in equity

For the six months ended 30 June 2014

		Attributable to owners of the Parent Company
For the six months ended 30 June 2014 (Unaudited)	Note	Share capital £m	Share premium £m	Other reserves £m	Treasury shares £m	Retained earnings £m	Total £m	Non-controlling interests £m	Total £m
At 1 January 2014		142.0	311.3	112.4	(18.8)	1,131.2	1,678.1	0.5	1,678.6
Total comprehensive income for the period		-	-	(51.6)	-	136.1	84.5	(0.1)	84.4
Employee share option schemes:
- share-based payment reserve		-	-	(1.6)	0.6	-	(1.0)	-	(1.0)
- proceeds from shares issued	12	-	-	-	0.5	(0.3)	0.2	-	0.2
Dividends paid	14	-	-	-	-	(90.8)	(90.8)	-	(90.8)
Deferred tax relating to share option schemes		-	-	(0.6)	-	-	(0.6)	-	(0.6)
Purchase of non-controlling interest	4	-	-	(0.1)	-	-	(0.1)	(0.3)	(0.4)
Transactions with the owners of the Group for the period		-	-	(2.3)	1.1	(91.1)	(92.3)	(0.3)	(92.6)
At 30 June 2014		142.0	311.3	58.5	(17.7)	1,176.2	1,670.3	0.1	1,670.4

		Attributable to owners of the Parent Company
For the six months ended 30 June 2013 (Unaudited)	Note	Share capital £m	Share premium £m	Other reserves £m	Treasury shares £m	Retained earnings £m	Total £m	Non-controlling interests £m	Total £m
At 1 January 2013		141.2	300.4	121.6	(20.8)	954.7	1,497.1	0.6	1,497.7
Total comprehensive income for the period		-	-	83.9	-	140.2	224.1	-	224.1
Employee share option schemes:
- share-based payment reserve		-	-	(3.0)	3.7	-	0.7	-	0.7
- proceeds from shares issued	12	-	-	-	1.0	(0.7)	0.3	-	0.3
Dividends paid	14	-	-	-	-	(82.4)	(82.4)	(0.1)	(82.5)
Deferred tax relating to share option schemes		-	-	(1.3)	-	-	(1.3)	-	(1.3)
Issue of new shares	12	0.8	10.8	-	-	-	11.6	-	11.6
Transactions with the owners of the Group for the period		0.8	10.8	(4.3)	4.7	(83.1)	(71.1)	(0.1)	(71.2)
At 30 June 2013		142.0	311.2	201.2	(16.1)	1,011.8	1,650.1	0.5	1,650.6

		Attributable to owners of the Parent Company
For the year ended 31 December 2013 (Audited)	Note	Share capital £m	Share premium £m	Other reserves £m	Treasury shares £m	Retained earnings £m	Total £m	Non-controlling interests £m	Total £m
At 1 January 2013		141.2	300.4	121.6	(20.8)	954.7	1,497.1	0.6	1,497.7
Total comprehensive income for the year		-	-	(8.4)	-	298.7	290.3	-	290.3
Employee share option schemes:
- share-based payment reserve		-	-	(0.5)	-	-	(0.5)	-	(0.5)
- proceeds from shares issued	12	-	0.1	-	2.0	(0.9)	1.2	-	1.2
Dividends paid	14	-	-	-	-	(121.3)	(121.3)	(0.1)	(121.4)
Deferred tax relating to share option schemes		-	-	(0.3)	-	-	(0.3)	-	(0.3)
Issue of new shares	12	0.8	10.8	-	-	-	11.6	-	11.6
Transactions with the owners of the Group for the year		0.8	10.9	(0.8)	2.0	(122.2)	(109.3)	(0.1)	(109.4)
At 31 December 2013		142.0	311.3	112.4	(18.8)	1,131.2	1,678.1	0.5	1,678.6

The attached notes form an integral part of these condensed consolidated interim financial statement

Consolidated statement of financial position At 30 June 2014 Assets	Note	30 June 2014 (Unaudited) £m	30 June 2013 (Unaudited) £m	31 December 2013 (Audited) £m
Cash and cash equivalents		222.6	196.1	164.5
Financial assets	11	4,185.7	4,282.0	4,368.8
Reinsurance assets
- reinsurers' share of outstanding claims	8	337.8	466.3	343.1
- reinsurers' share of unearned premium		161.2	179.7	45.1
Loans and receivables, including insurance and reinsurance receivables
- insurance and reinsurance receivables		1,465.4	1,497.1	1,013.8
- other loans and receivables		94.6	94.0	88.4
Deferred acquisition costs		370.0	365.6	246.1
Current income tax assets		10.2	11.3	23.0
Deferred tax assets		6.8	15.4	6.1
Property and equipment		25.4	20.6	22.6
Goodwill and intangible assets		234.7	247.2	239.1
Investments in associates		14.4	10.5	12.5
Total assets		7,128.8	7,385.8	6,573.1

Equity and reserves
Share capital	12	142.0	142.0	142.0
Share premium		311.3	311.2	311.3
Other reserves		58.5	201.2	112.4
Treasury shares		(17.7)	(16.1)	(18.8)
Retained earnings		1,176.2	1,011.8	1,131.2
Equity attributable to owners of the Parent Company		1,670.3	1,650.1	1,678.1
Non-controlling interests		0.1	0.5	0.5
Total equity and reserves		1,670.4	1,650.6	1,678.6

Liabilities
Insurance liabilities
- outstanding claims	8	2,898.6	3,183.5	2,897.1
- unearned premium		1,721.3	1,693.6	1,093.9
Other payables, including insurance and reinsurance payables
- insurance and reinsurance payables		287.6	324.0	273.3
- other payables		153.5	133.0	137.5
Financial liabilities	11	8.7	13.1	4.7
Current income tax liabilities		1.2	1.6	0.1
Borrowings	15	288.4	295.4	391.6
Retirement benefit obligations		31.4	36.2	32.6
Deferred tax liabilities		67.7	54.8	63.7
Total liabilities		5,458.4	5,735.2	4,894.5
Total equity, reserves and liabilities		7,128.8	7,385.8	6,573.1

The attached notes form an integral part of these condensed consolidated interim financial statements.

The interim financial statements were approved by the Board of Directors and authorised for issue on 15 August 2014. They were signed on its behalf by:

Charles Philipps Richard Hextall

Chief Executive Group Finance & Operations Director

Consolidated statement of cash flows

For the six months ended 30 June 2014

	Note	6 months 2014 (Unaudited) £m	6 months 2013 (Unaudited) £m	12 months 2013 (Audited) £m
Cash flows from operating activities
Cash generated from operations	18	239.1	196.0	127.9
Interest received		11.6	17.2	21.5
Dividends received		12.7	8.4	16.3
Income taxes received/(paid)		4.7	0.1	(0.1)
Net cash inflows from operating activities		268.1	221.7	165.6

Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired		-	(8.8)	(8.8)
Deferred payment for acquired subsidiary		(0.4)	(0.2)	(0.2)
Investment in associates		-	-	0.9
Purchase of property and equipment		(5.4)	(1.3)	(7.5)
Purchase and development of intangible assets		(1.7)	(1.2)	(2.3)
Net cash outflows from investing activities		(7.5)	(11.5)	(17.9)

Cash flows from financing activities
Net proceeds from issue of ordinary shares, including treasury shares		0.2	11.9	12.8
Dividends paid to owners of the Parent Company	14	(90.8)	(82.4)	(121.3)
Purchase of non-controlling interest	4	(0.4)	-	-
Dividends paid to non-controlling interests	14	-	(0.1)	(0.1)
Interest paid		(3.8)	(4.5)	(24.4)
Purchase of ESOT and treasury shares		(4.0)	(1.8)	(5.5)
Net repayment of revolving credit facility		(99.9)	(128.3)	(24.1)
Net cash outflows from financing activities		(198.7)	(205.2)	(162.6)

Net increase/(decrease) in cash and cash equivalents		61.9	5.0	(14.9)
Cash and cash equivalents at beginning of year		164.5	190.6	190.6
Effect of exchange rate changes on cash and cash equivalents		(3.8)	0.5	(11.2)
Cash and cash equivalents at end of period/year		222.6	196.1	164.5

The attached notes form an integral part of these condensed consolidated interim financial statements.

