Annual Report 2007

Developing the Amlin business model

Over the past year the Group has taken a number of steps to position itself to be able to grow through acquisition. Strategically we believe that this will allow us to continue to develop Amlin in a balanced way. Over the last few years we have been able to grow our reinsurance and catastrophe exposed accounts. However this growth is at times constrained by our risk appetite and our desire to keep the business model diversified such that we can absorb much of the cost of disaster scenarios within the profitability of the business.

In order to address this, during 2008 we acquired AFU which increases our European insurance offering. The business underwrites in a similar style to Amlin and we expect that they will be able to grow their business in a pro cyclical manner. Their level of catastrophe exposure is limited.

In the UK we purchased a £20 million UK motor renewal account from Houston Casualty and acquired stakes in two UK insurance brokers to facilitate product development in the property market.

We continue to explore acquisition opportunities where we perceive there to be strong benefits from increasing the diversity to our catastrophe exposed accounts and a good cultural fit.

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