Half Year Update

PRESS RELEASE

FOR IMMEDIATE RELEASE

16th August 2010

Omega Insurance Holdings Limited

Half Year Update

Omega will issue its half year results on 31 August 2010. Results are still subject to finalization and review by our auditors. However, Omega expects to report a loss before tax of approximately US$35m for the half year to 30 June 2010.

The key drivers behind the first half result are as follows:

- Written premium in line with business plan.

o Syndicate premiums were planned to reduce for the 2010 year primarily on segments of the catastrophe account where pricing has been reducing from its peak levels.

o The book of predominantly catastrophe business written from Bermuda is planned to hold premium income flat.

o Omega US continues to make progress expanding its footprint as it develops as a business.

- Increased share of syndicate capacity for 2010. The benefits of the increased share of Syndicate 958 capacity have yet to have a significant effect on the Group results. Although the Group's gross written premium at US$244m is up 30%, only 19% of 2010 year of account Syndicate premium has been earned by 30 June. We would expect this to be 65% by year end.

- Catastrophe losses in the first half. Estimates for the losses relating to the Chile earthquake, and the losses of the Aban Pearl submersible and Deepwater Horizon rig remain unaltered at US$29m as announced in May.

- Prior year reserve strengthening of US$12m. The strengthening reflects claims experience in the second quarter as well as a more conservative view of the likely development of longer tail lines. This is the result of a detailed internal actuarial review following the period end with input from independent actuarial advisers.

- In addition to the catastrophes above the profitability of 2010 writings year to date has been reduced due to a number of further losses including the Australian storms and the phasing of reinsurance purchases, being more weighted towards first half than last year.

- Reduced profit commission from our managing agency of US$11m, and reduction in reinsurance profit commissions of US$2m as a result of the effects described above.

- Investment return for the first half of 1.4% (2009:0.7%) reflects the conservative composition of our investment portfolios.

- Non-recurring costs of US$3.2m relating to the costs associated with the Special General Meeting.

Based on this result the net asset value per share is approximately US$1.84 (US$2.04 as at 31 December 2009). Net tangible assets per share are approximately US$1.66 (US$1.86 as at December 31 2009).

In the absence of significant catastrophe events in the second half of the year the Group would anticipate moving to underwriting profitability for the full year.

The Group remains well capitalized and following the US hurricane season the Board intends to review the Group's capital requirements considering Omega's then known capital requirements, new business opportunities and market conditions at that point. The outcome of this review will be reported to shareholders before year end.

The Group's dividend policy is generally to pay a substantial proportion of profit out in the form of dividend. However, the Board remains confident about the business and the future of the Group and currently intends to maintain the dividend which will be announced on 31 August.

ENDS

Enquiries:

David Haggie / Juliet Tilley

Haggie Financial

Tel: +44 (0)20 7417 8989