Notes to the interim financial statements

For the six months ended 30 June 2014

1. Basis of preparation of interim financial statements

The condensed consolidated interim financial information included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim financial reporting' (IAS 34), as adopted by the European Union, and with the Disclosure and Transparency Rules issued by the Financial Conduct Authority. The condensed consolidated interim financial information should be read in conjunction with the consolidated financial statements for the year ended 31 December 2013, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

This condensed consolidated interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2013 were approved by the Board of Directors on 28 February 2014 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498(2) or section 498(3) of the Companies Act 2006. These condensed consolidated interim financial statements have been reviewed, not audited.

After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, it continues to adopt the going concern basis in preparing its condensed consolidated interim financial statements.

This condensed consolidated interim financial information was approved for issue on 15 August 2014.

2. Accounting policies

Accounting policies applied in condensed consolidated interim financial statements

The same accounting policies, presentation and methods of computation are followed in the condensed consolidated interim financial statements as applied in the Group's latest annual audited financial statements except for the adoption of the following standards and amendments with effect from 1 January 2014:

a) IAS 36 (amended), 'Impairment of assets - Recoverable amount disclosures for non-financial assets'

The amendments remove the requirement to disclose the recoverable amount when a cash generating unit contains goodwill or indefinite life intangible assets but there has been no impairment. However, the amendments require additional information about fair value measurement when the recoverable amount of impaired assets is based on fair value less costs of disposal. There has been no impact on the financial statements of the Group.

b) IFRS 10, IFRS 12 and IAS 27 (amended), 'Investment entities'

IFRS 10, IFRS 12 and IAS 27 have been amended to address the accounting for investments controlled by investment entities. The amendments define an investment entity and require an investment entity to measure its subsidiaries at fair value through profit or loss. The amendments do not permit the 'roll-up' of fair value accounting in the consolidated financial statements of a non-investment entity parent. The amendments have not had an impact on the financial statements of the Group on adoption.

c) IAS 39 (amended), 'Financial instruments: recognition and measurement'

The amendments provide relief from discontinuing hedge accounting when novation of a derivative designated as a hedging instrument meets certain criteria. The amendments have had no impact on the financial statements of the Group.

d) IFRIC 21, 'Levies'

The interpretation was endorsed by the EU for periods commencing on or after 13 June 2014. This has been early adopted by the Group from 1 January 2014 and requires retrospective application. The interpretation sets out the accounting for a liability to pay levies that are imposed by governments. The interpretation requires a liability to be recognised when the obligating event to pay a levy occurs, which might arise at a point in time or progressively over time. The interpretation has not had a significant impact on the financial statements of the Group.

3. Estimates

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2013, unless otherwise noted below. These can be found on pages 120 to 121 of the 2013 Annual Report.

Insurance contract liabilities

During the first half of 2014, Amlin London, Amlin UK and Amlin Bermuda have transitioned from an insurance claim liabilities reserving process led by the underwriting and claims teams to a process where the actuarial teams produce best estimate reserves on to which an appropriate margin is added. The level of prudence in the estimate of the insurance claim liabilities remains consistent and therefore the change in the reserving process does not give rise to a quantifiable impact on the level of reserves at 30 June 2014. This is in line with the processes already in place for Amlin Europe and Amlin Re Europe and full details of both processes are provided on page 137 of the 2013 Annual Report.

3. Estimates continued

The change in claims costs for prior period insurance claims represents the claims development of earlier reported years incurred in the current accounting period. The carrying value of the Group's net outstanding insurance claim liabilities at 30 June 2014 is £2,560.8 million (30 June 2013: £2,717.2 million; 31 December 2013: £2,554.0 million). For the period to 30 June 2014, there has been a net positive development of £40.1 million (30 June 2013: £61.4 million; 31 December 2013: £133.5 million) for the Group. Further details are included in note 8.

4. Significant events and transactions in the period

a) Change to Lloyds pension funding arrangements

A triennial valuation of the Lloyd's Superannuation Fund (the Fund) as at 31 March 2013 was completed in June 2014 by Mr D Wilding, Fellow of the Institute of Actuaries. The triennial valuation estimated a funding shortfall of £20.2 million and on 20 June 2014, the Group agreed a schedule of contributions with the Trustee, to run over a period of ten years. The schedule requires four separate payments of £2.0 million to the Fund, followed by six separate payments of £1.2 million to the Fund. The present value of the future payments attributable to past service has been recognised as a liability at 30 June 2014, to the extent that the contributions will not be available after they are paid into the Fund through a refund or a reduction in future contributions.

b) Purchase of non-controlling interest in Amlin Plus Limited

On 20 May 2014, the Group acquired the 40% non-controlling interest in Amlin Plus Limited for consideration of £0.4 million, resulting in a £0.3 million reduction to the non-controlling interest and a £0.1 million decrease in other reserves. The acquisition supports the Group's strategy to develop its equine and bloodstock business.

5. Seasonality of interim operations

The Group derives insurance premium from a diverse range of underwriting classes and geographical locations. Depending on the class and location of the risk, there may be a seasonal pattern to the incidence of claims. The US hurricane and West Pacific typhoon seasons run from May to November and the level of windstorm activity arising during this period may materially impact on the Group's claims experience during the second half of 2014. However, in recent years windstorm activity has been more benign than might be expected which has resulted in less seasonal variation in loss ratios.

The table below shows the Group's historical claims ratios for the six month periods to 30 June and 31 December. Claims ratio is defined as net claims and claims settlement expenses divided by net earned premium.

	Claims ratio
	H1 %	H2 %	Full year %
2010	63	58	60
2011	92	65	78
2012	53	61	57
2013	53	52	52
2014	54	n/a	n/a

Note: The Group incurred large losses from natural catastrophe claims during the first six months of 2011. The 2011 losses included claims on the New Zealand and Japanese earthquakes, Australian floods and US tornadoes.

Gross written premium comprises premium on insurance contracts incepting during the period. Inception dates are historically weighted more heavily towards the first half of the year. The table below shows the Group's gross written premium for the six month periods to 30 June and 31 December.

	Gross written premium
	H1 £m	H1 %	H2 £m	H2 %	Full year £m	Full year %
2010	1,486.2	68.4	686.3	31.6	2,172.5	100.0
2011	1,514.6	65.7	789.5	34.3	2,304.1	100.0
2012	1,814.7	75.4	590.9	24.6	2,405.6	100.0
2013	1,838.9	74.5	628.5	25.5	2,467.4	100.0
2014	1,891.2	n/a	n/a	n/a	n/a	n/a

Note: The significant uptake in H1 Gross written premium from 2012 onwards is a result of the establishment of Amlin Re Europe, which has a significant proportion of policies incepting at the start of the year.

6. Segmental reporting

a) Basis of segmentation

Management has determined the Group's operating segments based on the management information reviewed by the chief operating decision maker that is used to make strategic decisions. All operating segments used by management meet the definition of a reportable segment under IFRS 8, 'Operating segments'.

