Interim Results 2012

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Enquiries:
Charles Philipps, Chief Executive, Amlin plc	0207 746 1000
Richard Hextall, Group Finance & Operations Director, Amlin plc	0207 746 1000
Analysts and Investors
Julianne Jessup, Head of Investor Relations, Amlin plc	0207 746 1961
Ed Berry, FTI Consulting	0207 269 7297
Media
Hannah Bale, Head of Communications, Amlin plc	0207 746 1118
John Waples, FTI Consulting	0207 269 7292

Financial highlights⁽¹⁾	H1 2012 £m	H1 2011 £m	YE 2011 £m
Gross written premium	1,814.7	1,514.6	2,304.1
Net written premium	1,488.8	1,314.9	2,013.2
Net earned premium	987.7	919.3	1,927.4
Underwriting contribution	153.8	(203.8)	(146.0)
Investment contribution	84.7	45.3	40.5
Other costs⁽²⁾	54.0	33.8	88.3
Profit/(loss) before tax	184.5	(192.3)	(193.8)
Net assets	1,489.7	1,474.6	1,420.4
Net tangible assets	1,273.5	1,260.7	1,201.5
Per share amounts (in pence)
Earnings	34.1	(30.7)	(30.3)
Dividend under IFRS⁽³⁾	15.8	15.8	23.0
Dividend (paid, declared and proposed in respect of the period/year) ⁽³⁾	7.5	7.2	23.0
Net assets	301.1	298.4	287.2
Net tangible assets	257.4	255.1	243.0
Group operating ratios
Return on equity	11.9%	(8.8)%	(8.6)%
Claims ratio⁽⁴⁾	53%	92%	78%
Expense ratio⁽⁴⁾	31%	30%	30%
Combined ratio⁽⁴⁾	84%	122%	108%

	Gross written premium H1 2012 £m	Gross written premium H1 2011 £m	Average renewal rate change H1 2012 %	Average renewal retention ratio H1 2012 %	Average renewal rate change H1 2011 %	Average renewal retention ratio H1 2011 %
Amlin London	782.4	679.2	5.5	85	0.4	84
Reinsurance	379.3	323.9	9.3	87	(0.3)	87
Property and Casualty	178.8	147.0	3.9	85	(0.2)	85
Marine	207.1	190.7	0.4	79	2.2	77
Aviation	17.2	17.6	(4.7)	83	1.1	82
Amlin UK	227.0	167.4	5.5	84	3.9	84
Amlin Bermuda⁽⁵⁾	256.0	249.7	8.6	91	(0.9)	91
Amlin Re Europe⁽⁵⁾	155.8	78.7	2.1	89	-	-
Amlin European Insurance⁽⁵⁾	393.5	339.6	(0.2)	85	(0.5)	77
Total/average	1,814.7	1,514.6	4.2	86	0.3	83

Class	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012
US catastrophe reinsurance	100	115	146	150	143	144	185	188	167	185	175	176	193
International catastrophe reinsurance	100	120	157	161	145	131	138	131	119	124	123	131	153
Property reinsurance	100	122	189	191	170	146	170	144	126	127	115	109	113
Property insurance	100	125	171	163	143	136	165	143	133	142	141	144	153
US casualty	100	123	172	217	234	239	237	223	203	199	197	197	198
Marine hull	100	115	148	171	183	189	191	192	192	205	208	209	209
Offshore energy	100	140	172	189	170	175	262	243	209	256	247	262	262
War	100	250	288	244	220	206	191	175	160	156	153	153	150
Airline hull and liabilities	100	301	283	235	216	201	158	122	127	141	132	124	109
UK fleet motor	100	121	136	143	141	137	135	134	137	144	148	159	175
UK employers' liability	100	115	144	158	159	144	135	123	115	114	115	114	114
UK professional indemnity	100	110	149	178	181	165	154	140	129	128	127	127	126
UK property and commercial combined	100	100	100	127	126	126	117	110	109	107	106	112	112
European marine										100	104	104	105
European property										100	97	96	94
European liability										100	95	95	93
European fleet motor										100	99	99	99

	Amlin London	Amlin UK	Amlin Bermuda	Amlin Re Europe	Amlin European Insurance	Intra Group/ Other	Total
Gross written premium (£m)	782.4	227.0	397.4	156.8	398.3	(147.2)	1,814.7
Net earned premium (£m)	352.0	140.8	233.1	58.6	208.9	(5.7)	987.7
Release movement (£m)	21.9	5.9	7.7	(0.7)	18.2	-	53.0
Underwriting contribution (£m)	58.4	1.3	97.1	0.2	3.9	(7.1)	153.8
Combined ratio
Claims ratio	47%	61%	39%	75%	61%		53%
Expense ratio	36%	38%	19%	25%	37%		31%
Combined ratio H1 2012	83%	99%	58%	100%	98%		84%
Combined ratio H1 2011	119%	111%	136%	98%	118%		122%

