Interim Management Statement

Brit Insurance Holdings N.V. ('Brit Insurance' or 'the Group'), the international general insurance and reinsurance group, releases the following Interim Management Statement and trading update as required by the UK Listing Authority's Disclosure and Transparency rules, relating to the 18 week period from 1 January 2010 to 5 May 2010.

Summary

• Gross written premium down 13.3% to £483.5m for the three month period (the period) ended 31 March 2010 (31 March 2009: £557.6m), a decrease of 9.9% at constant exchange rates.
• Average premium rate increase on renewal business for the period of 1.4% (31 March 2009: increase of 4.6%)
• Lower premium volumes result from a reduction in the capital allocated to certain classes where competition is increasing. This is consistent with theGroup's previous comments that it does not expect to grow in 2010 in order to protect profit margins
• The market experienced significant catastrophe claims activity in the period. The Group's best estimate for its pre-tax net exposure arising from February's earthquake in Chile remains unchanged at US$71m (£46m1)
• Overall movement on prior year claims reserves continues to be positive 
•  Investment return for the period of £35.3m, a return in the quarter of 1.0% (31 March 2009: loss of £8.2m and -0.3%)

Dane Douetil, Chief Executive Officer of Brit Insurance Holdings N.V., said:

'The underwriting market in the first quarter of 2010 has developed broadly in line with our expectations. I am particularly pleased that, as a result of our underwriters being prepared to walk away from inadequately priced business, we have achieved an overall 1.4% rate increase in a competitive market place. The corollary of this underwriting discipline, and of the portfolio management measures we have put in place over the last two years, is that we are seeing reduced premium volumes. This is to be expected at this part of the underwriting cycle and as we work hard to enhance our underwriting portfolio.

'The earthquake in Chile will be a significant market loss and our expected exposure in relation to our size reflects the controlled nature of our catastrophe account.

'The diversity within the underwriting portfolio stands us in good stead as the various markets we operate in follow different cyclical patterns. We are ready to capitalise on opportunities should they arise, but we continue to expect that, absent significant rate increases, there will be no premium volume growth during 2010.'