Trading Statement

Catlin Group Limited
28 November 2007


                             FOR IMMEDIATE RELEASE

28 November 2007                                                 Release 2007-20

                     CATLIN GROUP LIMITED TRADING STATEMENT


HAMILTON, Bermuda - Catlin Group Limited ('CGL': London Stock Exchange), the
international specialty property/casualty insurer and reinsurer, has issued the
following trading statement:


Current Trading
---------------

The Group continues to perform strongly, and this performance reflects continued
broker support for Catlin's enlarged underwriting operations.

Gross premiums written for the nine-month period ended 30 September 2007
amounted to US$2.73 billion, compared with US$1.24 billion underwritten by
Catlin on a stand-alone basis in the corresponding period of 2006 and a 6 per
cent increase from the US$2.58 billion written by Catlin and Wellington
Underwriting plc combined during the first nine months of 2006 (on the basis
that Wellington supplied 100 per cent of Lloyd's Syndicate 2020's capacity
during 2006).

Business retention continued to be strong during the third quarter, remaining
consistent with the favourable experience reported by the Group in its interim
results announcement.

The increase in gross premiums written was achieved at attractive pricing levels
across Catlin's book of business, even though weighted average premium rates
across all classes of business decreased by 5 per cent during the nine-month
period.

The Group's loss experience through 30 September 2007 has been benign, primarily
reflecting the relatively low incidence of catastrophe losses. Prior year
reserves have developed in line with expectations.

Operating expenditures were within plan as at 30 September 2007.

The Group has recently completed a comprehensive review of all individual
subprime-related securities in Catlin's investment portfolio. The Group expects
to take a total charge during 2007 of US$75 million against the value of these
securities. The Group has sold some subprime-related securities at close to book
value and now holds subprime-related securities with a book value of US$85
million (prior to the charge), 85 per cent of which are collateralised debt
obligations ('CDOs'). The book value of the subprime-related portfolio after the
sales and the charge is US$12 million.

The total amount of cash and investments held by the Group amounted to US$5.85
billion at 30 September 2007. The effect of the proposed US$75 million charge
would reduce the Group's investment return to 3.6 per cent on an annualised
basis as at 30 September 2007.

Based on information currently available, the Group does not believe that its
insurance and reinsurance portfolio is materially exposed to potential claims
arising from subprime-related issues. Although the ultimate level and nature of
these potential claims are not known to the market at this time, the Group had
in the past largely withdrawn from business classes, such as financial
institutions E&O and Fortune 500 D&O liability, that appear most likely to be
affected.


Other Developments
------------------

   •On 1 October 2007 A.M. Best upgraded the outlook assigned the Catlin
    Group and various underwriting units to stable from negative. A.M. Best
    added that it expected Catlin 'to produce an excellent technical result at
    year-end 2007'.

  • The Group is in the process of establishing a representative office in
    Sao Paulo, Brazil. With the establishment of this office, the Catlin Group
    will have 40 offices in 17 countries.


Outlook
-------

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

'Catlin has made real progress during 2007, which is particularly pleasing given
that the acquisition of Wellington was not yet complete at this time last year.
The Group has benefited from strong business retention following the
acquisition, attractive underwriting margins and a benign level of losses.
Catlin has also enjoyed benefits from the increased scale created by the
acquisition, and we continue to strengthen our underwriting teams and support
functions to take advantage of new opportunities.

'The Group is on track to meet its targets in 2007. Whilst we have taken the
decision to write down the value of the small portion of the investment
portfolio exposed to the subprime sector, we expect the profit impact of the
writedown to be offset broadly by the low incidence of catastrophe losses in the
second half of 2007.

'We currently expect that weighted average premium rates may decrease by as much
as 10 per cent during 2008, although rate movements will vary considerably among
the more than 30 classes of business that Catlin underwrites. However, we
believe that rate adequacy will remain good across most of these business
classes. We will benefit in 2008 from further embedded growth arising from the
Wellington acquisition, as well as continued growth in the classes of business
we already write from Catlin US and our network of international offices.
Furthermore, we can expect to realise at least US$100 million in after-tax
synergy savings arising from the acquisition.

'We look ahead to the remainder of 2007 and beyond with confidence.'


Presentation to Investors and Analysts
--------------------------------------

Catlin management this afternoon will hold a presentation for investors and
analysts in London on topics including the impact of third-party capital on
future net premium earnings patterns; the Group's risk appetite, including
disclosure of catastrophe threat scenarios; and the disclosure of data relating
to accident year loss development. An announcement will be issued later today
summarising the information to be discussed at the presentation. Further
information regarding the presentation will appear on the Group's website
(www.catlin.com) on 29 November.


                                    - ends -



For more information contact:

Media Relations:
James Burcke,                               Tel:     [phone]
                                            Mobile:  [phone]
Head of Communications, London              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 through four underwriting platforms and an 
    international network of offices. Gross premiums written in 2006 exceeded 
    US$2.6 billion. Catlin shares are traded on the London Stock Exchange 
    (ticker symbol: CGL). More information about Catlin can be found at 
    www.catlin.com.

2.  Catlin's four underwriting platforms are:

       • The Catlin Syndicate at Lloyd's of London (Syndicate 2003), which 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 £1.25 billion.

       • Catlin Bermuda (Catlin Insurance Company Ltd.), which is a leading
         participant in the Bermuda market, underwriting a diversified portfolio 
         of property treaty, casualty treaty, political risk and terrorism, and
         structured risk coverages.

       • Catlin UK (Catlin Insurance Company (UK) Ltd.), which specialises in
         underwriting commercial non-life insurance for UK clients through a 
         network of regional offices. 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 underwrites a wide variety of specialty property/
         casualty insurance and reinsurance products from a network of offices 
         throughout the U.S. Catlin US includes Catlin Insurance Company Inc.   
         and Catlin Specialty Insurance Company Inc.


3.  Catlin's international network of offices allows the Group to
    diversify further its risk portfolio and to work more closely with local
    policyholders and brokers. Besides its offices in the UK, US and Bermuda, 
    Catlin operates offices in Canada, Australia, Singapore, Malaysia, Hong 
    Kong, China,Guernsey, Germany, Belgium, France, Spain, Italy, Switzerland 
    and Austria.



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