Launch of New Retrocession Insurer

Brit Insurance Holdings PLC ("Brit Insurance"), announces that it has signed contracts for the launch of a specialist Bermuda-based reinsurance company, Norton Re Insurance Limited ("Norton Re") to write catastrophe retrocession business.
December 14, 2006

Norton Re has received its licence from the Bermuda Monetary Authority and, subject to conditions, completion is expected on Friday 15 December 2006.

Using the underwriting expertise of the Brit Insurance retrocessional team operating from Hamilton, Bermuda, Norton Re will participate in the current renewal season for treaties incepting 1 January 2007.

As a lead investor Brit Insurance subscribed $21.1 million giving it an overall interest of 19.6% of the initial $107.7 million capital. The remainder is owned by international institutional investors. HSBC Bank plc acted as adviser, structurer and placement agent.

Dane Douetil, Chief Executive Officer of Brit Insurance said, "We announced earlier in the year that we were investigating this new strategy and we are delighted by the high level of demand that we have seen from investors. As 2006 has progressed, terms and conditions and pricing in the retrocession market have strengthened further and we and our fellow investors regard this as the optimal time to launch the new carrier.

"Norton Re will offer investors pure exposure to this specialist underwriting area with the benefit of our knowledge and experience. Our own investment will be restricted to a minority share to limit correlation of risk with our other classes of insurance and reinsurance.

"This will be our first investment in an offshore underwriting business and a further significant step in Brit Insurance's evolution into a widely diversified insurance group. We believe that this innovative structure is attractive to capital markets and is a potential blueprint that we can consider for other classes of business with similar characteristics."

-Ends-

Enquiries
Dane Douetil, Brit Insurance Holdings PLC
020 7984 8500

David Haggie/Peter Rigby, Haggie Financial
020 7417 8989

Notes to Editors
Brit Insurance's underwriting operations comprise, principally, three customer-facing centres: UK, London Market and Reinsurance. All three have access to the two regulatory vehicles through which Brit Insurance underwrites: UK insurance company, Brit Insurance Limited and Lloyd's syndicate 2987 which is managed by Brit Syndicates Limited. Brit Insurance has UK underwriting offices in London, Reading, Birmingham, Bristol, Glasgow, Leeds, Darlington, Ilford and Manchester.
www.britinsurance.com

The term "Retrocession" refers to the reinsurance of reinsurers. In the property catastrophe arena it is generally focused on multi-billion dollar exposure to loss or losses caused by natural perils.

Norton Re will be offering fully collateralised policies and therefore will not require a rating from a rating agency.

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Launch of New Retrocession Insurer

Brit Insurance Holdings PLC ("Brit Insurance"), announces that it has signed contracts for the launch of a specialist Bermuda-based reinsurance company, Norton Re Insurance Limited ("Norton Re") to write catastrophe retrocession business.December 14, 2006

Brit Insurance Holdings PLC ("Brit Insurance"), announces that it has signed contracts for the launch of a specialist Bermuda-based reinsurance company, Norton Re Insurance Limited ("Norton Re") to write catastrophe retrocession business.
December 14, 2006