AMLIN PLC

PRESS RELEASE

For immediate release

20 August 2012

Strong financial performance in improving markets

Charles Philipps, Chief Executive, commented as follows:

Amlin London

Amlin Bermuda

Amlin Re Europe

Amlin European Insurance

Commitment to defined benefit funding

Credit facilities

UK corporation tax rate

Directors' responsibilities

Our responsibility

Scope of review

Financial Calendar

2012

2013

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	Average balance in H1 2012				Total assets at 31 Dec 2011 %	H1 2012 Actual return %	H1 2012 Benchmark return %
	Policyholder's assets £m	Capital assets £m	Total assets £m	%	Total assets at 31 Dec 2011 %	H1 2012 Actual return %	H1 2012 Benchmark return %
Bonds	1,874.9	1,030.5	2,905.4	69.3	65.5	2.2	0.8
Other liquid	591.9	336.0	927.9	22.1	26.7	0.2	0.3
Equities	-	228.9	228.9	5.5	5.0	5.4	6.3
Property	-	131.6	131.6	3.1	2.8	4.5	3.4
Total/average	2,466.8	1,727.0	4,193.8	100.0	100.0	2.0	1.0

	At 30 Jun 2012 £m	At 31 Dec 2011 £m
Net tangible assets	1,273.5	1,201.5
Subordinated debt	292.3	292.8
Undrawn bank facilities⁽⁷⁾	228.8	250.0
Available capital	1,794.6	1,744.3
Minimum required capital⁽⁸⁾	1,348.5	1,341.6
Headroom	446.1	402.7

	H1 2012 £m	H1 2011 £m
Net gains/(losses) on underwriting transactions and translation of underwriting assets and liabilities at closing rates	4.2	(1.6)
Underwriting exchange gains/(losses)	4.2	(1.6)
Gains on long term US dollar borrowings	0.7	2.4
Net gains/(losses) on non-underwriting transactions and translation of non-underwriting assets and liabilities at closing rates	0.3	(1.6)
Non-underwriting exchange gains	1.0	0.8
Total FX gain/(loss) in income statement	5.2	(0.8)

	Note	6 months 2012 (Unaudited) £m	6 months 2011 (Unaudited) £m	12 months 2011 (Audited) £m
Gross earned premium	5	1,172.1	1,056.6	2,223.2
Reinsurance premium ceded	5	(181.8)	(137.3)	(295.8)
Net earned premium	5	990.3	919.3	1,927.4

Investment return	6	82.1	45.3	40.5
Other operating income		2.3	6.5	8.8
Total income		1,074.7	971.1	1,976.7

Insurance claims and claims settlement expenses	7	(540.9)	(1,025.1)	(1,869.6)
Insurance claims and claims settlement expenses recoverable from reinsurers	7	18.3	176.5	370.2
Net insurance claims	7	(522.6)	(848.6)	(1,499.4)

Expenses for the acquisition of insurance contracts		(211.7)	(177.6)	(380.2)
Other operating expenses	8	(142.9)	(123.5)	(263.0)
Total expenses		(354.6)	(301.1)	(643.2)

Results of operating activities		197.5	(178.6)	(165.9)
Finance costs		(13.4)	(13.7)	(27.8)
Share of profit/(loss) after tax of associates and joint venture		0.4	-	(0.1)
Profit/(loss) before tax		184.5	(192.3)	(193.8)
Tax	9	(15.5)	40.8	44.3
Profit/(loss) for the period/year		169.0	(151.5)	(149.5)

Attributable to:
Equity holders of the Parent Company		168.9	(151.7)	(149.9)
Non-controlling interests		0.1	0.2	0.4
		169.0	(151.5)	(149.5)

Earnings per share from continuing operations attributable to equity holders of the Parent Company
Basic	13	34.1p	(30.7p)	(30.3p)
Diluted	13	33.7p	(30.7p)	(30.3p)


