Trading Statement

Amlin PLC
14 November 2007


AMLIN PLC

PRESS RELEASE

For immediate release

14 November 2007


                                 TRADING UPDATE

 Positive trading update and announcement of return of capital to shareholders

Amlin plc, the leading insurer, today released the following update on trading.

Key points:

   • £120 million return of capital announced

   • Pricing for Non marine, Marine and Bermudian operations remains
     satisfactory

   • UK Commercial and Aviation pricing remains under competitive pressure

   • 2.1% return on investment portfolio for the third quarter 2007 (4.7% for
     the nine months to 30th September)

Return of capital

Over recent years profitability has been strong, with a weighted average return
on equity over the period from 31 December 2001 to 30 June 2007 of 29.3%. Whilst
underwriting conditions remain satisfactory for Non Marine, Marine and Amlin
Bermuda we do not expect a material increase in the absolute level of required
capital in the medium term.

Consequently the Board has today announced a return of capital of £120 million.
This return is being effected by the issuance of B shares combined with a share
consolidation. Full details are provided in a separate press release issued
today.

Trading environment and premiums written

The Group underwrites a diverse portfolio of insurance and reinsurance business.
Our Non Marine, Marine and Bermudian operations are trading in a satisfactory
pricing environment and offer good prospective margins. These operations
represent approximately 80% of our expected premiums for 2007.

The trading conditions in our other two divisions, UK Commercial and Aviation
remain competitive. Consequently our teams in these areas have remained focused
on good risk selection and profitability.

The Group's gross written premium (before deduction of brokerage costs) in the
nine months ended 30 September 2007 was £913.1 million (2006: £959.6 million at
30 September 2007 exchange rates).

Syndicate 2001's gross written premium was £792.5 million, approximately 8%
less, at comparable rates of exchange, than for the first nine months of 2006.
Of this income, £34.0 million (2006: £31.3 million) was specifically written to
be ceded to Amlin Bermuda and a further 10% has been ceded to Bermuda under a
whole account quota share reinsurance contract.

Amlin Bermuda has written £120.6 million of direct income in the nine months to
30 September, in addition to the reinsurance of Syndicate 2001 noted above. This
is an increase of 22% at comparable rates of exchange over the same period in
2006. We are pleased with the quality and diversity of the portfolio that has
been built to date.

The average renewal rate reduction for the Group for the first nine months was
4.6% with renewal retention at 79%. The reduction in renewal rates for Amlin
Bermuda and Non Marine was influenced by pricing reductions for the US windstorm
exposures in July which were coming off the rate peaks achieved in 2006. However
the rates achieved remained acceptable.

The following table shows the written income, renewal rate change and retention
ratio by division:

                         2007 gross       Renewal rate                   Renewal
                     premiums to 30             change           retention ratio
                          September
                          £ million                %                         %
Amlin Bermuda               120.6               (6.8)                       79
Aviation                     43.0               (9.7)                       79
Marine                      166.1               (2.5)                       78
Non Marine                  482.1               (4.2)                       79
UK Commercial               101.3               (4.3)                       77
Total/Average               913.1               (4.6)                       79

Claims development

The underwriting loss ratios at the third quarter are excellent. There has
continued to be a low level of natural catastrophe activity, most notably for
the Atlantic windstorm season. Consequently this is expected to enhance
profitability for 2007.

Development of claims on prior underwriting years has been better than expected
and since June 2007 we have been able to make releases from reserves of £29.7
million.

Investment and foreign exchange management

During the third quarter Amlin's diversified investment portfolio, which
averaged £2.5 billion, delivered a return of 2.1%, making a return of 4.7% for
the nine months ended 30 September. The breakdown of assets, the returns for the
third quarter and for the year to 30 September 2007, by asset class, is shown
below:

                          Average third         Third quarter         Investment
                         quarter assets         Investment          return to 30
                                                return               September
                             £million                %                     %
Cash and
equivalents                     561.8                   1.4                4.1
Debt securities               1,572.2                   2.6                3.9
Equities                        284.4                   0.6               10.2
Property                         68.6                   2.4                8.7
                              2,487.0                   2.1                4.7


Increased uncertainty for markets and economic fundamentals led the Group to
reduce its equity weighting from 13% of group assets at the end of June to 11%
at the end of September. In addition, during the equity rally which followed the
US Federal Reserve Bank's 50 basis point interest rate cut in September, option
strategies were put in place covering 26% of the remaining equity holdings.
These provide protection for that proportion of the equity portfolio against a
fall in major indices of more than 5% from 19 September 2007 to 31 December
2007, at a cost of limiting gains over the same period to approximately 4.5%.

The Group's sub prime bond holdings remain modest equating to approximately 1%
of total cash and investments.

During the third quarter the Board also considered its foreign exchange
management policy in respect of its balance sheet exposure to the net assets of
Amlin Bermuda. The Board considered that over time it would be appropriate to
hedge half of the investment. To date, options have been acquired, which expire
on 4 September 2008, which protect $100 million of net assets against the US
dollar falling below an exchange rate of $2.0650. The cost of this protection is
limiting gains in the US dollar to a rate of $1.92. In addition Amlin Bermuda
has sold retained profits of $100 million at an average rate of $1.98:£1.

Charles Philipps, Amlin's CEO, commented as follows: 'The strong third quarter,
and a US windstorm season to date without major loss, means that Amlin's results
for 2007 will most likely exceed current market forecasts. It also puts us in a
strong position to now return cash to shareholders and thereby enhance next
year's return on equity.'

Enquiries:

Charles Philipps, Chief Executive, Amlin plc                  0207 746 1000
Richard Hextall, Finance Director, Amlin plc                  0207 746 1000
Hannah Bale, Head of Communications, Amlin plc                0207 746 1000
Peter Rigby/David Haggie, Haggie Financial Limited            0207 417 8989 



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