Update on partial cash offer

13 December 2011

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Omega Insurance Holdings Limited ("Omega" or the "Company")

Update on Partial Cash Offer

Following consultation with all of the Company's major institutional shareholders the Omega Board wishes, inter alia, to confirm the position in respect of Haverford (Bermuda) Limited ("HBL").

The Omega Board has been notified that following the announcement from HBL on 2 December 2011 that HBL considers the Offer to have lapsed, HBL has returned share certificates and acceptance forms to Omega Shareholders who tendered their shares.

Separately HBL has advised the Omega Board that the hearing of the Delaware Insurance Commissioner, which was scheduled for 12 December 2011, has been cancelled and that HBL considers the Implementation Agreement between Omega and HBL to have terminated.

The Omega Board reiterates that it believes the Offer, for which the Strike Price was 83p, would have become unconditional in all respects if HBL had complied with the terms of the Offer and the Implementation Agreement and honoured the valid tenders it received.

Along with many of our peers, the Group has experienced significant catastrophe losses during 2011, however our capital position continues to be more than adequate. We have increased our participation in Syndicate 958 for the 2012 year of account to 48.8% from 40.5% which when combined with the quota share reinsurance of the Syndicate brings the Group's overall economic interest in the Syndicate to 59.0% (52.4% in 2011).

The business is focussing on the January renewals, targeting the better priced areas of business where we are seeing signs of an improving rating environment in our core books.

ENDS

Contacts:

Kinmont Tel: +44 (0)20 7087 9100

John O'Malley

Mat Thackery

Cenkos Tel: +44 (0)20 7397 8900

Ian Soanes

Haggie Financial Tel: +44 (0)20 7417 8989

David Haggie

Juliet Tilley

Defined terms used in this announcement have the meanings given to them in the Company's announcement of 12 September 2011.

Notes to Editors 

Omega is incorporated and its registered office is in Bermuda. Accordingly, Omega is not subject to the provisions of The City Code on Takeovers and Mergers (the "Code"). However, Omega's Bye-laws adopt certain of the provisions of the Code including provisions dealing with compulsory takeover offers and shareholder treatment along the lines of the general principles as set out in the Code, which are to be administered at the discretion of the Board.

Omega confirms that as at the close of business on 12 December 2011 its issued share capital consisted of 244,229,862 common shares of US$0.10 each.

The International Securities Identification Number for Omega common shares is BMG6765P1095.