Final Results

Hampden Underwriting Plc
28 March 2008

       Hampden Underwriting PLC ('Hampden Underwriting' or the 'Company')

            Preliminary Results for the year ended 31 December 2007

Hampden Underwriting, which provides investors with a limited liability direct
investment into the Lloyd's insurance market, announces its preliminary results
for the year ended 31 December 2007. These are the Company's first results since
its admission to AIM in September 2007.

Highlights

  * Successful Admission to AIM in September 2007 raising a total of of £7.4
    million

  * Acquisition of underwriting capacity of £5.1m through arrangements made by
    Hampden Agencies Limited ('HAL') in September 2007

  * Acquisition of a corporate member with underwriting capacity of £0.3
    million in January 2008

  * Company commenced underwriting on 1 January 2008

  * Unique quoted underwriting vehicle offering investors a direct exposure to
    Lloyd's underwriting

Commenting upon these results Chairman, Sir Michael Oliver said:

'Hampden Underwriting provides an excellent opportunity to invest in a quoted
vehicle participating in a diverse spread of syndicates at Lloyd's and a strong
foundation has been established for the business through the acquisition of the
underwriting portfolio and a corporate member. We believe that there are
significant opportunities for the business through acquisitions of other
corporate members and investment in Lloyd's related products which will enhance
our market presence and generate attractive returns for shareholders.'

Enquiries

Hampden Underwriting                       Jeremy Evans            020 7863 6567

Smith & Williamson                         Azhic Basirov           020 7131 4000
Corporate Finance Limited                  David Jones
                                           Joanne du Plessis

Cardew Group                               Tim Robertson           020 7930 0777
                                           Shan Shan Willenbrock
                                           David Roach

Chairman's Statement

It is with great pleasure that I present our results for the period ended 31
December 2007. This is the Company's first set of results since its admission to
AIM in September 2007 and our offer for subscription which closed in October,
when we successfully raised £7.4 million. The period covered by the financial
accounts is prior to the Company's commencement of underwriting on 1 January
2008.

Hampden Underwriting has been incorporated to provide a limited liability direct
investment into the Lloyd's insurance market. Hampden Agencies Limited ('HAL'),
the largest provider of third party capital to the Lloyd's market advising over
£1.2 billion of capacity in 2008, was appointed by Hampden Underwriting as
Lloyd's adviser to Hampden Underwriting's wholly owned subsidiary, Hampden
Corporate Member ('HCM') which will trade within the Lloyd's insurance market as
a corporate member.

The rationale for establishing Hampden Underwriting was to exploit an obvious
gap in the market and provide an opportunity to invest in a quoted company
underwriting via a diverse spread of syndicates at Lloyd's. Hampden Underwriting
is currently the only quoted company vehicle whose principal objective is to
participate in a spread portfolio of Lloyd's syndicates rather than manage these
syndicates itself.

To achieve our objective of generating attractive shareholder returns Hampden
Underwriting will pursue a three part strategy:

•  Underwriting in its own right via HCM.
•  Acquisition of other corporate members of Lloyd's when suitable 
   opportunities arise.
•  Investment in other Lloyd's related products and opportunities.

During the period under review, I am pleased to report that we have delivered on
the first part of our strategy by acquiring an underwriting portfolio of £5.1m.
The portfolio provides a good spread of classes of business being concentrated
in property insurance, reinsurance and motor business, where rating conditions
are more favourable. HAL considers that the syndicates in the portfolio provide
opportunities for good returns to be made. The cost of purchasing this capacity
amounted to £1.0 million and as at 31 December 2007, Hampden Underwriting held
cash of £3.6 million and investments of £2.5 million (including £2.0 million on
deposit as funds at Lloyd's).

In January this year, we acquired a small corporate member which has
underwriting capacity of £0.3 million. There is already a market in the sale and
purchase of corporate members, in which HAL is active. The Company believes that
the right acquisitions could lead to some significant capital gain accruing from
the syndicate participations owned by the corporate members acquired and enhance
the market presence of Hampden Underwriting itself. The Company will continue to
explore other acquisition opportunities as they arise.

