2007 Investor Day

Catlin Group Limited
28 November 2007


Catlin Group Limited
28 November 2007


                     Catlin Group Limited 2007 Investor Day

Catlin Group Limited ('CGL': London Stock Exchange), the international specialty
insurer and reinsurer, will hold a presentation for investors and investment
analysts at 3pm today at its London office.

The topics to be discussed at the presentation will focus on the trading
statement released by the Group earlier today as well as three other subjects:

   • 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.


Impact of third-party capital and future net premium earnings patterns
----------------------------------------------------------------------

For the 2006 underwriting year approximately 33 per cent of the capacity of
Lloyd's Syndicate 2020, managed by a subsidiary of Wellington Underwriting plc
('Wellington'), was provided by third-party capital providers ('Lloyd's Names').
Wellington was acquired by Catlin in December 2006, and all Lloyd's underwriting
within the Group was undertaken through Catlin Syndicate 2003 for the 2007 and
subsequent underwriting years.

Concurrent with the Group's acquisition of Wellington, Catlin in effect acquired
from the Names their share of Wellington Syndicate 2020's capacity in exchange
for financial considerations. As part of that transaction, certain Names were
given the right to participate in quota share reinsurance of Catlin Syndicate
2003 for the 2007 and 2008 underwriting years. The quota share will be
equivalent to approximately 12.5 per cent of the capacity of Syndicate 2003 for
both years.

Therefore, the Names' interest in Syndicate 2020 and Syndicate 2003 from 2006 to
2009 and thereafter can be summarised as follows:

Underwriting
Year

2006      Names contributed 33% of capacity of Wellington Syndicate 2020
          (equivalent to 20.8% of combined Catlin-Wellington Syndicate capacity)
2007      Names participate through 12.5% quota share reinsurance of Catlin
          Syndicate 2003
2008      Names participate through 12.5% quota share reinsurance of Catlin
          Syndicate 2003
2009      No Names' interest in Catlin Syndicate 2003


Although the Names' interest in Catlin Syndicate 2003 ends at the end of the
2008 underwriting year, the effect on the Group's net premiums earned will
continue through 2010. This is because approximately 50 per cent of net premiums
earned in a calendar year arise from premiums written during previous years. For
example, of the premiums written by the Group during the 2007 underwriting year,
approximately 48 per cent of those premiums will earn in 2007, while
approximately 46 per cent will earn in 2008 and approximately 6 per cent will
earn in 2009.

As a result of this premium earning pattern, the net premiums earned by Catlin
will increase through 2011 as the Names' participation in Syndicate 2020 and the
quota share reinsurance of Syndicate 2003 unwinds, even if the underlying
premium volume underwritten does not increase. This effect is illustrated in
Table 1 below:


TABLE 1

                                    US$m    2007      2008      2009      2010      2011
Underlying premiums (1)                    2,856     2,856     2,856     2,856     2,856
Names' share of Syndicate 2020 for 2005-06  (265)      (16)       --        --        --
Names' quota share of Syndicate 2003 for     (91)     (100)       (8)       --        --
2007
Names' quota share of Syndicate 2003 for      --       (91)     (100)       (8)       --
2008 (2)

Illustrated net premiums earned            2,500     2,649     2,748     2,848     2,856

Cumulative growth in illustrated net          12%       19%       23%       28%       28%
premiums earned compared with 2006


(1) Illustration of underlying premiums assumes no growth from 2008-2011;
    underlying premiums adjusted for Names' share of Wellington Syndicate 2020 
    in 2006 and prior years and the quota share of Catlin Syndicate 2003 in 2007 
    and 2008

(2) 2008 quota share assumed to be the same as in 2007



Risk Appetite / Catastrophe Threat Scenarios
--------------------------------------------

The greatest likelihood of significant loss to the Group arises from natural or
man-made catastrophe events, including terrorism.

The Group's tolerance for catastrophe risk is a function of expected profit and
available capital. Accumulation of risk is monitored and controlled within a
defined underwriting risk appetite strategy in compliance with Board policy and
procedures. The Group's defined underwriting risk appetite is intended to limit
exposure from a single event via a diversified portfolio of risk to a maximum of
one year's profit plus 10 per cent of capital if a 1-in-100-year event occurs,
taking into account reinstatement premiums both payable and receivable after an
event.

