Review

The business – Amlin London

Underwriting performance¹

Combined ratios are after removing the exchange differences on the translation of non-monetary assets and liabilities

Reinsurance and Property & Casualty (Non-marine1)

Non-marine accounted for £443.6 million of gross written premium in 2008 (2007: £500.6 million), with Reinsurance and Property & Casualty providing 62% and 38% respectively.

The combined ratio was 78% (2007: 60%). The claims ratio was 48% (2007: 28%) with the increase reflecting the impact of Gustav and Ike compared to a benign 2007. Reserve releases of £34.5 million were made (2007: £50.0 million). The expense ratio was 30% (2007: 31%).

Marine

The Marine business unit contributed £189.5 million to gross written premium in 2008 (2007: £187.2 million).

The combined ratio was 87% (2007: 83%). Reserve releases totalled £14.3 million (2007: £8.0 million) as claims development has been better than expected.

Aviation

The Aviation business unit accounted for £56.6 million of gross written premium in 2008 (2007: £63.6 million). Written premium remained low as our underwriters remained disciplined in a highly competitive market.

Despite the number of losses in the market the combined ratio was low at 84% (2007: 70%). The underlying expense ratio has improved marginally at 34%. Reserve releases amounted to £9.8 million (2007: £15.9 million) with little claims development in the year.