We have also been approached by a number of other Lloyd's related entities with
a view to investment by HCM. It is encouraging therefore that at such an early
stage in the Company's public life that all three of its strategies are being
actively promoted.

Lloyd's has entered 2008 in a strong position. Lloyd's operating performance in
recent years has been excellent, comparing favourably with its competitors. From
2003-2006, the average combined ratio was the best in its peer group at 95.75%
(this is the standard measure of profitability for the insurance industry which
measures the percentage of premiums paid out in claims and expenses). Rating
agencies Fitch Ratings and Standard & Poor's upgraded Lloyd's insurer financial
strength to A + (Strong) in the second quarter of 2007. Lloyd's improved
financial position has enabled it to reduce its central charges by at least 0.5%
on capacity for 2008 with an equivalent benefit to investors' returns.

The current outlook for Lloyd's is that market conditions are becoming more
challenging with the exception of UK motor. However, most classes of business
remain historically well-rated and HCM participates in some of the best
performing syndicates in the Lloyd's market.

I would like to take this opportunity to thank everyone who provided support to
our Initial Public Offering last year. I would also like to thank Hampden
Agencies for their commitment and hard work in assisting in the establishment of
the Company and for their ongoing advice as Members' Agent.

2008 will be the first full year of trading and we have begun the year
positively by acquiring an underwriting portfolio and a corporate member which
we believe provides a good spread across classes of business. Looking ahead, we
believe there are significant opportunities for acquisitions and investment in
other Lloyd's related products. The Board believes Hampden Underwriting has made
a good start and is in a strong position to generate attractive returns for
shareholders.

Lloyd's Adviser's Report

HAL'S ROLE AS ADVISER TO HCM

Hampden Underwriting has been incorporated to provide a limited liability direct
investment into the Lloyd's insurance market. Hampden Agencies Limited ('HAL'),
the largest provider of third party capital to the Lloyd's market, has been
appointed by Hampden Underwriting as Lloyd's adviser to Hampden Corporate Member
('HCM'). HCM's principal underwriting exposure for 2008 is through a managed
portfolio, MAPA 7208, in which other clients of HAL also participate. The
objective of HAL in managing MAPA 7208 is to seek underwriting profits on a well
spread portfolio across a number of syndicates and classes of business at
Lloyd's.

About HAL

HAL is a wholly owned subsidiary of Hampden Capital Plc which in turn is a
subsidiary of Hampden Holdings Limited (HHL), a privately owned company which
invests in businesses specialising in the insurance sector.

HHL's origins in the private client business at Lloyd's date back to 1998 when
it acquired Falcon Agencies, which was established in 1994. Following a series
of acquisitions, HAL has become the largest Members' Agent at Lloyd's. HAL, has
a successful track record of outperforming the Lloyd's market average result and
is renowned for its focus on customer service and proactive management of its
clients' investments at Lloyd's.

HAL currently provides advice to approximately 1,200 investors at Lloyd's with a
total underwriting capacity of £1.2 billion. Its principal client base is made
up of high net worth investors, most of whom now use Limited Liability Companies
or Limited Liability Partnerships to underwrite at Lloyd's. HAL also acts on
behalf of a number of larger corporate investors with underwriting capacity of
£288 million.

LLOYD'S INSURANCE MARKET

Lloyd's operating performance in recent years has been excellent, comparing
favourably with its competitors. From 2003 to 2006 the average combined ratio
(the standard measure of profitability of the industry which excludes investment
income) was the best in its peer group at 95.75%.

Lloyd's has entered 2008 in a stronger position relative to its competitors.
This has been recognised by the rating agencies with both Fitch Ratings and
Standard & Poor's upgrading Lloyd's insurer financial strength rating to A +
(Strong). Lloyd's improved financial position has enabled it to reduce its
central charges by at least 0.5% on capacity for 2008 with an equivalent benefit
to investors' returns.

2008 PORTFOLIO ANALYSIS

HCM's main underwriting participation for the 2008 underwriting year is through
£5.1m of capacity which it acquired in HAL's managed portfolio, MAPA 7208. In
addition, it has acquired a small participation of £0.1m capacity on Hiscox's
'sidecar' catastrophe reinsurance syndicate, Syndicate 6103, and recently
announced an acquisition of another corporate member which provides
approximately a further £0.3m of capacity.