The Group is organised into six operating segments. Segments represent the distinct units through which the Group is organised and managed. These segments are as follows:

• Amlin London, consisting of the Reinsurance, Property & Casualty, and Marine & Aviation business units, underwritten via Syndicate 2001;

• Amlin UK, underwriting commercial insurance in the UK domestic market, via Syndicate 2001 and Amlin Insurance (UK) Limited;

• Amlin Bermuda, which writes predominantly property reinsurance business, via Amlin AG, including reinsurance ceded by Syndicate 2001;

• Amlin Re Europe, which writes continental European non-life reinsurance business, via Amlin AG;

• Amlin Europe, including Amlin Europe N.V., a leading provider of marine, corporate property and casualty insurance in the Netherlands and Belgium; specialised, commercial SME property and casualty business in Germany and specialty business in France; and

• Other corporate companies, comprising all other entities of the Group including holding companies.

Included within the intra group items column are consolidation adjustments, primarily eliminating transactions between segments.

Consolidation adjustments relating to transactions within segments that were previously reported through the intra group items column, are now reported through the segment to which the adjustment relates. The most significant impact is in respect of service company commission income recognised as acquisition expenses in Amlin London, Amlin UK and Amlin Europe. The segmental analyses for comparative periods have been restated accordingly.

Investment return generated from investments in Funds at Lloyd's and managing agency expenses that were previously reported through the other corporate companies column, are now reported through segments that support the business. The segmental analyses for comparative periods have been restated accordingly.

Transactions between segments are carried out at arm's length. The revenue from external parties reported to the chief operating decision maker is measured in a manner consistent with that in the consolidated statement of profit or loss and revenues are allocated based on the country in which the insurance risk is located. Management considers its external customers to be the individual policyholders, and as such the Group is not reliant on any individual customer.

During the first half of 2014, management have reviewed the Group operating structure. From 1 September the Group will operate as three strategic business units: Reinsurance, Marine & Aviation and Property & Casualty. Reporting to the chief operating decision maker for the 2015 financial year will be adjusted to reflect the changed allocation of responsibilities and the financial statements will be adjusted accordingly.

b) Segmental information

Segmental information for the reportable segments of the Group is provided below. A reconciliation between this information and the consolidated statement of profit or loss is provided in note 6(c).

Income and expenses by business segment Six months ended 30 June 2014	Amlin London £m	Amlin UK £m	Amlin Bermuda £m	Amlin Re Europe £m	Amlin Europe £m	Other corporate companies £m	Intra group items £m	Total £m
Analysed by geographic segment:
UK	161.9	124.0	189.9	26.0	9.8	-	(161.8)	349.8
North America	483.2	13.9	154.8	0.8	-	-	-	652.7
Europe	68.9	21.0	51.4	180.5	225.7	-	(23.4)	524.1
Worldwide	4.4	23.0	0.2	-	106.1	-	-	133.7
Other	150.2	5.4	64.3	11.0	-	-	-	230.9
Gross written premium	868.6	187.3	460.6	218.3	341.6	-	(185.2)	1,891.2
Net written premium	616.9	149.9	418.0	174.9	293.2	-	(15.7)	1,637.2

Gross earned premium	582.4	167.4	274.3	114.2	223.8	-	(121.5)	1,240.6
Reinsurance premium ceded	(148.1)	(30.3)	(15.2)	(20.1)	(29.3)	-	117.2	(125.8)
Net earned premium	434.3	137.1	259.1	94.1	194.5	-	(4.3)	1,114.8
Insurance claims and claims settlement expenses	(260.9)	(111.6)	(136.0)	(91.9)	(101.2)	-	84.4	(617.2)
Insurance claims and claims settlement expenses recoverable from reinsurers	73.8	20.5	(1.6)	14.0	(4.7)	-	(85.2)	16.8
Expenses for the acquisition of insurance contracts	(123.1)	(33.1)	(44.4)	(17.1)	(32.8)	-	10.3	(240.2)
Underwriting expenses	(62.0)	(15.6)	(9.3)	(6.7)	(43.9)	0.1	4.8	(132.6)
Profit attributable to underwriting	62.1	(2.7)	67.8	(7.6)	11.9	0.1	10.0	141.6
Investment return	18.2	3.4	17.2	2.3	15.4	4.1	(5.7)	54.9
Other operating income	0.8	1.1	0.8	0.1	1.0	3.0	(3.8)	3.0
Other non-underwriting expenses	(6.8)	(0.9)	(2.7)	(1.7)	(5.8)	(28.9)	7.5	(39.3)
Result of operating activities	74.3	0.9	83.1	(6.9)	22.5	(21.7)	8.0	160.2
Finance costs								(13.6)
Share of profit after tax of associates								1.9
Profit before tax								148.5
Claims ratio	43%	66%	53%	83%	54%			54%
Expense ratio	43%	36%	21%	25%	39%			33%
Combined ratio	86%	102%	74%	108%	93%			87%

Note: Finance costs are incurred in support of the entire business of the Group and have not been allocated to particular segments.

Included within the gross written premium of Amlin Bermuda is premium ceded from Amlin London, Amlin UK and Amlin Europe amounting to £148.3 million on reinsurance contracts undertaken at commercial rates (30 June 2013: £135.0 million; 31 December 2013: £197.8 millionThe table below illustrates the claims, expense and combined ratios excluding whole account quota share (WAQS) intra group reinsurance arrangements:

Excluding WAQS intra group reinsurance arrangements	Amlin London	Amlin UK	Amlin Bermuda	Amlin Re Europe	Amlin Europe	Total
Claims ratio	46%	70%	44%	83%	54%	54%
Expense ratio	37%	31%	26%	25%	39%	33%
Combined ratio	83%	101%	70%	108%	93%	87%

Restated Income and expenses by business segment Six months ended 30 June 2013	Amlin London £m	Amlin UK £m	Amlin Bermuda £m	Amlin Re Europe £m	Amlin Europe £m	Other corporate companies £m	Intra group items £m	Total £m
Analysed by geographic segment:
UK	165.3	143.3	165.1	15.2	12.6	-	(147.7)	353.8
North America	446.5	10.8	160.2	0.8	-	-	-	618.3
Europe	59.4	17.0	35.1	146.7	230.2	-	(1.7)	486.7
Worldwide	7.4	34.0	1.4	-	134.6	-	-	177.4
Other	132.6	5.2	54.8	10.1	-	-	-	202.7
Gross written premium	811.2	210.3	416.6	172.8	377.4	-	(149.4)	1,838.9
Net written premium	531.5	171.5	368.6	138.7	320.1	-	(5.2)	1,525.2

Gross earned premium	538.9	173.1	289.8	104.4	235.3	-	(113.6)	1,227.9
Reinsurance premium ceded	(176.4)	(28.5)	(18.1)	(20.7)	(32.0)	-	106.6	(169.1)
Net earned premium	362.5	144.6	271.7	83.7	203.3	-	(7.0)	1,058.8
Insurance claims and claims settlement expenses	(226.3)	(104.8)	(144.5)	(72.6)	(138.4)	-	79.1	(607.5)
Insurance claims and claims settlement expenses recoverable from reinsurers	76.5	21.1	1.4	10.7	15.1	-	(81.1)	43.7
Expenses for the acquisition of insurance contracts	(107.9)	(38.9)	(43.6)	(16.4)	(36.7)	-	10.3	(233.2)
Underwriting expenses	(18.1)	(17.2)	(17.3)	(7.3)	(43.1)	(0.1)	(0.5)	(103.6)
Profit attributable to underwriting	86.7	4.8	67.7	(1.9)	0.2	(0.1)	0.8	158.2
Investment return	17.4	7.1	23.1	0.1	15.5	8.3	(4.1)	67.4
Other operating income	1.3	0.5	0.6	-	0.2	0.1	(0.8)	1.9
Other non-underwriting expenses	(9.5)	(2.0)	(6.3)	(1.9)	(6.0)	(25.7)	(1.0)	(52.4)
Result of operating activities	95.9	10.4	85.1	(3.7)	9.9	(17.4)	(5.1)	175.1
Finance costs								(14.7)
Share of profit after tax of associates								1.0
Profit before tax								161.4
Claims ratio	41%	58%	53%	74%	61%			53%
Expense ratio	35%	39%	22%	28%	39%			32%
Combined ratio	76%	97%	75%	102%	100%			85%

Note: Finance costs are incurred in support of the entire business of the Group and have not been allocated to particular segments.

