Claims arising from recent catastrophe events

Press release

For immediate release

26 March 2010

Brit Insurance Holdings N.V.

Claims arising from recent catastrophe events

Brit Insurance Holdings N.V. ("the Group") has concluded an initial review of its expected claims arising from recent catastrophe events - the earthquake in Chile and European Windstorm Xynthia.

On 27 February 2010, an earthquake with a magnitude of Mw8.8 occurred 200 miles southwest of Santiago, Chile. Current estimates of economic losses are expected to range from US$15bn to US$40bn with modelling agencies initially estimating insured claims in the region of US$2bn to US$8bn. The significant range for these estimates illustrates the uncertainty associated with claims arising from this event and it will take a number of months before estimates can be assessed with any degree of certainty.

The Group's primary exposure arises from International Property Treaty Catastrophe Reinsurance, Property Direct and Marine (Cargo and Onshore Energy). Based on an initial review, the Group estimates that its pre-tax net exposure (after allowing for reinsurance recoveries and reinstatement premiums) is approximately US$71m (£47m). This estimate has been derived by a thorough ground-up analysis for each portfolio. For the Property Treaty Catastrophe account, the Group believes this approach is consistent with a market loss of approximately US$6bn.

The Group further estimates that should the market loss reach US$10bn its inwards International Property Treaty Catastrophe account will have no additional exposure. Under this scenario and including a similarly conservative estimate for the Direct account, the Group estimates a net exposure of approximately US$97m (£64m).

Within these estimates the Group has taken credit for reinsurance protections purchased by the Property Direct and Marine accounts. In instances where recoveries are expected to be made, cover remains in place for a deterioration in estimates for this event and full cover is available for second and in many cases subsequent events. The International Property Treaty Catastrophe exposure is not expected to trigger the Group's excess of loss retrocessional coverage which remains fully in force.

The Group does not consider European Windstorm Xynthia, which is estimated to have an industry loss of €1.0bn to €2.0bn, to be a major claim for the Group.

Brit Insurance Holdings N.V. will hold its AGM and report its Interim Management Statement for the first quarter of 2010 on 6 May 2010.

Notes to Editors

Brit Insurance is an international general insurance and reinsurance group specialising in commercial insurance. The Group writes a diverse portfolio of over 70 classes of insurance and reinsurance offering worldwide protection. The scope is wide-ranging: from sole traders to the largest multinational corporations; from manufacturers to professional services; from shops to satellites. Our distribution model is centred on brokers and intermediaries. Reflecting where our customers trade, we are organized into three strategic business units - Global Markets, UK and Reinsurance - which have access to our underwriting platforms including Brit Insurance Limited and our Lloyd's syndicate, Brit Syndicate 2987.

For more information please go to: www.britinsurance.com