Catlin Comments on 2006

In a “trading update the Bermuda-based Catlin Group Limited notes that “2006 was a remarkably catastrophe-free year, and claims experience for the non-catastrophe exposed portfolio has been generally favorable. The Group’s underwriting portfolio performed strongly overall.”

Catlin indicated that the ” 2007 renewal season has been broadly in line with expectations. Whilst rates and conditions for catastrophe-exposed business continued to be robust, rates for some non-catastrophe exposed classes continued to be under pressure. Rates are currently adequate for most classes of business underwritten by Catlin, and Management looks ahead to 2007 with optimism.”

The bulletin also recapped Catlin’s recent activity, notably the offer to acquire Wellington Underwriting plc, which was declared wholly unconditional on Dec. 13. “By 8 am the following day, all members of the combined underwriting staff were working from a new, purpose-built underwriting floor on the ground level of Catlin’s London office, and the full integration of underwriting operations has since been completed,” said the bulletin. “The integration of financial and support functions is on schedule and will be completed by the end of January, and all staff in London are expected to be relocated by that time.”

Catlin noted that it is “also in the process of refinancing through the debt capital markets the US$500 million bridge facility that was used to finance the acquisition of Wellington.”

Chief Executive Stephen Catlin commented: “We are looking forward to 2007 with confidence and enthusiasm in the light of our successful acquisition of Wellington, the rapid integration of the two businesses and our strong performance in 2006. The enlarged Catlin Group will benefit from the attractive market environment that exists in many of the specialty classes of insurance and reinsurance that we underwrite worldwide.”