Brit Insurance commences trading on IFEX

First London Market player to trade in IFEX's insurance-linked derivatives
May 21, 2008

Brit Insurance Holdings PLC ("Brit Insurance" or "The Group"), the UK-based international general insurance and reinsurance group, today announces that it has commenced trading in insurance-linked derivatives on the Insurance Futures Exchange Services platform (IFEX). Brit Insurance is the first major insurer in the London Market to trade on IFEX.

Dane Douetil, Chief Executive of Brit Insurance Holdings PLC, commented:

"This move has enhanced our ability to manage our clients' risk and shareholders' capital effectively. The increasing liquidity in this market is encouraging and the trading of event-linked futures provides additional flexibility in our portfolio management."

Brit Insurance has begun trading in IFEX event-linked futures (ELFs), which are exchange traded futures contracts. They are modelled on Industry Loss Warranty reinsurance contracts and are triggered by pre-determined losses to the insurance industry in excess of specified amounts.

Brit Insurance previously introduced a number of other innovations into its capital management strategy, including an investment in Norton Re II, a Bermuda regulated standalone insurance company writing catastrophe retrocessional business, and a three year catastrophe swap contract with Fremantle.

-ENDS-

Enquiries
Carne Curgenven, Brit Insurance Holdings PLC
020 7984 8500

Peter Rigby/Juliet Tilley, Haggie Financial
020 7417 8989

Notes to Editors
About Brit Insurance
Brit Insurance's operations 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

About IFEX
IFEX is a wholly owned subsidiary of Climate Exchange Plc and was established to develop and launch insurance derivatives. These are based on insurance industry losses caused by hurricanes and tropical storms striking the United States. Further derivative contracts based on other perils and geographical areas are planned. The market for Event Linked Futures was launched in 2007 and is the most liquid electronic insurance exchange. IFEX Event Linked Futures are listed on the Chicago Climate Futures Exchange (CCFE).
www.theifex.com

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Brit Insurance commences trading on IFEX

First London Market player to trade in IFEX's insurance-linked derivativesMay 21, 2008

First London Market player to trade in IFEX's insurance-linked derivatives
May 21, 2008