The total capacity acquired by MAPA 7208 for 2008 was £44.7m. The average price
of capacity at auction rose from 11.7p per pound at the 2006 auctions to 25.2p
per pound in 2007. Despite being the biggest purchaser at auction, HAL's MAPA
Manager was able to control the acquisition cost successfully, paying an average
of 19.6p per pound of capacity, compared with the average price at which the
capacity acquired traded in the three auctions of 20p per pound.

The spread of syndicates in MAPA 7208 is similar to those of HAL's existing
MAPAs with a weighting towards those syndicates graded A and B with the largest
lines being on Kiln Syndicate 510, Omega Syndicate 958 and MAP Syndicate 2791,
all of which are syndicates with excellent track records, specialising in areas
of the market where rating conditions are more favourable.

Including the Hiscox 'sidecar', HCM's current portfolio is concentrated in
property insurance, reinsurance and motor business. These are the classes where
rating conditions are most favourable, with motor business providing a balance
to the catastrophe exposed business and starting to show an increase in rates.
The portfolio also includes exposure to US and non US liability business where
the rates are under more pressure but where there are still opportunities for
good returns to be made. HAL considers that the portfolio provides a good spread
of classes of business in the current market conditions.

PORTFOLIO CLASS OF BUSINESS SPLIT FOR 2008 ACCOUNT

                                       Percentage of Total Gross Premium
Reinsurance                                          22.7
US$ Property                                         17.6
Motor                                                12.5
US$ Liability                                         9.2
Energy                                                8.6
Non US$ Property                                      8.2
Marine General                                        6.8
Non US$ Liability                                     5.0
Aviation                                              4.3
Accident & Health                                     2.9
Pecuniary Loss                                        2.2

Based on Syndicate Business plan information of gross premium income by risk
code. This information is not made available by Syndicate 6101 which is
supported through MAPA 7208; as such the data for this syndicate has been
estimated.

TOP 10 SYNDICATE HOLDINGS

Syndicate   Managing Agent    2008     2008 HCM   2008 HCM   2008 Major Category
                             Syndicate  Portfolio Portfolio %     of Business
                            Provisional Capacity   of Total
                             Capacity    £'000s
                              £'000s
 
510      R.J.Kiln & Co.Ltd   587,974.7    686.5      13.5           US$ Property
958     Omega Underwriting   249,432.4    667.8      13.1            Reinsurance
          Agents Ltd
2791    Managing Agency      400,001.5    644.6      12.6            Reinsurance
          Partners Ltd
6101   Argenta Syndicate     101,063.2    559.7      11.0           US$ Property
          Management Ltd
623   Beazley Furlonge Ltd   158,000.0    387.8       7.6         US$ Non-Marine 
                                                                       Liability
260     KGM Underwriting      53,698.3    255.7       5.0                  Motor 
          Agencies Ltd
557    R.J.Kiln & Co.Ltd     120,054.2    246.3       4.8            Reinsurance
218     Equity Syndicate     420,768.1    235.1       4.6                  Motor 
         Management Ltd
609   Atrium Underwriters    215,521.2    229.6       4.5                 Energy
          Ltd
33   Hiscox Syndicates Ltd   700,000.0    228.9       4.5           US$ Property
                                        -------      ----
Subtotal                                4,142.0      81.2
                                        -------      ----
Portfolio Total                         5,100.0     100.0
                                        -------     -----

Based on Syndicate Business plan information of gross premium income by risk
code. This information is not made available by Syndicate 6101 which is
supported through MAPA 7208; as such the data for this syndicate has been
estimated.

CATASTROPHE REINSURANCE

In reaction to the hurricanes in 2004 and 2005, catastrophe exposed business was
substantially re rated in 2006 with the world rate online index published by the
reinsurance broker Guy Carpenter increasing by 32% in 2006. Reinsurance business
comprised 34% of Lloyd's business for 2006, making Lloyd's the world's fifth
largest reinsurer. We continue to be positive on profit prospects for 2008 as
rates and demand for coverage remain substantially higher than in 2005 although
below the peak levels of 2006. With this opportunity in mind HAL advised HCM to
take a small additional participation on a reinsurance 'sidecar' syndicate
managed by the respected Hiscox agency for 2008.

