Acquisition Update

Catlin Group Limited
12 January 2007


     THIS ANNOUNCEMENT IS NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR
 INDIRECTLY, IN OR INTO THE UNITED STATES OR ANY JURISDICTION IN WHICH THE SAME
                               WOULD BE UNLAWFUL.


                    CATLIN GROUP LIMITED ACQUISITION UPDATE


HAMILTON, Bermuda - Catlin Group Limited ('CGL': London Stock Exchange), the
international specialty property/casualty insurer and reinsurer, today announced
further details on progress relating to the acquisition and integration of
Wellington Underwriting plc ('Wellington').

Refinancing

Catlin Insurance Company Ltd. ('Catlin Bermuda') has priced an issue of US$600
million non-cumulative perpetual preferred shares at a dividend rate of 7.249
per cent.

The transaction size was increased during the bookbuilding process from US$300
million to US$600 million as a result of the very strong demand from investors.

The proceeds of the issue will be received on 18 January 2007. The proceeds will
be used to refinance the US$500 million short-term acquisition financing
facility Catlin established as part of the financing for the Wellington
acquisition, and for general corporate purposes.

Stephen Catlin, chief executive of Catlin Group Limited, said:

'We are delighted by the success of our inaugural debt capital market
transaction and the excellent response we have received from investors. The
issue provides us with the highest-quality hybrid capital available and has
opened up a new source of capital for the Group. It is also the largest-ever
preferred share issuance by a member of our peer group, both in the UK and the
Bermuda markets.'

2007 Underwriting

At the time Catlin made its offer to the Wellington Board, Catlin contemplated
the consequences of a substantial loss of business that had been underwritten by
Wellington. The January 1st renewal period was an important first test of the
enlarged Group's ability to retain the business it desired, and the amount of
business actually lost was significantly lower than originally contemplated.

Stephen Catlin commented:

'We have been very encouraged during our important January 1st renewal season by
our ability to retain quality business.'

Retention and Integration

The integration of Catlin and Wellington operations is proceeding ahead of
management's original plan. Underwriting operations have been fully integrated
as previously reported, and the combined London underwriting staff occupied a
new, purpose built underwriting floor located in Catlin's office 14 hours after
the offer for Wellington was declared unconditional. The integration of all
other operations, including financial and support functions, is either on or
ahead of schedule.

An important element of the integration plan involves retention of key staff,
and an employee retention programme has been put in place. There have been fewer
than ten unplanned departures out of a total of more than 900 employees.

As part of the integration, a number of redundancies were made upon the offer
being declared unconditional. These redundancies make up part of the projected
synergies created by the acquisition.

Relocation

The relocation of all London staff to Catlin's offices located in 3 Minster
Court is expected to be completed on schedule by 5 February 2007.

Stephen Catlin said:

'I am amazed at how far our integration efforts have progressed in such a short
time frame. Within four months of Catlin's initial offer to the Wellington
Board, Catlin will have completed the acquisition, fully integrated the
companies' operations, refinanced the acquisition-related debt and relocated all
employees in London under one roof. The departure of a small number of employees
from the company is well within expectations and will have no material impact on
our business going forward.'


                                    - ends -


For more information contact:

Media Relations:
James Burcke,                       Tel:       [phone]
Head of Communications, London      Mobile:    [phone]
                                    E-mail:    [e-mail]

Liz Morley, Maitland                Tel:       [phone]
                                    E-mail:    [e-mail]

Investor Relations:
William Spurgin,                    Tel:       [phone]
Head of Investor Relations, London  Mobile:    [phone]
                                    E-mail:    [e-mail]


Notes to editors:

1. Catlin Group Limited, headquartered in Bermuda, is an international 
   specialist property/casualty insurer and reinsurer writing more than 30 
   classes of business worldwide. Catlin wrote gross premiums of US$1.4 billion
   in 2005 and more than US$900 million in the six months ended 30 June 2006. 
   Catlin shares are traded on the London Stock Exchange (ticker symbol: CGL). 
   More information about Catlin can be found at www.catlin.com.

2. On 18 December 2006, Catlin's offer for the entire issued and to be issued 
   share capital of Wellington Underwriting plc was declared unconditional. 
   The enlarged Catlin Group has a total net asset value of US$1.9
   billion.

3. Catlin operates four underwriting platforms:

•  The Catlin Syndicate at Lloyd's of London (Syndicate 2003) is a
   recognised leader of numerous classes of specialty insurance and reinsurance.
   The Catlin Syndicate is the largest at Lloyd's in 2007 based on premium 
   capacity of up to £1.25 billion.

•  Catlin Bermuda (Catlin Insurance Company Ltd.), which underwrites
   property treaty and casualty treaty reinsurance and property and casualty
   insurance.

•  Catlin UK (Catlin Insurance Company (UK) Ltd.), which specialises in
   underwriting commercial non-life insurance for UK clients. It also writes 
   other classes of business written by the Catlin Syndicate.

•  Catlin US, which encompasses Catlin's operations based in the United
   States. Catlin US includes Catlin Insurance Company Inc., an admitted US 
   insurer which will commence operations soon, and Wellington Specialty 
   Insurance Company, a non-admitted insurer which will soon be rebranded under 
   the Catlin banner. Catlin US has 15 underwriting offices in the United 
   States.

4. Catlin also operates offices worldwide which allow Catlin underwriters to 
   work closely with local policyholders and brokers. The offices are located 
   in Canada (Toronto and Calgary), Australia (Sydney), Singapore, Malaysia 
   (Kuala Lumpur), Hong Kong, Germany (Cologne), Belgium (Antwerp) and 
   Guernsey. Catlin UK has regional offices in Glasgow, Leeds, Derby, 
   Birmingham, Watford and Tonbridge. The company will soon open European 
   offices in Paris, Barcelona, Zurich and Innsbruck.

5. This announcement is not an offer for sale of securities in the United 
   States or any jurisdiction in which the same would be unlawful. The shares 
   have not been and will not be registered under the U.S. Securities Act of
   1933, as amended (the 'Securities Act'), and may not be offered or sold in 
   the United States absent registration or an exemption from registration 
   under the Securities Act. There will be no public offer of the shares in the 
   United States, the United Kingdom or elsewhere. The distribution of this 
   announcement and the offering or sale of the shares in certain jurisdictions
   may be restricted by law. No action has been taken by the Company that would
   permit an offering of such shares or possession or distribution of this 
   announcement or any other offering or publicity material relating to such 
   shares in any jurisdiction where action for that purpose is required. 
   Persons into whose possession this announcement comes are required by the 
   Company to inform themselves about, and to observe, any such restrictions.

   No application has been or will be made to list the shares on the London 
   Stock Exchange or any other stock exchange.




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