The table below illustrates the claims, expense and combined ratios excluding whole account quota share (WAQS) intra group reinsurance arrangements:

Excluding WAQS intra group reinsurance arrangements	Amlin London	Amlin UK	Amlin Bermuda	Amlin Re Europe	Amlin Europe	Total
Claims ratio	46%	60%	46%	74%	61%	53%
Expense ratio	30%	34%	29%	28%	39%	32%
Combined ratio	76%	94%	75%	102%	100%	85%

6. Segmental reporting continued

Restated Income and expenses by business segment Year ended 31 December 2013	Amlin London £m	Amlin UK £m	Amlin Bermuda £m	Amlin Re Europe £m	Amlin Europe £m	Other corporate companies £m	Intra group items £m	Total £m
Analysed by geographic segment:
UK	189.2	269.6	237.8	25.6	18.9	-	(217.0)	524.1
North America	621.5	11.6	203.2	2.3	-	-	-	838.6
Europe	89.9	21.3	40.3	171.7	266.9	-	(1.7)	588.4
Worldwide	10.0	29.4	-	-	168.7	-	-	208.1
Other	224.2	2.1	70.7	11.2	-	-	-	308.2
Gross written premium	1,134.8	334.0	552.0	210.8	454.5	-	(218.7)	2,467.4
Net written premium	775.1	279.4	500.4	173.8	385.4	-	(6.7)	2,107.4

Gross earned premium	1,086.7	333.4	560.3	207.1	469.8	-	(216.7)	2,440.6
Reinsurance premium ceded	(351.9)	(58.8)	(53.8)	(40.9)	(65.2)	-	207.4	(363.2)
Net earned premium	734.8	274.6	506.5	166.2	404.6	-	(9.3)	2,077.4
Insurance claims and claims settlement expenses	(439.8)	(216.9)	(249.4)	(148.2)	(241.0)	-	142.2	(1,153.1)
Insurance claims and claims settlement expenses recoverable from reinsurers	119.7	46.8	1.6	24.3	14.6	-	(147.0)	60.0
Expenses for the acquisition of insurance contracts	(210.5)	(65.8)	(83.5)	(32.8)	(70.8)	-	12.5	(450.9)
Underwriting expenses	(86.0)	(38.7)	(25.5)	(16.5)	(91.2)	-	7.6	(250.3)
Profit attributable to underwriting	118.2	-	149.7	(7.0)	16.2	-	6.0	283.1
Investment return	42.5	11.2	56.5	2.3	44.5	17.9	(14.5)	160.4
Other operating income	2.5	0.8	1.0	0.1	1.1	0.2	(1.4)	4.3
Other non-underwriting expenses	(25.9)	(3.7)	(9.4)	(0.9)	(15.7)	(37.1)	(4.3)	(97.0)
Result of operating activities	137.3	8.3	197.8	(5.5)	46.1	(19.0)	(14.2)	350.8
Finance costs								(29.0)
Share of profit after tax of associates								3.9
Profit before tax								325.7
Claims ratio	44%	62%	49%	74%	56%			52%
Expense ratio	40%	38%	21%	30%	40%			34%
Combined ratio	84%	100%	70%	104%	96%			86%

Note: Finance costs are incurred in support of the entire business of the Group and have not been allocated to particular segments.

The table below illustrates the claims, expense and combined ratios excluding whole account quota share (WAQS) intra group reinsurance arrangements:

Restated Excluding WAQS intra group reinsurance arrangements	Amlin London	Amlin UK	Amlin Bermuda	Amlin Re Europe	Amlin Europe	Total
Claims ratio	47%	65%	40%	74%	56%	52%
Expense ratio	35%	33%	28%	30%	40%	34%
Combined ratio	82%	98%	68%	104%	96%	86%

c) Reconciliation between management information and the consolidated statement of profit or loss

The following tables show the reconciliation between the management information provided to the chief operating decision maker and the consolidated statement of profit or loss.

	Six months ended 30 June 2014
Consolidated statement of profit or loss	Management information £m	Reconciling items £m	IFRS Consolidated statement of profit or loss £m
Gross written premium	1,891.2	–	1,891.2
Net written premium	1,637.2	14.9	1,652.1

Gross earned premium	1,240.6	–	1,240.6
Reinsurance premium ceded	(125.8)	3.2	(122.6)
Net earned premium	1,114.8	3.2	1,118.0
Insurance claims and claims settlement expenses	(617.2)	–	(617.2)
Insurance claims and claims settlement expenses recoverable from reinsurers	16.8	–	16.8
Expenses for the acquisition of insurance contracts	(240.2)	–	(240.2)
Underwriting expenses	(132.6)	–	(132.6)
Profit attributable to underwriting	141.6	3.2	144.8
Investment return	54.9	(3.2)	51.7
Other operating income	3.0	–	3.0
Other non-underwriting expenses	(39.3)	–	(39.3)
Result of operating activities	160.2	–	160.2
Finance costs	(13.6)	–	(13.6)
Share of profit after tax of associates	1.9	–	1.9
Profit before tax	148.5	–	148.5

The reconciling items relate to items of income and expense under the Group's risk transfer contracts with Tramline Re Ltd and Tramline Re II Ltd. These incepted on 1 January 2012 and 1 July 2013 and provide cover for risk periods of three years and four years respectively. From a management information perspective, these instruments are insurance linked and therefore these balances are included within the Group's profit attributable to underwriting in the segmental information provided to the chief operating decision maker. Under IAS 39, the instruments are classified as derivatives and therefore such items of income and expense are reported through investment return in the Group's consolidated statement of profit or loss.

6. Segmental reporting continued

	Six months ended 30 June 2013			Year ended 31 December 2013
Consolidated statement of profit or loss	Management information £m	Reconciling items £m	IFRS Consolidated statement of profit or loss £m	Management information £m	Reconciling items £m	IFRS Consolidated statement of profit or loss £m
Gross written premium	1,838.9	-	1,838.9	2,467.4	-	2,467.4
Net written premium	1,525.2	15.6	1,540.8	2,107.4	18.2	2,125.6

Gross earned premium	1,227.9	-	1,227.9	2,440.6	-	2,440.6
Reinsurance premium ceded	(169.1)	2.7	(166.4)	(363.2)	17.2	(346.0)
Net earned premium	1,058.8	2.7	1,061.5	2,077.4	17.2	2,094.6
Insurance claims and claims settlement expenses	(607.5)	-	(607.5)	(1,153.1)	-	(1,153.1)
Insurance claims and claims settlement expenses recoverable from reinsurers	43.7	-	43.7	60.0	-	60.0
Expenses for the acquisition of insurance contracts	(233.2)	-	(233.2)	(450.9)	-	(450.9)
Underwriting expenses	(103.6)	-	(103.6)	(250.3)	-	(250.3)
Profit attributable to underwriting	158.2	2.7	160.9	283.1	17.2	300.3
Investment return	67.4	(2.7)	64.7	160.4	(17.2)	143.2
Other operating income	1.9	-	1.9	4.3	-	4.3
Other non-underwriting expenses	(52.4)	-	(52.4)	(97.0)	-	(97.0)
Result of operating activities	175.1	-	175.1	350.8	-	350.8
Finance costs	(14.7)	-	(14.7)	(29.0)	-	(29.0)
Share of profit after tax of associates	1.0	-	1.0	3.9	-	3.9
Profit before tax	161.4	-	161.4	325.7	-	325.7

