Brit Insurance's Future Outlook Shakes UK Competitiveness

Brit Insurance Holdings PLC, the international insurance and reinsurance group, introduces preliminary results for the year ended 31 December 2008 and future strategic goals. Financial Performance 2008 Return on equity 9.2% (2007 22.1%) Profit before tax 89.2 million (2007 191.2

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Brit Insurance Holdings PLC, the international insurance and reinsurance group, introduces preliminary results for the year ended 31 December 2008 and future strategic goals.

Financial Performance 2008:

-Return on equity 9.2% (2007: 22.1%)-Profit before tax 89.2 million (2007: 191.2 million)-Earnings per share 21.5p (2007: 43.2p)-Net tangible assets per share 248.2p (2007: 248.0p)-Gross written premiums 1,394.6 million (2007: 1,264.9 million)-Underlying gross written premium growth 4.2% (premiums adjusted for exchange rate movements);

-Combined ratio 99.4% (93.9% excluding hurricanes)-Investment return 0.16% in difficult markets-Recommended final dividend of 7.5p per share making a total dividend of 15.0p per share for the year (2007: 15.0p dividend plus 7.0p special dividend per share).

Final dividend payable on 18 May 2009 to shareholders on the register on 17 April 2009, ex-dividend date is 15 April 2009.

Future Strategic Development And Capital Management:

-Netherlands identified as the preferred domicile of the Group’s holding company, subject to requisite clearances and approvals.

-Acquisition of 38.8% stake in Xbridge, an online insurance and finance technology company, through a 7.2 million investment.

-Five year 150 million revolving credit facility, entered into on 21 December 2007, undrawn throughout 2008 and at 8 March 2009

“In a difficult year for insurance, our adherence to the principles of our strategy has led us to a strong result,” says Dane Douetil, chief executive officer of Brit Insurance Holdings PLC.

“Market conditions are improving further in most areas, our strong balance sheet and the subscription nature of much of our business are attractive to risk buyers and stand us in good stead for 2009.”

ABI has already reacted to Brit Insurance’s decision to relocate its headquarters out of the UK.

The decision by Brit Insurance to leave the UK, the second insurer to do so in a month after Beazley, shows the Government cannot take for granted the UK’s position as a global leader in insurance,” says Peter Vipond, director of Regulation and Taxation, ABI.

“It is vital the Government acts now to ensure the UK is an internationally competitive location.”

The Government needs to act decisively on the Foreign Profits review through implementing the proposed tax exemption for foreign dividends without further delay, scrapping the proposed restrictions on relief for interest and committing to the early completion of the review of controlled foreign companies rules.

L.D.

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