Update - impact of hurricanes

Beazley Group PLC
01 November 2005



                                                                 1 November 2005



                               Beazley Group plc

  Updated loss estimates for hurricane Katrina and initial loss estimates from
                            hurricanes Rita and Wilma

Beazley Group plc announces today an updated estimate of losses sustained from
hurricane Katrina and initial loss estimates from hurricanes Rita and Wilma.

In our interim statement dated 7 September we made reference to the impact of
hurricane Katrina. As stated, the estimate was made based on the little
information available at the time, being just one week after the hurricane
devastated large areas of the Gulf Coast and New Orleans was still evacuated. We
indicated that we would update the market when the information became more
reliable.

Although information can now be deemed more reliable in respect of the loss from
hurricane Katrina, there is still a considerable amount of uncertainty regarding
the overall magnitude of the insured loss for the industry and the information
in relation to our exposure remains sparse and incomplete. The losses sustained
from hurricane Katrina are primarily from the property reinsurance, marine
energy and direct property lines of business.

The current estimate of the net loss from hurricane Katrina to the managed
syndicates is $150m (previous estimate of $75m). The estimates for the net
losses from the direct property and energy accounts have not materially changed
since the initial announcement at the time of the interim results on 7 September
2005.

However, our estimate of the property reinsurance account has increased due to
the uplift in industry estimates and our current view of potential exposure from
this area of our portfolio. It should be noted that many cedants have yet to
confirm our estimates and therefore a degree of uncertainty remains.

The Group's share of the revised estimated loss net of reinsurance and including
reinstatement premiums from hurricane Katrina is approximately $100m before tax
(previous estimate of $50m).

The initial net loss estimate to the Group from hurricane Rita is approximately
$15m before tax and as substantial reinsurance protection is still available
this net loss is not expected to increase materially.

The initial net loss estimate to the Group from hurricane Wilma is also
approximately $15m. There is no hard information available on this loss at this
stage. Based on a loss of this size substantial reinsurance protection is still
available to all business lines.

The effect of these events is to reduce the current expectation of Group profits
for 2005 by a further £40m (in addition to the £20m announced by the Group on 7
September). This update is given before the end of the hurricane season and
before most of our cedants have notified us of losses from the events and
therefore there remains uncertainty as to the eventual outcome.

There is now firm evidence of rates increasing in the energy and property
sectors. We expect the increase to accelerate towards the year end as
underwriters adjust to the new trading conditions. Our revised 2006 plan, which
Lloyd's has now approved, increases our premium capacity from £742m to £830m
with the Group's participation increasing from 70% to 78%.

Our dividend policy of paying a reasonable level of base dividend across the
underwriting cycle remains in place and we are committed at this stage to paying
a minimum of 4p for the year.

Contacts

Beazley Group plc                      Tel: [phone]
Andrew Beazley
Andrew Horton

Finsbury                               Tel: [phone]
Simon Moyse
Amanda Lee






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