Annual Report 2008

Environment

Amlin is a signatory to ClimateWise, a collaborative insurance initiative through which members aim to work together to respond to the risks and opportunities of climate change. This activity is managed by the Climate Change Panel composed of senior underwriters from across our business and chaired by the Chief Risk Officer. We report under the six ClimateWise principles below.

1. Lead in risk analysis.

Amlin accesses research via the modelling agencies, RMS and AIR, to which we subscribe. We also review information provided by the Geneva Association and the Lloyd’s 360° Risk project.

In 2008, Amlin became a sponsor of the Risk Predication Initiative (RPI), organised by the Bermuda Institute of Ocean Sciences with the dual aim of enhancing our knowledge while encouraging scientific research into the natural hazards most relevant to our business. RPIfunded research is of the highest scientific quality and is regularly published and peer reviewed in prestigious journals.

As part of our membership, we have joined the Forecasting group, whose research into probabilities of extreme weather events relates directly to our underwriting business. We may also recommend future subjects for the group to research, thus linking academic and commercial advances in catastrophe risk analysis.

Amlin also supports the development of capital market solutions for extreme catastrophe events to complement our traditional (re)insurance business. In 2008, we launched Leadenhall Capital Partners, a joint venture investment manager for third party funds wishing to access the developing market for insurance-linked securities. Excellence in catastrophe modelling analysis is as important to pricing catastrophe bonds as it is to traditional reinsurance underwriting, and we believe that our expertise in both reinsurance and capital market solutions will enable us to serve a wider range of customers.

2. Inform public policy making.

As a leader in the Lloyd’s market, we support the actions of the Corporation’s senior management in keeping climate change high on the public policy agenda. Recent initiatives such as the Lloyd’s 360â^z risk project researched corporate preparedness for climate change and conducted a specific study into UK Flooding. Also Lloyd’s is engaged with the finance group of the London Climate Change Partnership (Greater London Authority) and has lobbied MEPs in Strasbourg on ABI or CEA initiatives.

3. Support climate awareness amongst our customers.

Amlin underwrites catastrophe schemes and reinsurance in developed and third world regions. We believe our role is to provide key recovery services, such as the payment on account facility we initiated with key brokers in the wake of Hurricane Katrina and developed with Hurricane Ike, for the fast settlement of catastrophe reinsurance claims.

We are actively promoting a selection of “green” products and schemes provided to UK commercial customers through brokers. One example of this is the “Recycling & Re-Use” scheme, promoted to the waste management industry exclusively through specialist broker Miles Smith (in which Amlin took a minority stake in 2008). This scheme provides the most comprehensive fleet, liability and property cover currently available in the market and demonstrates Amlin’s underwriting expertise applied to the benefit of the environmental management industry. Amlin also insures a number of new energy technologies such as 11 Western European wind farms.

4. Incorporate climate change into our investment strategies.

While we do not specifically target Sustainable Responsible Investment (SRI) or “green” funds for our portfolio, our Investment Management Agreements contain a responsible investment clause and we require managers of our segregated funds to report on SRI criteria annually.

Amlin has committed up to US$75 million of investment in insurance linked securities managed by Leadenhall Capital as mentioned in (1) above.

5. Reduce the environmental impact of our business.

We continue to monitor and, to the extent possible in shared offices, reduce our direct impact. We have won a Gold award under the City of London Clean City Award Scheme for the tenth consecutive year. As an example of our efforts in this area, in 2008 we switched our paper supplier to a manufacturer with Responsible Forest Management certification.

We last estimated our carbon footprint in the summer of 2005, since when we have opened offices in Bermuda, Singapore and Illinois. We will recalculate our carbon footprint using the GHG Protocol for 2008 during the first half of 2009 and report the result in our Carbon Disclosure Project submission in May.

We have continued the initiative begun in 2007 to raise staff awareness of environmental issues, by including an article in every issue of The Amlin staff newsletter. We also suggest ways in which they might reduce energy consumption and increase recycling, both as individuals and as employees of a responsible company.

Climate Change was an area of focus for the Amlin senior management conference in 2008, which included a presentation by Dr. Tony Knap, President of the Bermuda Institute of Ocean Sciences.

6. Report and be accountable.

We again participated in the Carbon Disclosure Project in 2008, thereby underlining our continued commitment to transparency and engagement in environmental reporting. Our membership of the FTSE4Good Index was renewed in 2008. We will report our activities under the ClimateWise principles in greater detail on our website.

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