Orascom Inv Regulatory News (OIH)

1 Mar 2007 07:02

Omega Insurance Holdings Limited01 March 2007 OMEGA INSURANCE HOLDINGS LIMITED Syndicate 958 Results and Forecasts Record of Unbroken Profitability Continues Omega Insurance Holdings Limited ("Omega") today announces Syndicate 958'sprofit for the 2004 year of account, together with the profit forecast for the2005 year of account and an initial forecast for the 2006 year of account. The result and forecasts in the table below are after standard personal expensesand are expressed as a percentage of capacity. Year of Account Capacity £m Profit/forecasts Previous forecasts 2004 224 7.61% 5% to 10%2005 224 5% to 10% 4% to 11%2006 249 12.5% to 20% N/A The 2004 year of account sustained the impact of Hurricanes Charley, Frances,Ivan and Jeanne in 2004 and some exposure to the events in 2005. The result isat the midpoint of the previous forecast range announced in November 2006. The midpoint of the range of profit forecast for the 2005 year of accountremains unchanged. Hurricane Katrina in 2005 was the world's largest everinsured, natural perils loss and was followed in the same year by HurricanesRita and Wilma. The estimated net cost to the Syndicate from Hurricane Katrinaremains as first announced on 12 September 2005. All three hurricane losses in2005 are contained by the Syndicate's reinsurance programme. The 2006 year of account is still at an early stage of development. The forecastrange assumes a normal claims development and reflects the strong tradingconditions and benign loss experience. Richard Tolliday, Chief Executive of Omega, commented: "The hurricanes in 2004and 2005 have had a significant effect on the results of many insurancecompanies. It is therefore particularly pleasing to report that Syndicate 958has continued its unbroken run of underwriting profits since it was establishedin 1980. This is testament to the balanced nature of the portfolio and ourprudent approach to risk management. Our focus remains the same as it has beensince 1980, writing short tail property insurance and reinsurance for small tomedium sized insureds and reinsureds. This continues to produce relativeconsistency and low volatility of results and to generate market out-performanceover the cycle." Enquiries: Omega Insurance Holdings Limited +1 441 294 6610Richard Tolliday, CEO Threadneedle Communications +44 (0)20 7936 9604John Coles Notes to Editors Omega became the new holding company of the Omega group on 9 November 2006 whenthe scheme of arrangement of Omega Underwriting Holdings PLC (the Omega group'sprevious holding company and now wholly owned by Omega) ("OUH") becameeffective. On the same day the common shares of Omega were admitted to tradingon AIM, the admission of OUH's shares to trading on AIM was cancelled and OUHwas re-registered as a private limited liability company. Omega, through its wholly owned subsidiary, Omega Underwriting Agents Limited,acts as a Lloyd's managing agent for Syndicate 958 and in February 2006established a new insurance and reinsurance business, Omega Specialty InsuranceCompany Limited, based in Bermuda. • Syndicate 958 Syndicate 958 had a capacity for the 2006 year of account of £249 million andcapacity for the 2007 year of account has been increased to £275 million. TheSyndicate has made an underwriting profit in every closed year of account sinceits inception in the 1980 year of account. The Syndicate has focusedpredominantly on short-tail property insurance and reinsurance, insuring smallto medium sized insureds and reinsuring the smaller insurance companies. The Syndicate's financial strength rating from A.M. Best Company, Inc. of "A"(Excellent) and an Issuer Credit Rating of "a+" (Excellent) were reaffirmed on 7February 2006. • Omega Specialty Insurance Omega Specialty is authorised by the Bermuda Monetary Authority as a Class 3insurer, underwriting its targeted classes of insurance and reinsurance, key inwhich are non-marine property insurance, professional indemnity insurance,property catastrophe treaty reinsurance and property per risk treatyreinsurance. Omega Specialty is capitalised at $172 million. On 4 April 2006, Omega Specialty was assigned a financial strengthrating by A.M. Best of "A-" (Excellent). This information is provided by RNS The company news service from the London Stock Exchange