	Note	Share capital £m	Share premium £m	Other reserves £m	Treasury shares £m	Retained earnings £m	Total £m	Non-controlling interests £m	Total £m
At 1 January 2012		141.2	300.3	174.5	(22.5)	826.2	1,419.7	0.7	1,420.4
Total comprehensive income for the period		-	-	(23.7)	-	168.9	145.2	0.1	145.3
Employee share option schemes:
- share-based payment reserve		-	-	1.7	0.5	-	2.2	-	2.2
- proceeds from shares issued	12	-	-	-	0.3	(0.1)	0.2	-	0.2
Dividends paid	15	-	-	-	-	(78.2)	(78.2)	(0.1)	(78.3)
Tax relating to share option schemes		-	-	(0.1)	-	-	(0.1)	-	(0.1)
Transactions with the owners of the Group for the period		-	-	1.6	0.8	(78.3)	(75.9)	(0.1)	(76.0)
At 30 June 2012		141.2	300.3	152.4	(21.7)	916.8	1,489.0	0.7	1,489.7

Assets	Note	30 June 2012 (Unaudited) £m	30 June 2011 (Unaudited) £m	31 December 2011 (Audited) £m
Cash and cash equivalents		247.0	286.5	256.4
Financial assets	10	4,089.1	4,147.8	4,080.4
Reinsurance assets
- reinsurers' share of outstanding claims		532.6	516.1	617.0
- reinsurers' share of unearned premium		170.3	120.5	50.4
Loans and receivables, including insurance and reinsurance receivables
- insurance and reinsurance receivables		1,381.2	1,116.3	933.5
- other loans and receivables		161.0	90.5	69.0
Deferred acquisition costs		328.4	276.9	207.7
Current income tax assets		1.0	1.0	13.7
Deferred tax assets		21.6	22.8	26.9
Property and equipment		18.1	14.2	19.9
Intangible assets	11	216.2	213.9	218.9
Investment in associates and joint venture		8.7	2.7	8.3
Total assets		7,175.2	6,809.2	6,502.1
Equity and reserves
Share capital	12	141.2	141.2	141.2
Share premium		300.3	300.3	300.3
Other reserves		152.4	195.8	174.5
Treasury shares		(21.7)	(23.4)	(22.5)
Retained earnings		916.8	860.1	826.2
Equity attributable to equity holders of the Parent Company		1,489.0	1,474.0	1,419.7
Non-controlling interests		0.7	0.6	0.7
Total equity and reserves		1,489.7	1,474.6	1,420.4
Liabilities
Insurance liabilities
- outstanding claims		3,117.1	3,191.1	3,273.6
- unearned premium		1,623.6	1,388.2	998.0
Other payables, including insurance and reinsurance payables
- insurance and reinsurance payables		193.0	225.9	218.8
- other payables		212.9	138.7	118.5
Financial liabilities	10	7.8	27.7	11.0
Current income tax liabilities		5.3	6.4	0.1
Borrowings	16	458.2	290.4	388.5
Retirement benefit obligations		31.0	28.8	30.8
Deferred tax liabilities		36.6	37.4	42.4
Total liabilities		5,685.5	5,334.6	5,081.7
Total equity, reserves and liabilities		7,175.2	6,809.2	6,502.1

	Note	6 months 2012 (Unaudited) £m	Restated 6 months 2011 (Unaudited) £m	Restated 12 months 2011 (Audited) £m
Cash flows from operating activities
Cash (utilised in)/generated from operations	19	(22.1)	350.9	271.1
Interest received		21.8	12.4	47.6
Dividends received		5.7	7.0	12.2
Income taxes received/(paid)		2.3	(30.8)	(38.6)
Net cash inflows from operating activities		7.7	339.5	292.3
Cash flows from investing activities
Acquisition through business combination, net of cash acquired		-	(11.4)	(11.4)
Deferred payment for acquired subsidiary		-	-	(0.1)
Investment in associates and joint venture		-	(0.5)	(1.6)
Purchase and disposal of property and equipment		(1.1)	(4.1)	(12.7)
Purchase and development of intangible assets		(2.9)	(11.0)	(25.7)
Net cash outflows from investing activities		(4.0)	(27.0)	(51.5)
Cash flows from financing activities
Net proceeds from issue of ordinary shares, including treasury shares		0.2	0.5	1.0
Dividends paid to shareholders	15	(78.2)	(78.0)	(113.6)
Dividends paid to non-controlling interests	15	(0.1)	-	-
Interest paid		(3.1)	(3.5)	(22.7)
Purchase of ESOT and treasury shares		-	(0.4)	(0.5)
Proceeds from issue of catastrophe linked instrument		-	-	96.5
Drawdown of revolving credit facility		71.2	-	-
Repayments of subordinated debt		-	(26.7)	(26.7)
Net cash outflows used in financing activities		(10.0)	(108.1)	(66.0)
Net (decrease)/increase in cash and cash equivalents		(6.3)	204.4	174.8
Cash and cash equivalents at beginning of period/year		256.4	81.5	81.5
Effect of exchange rate changes on cash and cash equivalents		(3.1)	0.6	0.1
Cash and cash equivalents at end of period/year		247.0	286.5	256.4