We expect that there will be further opportunities for HCM to participate in
'sidecar' syndicates over time which are likely to become available in discreet
classes of business following a major loss. Such opportunities generally improve
the probability and level of achievable profit from underwriting insurance.

PORTFOLIO RISK MANAGEMENT

HAL manages the portfolio risk by diversification across classes of business,
syndicates and Managing Agents as well as controlling the down side, in the
event of a major loss, by monitoring the aggregate losses estimated by Managing
Agents to realistic disaster scenarios. HAL considers risk in the context of
potential return and would seek to reduce this exposure to catastrophe losses if
it considered market conditions were becoming increasingly competitive.

Lloyd's has utilised Realistic Disaster Scenarios since 1995 to evaluate
exposure at both syndicate and market level. In 2005, two new scenarios were
created, one of which was the $60bn Gulf of Mexico scenario (since revised to
$108bn), which proved its worth in enabling Lloyd's to manage the impact from
Hurricanes Katrina and Rita. The table below shows the aggregated impact at
portfolio level for HCM of the ten largest net exposures (after reinsurance) to
events modelled for 2008. These exposures provide a guide to potential downside
risk but do not measure projected loss since they exclude the results of the
balance of the account.

PORTFOLIO REALISTIC DISASTER SCENARIO AGGREGATES FOR 2008 ACCOUNT:
TOP 10 NET EXPOSURES GROSS AND NET OF REINSURANCE

                                           Gross Loss as   Final Net Loss as
                                           Percentage of     Percentage of
                                             Capacity          Capacity
Gulf of Mexico Windstorm                       39.3              17.7
2 Events - NE Windstorm                        34.4              16.5
Florida Windstorm - Pinellas                   37.5              16.5
Los Angeles Earthquake                         34.4              15.4
San Francisco Earthquake                       35.0              15.3
Florida Windstorm - Miami                      34.0              14.4
European Windstorm                             21.9              12.2
New Madrid Earthquake                          23.2              11.7
2 Events - Carolina Windstorm                  21.4              11.4
Japanese Earthquake                            15.4               8.6

Based on Syndicate Business plan information of Projected Realistic Disaster
Scenario Exposures. This information is not made available by Syndicate 6101
which is supported through MAPA 7208; as such the data for this syndicate has
been estimated.

MARKET OUTLOOK

The current outlook for underwriting at Lloyd's is that market conditions in
most classes of business are becoming challenging, with rates 'softening', but
not yet soft. The main exceptions are aviation and UK liability where both
markets are 'soft' and motor where rates are beginning to rise. We expect bottom
line profitability in 2008 to be supported by both releases from prior years and
investment returns on increased funds at syndicate level, relative to
underwriting capacity with many syndicates having reduced their capacity for
2008 in line with market conditions. However, the decline in interest rates,
particularly in the US, is likely to have an adverse impact on this year's
investment yield. HAL continues to believe that syndicates supported by HCM have
sufficiently well rated businesses to produce a good return although, as ever,
profitability is vulnerable to major catastrophe losses which the industry did
not suffer from in 2006 and 2007.

Group Income Statement For the Period 1 August 2006 to 31 December 2007

                                                                     2007
                                                                    Total
                                                         Note       £'000

Net investment income                                      2          174
                                                                    -----
Revenue                                                               174
                                                                    -----
Other operating expenses                                               85
                                                                    -----
Operating profit before tax                                3           89
                                                                    -----
Income tax expense                                                     27
                                                                    -----
Profit attributable to equity shareholders                             62
                                                                    -----
Earnings per share for profit attributable to equity
shareholders

Basic and diluted                                          4        0.83p
                                                                    -----                

The profit and earnings per share set out above are in respect of continuing
operations.

