Cat Bond Launch

Catlin Group Limited
27 September 2006


                       CATLIN PARTICIPATES IN INNOVATIVE
                          NATURAL CATASTROPHE SECURITY

HAMILTON, Bermuda - Catlin Group Limited ('CGL': London Stock Exchange), the
international speciality property/casualty insurer and reinsurer, announces that
Catlin Insurance Company Ltd. of Bermuda ('Catlin Bermuda') intends, subject to
completion of contractual arrangements, to enter a catastrophe swap agreement
that would provide it with coverage of up to US$200.25 million in the event of a
series of severe natural catastrophes.

The innovative transaction would provide Catlin with competitively priced and
fully collateralised protection against severe natural catastrophes. This
transaction would complement the protection that Catlin already purchases
through the traditional reinsurance marketplace.

The transaction, which is being brought to the securities market this week by
ABN AMRO London, would be the first publicly rated collateralised debt
obligation ('CDO') of natural catastrophe risk. The catastrophe bond is thought
to be the first of its kind to offer very low-risk/low-volatility investors,
such as pension funds and life insurers, the diversification and yield benefits
of natural catastrophe exposure.

This new class of security has been developed in conjunction with Guy Carpenter
& Company Inc., one of the world's leading reinsurance brokers, and Risk
Management Solutions Inc. ('RMS'), the world's leading provider of catastrophe
modelling solutions.

Catlin Bermuda would purchase the catastrophe swap from a special purpose
vehicle, Bay Haven Limited. Bay Haven would in turn issue to investors $200.25
million in three year Floating Rate Notes, divided into Class A and Class B
Notes. The proceeds of those notes would comprise the collateral for Bay Haven's
obligations to Catlin Bermuda under the catastrophe swap.

Standard & Poor's Ratings Services is expected to assign a 'AA' senior secured
debt rating to the Class A Notes and is expected to assign a 'BBB-' senior
secured debt rating to the Class B notes. This is expected to be the first
transaction linked to natural peril risk to be rated 'AA' by Standard & Poor's.

The catastrophe swap would respond to covered risk events occurring during a
three year period. No payment would be made for the first three such risk
events. Bay Haven would pay Catlin Bermuda US$33.375 million per covered risk
event thereafter, up to a maximum of six events. The aggregate limit payable to
Catlin Bermuda is $200.25 million.

The categories of risk events to be covered by the transaction are: US
hurricanes (Florida, Gulf States and East Coast), Californian earthquakes, New
Madrid (US Midwestern) earthquakes, UK windstorms, European (excluding UK)
windstorms, Japanese typhoons and Japanese earthquakes.

Only one payment would be made for each covered risk event, but the catastrophe
swap would respond to multiple occurrences of a given category of risk event,
such as if more than one qualifying US hurricane occurs during the period.

The catastrophe swap would be triggered for US risk events if aggregate
insurance industry losses as estimated by Property Claims Services ('PCS') meet
or exceed defined threshold amounts. Coverage for non-US risk events would be
triggered if specific parametric criteria, such as wind speeds or ground
motions, are met or exceeded. The stochastic risk analyses, definitions of
covered events and parametric trigger solutions have been developed by RMS.

The first two events paid under the catastrophe swap would impact the Class B
notes; subsequent events, up to the limit of six events over the three year
period, would impact the Class A Notes.

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

'The pattern of natural catastrophes over the past several years has focused
attention on how insurers and reinsurers will be able to respond to the
increasing frequency and economic severity of these events. This transaction,
when completed, will strengthen Catlin's ability to withstand claims arising
from a series of severe natural catastrophes. Along with the steps Catlin has
already taken to limit its exposure to natural catastrophe risk, the catastrophe
swap will increase the security that Catlin provides to both policyholders and
investors.'

Erik Manning, Insurance & Weather Derivatives Group at ABN AMRO, said:

'For the first time, pension funds and other institutional investors will have
the ability to invest in these near zero-beta investments, providing genuine
investment portfolio diversity with the benefit of high investment grade
ratings. Bay Haven has opened up the world of Insurance-Linked Securities to a
whole new breed of investors.'

Tibor Winkler, director of risk markets at RMS, in London said:

'RMS is very pleased to have participated in the structuring and placement of
this transaction of natural catastrophe insurance risk into a segment of the
capital markets hitherto virtually untapped by this asset class. As part of our
long term commitment to this asset class, RMS, the leading provider in this
space, continues to work with the market for the success of new transactions
like Bay Haven.'


                                      ENDS

For more information contact:

Catlin Group Limited
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,
Head of Investor 
Relations, London                 Tel:        [phone]
                                  Mobile:     [phone]
                                  E-mail:     [e-mail]
                                              
ABN AMRO
Media Relations:
Jo Pope                           Tel:        [phone]
                                  E-mail:     [e-mail]

Guy Carpenter
Media Relations:
Jennifer Ainslie                  Tel:        [phone]
Head of UK Marketing              E-mail:     [e-mail]
& Communications                       


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 $1.4 billion 
   in 2005. Catlin shares are traded on the London Stock Exchange (ticker 
   symbol: CGL). More information about Catlin can be found at www.catlin.com.

   Netherlands-based ABN AMRO is a leading international bank with total assets 
   of EUR 986 billion (as at 30 June 2006). It has more than 3,700 branches in 
   52 countries, and has a staff of more than 110,000 full-time equivalents 
   worldwide. ABN AMRO is listed on Euronext and the New York Stock Exchange.

   Guy Carpenter & Company Inc. is the world's leading risk and reinsurance
   specialist and a part of the Marsh & McLennan Companies, Inc. Securities or
   investments, as applicable, are offered in the (i) United States through MMC
   Securities Corp., a US registered broker-dealer and member NASD/SIPC, and 
   (ii) European Union through MMC Securities Ltd., regulated by the Financial 
   Services Authority for the conduct of investment business in the United 
   Kingdom. MMC Securities Corp. and MMC Securities Ltd. are affiliates of Guy 
   Carpenter. Guy Carpenter's website address is www.guycarp.com.

   Risk Management Solutions, Inc. (RMS) is the world's leading provider of
   products and services for catastrophe risk management. More than 400 leading
   insurers, reinsurers, trading companies, and other financial institutions 
   rely on RMS models to quantify, manage, and transfer risk. Founded at 
   Stanford University in 1988, RMS serves clients today from offices in the 
   U.S., Bermuda, the U.K., France, Switzerland, and Japan. For more 
   information, visit our web site at www.rms.com.

2. Catlin operates four underwriting platforms:

   • The Catlin Syndicate at Lloyd's of London (Syndicate 2003), which is one of
     the largest syndicates at Lloyd's based on 2006 premium capacity of £450
     million. It is a recognised leader of numerous classes of specialty 
     insurance and reinsurance.

   • 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 all of Catlin's operations in the United 
     States. Catlin US includes Catlin Insurance Company Inc., an admitted US
     insurer which will commence operations soon, along with underwriting 
     offices in Atlanta, New York, Houston, New Orleans and San Francisco. 
     Catlin US has also announced plans to establish a non-admitted insurer in 
     the United States.

   The Catlin Syndicate, Catlin Bermuda and Catlin UK have financial strength
   ratings of 'A' (Excellent) from A.M. Best Company. Catlin Bermuda and Catlin 
   UK have insurance financial strength ratings of 'A-' (Strong) from Standard &
   Poor's; the Catlin Syndicate has a Lloyd's Syndicate Assessment of '4-' (Low
   Dependency) from Standard & Poor's.

3. 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.



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