Trading Update

Amlin PLC
18 August 2005


AMLIN PLC

PRESS RELEASE

For immediate release

18 August 2005

Trading update:

  • Excellent first half
  • Continued improvement in syndicate forecasts

Amlin plc ('Amlin'), the leading Lloyd's insurer, today releases a trading
update, including improved forecasts for Syndicate 2001 for the 2003 and 2004
years of account, and indicating that its results for the 2005 half year will be
materially ahead of expectations.

Amlin plc

A review of performance in the first half of 2005 has indicated that the outcome
for the 2005 half year is likely to be significantly better than market
expectations due to a combination of continued strong trading, low levels of
claims incurred and a good investment performance in the year to date, and the
effect on profits of exchange rate adjustments when reporting under
International Financial Reporting Standards ('IFRS').

It is anticipated that the Group's pre-tax profit for the first half of 2005
will be not less than £120 million.

The impact of strong trading is illustrated by the improvement in syndicate
forecasts for 2003 and 2004 underwriting years which are detailed below, and the
low level of loss incidence in the first six months.

Good investment returns have been generated through our equity portfolio which
delivered a 10.3% return for the period and improved returns on cash  (2.5%) and
bond portfolios (Sterling: 3.4%; US dollar: 1.2%) compared to last year.  This
improved return is on larger average cash balances resulting from increased
ownership of Syndicate 2001 and strong trading cash flows.

The profile of Amlin's business is such that, in normal circumstances, a higher
proportion of underwriting profits are earned in the first half than in the
second half of the year. This, combined with exceptionally good claims
development in the first six months and uncertainty over future investment
returns and the extent of future hurricane activity and other major loss events
in 2005, means that Amlin is unlikely to repeat the first half performance in
the second half of 2005.

Amlin will announce its interim results for the period ended 30 June 2005 on 5
September 2005.

Syndicate 2001

Syndicate 2001's premium income (net of brokerage) to the end of June 2005 was
£572 million (at rates of $1.79:£1), compared with £586 million for the previous
year.  This represents 71% of the Syndicate's planned income for the year.

The average renewal rate reduction for the first half was 4% with renewal
retention at 83%.  Premium income flow has been strong in the non marine
account, particularly on the catastrophe reinsurance account, where good rate
increases were achieved on our Florida and Caribbean exposures.

Claims incidence has been relatively light with the European storm Erwin in
January being the largest loss event in the first half of 2005.  Also, in common
with prior periods, Amlin's prudent approach to reserving has resulted in
reserve releases. These are above average owing to a better development of prior
years than would normally be expected.

Syndicate forecasts

The updated forecasts for the 2003 and 2004 years of account for Syndicate 2001,
which are expressed as a percentage of capacity after standard personal
expenses, are as follows:

  Year of    Capacity      Amlin share   Current forecasts   Previous  forecasts
  account       £m              %
                               
    2003       1,000          86.2         18.0% to 23.0%      17.0% to 22.0%
    2004       1,000         100.0          8.0% to 13.0%       7.0% to 12.0%

Amlin expects that these results will continue to improve if the Syndicate
continues to experience normal or better than normal claims development.

Charles Philipps, Chief Executive of Amlin, added: 'The first half performance
has been extremely strong across all parts of the Group. While much of the
windstorm season remains, which may affect our second half performance, we look
forward to a strong set of full year results.'


Enquiries:

Charles Philipps, Amlin plc                                        0207 746 1000
Richard Hextall, Amlin plc                                         0207 746 1000
Peter Rigby, Haggie Financial Limited                0207 417 8989/07803 851 426


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