Statement re Subsidiary

Catlin Group Limited
23 March 2005


                    FINANCIAL SERVICES AUTHORITY AUTHORISES
                       CATLIN INSURANCE COMPANY (UK) LTD


LONDON - Catlin Group Limited ('CGL': London Stock Exchange), the international
property and casualty insurer and reinsurer, announces that the UK Financial
Services Authority has approved the formation of Catlin Insurance Company (UK)
Ltd ('Catlin UK').

Catlin UK is a wholly owned subsidiary of Catlin Insurance Company Ltd. of
Bermuda ('Catlin Bermuda'). The new company will underwrite all business
previously underwritten by Catlin Bermuda's UK branch office, which was
established in December 2003 and which also traded under the name of Catlin UK.
The company will begin writing business on 1 May 2005.

As a UK domiciled and FSA regulated company, Catlin UK will be permitted to
underwrite business from any member country of the European Economic Area
('EEA').

A.M. Best Company today assigned a financial strength rating of 'A' (Excellent)
to Catlin UK, the same rating assigned to Catlin Bermuda and the Catlin
Syndicate at Lloyd's of London.

The new company will underwrite all classes of business written by the Catlin
Group in London. Catlin UK specialises in underwriting professional indemnity,
property, general liability, directors' and officers' liability and commercial
crime coverages for UK policyholders.

Catlin UK's initial capital is £68 million (US$130.6 million), which is fully
paid. Catlin UK is ultimately supported by its parent company, Catlin Bermuda.
This support is demonstrated by a whole account quota share reinsurance treaty
by which the majority of Catlin UK's business will be reinsured by Catlin
Bermuda. The stockholders' equity of the Catlin Group at 31 December 2004
amounted to US$971.2 (£506.8 million).

Stephen Catlin, chief executive of Catlin Group Limited and chairman of Catlin
UK, said:

'The establishment of Catlin UK is an integral element of the Catlin Group's
strategy to offer the maximum flexibility to brokers and their clients. Catlin
UK enjoyed a strong first year of operations as a branch office of Catlin
Bermuda, underwriting nearly US$200 million in gross premiums. The establishment
of a UK subsidiary of Catlin Bermuda will allow us to build on this strong base
by allowing Catlin UK to write business in European nations.'

                                    - ends -

For more information contact:


Media Relations:
James Burcke, Head of Communications Tel:       [phone]
                                     Mobile:    [phone]
                                     E-mail:    [e-mail]

Liz Morley, The Maitland Consultancy Tel:       [phone]
                                     E-mail:    [e-mail]

Investor Relations:
William Spurgin, Head of Investor
Relations                            Tel:       [phone]
                                     Mobile:    [phone]
                                     E-mail:    [e-mail]

Notes to editors:

1.     The Catlin Group, 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 US$1.43 billion and
reported record net income of US$154.1 million in 2004. Catlin shares are 
traded on the London Stock Exchange (ticker symbol: 'CGL').

2.     The Catlin Group consists of three underwriting platforms - the
Catlin Syndicate at Lloyd's of London, Catlin Bermuda and Catlin UK - as well as
other offices located in the UK, US, Germany, Singapore, Malaysia and Australia.

3.     The European Economic Area includes the member nations of the
European Community (Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, The Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain,
Sweden and the United Kingdom), plus Iceland, Liechtenstein and Norway.

4.     Exchange rate: £1=US$1.92.



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