7. Investment return

	6 months 2014 £m	6 months 2013 £m	12 months 2013 £m
Investment income
- dividend income	12.7	8.4	16.3
- interest income	11.2	14.2	27.5
- cash and cash equivalents interest income	0.7	1.2	2.9
	24.6	23.8	46.7
Net realised gains/(losses)
on assets held for trading
- equity securities	14.2	14.6	25.6
- debt securities	24.6	29.1	71.9
- property funds	0.3	3.9	3.6
- derivative instruments	(1.4)	1.9	(6.2)
- derivative instruments relating to the Group's contracts with Tramline Re Ltd and Tramline Re II Ltd	(1.5)	-	(15.7)
on assets classified as other than trading
- participation in investment pools	0.8	1.1	2.0
	37.0	50.6	81.2
Net unrealised gains/(losses)
on assets held for trading
- equity securities	3.0	21.7	44.7
- debt securities	8.0	(33.0)	(48.9)
- property funds	1.7	(1.7)	0.4
- derivative instruments	(19.4)	4.3	19.0
- derivative instruments relating to the Group's contracts with Tramline Re Ltd and Tramline Re II Ltd	(1.7)	(2.7)	(1.5)
on assets classified as other than trading
- other	(1.5)	1.7	1.6
	(9.9)	(9.7)	15.3
	51.7	64.7	143.2

Note: Included within debt securities held for trading are realised losses and unrealised gains of £2.8 million and £3.8 million respectively, relating to the investment in the funds managed by Leadenhall Capital Partners LLP (30 June 2013: £0.2 million gains and £1.2 million gains; 31 December 2013: £0.2 million gains and £3.9 million gains).

8. Outstanding claims

	Outstanding claims £m	Reinsurers' share £m	Net outstanding claims £m
At 1 January 2014	2,897.1	(343.1)	2,554.0

Claims incurred during the current period	666.9	(26.4)	640.5
Movements arising from prior year claims	(49.7)	9.6	(40.1)
	617.2	(16.8)	600.4

Claims paid during the period	(550.2)	20.8	(529.4)
Accretion of fair value adjustment	2.1	(0.3)	1.8
Other movements	-	(0.8)	(0.8)
Exchange adjustments	(67.6)	2.4	(65.2)
At 30 June 2014	2,898.6	(337.8)	2,560.8

	Outstanding claims £m	Reinsurers' share £m	Net outstanding claims £m
At 1 January 2013	3,083.5	(478.6)	2,604.9

Claims incurred during the current period	670.0	(44.8)	625.2
Movements arising from prior year claims	(62.5)	1.1	(61.4)
	607.5	(43.7)	563.8

Claims paid during the period	(641.7)	95.8	(545.9)
Accretion of fair value adjustment	2.5	(0.4)	2.1
Other movements	-	(0.2)	(0.2)
Exchange adjustments	131.7	(39.2)	92.5
At 30 June 2013	3,183.5	(466.3)	2,717.2

	Outstanding claims £m	Reinsurers' share £m	Net outstanding claims £m
At 1 January 2013	3,083.5	(478.6)	2,604.9

Claims incurred during the current year	1,303.6	(77.0)	1,226.6
Movements arising from prior year claims	(150.5)	17.0	(133.5)
	1,153.1	(60.0)	1,093.1

Claims paid during the year	(1,330.2)	183.5	(1,146.7)
Accretion of fair value adjustment	4.7	(0.8)	3.9
Other movements	-	(0.5)	(0.5)
Exchange adjustments	(14.0)	13.3	(0.7)
At 31 December 2013	2,897.1	(343.1)	2,554.0

9. Other operating expenses

	6 months 2014 £m	6 months 2013 £m	12 months 2013 £m
Expenses relating to underwriting
Employee expenses, excluding employee incentives	67.0	67.2	132.6
Lloyd's expenses	12.0	11.4	20.9
Other administrative expenses	41.4	41.8	86.3
Underwriting foreign exchange losses/(gains)	12.2	(16.8)	10.5
	132.6	103.6	250.3
Other expenses
Employee expenses, excluding employee incentives	10.5	9.8	18.9
Employee incentive and related social security costs	18.5	21.6	53.4
Asset management fees	4.0	8.8	14.0
Other administrative expenses	7.6	9.1	16.1
Non-underwriting foreign exchange (gains)/losses	(1.3)	3.1	(5.4)
	39.3	52.4	97.0
	171.9	156.0	347.3

Employee and other administrative expenses not relating to underwriting represent costs associated with the corporate activities of the Group.

10. Tax

	6 months 2014 £m	6 months 2013 £m	12 months 2013 £m
Current tax - current period/year
Corporate income tax	7.9	0.7	(13.7)
Foreign tax	2.6	2.0	2.8
Double tax relief	-	(0.7)	-
	10.5	2.0	(10.9)
Current tax - adjustment in respect of previous periods/years
Corporate income tax	(1.2)	(0.5)	0.1
Deferred tax - current period/year
Origination and reversal of temporary differences	3.9	17.7	41.5
Deferred tax - adjustment in respect of previous periods/years
Movement for the period/year	-	2.1	1.9
Impact of change in UK tax rate	(0.7)	(0.1)	(5.6)
	(0.7)	2.0	(3.7)
Income tax expense	12.5	21.2	27.0

Recent UK budgets have announced changes in the main rate of UK corporation tax. The new rates of 21.0% and 20.0% were enacted on 2 July 2013 and apply from 1 April 2014 and 1 April 2015 respectively.

In addition to the above, tax of £0.8 million has been charged to other comprehensive income (30 June 2013: £0.1 million charge; 31 December 2013: £1.8 million charge). Tax of £0.6 million has been charged direct to other reserves (30 June 2013: £1.3 million charge; 31 December 2013: £0.3 million charge).

11. Financial assets and financial liabilities

In the six months to 30 June 2014 there have been no significant changes in the business or economic circumstances that have affected the fair value of the Group's financial assets and financial liabilities.

Fair value methodology

For financial instruments carried at fair value the Group has categorised the measurement basis into a fair value hierarchy as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. An active market is one in which transactions for the asset occur with sufficient frequency and volume to provide readily and regularly available quoted prices.

Level 2 - Inputs to a valuation model other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs to a valuation model for the asset or liability that are not based on observable market data (unobservable inputs) and are significant to the overall fair value measurement. Unobservable inputs may have been used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date (or market information for the inputs to any valuation models). As such, unobservable inputs reflect the assumptions it is considered that market participants would use in pricing the asset.

There were no changes to the valuation techniques during the period.

Shares and other variable yield securities

Listed equities traded on a primary exchange in an active market are classified as Level 1.

Unlisted equities included in Level 3 are valued using adjusted net asset valuation techniques where adjustments are made to the net asset position based on management's assessment of future profitability.

Debt and other fixed income securities

The fair value is based upon quotes from pricing services where available. These pricing services derive prices based on an average of quotes provided by brokers. Where multiple quotes are not available, the fair value is based upon evaluated pricing services, which typically use proprietary cash flow models and incorporate observable market inputs, such as credit spreads, benchmark quotes and other trade data. If such services do not provide coverage of the asset, then fair value is determined manually using indicative broker quotes, which are corroborated by recent market transactions in similar or identical assets.

Where there is an active market for these assets and their fair value is the unadjusted quoted market price, these are classified as Level 1. This is typically the case for government bonds. Level 1 also includes bond funds, where fair value is based upon quoted prices. Where the market is inactive or the price is adjusted, but significant market observable inputs have been used by the pricing sources, then these are considered to be Level 2. This is typically the case for government agency debt, corporate debt, mortgage and asset backed securities and catastrophe bonds. Certain assets, for which prices or other market inputs are unobservable, are classified as Level 3.