Group Balance Sheet At 31 December 2007

                                                                    2007
                                                        Note       £'000
Assets
Intangible assets                                         5          981
Financial investments                                     6        2,486
Other receivables                                                    112
Cash and cash equivalents                                          3,552
                                                                   -----
Total assets                                                       7,131
                                                                   -----
Liabilities
Other payables                                                        40
Current income tax liabilities                                        27
                                                                   -----
Total liabilities                                                     67
                                                                   -----
Shareholders' equity
Share capital                                           7            741
Share premium                                           7          6,261
Retained earnings                                                     62
                                                                   -----
Total shareholders' equity                                         7,064
                                                                   -----
Total liabilities and shareholders' equity                         7,131
                                                                   -----

Group Cash Flow Statement Period ended 31 December 2007

Cash flow from operating activities                                 2007
                                                                   £'000

Results of operating activities                                      (85)
Changes in working capital:
(Increase)/decrease in other receivables                            (112)
Increase/(decrease) in other payables                                 40
                                                                   -----
Cash generated from operations                                      (157)
Interest paid                                                          -
Income tax paid                                                        -
                                                                   -----
Net cash outflow from operating activities                          (157)
                                                                   -----
Cash flows from investing activities
Purchase of intangible assets                                       (981)
Proceeds from sale of intangible assets                                -
Purchase of financial investments                                 (2,385)
Amounts owed by subsidiary undertakings                                -  
Interest received                                                     73
                                                                   -----
Net cash used in investing activities                             (3,293)
                                                                   -----
Cash flows from financing activities
Net proceeds from issue of ordinary share capital                  7,002
Interest expense                                                       -
                                                                   -----
Net cash used in financing activities                              7,002
                                                                   -----
Net increase in cash, cash equivalents and bank                    3,552
overdrafts
Cash, cash equivalents and bank overdrafts on                          -
incorporation                                                      -----
Cash and cash equivalents at 31 December 2007                      3,552
                                                                   -----

Statement of Changes in Shareholders' Equity Period ended 31 December 2007

Group                              Ordinary Preference   Share Retained   Total
                                      Share      Share Premium Earnings
                                    Capital    Capital
                                      £'000      £'000   £'000    £'000   £'000
On incorporation                          -          -       -        -       -
Profit for the period                     -          -       -       62      62
Share issue expenses charged to           -          -   (411)        -   (411)
equity                                -----------------------------------------
Total profit for the period               -          -   (411)       62   (349)
attributable to equity
shareholders
New preference shares issued              -         50       -        -      50
New ordinary shares issued              741          -   6,672        -   7,413
Preference shares redeemed                -       (50)       -        -    (50)
                                      -----------------------------------------
At 31 December 2007                     741          -   6,261       62   7,064
                                      -----------------------------------------


Notes to the Financial Statements Period ended 31 December 2007

1. Accounting policies

The principal accounting policies adopted in the preparation of the financial
information set out in this announcement are set out in the full financial 
statements for the period ended 31 December 2007 (the 'Financial Statements').

Basis of preparation

The Financial Statements have been prepared in accordance with International
Financial Reporting Standards ('IFRS'), incorporating IFRIC interpretations
endorsed by the European Union (EU) and with those parts of the Companies Act
1985, applicable to companies reporting under IFRS. The Financial Statements
comply with Article 4 of the EU IAS regulation.

The Financial Statements are prepared for the period from 1 August 2006, the
date of incorporation, to 31 December 2007. These are the first set of Financial
Statements prepared by the Group and Parent Company.

The Financial Statements have been prepared under the historical cost convention
other than as stated in the Financial Statements.

The preparation of Financial Statements in conformity with generally accepted
accounting principles requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the Financial
Statements and the reported amounts of revenues and expenses during the
reporting period. Although these estimates are based on management's best
knowledge of the amount, event or actions, actual results ultimately may differ
from these estimates.

The Group participates in insurance business through its Lloyd's corporate
member. Accounting information in respect of syndicate participations is
provided by the syndicate managing agents and is reported upon by the syndicate
auditors.

International Financial Reporting Standards

At the date of authorisation of these Financial Statements the following IFRSs
and IFRICs had been published by the IASB but were not yet effective:

   • IFRS 8 Operating Segments;
   • IFRIC 11 IFRS 2 - Group and Treasury Share Transactions; and
   • IFRIC 12 Service Concession Arrangements.

The Directors anticipate that the adoption of IFRS 8 in future periods and the
interpretations IFRIC 11 and 12 will have no material impact on the Financial
Statements except for additional disclosures.

