Launch of Norton Re II Retrocession Insurer

Brit Insurance Holdings PLC ("Brit Insurance") announces that it has signed contracts for the launch of Norton Re II Insurance Limited ("Norton Re II"), a specialist Bermuda-based reinsurance Company with US$118.2 million of capital.
December 4, 2007


Norton Re II has received its licence from the Bermuda Monetary Authority and completion took place on 30 November 2007. Norton Re II will write catastrophe retrocession business and effectively is the renewal of Norton Re, which was launched in late 2006 with capital of US$107.7 million.

Continuing to use the underwriting expertise of Brit Insurance's underwriting services operating from Hamilton, Bermuda, Norton Re II will participate in the upcoming renewal season for treaties incepting 1 January 2008.

As a lead investor Brit Insurance subscribed US$20.0 million, giving it an overall interest of 16.9% of the US$118.2 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, commented:

"Norton Re II builds on the success of its predecessor Norton Re, which met demand for cash collateralised retrocessional covers. We are delighted that the majority of the key investors have continued with Norton Re II while attracting a number of new investors for 2008. We expect market conditions to remain favourable.

"This is a continuation of Brit Insurance's policy of using different but appropriate capital structures for underwriting business."

-Ends-

Enquiries
Dane Douetil, Chief Executive Officer
Carne Curgenven, Communications Director
Brit Insurance Holdings PLC
020 7984 8500

David Haggie/Peter Rigby
Haggie Financial
020 7417 8989

Notes to Editors

Brit Insurance is a UK-domiciled international general insurer and reinsurer. Its operations principally comprise three strategic business units: Brit Global Markets, Brit Reinsurance and Brit UK. All three have access to the two regulatory vehicles through which Brit Insurance underwrites: Brit Insurance Limited which is a UK FSA regulated insurance company 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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