Catlin defines certain Catastrophe Threat Scenarios which reflect selected areas
of significant catastrophe exposure. A detailed analysis of these catastrophe
events is carried out each quarter using statistical models together with input
from both actuarial and underwriting functions. Within the statistical models
both secondary perils and loss amplification are included.

A selection of modelled outcomes for the Group's most significant Catastrophe
Threat Scenarios is detailed below. The modelled outcomes below represent the
Catlin Group's modelled net loss after allowing for all reinsurances, including
the external quota share with regard to Catlin Syndicate 2003. The modelled
outcomes are quoted prior to any tax effect.


Modelled Gross and Net Losses
-----------------------------

Table 2 below shows the outcomes derived from the internal and external models
using data as supplied by our clients. The modelled outcomes in Table 2 reflect
our current interpretation of how external models and methods should be applied
and are used internally for market consistent comparisons and for regulatory
returns, following the instructions as per regulators' guidelines.



TABLE 2

Examples of Catastrophe Threat Scenarios
Data Model Output - Not a Prediction of Actual Loss
(Outcomes derived as at 1 October 2007)

                 US$m   Florida    California       Gulf of      European      Japanese
                        (Miami)    Earthquake        Mexico     Windstorm    Earthquake
                      Windstorm                   Windstorm
Estimated industry      100,000        70,000       100,000        30,000        50,000
loss

Catlin Group
Gross loss                  627           826           930           545           570
Reinsurance                (394)         (548)         (589)         (320)         (384)
effect (1)
Modelled net loss           233           278           341           225           186

Modelled net loss            12%           14%           18%           12%           10%
as % of net
tangible assets (2)


(1) Reinsurance effect includes the impact of both inwards and outwards
    reinstatements.

(2) Net tangible assets ('NTA') amounted to US$1.94 billion at 30 June 2007; NTA
    defined as total stockholders' equity (including preferred shares), less
    intangible assets net of associated deferred tax

However, uncertainties exist in the data and the modelling and estimation
techniques and include but are not limited to:

   • Economic value of market loss;
   • Insured values and other data items as provided by clients;
   • Non modelled perils;
   • Modelling and parameter uncertainty;
   • Damage factor estimation; and
   • Limited historic validation of model assumptions.

Due to the uncertainties and the range of potential outcomes, Management adds a
further prudential margin to the modelled output above to reflect the degree of
uncertainty in any peril or scenario. These adjusted outcomes are detailed in
Table 3 below. These adjusted numbers are then used to monitor against the
Group's Risk Appetite to add a level of conservatism above the data model
outcomes. These adjusted outcomes are also used to price inwards business, to
influence outwards reinsurance purchasing strategy and to measure required
capital.



TABLE 3

Adjusted Data Model Output - Not a Prediction of Actual Loss
(Outcomes derived as at 1 October 2007)

             US$m       Florida    California       Gulf of      European      Japanese
                        (Miami)    Earthquake        Mexico     Windstorm    Earthquake
                      Windstorm                   Windstorm
Estimated industry      100,000        70,000       100,000        30,000        50,000
loss

Catlin Group
Gross loss                  848           930         1,220           575           578
Reinsurance                (525)         (621)         (749)         (324)         (384)
effect (1)
Modelled net loss           323           309           471           251           194

Modelled net loss            17%           16%           24%           13%           10%
as % of NTA (2)


(1) Reinsurance effect includes the impact of both inwards and outwards
    reinstatements.

(2) Net tangible assets amounted to US$1.94 billion at 30 June 2007; NTA defined
    as total stockholders' equity (including preferred shares), less intangible
    assets net of associated deferred tax


Multiple Events
---------------

Multiple event risk appetite is monitored as part of the Group's capital model.
The capital model, which was developed in 2003, aims to:

   • quantify capital for any given risk tolerance; and
   • determine the capital to support the Group's business plan.

The output from the capital model is used to allocate Group capital to
individual lines of business to:

   • set gross underwriting profit requirements;
   • assist reinsurance purchasing strategy; and
   • evaluate capital needs for new initiatives.

Periodically, the Group engages external consultants to review our processes and
methods. During 2006, English Matthews Brockman ('EMB'), one of the world's
leading actuarial and business consultancy firms specialising in non-life
insurance, were engaged to review our capital model methods and its use within
the Group. EMB concluded that Catlin had 'one of the more sophisticated capital
quantification approaches seen in the market'.


