Placing and Open Offer

Brit Insurance Holdings PLC today announces a placing and open offer of new ordinary shares at 64p per share.
September 25, 2002


For publication in the United Kingdom, only. Not for release, publication or distribution in, into or from any other jurisdiction including the United States of America, Canada, Japan, Australia or the Republic of Ireland.
Brit Insurance Holdings PLC ('Brit' or 'the Company' or 'the Group')
Brit to raise £204.2 million before expenses
Brit, the specialist insurance and reinsurance group, today announces a placing and open offer of new ordinary shares (the 'New Ordinary Shares') at 64p per share.
Highlights
The Placing and Open Offer will raise approximately £204.2 million before expenses and has been fully underwritten by Collins Stewart and Numis Securities.
The Open Offer is being made available to Qualifying Shareholders and Qualifying Stockholders on the basis of 2 New Ordinary Shares for every 3 existing Brit Shares held at the close of business on the Record Date or, in the case of Qualifying Stockholders, the number of existing Brit Shares which they would have held at that date if their Loan Stock had been converted in full into Brit Shares at the applicable conversion rate (which equates, in the case of Qualifying Stockholders, to 75.76 New Ordinary Shares for every 100 Units of Loan Stock then held).
The proceeds will be used to support the expansion of the Company's underwriting business which is planned for 2003 and so enable Brit to take advantage of the current strong market conditions.
Group plans to underwrite gross premium income of approximately £1 billion in 2003, of which approximately £850 million would be for Brit's own account.
Paid up share capital of the insurance company, Brit Insurance Limited, to be increased to at least £150 million.
Brit has also issued a separate announcement today containing its interim results for the 6 months ended 30 June 2002.
Gross written premium increased to £397 million, an increase of 94 per cent on the corresponding period in 2001.
Combined ratio of 90.2%.
Net loss reserved for US Terror Attack substantially unchanged.
Trading conditions remain very strong and the Directors are confident that for the remainder of the current financial year and the future, the prospects of the Group look encouraging.


Neil Eckert, Chief Executive of Brit, said: 'Following our recent entry into the FTSE 250 Index, this fundraising will represent a significant step for our Company. With the added strength to our balance sheet, our underwriting teams should be well placed to take advantage of the very strong market conditions which we are experiencing.'
 
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