Acquisition of Alico IoM Limited

For Immediate Release

10 October 2011

Charles Taylor Consulting plc ("CTC" or the "Company")

Acquisition (the "Acquisition") of Alico Isle of Man Limited ("Alico IoM")

The Company announces that it has entered into an agreement to acquire the issued share capital of Alico IoM, an international life assurance company in run-off, from American Life Insurance Company.

Alico IoM was established in 2002, provides investment life insurance products and was closed to new business in 2008. At 30 June 2011, Alico IoM's equity shareholders' funds were £1.8 million.

CTC will rationalise the operations of Alico IoM by transferring its business into LCL International Life Assurance Company Limited ("LCLI"), CTC's wholly owned Isle of Man-registered closed life business, and integrating its management into CTC's life insurance services company, LCL Services (IOM) Ltd. The Acquisition is expected to be earnings enhancing in the year ending 31 December 2012 and thereafter. In addition, CTC expects the Acquisition to enhance embedded value and to release cash in excess of the consideration once the transfer of Alico IoM to LCLI is complete, expected to be in the first quarter of 2012.

The Acquisition is subject to regulatory approval by the Isle of Man Insurance and Pensions Authority. The business transfer into LCLI is subject to court approvals.

David Marock, Group chief executive officer, said:

"We have made it clear that we will pursue opportunities to acquire life and non-life businesses in run-off where they are a good fit with our existing businesses, generate an uplift in our earnings, and create real shareholder value. We believe this acquisition creates shareholder value and keeps our strategic options in the run-off sector open."

For more information, please contact:

David Marock, Group chief executive officer: +44 (0)20 3320 8988

David.marock@ctcplc.com

George Fitzsimons, Group finance director: +44 (0)20 3320 2263

George.fitzsimons@ctcplc.com 

Mike Lord, Group communications director: +44 (0)7831 401 311

Mike.lord@ctcplc.com

Notes to editors

1 Charles Taylor Consulting plc (www.ctcplc.com) is a leading provider of insurance services. It manages mutual insurance companies, advises insurers on complex insurance losses and provides administration and consultancy services to insurers and insureds worldwide. It also owns life and non-life insurance companies which are closed to new business.

2. Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect the Group's current expectations concerning future events and actual results may differ materially from current expectations or historical results.