Statement re NZ earthquake and Australian floods

PRESS RELEASE

FOR IMMEDIATE RELEASE

7 January 2011

Omega Insurance Holdings Limited

Statement re New Zealand Earthquake and Australian Floods

On 17 November 2010 Omega Insurance Holdings Limited ("Omega" or the "Company") released a loss estimate for the New Zealand earthquake of $6.2m, a total cost to the Group of $7.0m including the effect on managing agency profit commission, based on the limited public information available at that time. There remains uncertainty around the range of possible outcomes, with estimates of current market losses varying widely. The majority of Omega's exposure arises through the reinsurance of local New Zealand cedants, with the remainder coming from retrocession accounts. Over recent weeks both primary cedants and reinsurers have been revising their estimates of the New Zealand loss.

Based on these updates, the Company's loss estimate for the New Zealand earthquake has risen to US$16.8m, net of reinstatement premiums and before profit commission effects, and US$18.9m after profit commission. In most cases this represents exhaustion of the limits for the event.

Any exposure to the ongoing Australian Floods would be predominantly from Omega's property treaty reinsurance account, however at this early stage there is little reliable loss data. The Company will continue to monitor the situation and make a further comment if appropriate.

-ENDS-

Enquiries:

Omega Insurance Holdings Limited

David Coles 020 7767 3051

Haggie Financial

David Haggie and Juliet Tilley 020 7417 8989