Annual Report 2008

Maintaining a balanced business

One of Amlin’s core strengths has been its mix of business with exposure to catastrophic events, primarily through our reinsurance, property and energy accounts, balanced by uncorrelated lines such as UK commercial motor, casualty and our aviation classes. The catastrophe exposed business is capable of delivering high returns but is volatile while other lines tend to deliver more consistent returns which help offset the downside from catastrophe losses.

Having grown our catastrophe exposed business following the 2005 establishment of Amlin Bermuda, we were keen in 2008 to find means of growing in other areas to rebalance our exposures. Acquisitions in the UK and France, and the opening of Amlin Illinois will help achieve this objective.

Our acquisition of £20 million of renewal rights from HCC Underwriting Agency Limited and strategic investments acquired in two independent brokers, MS plc and TL Dallas, provide Amlin UK with further growth potential.

We also acquired Anglo French Underwriters, Lloyd’s longest standing and largest approved coverholder in France, underwriting approximately €40 million of specialty business. With its strong management team, we expect this new division to expand its operations geographically and to broaden the product range offered to its clients with additional Amlin products.

We continue to search for further suitable opportunities and, with our strong capital position, have the ability to take on larger acquisitions. Key considerations, in addition to solid prospects for value creation for our shareholders, are the quality and culture of management and underwriters. We will be selective and are prepared to wait for the right opportunity.

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