Limitations
-----------

Modelling Catastrophe Threat Scenarios is a complex exercise involving numerous
variables and material uncertainty. The modelled output therefore does not
constitute a prediction of what losses the Group would incur in the event of a
modelled loss occurring.

The modelled outcomes above are mean losses from a range of potential outcomes.
At the mean value, the size of one loss would be contained or nearly contained
within the normal expected profits for a year with limited utilisation of
capital. Significant variance around the mean is possible. For a given industry
loss, there is a wide range of potential outcomes for the Group.

The selected Catastrophe Threat Scenarios are extreme and therefore highly
uncertain. Should an event occur, the modelled outcomes may prove inadequate,
possibly materially so. This may be for a number of reasons (e.g. legal
requirements, model deficiency, non-modelled risks or data inaccuracies). Data
as supplied by our insureds and ceding companies may prove to be inaccurate or
could develop during the policy period. Furthermore, the assumptions made during
any analysis will evolve following any actual event.

A modelled outcome of net loss from a single event relies in significant part on
the reinsurance arrangements in place, or expected to be in place at the time of
the analysis, and may change during the year. The modelled outcomes assume that
the reinsurance in place responds as expected with minimal reinsurance failure
or dispute. Reinsurance is purchased to match the inwards exposure as far as
possible, but it is possible for there to be a mismatch or gap in cover which
could result in higher than modelled losses to the Group.

Many parts of the reinsurance programme are purchased with limited
reinstatements, and therefore the number of claims or events which may be
recovered from second or subsequent events is limited. It should also be noted
that renewal dates of the reinsurance programme do not necessarily coincide with
those of the inwards business written. Where inwards business is not protected
by risks attaching reinsurance programmes, the programmes could expire resulting
in an increase in the possible net loss retained.


Development of Loss Reserves
----------------------------


Reserves for losses and loss expenses
-------------------------------------

Catlin adopts a conservative reserving philosophy. The Group sets loss reserves
conservatively relative to the independent actuarial advisors' best estimate,
reflecting the inherent uncertainties in estimating insurance liabilities.

A liability is established for unpaid losses and loss expenses when insured
events occur. The liability is based on the expected ultimate cost of settling
the claims. The reserve for losses and loss expenses includes:

   • case reserves for known but unpaid claims as at the balance sheet date;
   • incurred but not reported ('IBNR') reserves for claims where the insured
     event has occurred but has not been reported to the Group as at the balance
     sheet date; and
   • loss adjustment expense reserves for the expected handling costs of
     settling the claims.

The process of establishing reserves is both complex and imprecise, requiring
the use of informed estimates and judgments. Reserves for losses and loss
expenses are established based on amounts reported from insureds or ceding
companies and according to generally accepted actuarial principles. Reserves are
based on a number of factors, including experience derived from historical claim
payments and actuarial assumptions. Such assumptions and other factors include,
but are not limited to:

   • the effects of inflation;
   • estimation of underlying exposures;
   • changes in the mix of business;
   • amendments to wordings and coverage;
   • the impact of large losses;
   • movements in industry benchmarks;
   • the incidence of incurred claims;
   • the extent to which all claims have been reported;
   • changes in the legal environment;
   • damage awards;
   • changes in both internal and external processes which might accelerate
     or slow down both reporting and settlement of claims.

The Group's estimates and judgments may be revised as additional experience and
other data become available and are reviewed, as new or improved methodologies
are developed or as current laws change. Any such revisions could result in
future changes in estimates of losses or reinsurance recoverable, and would be
reflected in earnings in the period in which the estimates are changed.

The Group receives independent external actuarial analysis of its reserving
requirements annually. These independent actuaries also opine on the reserves
for individual Catlin Group platforms as required by local regulation.

The loss reserves are not discounted for the time value of money.


Estimate of reinsurance recoveries
----------------------------------

The Group's estimate of reinsurance recoveries is based on the relevant
reinsurance programme in place for the calendar year in which the related losses
have been incurred. Amounts recoverable from reinsurers are estimated in a
manner consistent with the claim reserves associated with the reinsured policy.
An estimate for potential reinsurance failure and possible disputes is provided
to reduce the carrying value of reinsurance assets to their net recoverable
amount.


Development of reserves for losses and loss expenses
----------------------------------------------------

Catlin believes that presentation of the development of net loss provisions by
accident period provides greater transparency than presenting on an underwriting
year basis that will include estimates of future losses on unearned exposures.
However, due to certain data restrictions, some assumptions and allocations are
necessary. These adjustments are consistent with the underlying premium earning
profiles.

