A critical theme this year has been the emphasis on business continuity both in terms of the service we provide to our client base but also that same commitment to our people. During 2005 we had our Business Continuity plans independently audited and achieved a PAS 56 standard as recognised by the Business Continuity Institute. We place great importance on this process because it not only helps us to respond to any disruptive events that may strike our business, but it also commits the Group to strive for ever more resilience in our processes and procedures across every business. Our plans were tested in 2005 in dealing with the terrorist atrocities in London in July and also the Buncefield Fuel Depot fire in December which affected a key supplier.

Improved reliability
A key element of our infrastructure approach has been enhancing and improving our IT systems. During 2005 we implemented a Virtual Private Network ("VPN") which allows our people to work in any location in the UK with the same system functionality as they enjoy in their main office base. We invested in replicating critical applications and databases for disaster recovery use and we renewed the back up and model office infrastructure.

In 2005 we also implemented new switching technology (MPLS) to provide guaranteed network availability in the event of a primary systems failure. Such a failure did subsequently occur and could previously have caused half a day's interruption during the busy renewal period, but our network remained fully operational.

At the same time we have significantly enhanced our remote working solutions including the use of handheld and laptop devices. This allows our underwriting and claims teams to be contactable wherever they are in the world.

Our approach has been to work in long term partnership with key suppliers to develop an infrastructure that is solid, reliable, consistent and scaleable. This has been of particular relevance as we designed the system strategy for our new Bermuda business. Within eight weeks we were able to replicate the London-based systems for Amlin Bermuda, such that identical functionality to that available in London was available for our team in Bermuda. Amlin staff worked closely with three key suppliers and this build was a significant demonstration of our teamwork approach. Whilst we currently have internet-based link with Amlin Bermuda it is intended to integrate the business into our core VPN during the year.

Robust UK infrastructure through technology

Effective project management
During 2005 we have enhanced our overall governance methodology for major projects. We have developed a programme office with robust measurement and control techniques underlying all project work. Key to this change and our overall success with project implementation has been an emphasis on quality control and effective resource management. This helps ensure that we fully realise the benefits of our investments in technology and process change.

We have maintained and improved upon our scorecards and believe we have the right measures in place to track operational improvement. All significant change management areas are controlled by
the Operational Management Group, comprising senior managers from across the Group. OMG is supported by steering groups in the following areas; IT, data warehouse, service company systems, claims, underwriting process, finance process and contract certainty. Each steering group has clear terms of reference and objectives to drive through the required improvements to our overall service.

Developing workflow
Modernisation of our London market processes continues apace. In 2004 we introduced our underwriting workflow and this year, we have introduced workflow for claims. Workflow simply
means pushing the right information to the right person at the right time and with the right priority,
while maintaining transparency around the whole process. This project took eight months from inception to release and will enable us to meet the high standards we have set ourselves in terms of exceeding client expectations on claims delivery.

The introduction of workflow to claims is having a positive effect on service levels. The 2005 average turnaround of claims before its introduction was 4.3 days and afterwards was 3.5 days, despite a 15% increase in volume arising largely from the hurricanes. We have committed to handling all new claims electronically where our brokers would like us to. Using a combination of market infrastructure, the electronic claims file repository and our own internal workflow systems, we expect to reduce cost and turn around times as well as to enhance our reputation as a leader of process change in the market. To this end we have been in negotiations with other companies, brokers and suppliers to ensure consistent and common standards are used in the transfer of data and messages between repositories.