2006
We are again looking to grow the business in those classes which are experiencing stronger rating, such as US property, catastrophe reinsurance and energy insurance.

With a potential heightened risk of further hurricane activity this year, the importance of managing aggregate exposures cannot be underestimated and the work we have been doing to increase the granularity of our exposure management and catastrophe modelling will continue through 2006. However, our underwriting strategy is designed to work well in this environment. Controlled per risk limits and focus on diversity mean that the spread of risk allows us to absorb volatility.

This is evident in the way that Amlin Bermuda is planned to operate - a plan formulated before it was evident how short retrocessional capacity would be. The underwriting in Bermuda is intended to provide exposure to multiple catastrophe zones across the US and internationally. We are focused on getting adequate price for cover granted - therefore broad nationwide or worldwide reinsurance is not being underwritten and we focus on primary reinsurance. Importantly, strict zonal limits to exposure are being applied of a maximum US$250 million per single territory or US$300 million for clashing zones, such as Florida and Texas from a windstorm event.