Property funds

The Group's property fund portfolios are valued using the most recent net asset value provided by the fund managers. The net asset values, which may be a quarter in arrears, are determined by the fund managers using proprietary cash flow models. In such cases, adjustments may be made to bring the net asset value to a more current valuation. The inputs into that valuation, such as discount rates, are primarily unobservable and, as such, these assets are classified as Level 3. Where an investment is made into a new property fund the transaction price is considered to be the fair value if it is the most recent price available.

Participation in investment pools

These are units held in money market funds and the value is based upon unadjusted, quoted and executable prices provided by the fund manager and these are classified as Level 1.

Derivatives

Listed derivative contracts, such as futures, that are actively traded are valued using quoted prices from the relevant exchange and are classified as Level 1. Over the counter currency options are valued by the counterparty using quantitative models with multiple market inputs such as foreign exchange rate volatility. The market inputs are observable and the valuation can be validated through external sources. These are classified as Level 2. The Group's contracts with Tramline Re Ltd and Tramline Re II Ltd have been classified as derivative instruments. The valuation of these instruments is based on forecast cash flow models which contain principally unobservable market inputs, and as such are classified as Level 3.

The options relating to Leadenhall Capital Partners LLP, which allowed either the Group or partnership management to purchase the remaining shares and voting rights, are also classified as Level 3. At 30 June 2014 only the partnership management call option remained. The valuation of these options is judgemental as no liquid market exists and estimation of future cash flows is highly subjective. Therefore both a forecast cash flow model and limited observable market data have been used.

	Fair value hierarchy
	Level 1 £m	Level 2 £m	Level 3 £m	Total 30 June 2014 £m
Assets
Financial assets held for trading at fair value through profit or loss
Shares and other variable yield securities	531.7	-	-	531.7
Debt and other fixed income securities	2,377.7	492.3	1.0	2,871.0
Property funds	-	-	205.6	205.6
Derivative instruments	-	6.9	4.8	11.7
Other financial assets at fair value through profit or loss
Participation in investment pools	312.5	-	-	312.5
Deposits with credit institutions	234.5	-	-	234.5
Other	1.3	-	0.3	1.6
Available-for-sale financial assets
Unlisted equities	-	-	6.7	6.7
Other
Derivative instruments in designated hedge accounting relationships	-	10.4	-	10.4
Total assets	3,457.7	509.6	218.4	4,185.7

Liabilities
Financial liabilities held for trading at fair value through profit or loss
Derivative instruments	-	(8.5)	-	(8.5)
Other
Derivative instruments in designated hedge accounting relationships	-	(0.2)	-	(0.2)
Total liabilities	-	(8.7)	-	(8.7)

Net financial investments	3,457.7	500.9	218.4	4,177.0

The table above excludes the Group's holdings of cash and cash equivalents. These are categorised as Level 1 in the fair value hierarchy.

The table also excludes the Group's borrowings which are not measured at fair value but for which fair value information is provided in note 15. These are categorised as Level 3 in the fair value hierarchy.

The table also excludes the Group's loans and receivables and other payables, which are carried at amounts that approximate to the fair value and are categorised as Level 3 in the fair value hierarchy.

The majority of the Group's investments are valued based on quoted market information or other observable market data. The Group holds 5.2% (30 June 2013: 4.6%; 31 December 2013: 4.3%) of its net financial investments at a fair value based on estimates and recorded as Level 3 investments. Where estimates are used, these are based on a combination of independent third party evidence and internally developed models, calibrated to market observable data where possible. While such valuations are sensitive to estimates, it is believed that changing one or more of the assumptions to reasonably possible alternative assumptions would not change the fair value significantly.

11. Financial assets and financial liabilities continued

	Fair value hierarchy			Total 30 June 2013 £m	Fair value hierarchy			Total 31 December 2013 £m
	Level 1 £m	Level 2 £m	Level 3 £m	Total 30 June 2013 £m	Level 1 £m	Level 2 £m	Level 3 £m	Total 31 December 2013 £m
Assets
Financial assets held for trading at fair value through profit or loss
Shares and other variable yield securities⁽¹⁾	325.4	-	-	325.4	515.9	-	-	515.9
Debt and other fixed income securities⁽²⁾	2,485.3	588.1	4.4	3,077.8	2,602.6	525.6	-	3,128.2
Property funds	-	-	179.8	179.8	-	-	181.0	181.0
Derivative instruments	-	17.5	5.5	23.0	-	18.9	-	18.9
Other financial assets at fair value through profit or loss
Participation in investment pools	618.8	-	-	618.8	379.2	-	-	379.2
Deposits with credit institutions	43.7	-	-	43.7	119.4	-	-	119.4
Other	0.8	-	2.1	2.9	0.6	-	2.0	2.6
Available-for-sale financial assets
Unlisted equities	-	-	6.7	6.7	-	-	6.7	6.7
Other
Derivative instruments in designated hedge accounting relationships	-	3.9	-	3.9	-	16.9	-	16.9
Total assets	3,474.0	609.5	198.5	4,282.0	3,617.7	561.4	189.7	4,368.8

Liabilities
Financial liabilities held for trading at fair value through profit or loss
Derivative instruments	-	(7.1)	-	(7.1)	-	(4.6)	(0.1)	(4.7)
Other
Derivative instruments in designated hedge accounting relationships	-	(6.0)	-	(6.0)	-	-	-	-
Total liabilities	-	(13.1)	-	(13.1)	-	(4.6)	(0.1)	(4.7)

Net financial investments	3,474.0	596.4	198.5	4,268.9	3,617.7	556.8	189.6	4,364.1

Note:

1. Comparative hierarchy information for Shares and other variable yield securities have been represented to exclude accrued income as this is shown separately within Other loans and receivables. The amendments amounted to £0.7 million for the period ended 30 June 2013, and £0.6 million for the year ended 31 December 2013.

2. Comparative hierarchy information for Debt and other fixed income securities have been represented to exclude accrued income as this is shown separately within Other loans and receivables. The amendments amounted to £5.0 million for the period ended 30 June 2013, and £5.3 million for the year ended 31 December 2013.

Transfers between levels of the fair value hierarchy

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.

There has been no transfer between Levels 1 and 2 during the period and the comparative reporting period/year.

During the period, debt and other fixed income securities of £1.0 million (30 June 2013: £0.6 million, 31 Dec 2013: £nil) were transferred from Level 2 into Level 3 due to a lack of observable inputs in determining a fair value for these assets. Conversely, debt and other fixed income securities of £nil (30 June 2013: £5.0 million, 31 Dec 2013: £nil) were transferred out of Level 3 to Level 2 as a result of sufficient market data becoming available for these assets.