The loss reserve triangles below show how the estimate of Legacy Catlin ultimate
net losses have developed over time. The development is attributable to actual
payments made and to the re-estimate of the outstanding claims, including IBNR.
The development is shown both including and excluding certain large losses as
detailed below. Development over time of net paid claims is also shown both
including and excluding these large claims.

All historic premium and claim amounts have been restated using exchange rates
as at 31 December 2006 for the Group's four functional currencies to remove the
distorting effect of changing rates of exchange as far as possible.

In 2002 the Group purchased the remaining Lloyd's capacity relating to the
business originally underwritten by members of Syndicate 1003. Catlin managed
both Syndicate 1003 and Syndicate 2003 which underwrote business in parallel.
The Group was the sole capital provider for Syndicate 2003. All ongoing business
written in Lloyd's is written by Syndicate 2003. All the prior years'
liabilities of both Syndicate 1003 and Syndicate 2003 are now the responsibility
of the Catlin Group. Accordingly all figures shown below have been restated as
if the Catlin Group had 100% ownership of the capacity of both Syndicates 1003
and Syndicate 2003 to remove the distortion of the Group's changing share over
time.

It is our intention to publish annual updates of the development as part of the
Group's Annual Reports and Accounts.


Wellington
----------

During 2006 the Group acquired Wellington. As described in Note 3 of the Catlin
Group Limited Annual Report and Accounts at 31 December 2006, the business
combination was deemed effective 31 December 2006 for accounting purposes;
accordingly the net assets acquired are valued as at that date and the operating
results of Wellington will be included in the Group's consolidated financial
statements in periods following 31 December 2006.

In Table 4 below the Wellington reserves arising from the transaction are shown
at fair value at the date of the business combination. Legacy Wellington
reserves are not included in Tables 5 and 6 below. Wellington has historically
published accident year loss reserve triangles; the disclosure as at 31 December
2006 is attached as an appendix.

For the 2007 underwriting year Catlin Group in effect purchased the remaining
Lloyd's capacity relating to the business previously underwritten by members of
Wellington Syndicate 2020. When the 2006 underwriting year closes, by way of
Reinsurance to Close, the Catlin Group will then be responsible for 100% of the
liabilities of Syndicate 2020. This is expected to take place as at 31 December
2008. Until then the Catlin Group will only be responsible for a share of
Syndicate 2020's reserves in line with the Wellington Underwriting plc's share
of each underwriting year prior to 2007. The Wellington disclosure note below
shows the development of the 100% liabilities and is shown in sterling. At 31
December 2006 the Catlin Group share of the net reserves was $1.41 billion.

At 31 December 2006 the Wellington reserves were consistent with the Catlin
reserving philosophy, and Wellington was included within the scope of work
undertaken by the Group's external actuarial advisors. Management considers the
reserves were set conservatively relative to the best estimate of both Catlin's
and Wellington's independent actuarial advisors.

In future disclosures the run-off of the 100% Wellington reserves will be
included within the 2007 accident year. The reduction due to the Group only
being responsible for a share of the total Wellington reserves will be shown as
a reconciling item to ensure any distortions that would appear in the
development triangulations are removed as the Catlin share increases in the next
few years.


Highlights
----------

Overall since 31 December 2003 there has been a reduction in Legacy Catlin net
loss estimates resulting in an overall surplus from prior periods. Although the
2002 and prior accident years have deteriorated, this deterioration has been
more than offset by releases from more recent accident years.

The Wellington disclosure in the appendix shows a surplus emerging in aggregate
for the past two calendar years. The 2002 and prior accident periods also show a
surplus during the past two calendar years.

The reserves from the accident years 2002 and prior now represent only 19% of
the net reserves at 31 December 2006.

