Trading Statement

Amlin PLC
09 January 2004


Press Release
9 January 2004

                                   AMLIN PLC

                      Satisfactory January renewal season

                     Continued low level of loss incidence

                                Positive Outlook


Amlin, the leading Lloyd's insurer, has released the following statement on
trading conditions.

Current trading

A number of influences remain on the global insurance industry which support the
continued requirement for underwriting discipline. There is market expectation
that reserving issues will continue to emerge for legacy casualty business and
this, combined with low bond yields and downgrades from credit rating agencies,
should focus insurance operations on producing a strong underwriting return to
deliver satisfactory performance for capital providers.

Against this background, we were pleased to note that Lloyd's 2004 capacity has
remained at the same level as 2003 and, with the reduction in quota share
facilities placed, overall capacity is lower.

As previously announced, in order to focus on margin rather than volume, Amlin
has held Syndicate 2001's capacity at £1 billion for 2004 and has not renewed
the £100 million quota share facility at this point. However the group's share
of the syndicate has increased from 84% to 100% from 2003 to 2004 as third party
capital providers will no longer participate on the syndicate following the
acquisition of capacity completed during 2002.

1 January represents a major renewal period for a number of key classes of
business underwritten by Syndicate 2001. Whilst there are signs of greater
competition, the renewal rates achieved by the syndicate, particularly for
property and property reinsurance business, were satisfactory with only modest
reductions in rating levels from those prevailing in 2003. A number of marine,
non-airline aviation and liability classes continue to see improvement in rating
levels.

1 January is also the principal date for the placement of Syndicate 2001's
reinsurance programme. Placement of the programme was in line with our
expectations although the retrocessional reinsurance market remained firm. This
is encouraging in the light of the comments on the industry environment noted
above.


Loss activity

In the interim report we noted that loss incidence for property, property
reinsurance and airlines had been extraordinarily low in the first half of the
year. This continued in the second half of 2003. A number of natural
catastrophes have led to losses to the syndicate but these are well within our
planned expectations. Good underwriting margins combined with this low level of
major loss incidence to date continue to make the 2002 and 2003 years two of the
best underwriting years the syndicate has experienced. The results of these
years will be mostly recognised in Amlin's consolidated profit and loss account
in the years ending 31 December 2003 and 2004 respectively.


Currency

With 55% of the 2004 premium income of Syndicate 2001 estimated receivable in US
dollars, the recent US dollar weakening will affect the future outlook. However
Amlin has maintained a policy of selling Syndicate dollar profits. By 31
December 2003, Amlin had sold approximately $186 million of anticipated
Syndicate dollar profits from its 2001 and 2002 years of account at an average
exchange rate of 1.62.


Investment portfolio

During the second half of the year the structure of the £200 million investment
portfolio supporting the group's underwriting was significantly adjusted. The
remaining long duration bonds held by the group were sold at the start of July
with assets transferred to an investment mandate with a cash benchmark. Taube
Hodson Stonex was appointed to manage an active global equity portfolio for the
group. By the end of September, £40 million was transferred to their management,
increasing to £50 million in October. These changes have proven to be beneficial
to our performance relative to the previous asset allocation.

Syndicate funds have also continued to show strong growth with investable assets
increasing to over £1 billion by 31 December 2003. These funds continue to be
invested in short duration bonds in line with our strategic position of matching
asset and liability duration. Performance has not matched the first half year
but has been satisfactory nonetheless against a backdrop of increased volatility
in these markets.


Preliminary results

The Company intends to announce its preliminary results for the year ended 31
December 2003 on 11 March 2004.

Charles Philipps, Chief Executive, stated: 'The second half of 2003 has gone
very well for Amlin and the strength of the recent renewal season supports our
previously stated view that the outlook for 2004 is very good.'


Contact

Charles Philipps, Amlin plc        020 7746 1000
Richard Hextall, Amlin plc         020 7746 1000
David Haggie, Haggie Financial     020 7417 8989
Peter Rigby, Haggie Financial      020 7417 8989


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