Notes to the interim financial statements continued

For the six months ended 30 June 2014

The tables below analyse the movements in assets and liabilities classified as Level 3 investments:

	Debt and other fixed income securities £m	Property funds £m	Derivative instruments £m	Other £m	Unlisted equities £m	Total £m
At 1 January 2014	-	181.0	(0.1)	2.0	6.7	189.6
Total net gains/(losses) recognised in investment return in profit or loss	-	2.0	(3.4)	(1.5)	-	(2.9)
Sales	-	(5.5)	-	-	-	(5.5)
Purchases	-	33.6	-	-	-	33.6
Settlements	-	(1.0)	8.3	-	-	7.3
Transfer into Level 3	1.0	-	-	-	-	1.0
Foreign exchange losses	-	(4.5)	-	(0.2)	-	(4.7)
At 30 June 2014	1.0	205.6	4.8	0.3	6.7	218.4
Total unrealised losses for the period recognised in investment return in profit or loss for assets and liabilities held at the end of the reporting period						(1.5)

	Debt and other fixed income securities £m	Property funds £m	Derivative instruments £m	Other £m	Unlisted equities £m	Total £m
At 1 January 2013	12.2	153.6	-	0.6	4.7	171.1
Total net gains/(losses) recognised in investment return in profit or loss	0.2	2.5	(2.7)	1.7	-	1.7
Sales	(3.1)	(17.2)	-	-	-	(20.3)
Purchases	-	35.5	-	-	2.0	37.5
Settlements	(0.5)	(1.6)	8.2	(0.2)	-	5.9
Transfer into Level 3	0.6	-	-	-	-	0.6
Transfer out of Level 3	(5.0)	-	-	-	-	(5.0)
Foreign exchange gains	-	7.0	-	-	-	7.0
At 30 June 2013	4.4	179.8	5.5	2.1	6.7	198.5
Total unrealised gains for the period recognised in investment return in profit or loss for assets and liabilities held at the end of the reporting period						1.1

	Debt and other fixed income securities £m	Property funds £m	Derivative instruments £m	Other £m	Unlisted equities £m	Total £m
At 1 January 2013	12.2	153.6	-	0.6	4.7	171.1
Total net gains/(losses) recognised in investment return in profit or loss	0.2	4.1	(17.2)	1.7	-	(11.2)
Sales	(10.7)	(27.2)	-	-	-	(37.9)
Purchases	-	54.4	-	-	2.0	56.4
Settlements	(1.5)	(2.6)	17.1	(0.2)	-	12.8
Foreign exchange losses	(0.2)	(1.3)	-	(0.1)	-	(1.6)
At 31 December 2013	-	181.0	(0.1)	2.0	6.7	189.6
Total unrealised gains for the year recognised in investment return in profit or loss for assets and liabilities held at the end of the reporting period						1.1

Note: There were no transfers into or out of Level 3 for the year to 31 December 2013. The assets associated with the transfers into and out of Level 3 for the period to 30 June 2013, were disposed of during the second half of 2013.

12. Share capital

	Number	£m
Allotted, called up and fully paid ordinary shares
At 1 January 2013 issued ordinary shares of 28.125 pence each	502,076,006	141.2
Ordinary shares of 28.125 pence each issued in the period ending 30 June 2013	2,723,353	0.8
At 30 June 2013, 31 December 2013 and 30 June 2014 issued ordinary shares of 28.125 pence each	504,799,359	142.0

During the period the Company transferred 202,011 shares out of treasury at a cost of £0.5 million (30 June 2013: 362,234 shares at a cost of £1.0 million; 31 December 2013: 716,586 shares at a cost of £1.8 million). The shares have been transferred to meet exercises of employee share options, leaving 4,050,074 shares in treasury at 30 June 2014 (30 June 2013: 4,606,437 shares; 31 December 2013: 4,252,085 shares).

13. Earnings and net assets per share

Basic and diluted earnings per share are as follows:

	6 months 2014	6 months 2013	12 months 2013
Profit attributable to owners of the Parent Company	£136.1m	£140.2m	£298.7m
Weighted average number of shares in issue	498.9m	497.5m	498.1m
Dilutive shares	8.1m	7.8m	7.1m
Adjusted average number of shares in issue	507.0m	505.3m	505.2m
Basic earnings per share	27.3p	28.2p	60.0p
Diluted earnings per share	26.8p	27.7p	59.1p

Net assets and tangible net assets per share are as follows:

	30 June 2014	30 June 2013	31 December 2013
Net assets	£1,670.4m	£1,650.6m	£1,678.6m
Adjustments for goodwill and intangible assets	(£234.7m)	(£247.2m)	(£239.1m)
Tangible net assets	£1,435.7m	£1,403.4m	£1,439.5m

Number of shares in issue at end of period/year	504.8m	504.8m	504.8m
Adjustment for ESOT and treasury shares	(5.7m)	(5.7m)	(6.2m)
Basic number of shares after ESOT and treasury shares adjustment	499.1m	499.1m	498.6m

Basic net assets per share	334.7p	330.7p	336.7p
Basic tangible net assets per share	287.7p	281.2p	288.7p

14. Dividends

The amounts recognised as distributions to equity holders are as follows:

Group	6 months 2014 £m	6 months 2013 £m	12 months 2013 £m
Final dividend for the year ended:
- 31 December 2013 of 18.2 pence per ordinary share	90.8	-	-
- 31 December 2012 of 16.5 pence per ordinary share	-	82.4	82.4
Interim dividend for the year ended:
- 31 December 2013 of 7.8 pence per ordinary share	-	-	38.9
- 31 December 2012 of Amlin Plus Limited to non-controlling interests	-	0.1	0.1
	90.8	82.5	121.4

The interim dividend of 8.1 pence per ordinary share for 2014, amounting to £40.4 million, payable in cash, was agreed by the Board on 15 August 2014, and has not been included as a liability as at 30 June 2014.

15. Borrowings

	6 months 2014 £m	6 months 2013 £m	12 months 2013 £m
Subordinated debt	287.8	294.7	289.5
Revolving credit facility	-	-	101.4
Other	0.6	0.7	0.7
	288.4	295.4	391.6

The current and non-current portions are expected to be as follows:

	6 months 2014 £m	6 months 2013 £m	12 months 2013 £m
Current portion	58.5	-	101.6
Non-current portion	229.9	295.4	290.0
	288.4	295.4	391.6

The Directors' estimation of the fair value of the Group's subordinated debt is £325.9 million (30 June 2013: £299.5 million, 31 December 2013: £326.0 million). The aggregate fair values are based on a discounted cash flow model. This model uses a current yield curve appropriate for the remaining terms to maturity. The discount rate used was 1.2% (30 June 2013: 1.4%, 31 December 2013: 1.9%).

The US$ subordinated debt, which is in two tranches of US$50 million, is expected to be repaid in November 2014 and March 2015.

16. Principal exchange rates

The principal exchange rates used in translating foreign currency assets, liabilities, income and expenditure in the production of these interim financial statements were:

	6 months 2014 Average rate	At 30 June 2014	6 months 2013 Average rate	At 30 June 2013	12 months 2013 Average rate	At 31 December 2013
US dollar	1.67	1.71	1.54	1.52	1.56	1.66
Canadian dollar	1.83	1.82	1.57	1.60	1.61	1.76
Euro	1.22	1.25	1.18	1.17	1.18	1.20
New Zealand dollar	1.97	1.95	1.86	1.97	1.91	2.01
Japanese yen	170.97	173.22	147.40	150.83	152.80	174.36

17. Contingent liabilities

Aside from the escrow account entered into with the Trustee of the Lloyd's Superannuation Fund defined benefit plan, and the contingent consideration relating to the acquisition of RaetsMarine Insurance B.V. and subsidiaries, as described below, the Group has no material contingent liabilities at 30 June 2014 (30 June 2013 and 31 December 2013: £nil).

Escrow account relating to funding arrangements of the Lloyd's Superannuation Fund defined benefit plan

In 2014 the Group renewed an agreement with the Trustee of the Lloyd's Superannuation Fund defined benefit pension scheme to hold certain funds within an escrow account. The Group has made payments totalling £14.0 million to the escrow account, with the most recent made in May 2013, and it is now fully funded. Following the 2013 triennial actuarial valuation, the escrow account is being held as security against certain of the assumptions used in the valuation.

Contingent consideration relating to RaetsMarine Insurance B.V.

As part of the acquisition agreement, the Group has a contractual obligation for contingent consideration relating to an earn out arrangement. The final amount is payable by 1 April 2015 and is based on RaetsMarine's hull and cargo claims ratios for the 2010, 2011 and 2012 underwriting years. The undiscounted range of outcomes of the final amount payable is US$nil (£nil) to US$15.0 million (£8.8 million). The fair value of the contingent consideration has been determined using a discounted cash flow model, with the key input being the forecast claims ratios for the relevant lines of business. At the reporting date the fair value of the contingent consideration was US$nil (£nil) (30 June 2013 and 31 December 2013: US$nil (£nil)).