A summary of the Legacy Catlin and Wellington net reserves is shown in the table
below:


TABLE 4

US$m                    Legacy Catlin           Legacy        Total net Percent of total
Accident Year            net reserves   Wellington net         reserves     net reserves
                                           reserves(1)
2002 and prior                    275              285              560               19%
2003                              129               92              221                7%
2004                              188              136              324               11%
2005                              466              468              934               31%
2006                              508              432              940               31%
                                1,566            1,413            2,979               99%

Other Legacy Catlin net            29               --               29                1%
reserves (2)
Total net reserves              1,595            1,413            3,008              100%


(1) Catlin share of Legacy Wellington accident year net reserves estimated in
    line with corporate share of relevant underwriting period

(2) Other legacy Catlin reserves include unallocated claims handling expenses,
    potential reinsurance failure and dispute, other outwards reinsurance and
    foreign exchange adjustments



Development Tables
------------------

TABLE 5: LEGACY CATLIN ESTIMATED NET ULTIMATE LOSSES

                                               Accident Year
US$ millions           2002 & Prior      2003        2004        2005        2006         Total
Net premiums earned                       969       1,224       1,250       1,352

Net Ultimate Excluding Large Losses
Initial estimate (1)        1,642         441         580         635         672
One year later              1,656         426         510         566
Two years later             1,672         397         483
Three years later           1,719         396

Net Ultimate Loss Ratio Excluding Large Losses
Initial estimate              N/A        45.5%       47.4%       50.7%       49.7%
One year later                N/A        44.0%       41.6%       45.3%
Two years later               N/A        40.9%       39.5%
Three years later             N/A        40.8%

Net Ultimate Large Losses
Initial estimate (1)           20          --         115         334          --
One year later                 20          --         116         386
Two years later                19          --         118
Three years later              20          --

Net Ultimate Including Large Losses
Initial estimate (1)        1,662         441         695         968         672
One year later              1,676         426         626         952
Two years later             1,691         397         600
Three years later           1,739         396

Net Ultimate Loss Ratio Including Large Losses
Initial estimate              N/A        45.5%       56.8%       77.4%       49.7%
One year later                N/A        44.0%       51.1%       76.2%
Two years later               N/A        40.9%       49.1%
Three years later             N/A        40.8%

Cumulative Net Paid         1,464         267         412         486         164         2,794
Estimated Net Ultimate      1,739         396         600         952         672         4,359
Claims
Estimated Net Claim           275         129         188         466         508         1,566
Reserves
% of Net Reserves            17.6%        8.2%       12.0%       29.8%       32.4%        100.0%

1.      Initial estimates for 2002 and prior shown as at 31 December 2003


TABLE 6: LEGACY CATLIN NET PAID LOSSES

                                                     Accident Year
US$ millions             2002 & Prior        2003           2004           2005           2006
Net premiums earned                           969          1,224          1,250          1,352

Net Paid Excluding Large Losses
Initial estimate (1)          1,149           100            134            127            164
One year later                1,286           178            235            238
Two years later               1,383           237            297
Three years later             1,445           267

Net Paid Loss Ratio Excluding Large Losses
Initial estimate                N/A          10.3%          10.9%          10.1%          12.2%
One year later                  N/A          18.4%          19.2%          19.0%
Two years later                 N/A          24.4%          24.2%
Three years later               N/A          27.5%

Net Paid Large Losses
Initial estimate (1)              9            --             72             94             --
One year later                   13            --            113            248
Two years later                  16            --            116
Three years later                19            --

Net Paid Including Large Losses
Initial estimate (1)          1,158           100            206            221            164
One year later                1,300           178            348            486
Two years later               1,399           237            412
Three years later             1,464           267

Net Paid Loss Ratio Including Large Losses
Initial estimate                N/A          10.3%          16.8%          17.6%          12.2%
One year later                  N/A          18.4%          28.5%          38.9%
Two years later                 N/A          24.4%          33.7%
Three years later               N/A          27.5%

(1)   Initial estimates for 2002 and prior shown as at 31 December 2003


Large Losses
------------

The following events are included in the large loss sections of the tables
above:

Accident Year   Event

2002 & Prior    World Trade Center/US Terrorism 9/11
2004            Hurricane Charley
2004            Hurricane Frances
2004            Hurricane Ivan
2004            Hurricane Jeanne
2005            Hurricane Katrina
2005            Hurricane Rita
2005            Hurricane Wilma



Commentary on Development Tables
--------------------------------

Accident Year 2006

The Legacy Catlin loss ratio is generally in line with prior years excluding
large losses at similar development periods.


Accident Year 2005

In aggregate this accident year for Legacy Catlin has seen a surplus in reserves
emerge over the previous year. However, this includes a deterioration on the
reserves for Hurricanes Katrina, Rita and Wilma offset with releases elsewhere
within the accident year.

Although there remains uncertainty in the final outcome of the three Hurricanes
during 2005 the uncertainty has reduced during the year which is evidenced by
the increase in the paid element of the estimated net ultimate loss from these
events increasing from 28% at the end of 2005 to 64% at the end of 2006.

