US Events

Brit continues to review its exposures on a regular basis and the Company believes it appropriate to provide an update and an estimate of its gross exposure.
October 30,2001

26 October 2001
Brit Insurance Holdings PLC
On 20 September 2001 Brit provided an initial estimate of the impact of the losses arising from the terrorist attacks in the US on 11 September. In common with many other insurance and reinsurance companies, the Company continues to review its exposures on a daily basis and the Company believes it appropriate to provide an update and an estimate of its gross exposure and of the losses both before and after premium reinstatements.
Brit's estimate of its gross loss before reinstatements is £182.9 million. Its net loss estimate is £77.4 million before reinstatements and £82.5 million after reinstatements. The net loss before reinstatements is equivalent to 32p per share before tax (34p after reinstatements). These estimates do not constitute an admission of liability, but are merely a basis for the Group's own internal calculations. Of the overall net loss estimate, after reinstatements £25.2 million is attributable to Brit Insurance Limited and the balance is derived from the Group's Lloyd's activities. Rating agencies, A M Best and Standard & Poor's, have recently reviewed and confirmed Brit Insurance Limited's 'A-' rating.
The Company has previously reported that 96 per cent of potential recoveries are from counter parties rated in the single 'A' range and above. The Group's new estimate of its exposure (before reinstatements) is some 11% higher than its original estimate and the Group's gross exposure is approximately 236% of its net exposure.
Neil Eckert, Chief Executive, said: 'These estimates have been produced on a conservative basis and include losses on policies for which the company have not yet received precautionary loss advices. Also, no allowance has been made for either incoming premium adjustments which are likely to be material following an event of this nature or any recoveries from subrogation. We continue to witness an extraordinary rating environment and we have now seen the renewals of reinsurance policies which are extremely encouraging.'

Contact:
Jo Welman Chairman, Brit Insurance Holdings PLC 020 7984 8515
Neil Eckert Chief Executive, Brit Insurance Holdings PLC 020 7984 8511
David Haggie Haggie Financial 020 7417 8989

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US Events

Brit continues to review its exposures on a regular basis and the Company believes it appropriate to provide an update and an estimate of its gross exposure.October 30,2001

Brit continues to review its exposures on a regular basis and the Company believes it appropriate to provide an update and an estimate of its gross exposure.
October 30,2001