Amlin Interim Management Statement

Amlin plc

17 May 2012

Interim Management Statement for the period to 16 May 2012

The trading environment for the period from 1 January has been considerably more encouraging, with strong rate improvements evident in key classes underwritten by the Group. Catastrophe loss activity has also been limited in the first quarter of the year.

More than 75% of our portfolio has achieved rate increases in the period to 30 April. As expected, the rating environment for catastrophe reinsurance has developed strongly, with margins at or close to peak levels.  Within insurance markets, we continue to see improvement in our UK commercial business, particularly for UK motor. Rate increases for US commercial property have continued to improve, building on the modest increases experienced at 1 January, while US liability business has begun to show signs of improvement.

Investment markets, however, clearly remain volatile and we continue to hold a cautious position.

Amlin is in a strong financial position and is well capitalised to support growth as conditions continue to improve and opportunities present themselves. The underlying profitability of our London and Bermuda businesses is strong, profitability is improving in our UK business and there are signs that the action taken at ACI is having a positive effect.  Profit focused underwriting remains at the core of our strategy which, in a challenging investment environment, should allow the business to prosper.

Underwriting environment

The Group's gross written premium for the four months ended 30 April 2012 was up 10.5% at £1,440.9 million (30 April 2011: £1,304.0 million). At constant rates of exchange, written premium increased by 11.6% (30 April 2011: £1,291.5 million).

The average renewal rate increase for the Group during the four months was 4.3% (30 April 2011: decrease of 0.4%). The renewal retention ratio for the same period was 86.1% (30 April 2011: 84.6%).

The underlying increase in gross written premium of £104.0million, after taking account of foreign exchange and renewal rate movements, was attributable to growth in Amlin London, Amlin UK, Amlin Bermuda and Amlin Re Europe.  ACI's premium income decreased with further portfolio adjustments in its marine business continuing into the start of 2012.

We believe that the major changes to ACI's marine portfolio are very largely complete and that, with increased profit focus and direction, it is now in a position to grow income when market conditions in the Benelux improve.

Performance by division is analysed in the table below.