Legacy Wellington shows a similar surplus emerging from the 2005 accident year.


Accident Years 2003 and 2004

Both Legacy Catlin accident years continue to run off at a surplus to booked
reserves with few issues emerging.

Similarly, the Legacy Wellington 2003 and 2004 accident years continue to run
off at a surplus.


Accident Years 2002 and prior

These accident years deteriorated during 2004 for Legacy Catlin. The main area
of deterioration was a reassessment of reserves from the Group exposure to US
casualty business. These areas have remained broadly stable since this
reassessment.

During 2005 these Legacy Catlin accident years also deteriorated. This arose
mainly from two sources.

   •In the late 1990's through to 2002 the Catlin Syndicate entered into an
    arrangement with The Accident Group ('TAG') which wrote 'after the fact'
    legal expense coverage in the UK. The Group ceased this arrangement during
    2002. The Group had been in dispute over certain elements of the underlying
    claims and the funding arrangements with certain banks. TAG reserves were
    increased by approximately $10 million primarily due to a settlement between
    the Group and one of the funding banks. As detailed below the main
    uncertainties in this account have now been finalised.
   •The Group underwrites UK motor excess of loss reinsurance. During 2005
    due to the potential increase in the use of structured settlements within
    the UK, the Group reassessed the basis of the bodily injury reserves it
    holds. This resulted in an increase of approximately $6 million. This change
    was immediately reflected in the pricing of ongoing business.

During 2006 there was additional deterioration from 2002 and prior Legacy Catlin
accident years. This came from two main sources.


   •During 2006 the Group came to an arrangement with the final TAG funding
    bank resulting in an increase in the net provision to the Group of
    approximately $10 million. However, this removed the final significant
    uncertainty in this area for the Group.
   •A large motor bodily injury loss in the 2002 accident year of
    approximately $29 million. Details of this loss emerged much later than
    usual for this type of claim. This loss is now reserved within the outwards
    reinsurance programme.

The 2002 and prior Legacy Wellington accident years have shown a surplus over
the last two calendar years.


Limitations
-----------

Establishing insurance reserves requires the estimation of future liabilities,
which depend on numerous variables. As a result, whilst reserves represent a
good faith estimate of those liabilities, they are no more than an estimate and
are subject to material uncertainty. It is possible that actual losses could
materially exceed reserves.

While the information in the tables above provides a historical perspective on
the changes in the estimates of the claims liabilities established in previous
years and the estimated profitability of recent years, users are cautioned
against extrapolating future surplus or deficit on the current reserve
estimates. The information may not be a reliable guide to future profitability
as the nature of the business written might change, reserves may prove to be
inadequate, the reinsurance programme may be insufficient, and/or reinsurers may
fail or be unwilling to pay claims due.

Management considers that the loss reserves and related reinsurance recoveries
continue to be held at levels which are conservative relative to the independent
actuarial advisors' best estimates based on the information currently available.
However, the ultimate liability will vary as a result of inherent uncertainties
and may result in significant adjustments to the amounts provided. There is a
risk that, due to unforeseen circumstances, the reserves carried are not
sufficient to meet ultimate liabilities.

The accident year triangles were constructed using several assumptions and
allocation procedures which are consistent with underlying premium earning
profiles. Although we believe that these allocation techniques are reasonable,
to the extent that the incidence of claims does not follow the underlying
assumptions, our allocation of losses to accident year is subject to estimation
error. This is primarily due to the fact that for certain types of business we
do not necessarily receive sufficient information to allocate claims exactly to
specific accident years. In many markets the convention is that loss amounts for
a treaty or a delegated authority are advised on what is known as a 'bordereau'
or an aggregate basis. In such presentations details on individual losses, other
than perhaps large event losses, are not available.


APPENDIX: Wellington Underwriting plc Disclosure at 31 December 2006

Year ended 31 December 2006: (£m)                                 Gross    Reinsurance          Net
Notified claims                                                   824.4         (455.0)       369.4
IBNR                                                              528.0         (150.0)       378.0
Total at beginning of year                                      1,352.4         (605.0)       747.4

Cash paid for claims settled in the year                         (431.7)         242.6       (189.1)

Increase in liabilities:
- arising from current accident year claims                       268.8          (27.7)       241.1
- arising from prior accident year claims                         (30.4)          22.8         (7.6)
- arising from increase in Group's participation                    1.7           (0.6)         1.1
Net exchange differences                                         (127.0)          55.0        (72.0)
Total at end of year                                            1,033.8         (312.9)       720.9

Notified claims                                                   613.5         (230.0)       383.5
IBNR                                                              420.3          (82.9)       337.4
Total at end of year                                            1,033.8         (312.9)       720.9


The current portion of the loss provision is £432.6m (2005: £467.8m) on a net
basis.

