Trading Statement

Amlin PLC
10 January 2006

AMLIN PLC

PRESS RELEASE

For immediate release

10 January 2006





Amlin reports continued good trading conditions



Amlin plc ('Amlin') today released the following statement on current trading
conditions and comments on the trading period just ended.



Current trading

2005

Syndicate 2001's gross written premium (net of brokerage) for the 2005
underwriting year was £810 million (at an exchange rate of $1.72:£1).  This
compares to £830 million in the previous year converted at the same exchange
rate. However, after removing reinstatement premiums relating to the windstorm
losses in each year, the reduction in premium was a modest 2%.  The average
renewal rate reduction for the 2005 year was 4%, weighted across premium by
business class.



2005 was the costliest year on record for natural catastrophes.  Current
industry estimates place the insurance cost between $60 billion and $80 billion.
  Amlin's estimate of the overall impact of Hurricanes Katrina, Rita and Wilma
remains broadly unchanged from that announced previously.



Amlin expects that, in the absence of unforeseen circumstances, its pre-tax
profit for 2005 will be ahead of consensus market forecasts.



2006

1 January is a major renewal period for a number of key classes of business
underwritten by Amlin.  Following the significant industry losses in 2005, it
was expected that a number of key classes would see a reversal of the downward
trend in rate movements.



This was particularly true of property reinsurance.  Amlin's US catastrophe
reinsurance renewals have seen rate increases averaging approximately 15% with
larger increases being experienced in wind exposed regions.  Amlin expects that
this will increase as the major wind exposed programmes are renewed.  The
international catastrophe account has seen lower increases, on average around
5%, as competition was greater in zones where capacity is less constrained.



For the 2006 renewal period to date Syndicate 2001 has written £183 million (at
an exchange rate of $1.72:£1) of premium income, approximately 10% up on the
same period in 2005.  The average renewal rate increases across all classes has
been approximately 4% with most insurance classes reversing last year's downward
trend but not to the same level as the reinsurance classes.



Amlin Bermuda has written $55 million (net of brokerage) of new business to
date, excluding intra group business ceded to it by Syndicate 2001.  The
strategy of using London distribution for sourcing Amlin Bermuda's business has
proven to be beneficial and we have been encouraged by the strong support of the
London brokers.



1 January is also an important date for the renewal of a number of the Syndicate
2001's reinsurance programmes.  In line with our experience on business written,
the cost of purchasing our own programmes has increased, particularly for
retrocessional cover.  In the face of significant proposed price increases, the
syndicate has increased net retentions for 2006 to control overall expenditure
and Amlin Bermuda has provided some capacity for the Syndicate.  At this stage
of the development of Amlin Bermuda this has allowed the risk appetite of each
group entity to be managed within their predetermined parameters.  Also a
significant part of the Group's catastrophe reinsurance programmes renew post 1
January and these remain in force.



Investment portfolio

The investment performance for the syndicate assets is estimated to be 3.6%.
For the syndicate assets, the sterling assets produced an estimated return of
5.4% helped by good bond market performance. Overall US$ returns were more
modest, estimated at 1.6%.  However the policy employed of selling dollar
profits to sterling as they were earned has enhanced overall investment returns.



Global equity markets have performed well during 2005 and Amlin's return from
its portfolio is estimated to be 27%.  During the year Amlin held 7% of group
assets (including syndicate assets) in equities.



Charles Philipps, Chief Executive, stated: '2006 has started well and Amlin
Bermuda has had a very good reception from our UK based brokers.  We believe
there is scope for continued rate strengthening as the year progresses, as
markets in some classes, such as direct property insurance, have yet to respond
to the increased cost of reinsurance cover, and the main renewal season for key
wind affected zones of the world is later in the year. The outlook is positive.'



- Ends -



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







Notes to Editors:



Amlin plc is a recognised leader in the London insurance and reinsurance market,
providing a global client base with risk management solutions.  Amlin
specialises in four business areas: Aviation; Marine; UK commercial; and
International property and casualty insurance and reinsurance.  A FTSE-250
quoted company, Amlin owns 100% of its £1bn capacity for 2006, which is written
through Lloyd's Syndicate 2001.  Amlin's Syndicate is rated 'A' (Excellent) by
AM Best and 'A1' (Stable) by Moody's.



In November 2005, the company established Amlin Bermuda, a reinsurance business
capitalised at US$1 billion and rated A- (Excellent) by A.M. Best and A by
Standard & Poor's.




                      This information is provided by RNS
            The company news service from the London Stock Exchange