18. Cash flows from operations

	Note	6 months 2014 £m	6 months 2013 £m	12 months 2013 £m
Profit before tax		148.5	161.4	325.7

Adjustments:
Depreciation charge		2.8	3.8	7.4
Amortisation charge		5.4	5.3	11.2
Finance costs		13.6	14.7	29.0
Interest income		(11.9)	(15.4)	(30.4)
Dividend income	7	(12.7)	(8.4)	(16.3)
Gains on investments realised and unrealised	7	(27.1)	(40.9)	(96.5)
Other non-cash movements		4.8	(2.3)	1.5

Movement in operating assets and liabilities:
Net sales/(purchases) of financial investments		84.2	156.6	(92.1)
Foreign exchange losses/(gains) on investments		130.8	(183.8)	28.9
Increase in loans and receivables		(129.6)	(136.2)	(0.4)
(Increase)/decrease in insurance and reinsurance contract assets		(562.5)	(620.5)	120.7
Increase/(decrease) in insurance contract liabilities		643.2	784.0	(152.9)
Increase/(decrease) in other payables		1.0	(12.0)	(2.9)
(Decrease)/increase in retirement benefit obligations		(2.2)	(0.5)	1.1
Foreign exchange gains on long-term borrowings		-	(0.2)	(0.3)
Foreign exchange (gains)/losses on other non-operating assets and liabilities		(49.2)	90.4	(5.8)
Cash generated from operations		239.1	196.0	127.9

The Group includes cash flows from purchase and disposal of financial assets in its operating cash flows as these transactions are generated by the cash flows associated with the origination and settlement of insurance contract liabilities or capital requirements to support underwriting. Cash of £84.2 million from net sales of financial investments was utilised in operations during the period (30 June 2013: £156.6 million from net sales; 31 December 2013: £92.1 million from net purchases).

19. Related party transactions

With the exception of the below, transactions with related parties during the period are consistent in nature and scope with those disclosed in note 37 to the 2013 Annual Report.

Amlin Plus Limited

As per note 4, the non-controlling interest in Amlin Plus Limited, held previously by Lycetts Holdings Limited, was acquired by Amlin Underwriting Limited on 20 May 2014. As a result Lycett, Browne-Swinburne and Douglas Limited, a subsidiary of Lycetts Holdings Limited and a producer of premium income for Amlin Plus Limited, is no longer a related party of the Group. However, Lycett, Browne-Swinburne and Douglas Limited continues to provide premium income for Amlin Plus Limited following the acquisition.

20. Events after the reporting period

No significant events have been identified between the reporting date and the date on which the condensed consolidated interim financial statements were authorised other than that stated below:

Leadenhall Capital Partners LLP

On 7 July, we announced that Amlin had reached non-binding agreement in principle to increase its interest in Leadenhall Capital Partners LLP. The transaction remains subject to the execution of definitive legal documentation and relevant regulatory consents. Refer to page 10 for further information.

Responsibility Statement

The directors confirm that this consolidated interim financial information has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

a) an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

b) material related-party transactions in the first six months and any material changes in the related-party transactions described in the last Annual Report.

The current directors of Amlin plc are listed on page 38 of this interim report. During the period to 30 June 2014, Sir Alan Collins, a non-executive director, retired from the board on 22 May 2014. Biographies of the directors can be found on the company's website: www.amlin.com

By order of the Board

Charles Philipps Richard Hextall

Chief Executive Group Finance & Operations Director
15 August 2014 15 August 2014

Independent review report to Amlin plc

For the six months ended 30 June 2014

Report on the condensed consolidated interim financial statements

Our conclusion

We have reviewed the condensed consolidated interim financial statements, defined below, in the Interim Report of Amlin plc for the six months ended 30 June 2014. Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

This conclusion is to be read in the context of what we say in the remainder of this report.

What we have reviewed

The condensed consolidated interim financial information, which are prepared by Amlin plc, comprise:

• the Consolidated statement of financial position as at 30 June 2014;

• the Consolidated statement of profit or loss and Consolidated statement of other comprehensive income for the period ended 30 June 2014;

• the Consolidated statement of cash flows for the period then ended;

• the Consolidated statement of changes in equity for the period then ended; and

• the explanatory notes to the condensed consolidated interim financial statements.

As disclosed in note 1, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the Group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

The condensed consolidated interim financial statements included in the Interim Report have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

What a review of consolidated financial information involves

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated interim financial statements.

Responsibilities for the condensed consolidated interim financial statements and the review

Our responsibilities and those of the directors

The Interim Report, including the condensed consolidated interim financial statements, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Interim Report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Our responsibility is to express to the Company a conclusion on the condensed consolidated interim financial statements in the Interim Report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of complying with the Disclosure and Transparency Rules of the Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing

PricewaterhouseCoopers LLP

Chartered Accountants
15 August 2014

7 More London Riverside

London

SE1 2RT

Notes:

a) The maintenance and integrity of the Amlin plc website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Information for shareholders

as at 15 August 2014

The additional information consisting of the shareholder information and directors and advisers has been prepared from the records of the Company. Whilst it does not form part of the interim statement, it should be read in conjunction with it and with the responsibilities section of the independent review report thereon.

Financial calendar

2014

5 September Record date for payment of 2014 interim dividend

2 October Payment of 2014 interim dividend

2015

2 March Expected announcement date of results for the year ending 31 December 2014

May Annual General Meeting

May Expected payment of 2014 final dividend, subject to shareholder approval

Shareholder enquiries, register and website

Please call our Shareholder Enquiries line on 020 7746 1111, or, for enquiries concerning share registration, call our Registrar, Equiniti Limited on 0871 384 2383 (UK) or +44 121 415 7015 (Overseas).

Amlin's website is at www.amlin.c

Directors and Advisors

As at 18 August 2014

Directors

Richard Davey (Chairman)*

Simon Beale (Group Chief Underwriting Officer)

Brian Carpenter

Julie Chakraverty*

Marty Feinstein*⁺

Richard Hextall (Group Finance & Operations Director)

Shonaid Jemmett-Page*

Charles Philipps (Chief Executive)

Sir Mark Wrightson Bt*

* Non-executive

+ Senior independent director

Audit Committee

Shonaid Jemmett-Page (Chairman)

Julie Chakraverty

Marty Feinstein

Risk and Solvency Committee

Marty Feinstein (Chairman)

Julie Chakraverty

Richard Davey

Shonaid Jemmett-Page

Remuneration Committee

Sir Mark Wrightson Bt (Chairman)

Julie Chakraverty

Shonaid Jemmett-Page

Nomination Committee

Richard Davey (Chairman)

Julie Chakraverty

Marty Feinstein

Shonaid Jemmett-Page

Charles Philipps

Sir Mark Wrightson Bt

Secretary

Mark Stevens

Registered Office

St Helen's

1 Undershaft

London

EC3A 8ND

Auditors

PricewaterhouseCoopers LLP

7 More London Riverside

London

SE1 2RT

Investment Bankers

Evercore Partners International LLP

15 Stanhope Gate

London

W1K 1LN

Joint Stockbrokers

Morgan Stanley & Co. International plc

25 Cabot Square

Canary Wharf

London

E14 4QA

Numis Securities Ltd

The London Stock Exchange Building

10 Paternoster Square

London

EC4M 7LT

Corporate Lawyers

Linklaters LLP

One Silk Street

London

EC2Y 8HQ

Principal Bankers

Lloyds Bank plc

25 Gresham Street

London

EC2V 7HN

Registrar

Equiniti Limited

Aspect House

Spencer Road

Lancing

West Sussex

BN99 6DA

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR LLFFSTRIDLIS

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