Year ended 31 December 2005 (£m)                                   Gross    Reinsurance          Net
Notified claims                                                    368.7         (142.2)       226.5
IBNR                                                               304.4          (61.7)       242.7
Total at beginning of year                                         673.1         (203.9)       469.2

Cash paid for claims settled in the year                          (299.3)          96.3       (203.0)

Increase in liabilities:
- arising from current accident year claims                        791.4         (402.3)       389.1
- arising from prior accident year claims                           (2.8)          (7.6)       (10.4)
- cession of reserves under reinsurance arrangement                    -           (6.7)        (6.7)
- arising from increase in Group's  participation                  105.4          (42.5)        62.9
Net exchange differences                                            84.6          (38.3)        46.3
Total at end of year                                             1,352.4         (605.0)       747.4

Notified claims                                                    824.4         (455.0)       369.4
IBNR                                                               528.0         (150.0)       378.0
Total at end of year                                             1,352.4         (605.0)       747.4


The table below shows how the estimate of the respective balance sheet provision
has developed over time. The development is attributable to payments made and to
the re-estimate of the outstanding claims. The run-off result reflects the
difference between the current estimate for the accident year ultimate loss
provision and the estimate that existed at the previous calendar year-end.


100% Syndicate 2020

Gross development
               £m      999 &    2000    2001    2002    2003    2004      2005    2006     Total
                       prior
Initial estimate of            366.0   894.0   460.3   349.5   435.7   1,266.2   384.9
ultimate loss
provision
One year later                 388.3   908.5   446.0   321.8   443.2   1,232.8
Two years later                401.4   917.2   439.1   323.8   410.9
Three years later              408.9   956.8   434.9   328.2
Four years later               406.2   960.7   433.4
Five years later     1,768.7   398.2   930.4
Six years later      1,760.8   391.1
Seven years later    1,727.7
Current estimate of  1,727.7   391.1   930.4   433.4   328.2   410.9   1,232.8   384.9   5,839.4
ultimate loss
provision - gross
Cumulative payments (1,616.1) (339.7) (745.6) (315.3) (209.8) (282.3)  (549.4)  (37.4)  (4,095.6)
to date
Remaining provision    111.6    51.4   184.8   118.1   118.4   128.6    683.4   347.5    1,743.8
Exchange movements                                                                         (66.9)
Other                                                                                       12.1
Members' share                                                                            (655.2)
Group share of provision                                                                 1,033.8


100% Syndicate 2020

Net development
                £m     999 &    2000    2001    2002    2003    2004     2005    2006      Total
                       prior
Initial estimate of            192.8   305.5   264.4   252.0   343.7    623.3   358.5
ultimate loss
provision
One year later                 162.7   327.1   278.5   240.5   326.9    618.7
Two years later                172.8   338.3   284.8   234.8   308.4
Three years later              179.1   334.0   286.2   234.5
Four years later               204.2   342.0   284.1
Five years later     1,042.2   188.4   328.9
Six years later      1,040.3   191.1
Seven years later      994.8
Current estimate of    994.8   191.1   328.9   284.1   234.5   308.4    618.7   358.5    3,319.0
ultimate loss
provision - net
Cumulative payments   (951.1) (137.1) (276.2) (174.1) (150.9) (193.0)  (252.8)  (23.4)  (2,158.6)
to date
Remaining provision     43.7    54.0    52.7   110.0    83.6   115.4    365.9   335.1    1,160.4
Exchange movements                                                                         (33.1)
Other (a)                                                                                   47.5
Members' share                                                                            (453.9)
Group share of provision                                                                   720.9


(a) Other primarily comprises £25.2m of additional reserves resulting from
    commutation agreements with reinsurers, £12.3m of bad debt provisions and 
    £10.0m net reserves for CSIC.


In 2006 the total net reserves showed positive development of £17.0 million
(2005: £18.8 million) at the 100% level with a Group share of £7.6 million
(2005: £10.4 million).






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