Interim Management Statement

18 November 2011

Omega Insurance Holdings Limited

Interim Management Statement

Omega Insurance Holdings Limited ("Omega" or the "Company"), the international insurance and reinsurance group, today issues its Interim Management Statement (IMS).

Financial data reflects the nine months to 30 September 2011 unless otherwise stated.

Highlights 

·; Group gross written premium in the first 9 months of 2011 totalled $258.5 million (2010: $308.5 million) in the following operating segments:

o $188.0 million from Group participation on and reinsurance of Syndicate 958 (2010: $206.4 million)

o $31.6 million from Omega Specialty, Bermuda (2010: $67.0 million)

o $38.9 million from Omega US Insurance (2010: $35.1 million)

·; Rates are improving in our two largest classes, property catastrophe and US small commercial property

·; Net loss estimates for 2011 catastrophes previously announced in the interim results have increased by approximately $6 million

·; Estimated third quarter catastrophe losses of $10 million (Hurricane Irene, Texas Wildfires and the Slave Lake fire). The Group does not expect material losses from the floods in Thailand

·; 2011 attritional loss development of approximately $9 million resulting from unusually high occurrence of smaller US and international catastrophes

·; Additional reinsurance purchase of approximately $3 million

·; Costs related to all corporate activity are expected to total approximately $5 million for the year

·; The Haverford (Bermuda) Limited offer has been put to shareholders and is now awaiting final regulatory approvals

Group Gross Written Premium

Segmental and class of business gross written premium for the nine months to 30 September 2011 and the corresponding period in 2010 was as follows:

Group participation on and reinsurance of Syndicate 958

The Group's share of gross written premium from Syndicate 958 for the first nine months of the year reduced by 8.9% to $188.0 million (Q3 2010: $206.4 million) reflecting previously announced exits from marine energy and retrocessional classes of business. This has been somewhat offset by the increased Group share of Syndicate 958 from the 2010 year of account. Syndicate 958 capacity for the 2011 year of account is $420 million (£280 million) with expected utilisation of approximately 78% of capacity.

Omega Specialty

Gross written premium for the first nine months of the year reduced by 52.8% to $31.6 million (Q3 2010: $67.0 million) reflecting the previously announced changes in the underwriting strategy of the direct business written in Bermuda.

Omega US Insurance

Gross written premium increased by 10.8% to $38.9 million for the nine month period (Q3 2010: $35.1 million). The rating environment in the US excess & surplus lines has begun to improve. The business is well positioned for growth now that we are licensed in all US states. We expect continued rate increases throughout 2012.

Claims

Consistent with the market, initial estimates of losses to the Group arising from previously disclosed catastrophe events have increased by approximately $6 million.

Third quarter US catastrophes including Hurricane Irene, the Texas Wildfires and the Slave Lake fire are estimated to impact the Group by $10 million. In addition, 2011 has been impacted by an unusually high occurrence of smaller US and international catastrophes, resulting in an increase in attritional losses of approximately $9 million.

Given catastrophe activity in the year to date and a continued focus on reducing the level of volatility in the business, the Syndicate purchased additional reinsurance in the third quarter with a cost to the Group of approximately $3 million.

Investment Return

The Group's investment return for the nine month period to 30 September 2011 was 0.93% ($6.3 million) reflecting our defensive investment strategy in these volatile market conditions. The Group has no direct exposure to sovereign debt issued by Portugal, Ireland, Italy, Greece or Spain.

Infrastructure and Solvency II

The Group's focus on enhancement of its infrastructure continues through investment in people and systems. Taking this and the significant focus and investment in Solvency II into account, we expect total other underwriting and corporate expenses to be approximately 5% higher than 2010.

Update on Corporate Activity 

The Group has been the subject of ongoing corporate activity for some time. The previously announced offer for up to 25% of the Group's outstanding shares by Haverford (Bermuda) Limited has been put to shareholders and is now awaiting final regulatory approvals. Costs related to all corporate activity are expected to total approximately $5 million for the year.

Outlook

Although the market has been slow to react to significant recent losses and low investment yields, we are encouraged by upward pricing in property catastrophe and SME markets from which we will benefit.

Our catastrophe exposures are now aligned to our revised risk appetite and we do not expect the level of legacy cat losses, which has materially affected results, to recur.

We are focusing on our core portfolios and will look to add new selective classes when the time is right.

Enquiries:

David Coles, Head of Investor Relations, Omega 020 7767 3051

David Haggie/Juliet Tilley, Haggie Financial 020 7417 8989

Notes to Editors

The Omega Group

Omega became the holding company of the Omega group of companies (the "Omega Group") on 9 November 2006 when the scheme of arrangement of Omega Underwriting Holdings PLC (the Omega Group's previous holding company and now wholly-owned by Omega) ("OUH") became effective. OUH was re-registered as a private limited company.

On 7 July 2009, the Common shares of Omega were admitted to the Official List of the London Stock Exchange and to trading on its main market for listed securities. On the same date, the admission of Omega's common shares to trading on AIM was cancelled.

The Omega Group, through its wholly owned subsidiary, Omega Underwriting Agents Limited, acts as a Lloyd's managing agent for Syndicate 958.

Syndicate 958

Syndicate 958's capacity is $420 million for the 2011 year of account. The Syndicate has made an underwriting profit in every closed year of account since its inception in 1980. The Syndicate has focused predominantly on short-tail, diversified, property orientated insurance and reinsurance with a focus on small to medium sized insureds.

Omega Specialty

In February 2006 Omega Specialty Insurance Company Limited ("Omega Specialty"), was established as a new insurance and reinsurance Bermuda based business. Omega Specialty received its license from the Bermuda Monetary Authority as a Class 3 insurer and was subsequently reclassified as a Class 3B insurer. Omega Specialty's premium income has been predominantly derived from its reinsurance of Syndicate 958 and the Omega Group's Lloyd's corporate member, Omega Dedicated, together with its book of third party reinsurances.

Omega US Insurance

In September 2006 Omega incorporated a new surplus lines insurer, Omega US Insurance, Inc. ("Omega US Insurance"), which is held under an incorporated intermediate holding company Omega US Holdings, Inc. Omega US Insurance is an insurance company licensed in the state of Delaware and underwrites on a surplus lines basis in other US States. Omega US Insurance is currently eligible to write business in all 50 states.