The Group has not yet adopted IFRS 4 on the basis that the Group did not
commence underwriting until 1 January 2008.

2. Net investment income
                                                                    2007
                                                                   £'000
Investment income at fair value through income statement
Unrealised (losses)/gains on financial investments at fair           101
value through income statement
Bank interest                                                         73
                                                                    ----
                                                                     174
                                                                    ----
3. Operating profit before tax
                                                                    2007
                                                                   £'000
Operating profit before tax is stated after charging:
Directors' remuneration                                               26
Auditors' remuneration - audit of the Parent Company and              12
                         Group Financial Statements
                       - services relating to taxation                 2

During the period an amount of £20,000 was charged to the share premium account
for services rendered by the auditors on the AIM admission.

The Group has no employees.

4. Earnings per Share

Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period.

The Company has no dilutive potential ordinary shares.

Earnings per share have been calculated in accordance with IAS 33.

Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out below.

                                                                   2007
                                                                  £'000

Profit for the period                                            61,676
                                                              ---------
Weighted average number of shares in issue                    7,413,376
                                                              ---------
Basic and diluted earnings per share                               0.83p

5. Intangible assets
                                                              Syndicate
                                                               Capacity
                                                                  £'000
Cost
On incorporation                                                      -
Additions                                                           981
                                                                   ----
As at 31 December 2007                                              981
                                                                   ----
Amortisation
On incorporation                                                      -
Charged in the period                                                 -
                                                                   ----
As at 31 December 2007                                                -
                                                                   ----
Net book value
As at 31 December 2007                                              981
                                                                   ----
On incorporation                                                      -
                                                                   ----

6. Financial investments
                                                                   2007
                                                                  £'000

Investment in subsidiary undertaking                                  -
Other financial investments                                       2,486
                                                                  -----
                                                                  2,486
                                                                  -----

Other investments includes approximately £2m held at Lloyd's in order to support
the group's underwriting.

The Company was interested in the following principal subsidiary at 31 December
2007 which is incorporated in England and Wales.

                           Principal Activity      Class of                Held
                                                   Shares        by the Company

Hampden Corporate Member   Lloyd's Corporate       Ordinary                100%
Limited                    Member

Other financial investments
                                                                     2007
                                                            Market Value    Cost   
                                                                   £'000   £'000

Equity shares                                                        435     334    
Deposits with credit institutions (cash                            2,051   2,051
at bank)                                                           -------------
                                                                   2,486   2,385
                                                                   -------------
Listed investments included in the above                             435     334
                                                                   -------------

7. Share capital and share premium

                                               Ordinary    Preference     Total
                                                 shares        shares     
                                                  £'000         £'000     £'000
Authorised

Ordinary shares of 10p each and                       5            50        55
preference shares of 50p each on incorporation

AIM admittance increase in authorised             2,945             -     2,945
share capital, 4 September 2007                   -----------------------------

Ordinary shares of 10p each and preference        2,950            50     3,000
shares of 50p each at 31 December 2007            -----------------------------


Allotted, called up and fully paid      Ordinary Preference      Share     Total
                                          shares     shares    premium
                                           £'000      £'000      £'000     £'000

2 Ordinary shares of 10p each on               -          -          -         -
incorporation

AIM admittance increase in ordinary          741          -      6,261     7,002
shares

Paid up preference shares of 50p each          -         50                   50

Redeem preference shares of 50p each           -       (50)                 (50)
                                            ------------------------------------
Total ordinary share capital and share       741          -      6,261     7,002
premium account at 31 December 2007         ------------------------------------

Share issue expenses of £410,800 were charged to the share premium account in
the period.

During the period the Company issued 50,000 £1 redeemable preference shares to
Hampden Agencies Limited. These shares were redeemed at par out of the public
issue of shares.

8. The financial information set out in this announcement does not constitute
statutory accounts but has been extracted from the Financial Statements which 
have not yet been delivered to the Registrar. The Group's annual report and 
financial statements will be posted to shareholders shortly. Further copies
will be available from the Company's registered office: Hampden House, Great
Hampden, Great Missenden, Buckinghamshire, HP16 9RD.






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