Completion of Cat Bond

Completion of Cat Bond

Amlin Plc

Amlin transfers US hurricane, US earthquake and European windstorm risks to the capital markets

Amlin plc announces that it has acquired coverage for US hurricane, US earthquake and European windstorm perils of up to US$150 million from a Bermudian special purpose insurer, Tramline Re Limited, which in turn is placing a catastrophe bond for this amount into the capital markets.

The transaction provides the Amlin Group with fully collateralised protection over a 3 year period from 1 January 2012 against cumulative modelled insurance and reinsurance claims of in excess of US$630 million in a single year from US Hurricanes and US Earthquakes (defined as gross insurance and gross reinsurance claims) and/or European Windstorms (defined as gross reinsurance and net insurance claims), where such modelled claims per event are in excess of US$75 million.

This cover is in addition to the protection that Amlin purchases through the traditional reinsurance marketplace and provides significant tail risk protection for the Group. The cover provided by the bond is based on market share factors applied to market industry losses as reported by PCS for the US and PERILS for Europe.

As part of the transaction Amlin AG has entered into a risk transfer contract with Tramline Re Limited which will issue to investors $150 million of three year principal-at-risk variable rate notes. The proceeds of these notes will comprise the collateral for Tramline Re Limited’s obligations to Amlin AG pursuant to the risk transfer contract. Amlin’s Lloyd’s Syndicate 2001 and Amlin Corporate Insurance will also benefit from the cover provided by the bond through arrangements between them and Amlin AG.

The transaction has been structured and arranged by Aon Benfield Securities with risk modelling provided by AIR Worldwide.

Charles Philipps, chief executive of Amlin plc, said: “The protection afforded under this bond will complement our traditional reinsurance programme and protect the Group from frequency of major catastrophe losses allowing us to consolidate our position in improving market conditions.”

ENDS

Enquiries:	Â
Charles Philipps, CEO, Amlin plc Richard Hextall, CFO, Amlin plc Julianne Jessup, Head of Investor Relations, Amlin plc Ed Berry, Vice-President, FTI Consulting		020 7746 1000 020 7746 1000 020 7746 1961 020 7269 7297

Notes to Editors:

Amlin plc is a leading independent insurance group operating in the Lloyd’s market through Amlin London and additionally in the UK, Continental European and Bermudian markets. We specialise in providing insurance cover to commercial enterprises across a broad range of risks including aviation, marine and international property & casualty. We also provide reinsurance protection to other insurance companies around the world.

A FTSE-250 quoted company domiciled in the UK, Amlin’s Syndicate 2001 is highly rated at ‘A+’ (Excellent) by AM Best and ‘A1’ (Stable) by Moody’s.