BRE.L Regulatory News (BRE)

For immediate release

15 October 2010

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO ANY JURISDICTION WHERE TO DO SO WOULD VIOLATE THE LAWS OF THAT JURISDICTION

Offer Update

Further to the announcement made on 17 September 2010, the Board of Brit Insurance Holdings N.V. ("Brit Insurance" or the "Company") wishes to update shareholders on the potential offer for the Company by funds managed by Apollo Management VII, L.P. and funds advised by CVC Capital Partners Limited (together the "Consortium").

Over the last four weeks the Company has worked closely with the Consortium to seek to satisfy the pre-conditions to the Consortium's possible offer, the terms of which remain unchanged from those set out in the announcement dated 17 September 2010. Significant progress has been made on a number of the pre-conditions, including the completion in all material respects of commercial due diligence by the Consortium. There remain, however, a number of regulatory matters and legal documentation which still need to be finalised and so the Board have agreed to extend the deadline for the Consortium to make a formal offer to acquire the Company to close of business on 25 October 2010, following which the Company is due to release its third quarter Interim Management Statement on 26 October 2010.

This announcement has been made with the consent of the Consortium.

A further announcement to shareholders will be made in due course.

Enquiries:

Peter Rigby

Haggie Financial for Brit Insurance Holdings N.V.

+44 (0) 20 7417 8989

+44 (0) 7803 851 426

Charles Zehren

Rubenstein Associates, Inc. for Apollo Management, L.P.

+1 (212) 843-8590

czehren@rubenstein.com

James Olley

Brunswick Group LLP, for CVC Capital Partners Limited

+44 (20) 7404 5959

jolley@brunswickgroup.com

Disclosure requirements of the Takeover Code (the "Code")

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any paper offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any paper offeror is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any paper offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any paper offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a paper offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any paper offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any paper offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any paper offeror, save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a paper offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel's website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. If you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure, you should contact the Panel's Market Surveillance Unit on +44 (0)20 7638 0129.