	Claims ratio
	H1 %	H2 %	Full year %
2008	40	69	55
2009	39	45	43
2010⁽¹⁾	63	58	60
2011⁽¹⁾	92	65	78
2012	53	n/a	n/a

	Gross written premium
	H1 £m	H1 %	H2 £m	H2 %	Full year £m	Full year %
2008	715.5	69.2	318.5	30.8	1,034.0	100.0
2009⁽²⁾	950.1	72.0	368.6	28.0	1,318.7	100.0
2010	1,486.2	68.4	686.3	31.6	2,172.5	100.0
2011	1,514.6	65.7	789.5	34.3	2,304.1	100.0
2012	1,814.7	n/a	n/a	n/a	n/a	n/a

Income and expenses by business segment Six months ended 30 June 2012	Amlin London £m	Amlin UK £m	Amlin Bermuda £m	Amlin Re Europe £m	Amlin European Insurance £m	Other corporate companies £m	Intra group items £m	Total £m
Analysed by geographic segment
UK	127.5	196.8	167.7	12.0	9.4	-	(144.3)	369.1
North America	457.9	3.9	148.2	0.5	-	-	-	610.5
Europe	53.2	11.8	26.2	134.4	223.2	-	(2.9)	445.9
Worldwide	7.8	12.6	0.3	-	165.7	-	-	186.4
Other	136.0	1.9	55.0	9.9	-	-	-	202.8
Gross written premium	782.4	227.0	397.4	156.8	398.3	-	(147.2)	1,814.7
Net written premium	519.1	180.0	342.8	125.6	328.6	-	(7.3)	1,488.8

Gross earned premium	516.3	171.6	261.0	71.1	248.1	-	(96.0)	1,172.1
Reinsurance premium ceded	(164.3)	(30.8)	(27.9)	(12.5)	(39.2)	-	90.3	(184.4)
Net earned premium	352.0	140.8	233.1	58.6	208.9	-	(5.7)	987.7
Insurance claims and claims settlement expenses	(216.0)	(109.7)	(91.4)	(49.4)	(130.5)	-	56.1	(540.9)
Reinsurance recoveries	48.3	23.8	(0.2)	5.6	1.8	-	(61.0)	18.3
Expenses for the acquisition of insurance contracts	(97.0)	(37.1)	(35.5)	(9.1)	(35.6)	-	2.6	(211.7)
Underwriting expenses	(28.9)	(16.5)	(8.9)	(5.5)	(40.7)	(0.1)	1.0	(99.6)
Profit attributable to underwriting	58.4	1.3	97.1	0.2	3.9	(0.1)	(7.0)	153.8
Investment return	11.2	3.2	28.9	0.2	31.8	14.3	(4.9)	84.7
Other operating income⁽¹⁾	12.8	4.4	0.7	-	0.8	4.9	(21.3)	2.3
Agency expenses⁽²⁾	(11.1)	(3.8)	-	-	(0.5)	-	15.4	-
Other non-underwriting expenses	(0.4)	(0.1)	(2.8)	(1.1)	(13.2)	(37.7)	12.0	(43.3)
Result of operating activities	70.9	5.0	123.9	(0.7)	22.8	(18.6)	(5.8)	197.5
Finance costs⁽³⁾								(13.4)
Share of profit after tax of associates and joint venture								0.4
Profit before taxation								184.5
Claims ratio	47%	61%	39%	75%	61%			53%
Expense ratio	36%	38%	19%	25%	37%			31%
Combined ratio	83%	99%	58%	100%	98%			84%

	6 months 2012 £m	Restated 6 months 2011 £m	12 months 2011 £m
Expenses relating to underwriting
Employee expenses, excluding employee incentives	58.2	52.8	95.1
Lloyd's expenses	11.2	11.2	18.3
Other administrative expenses	34.4	31.3	74.5
Underwriting exchange (gains)/losses	(4.2)	1.6	5.9
	99.6	96.9	193.8
Other expenses
Employee expenses, excluding employee incentives	7.6	7.1	15.7
Employee incentives	14.1	2.0	9.5
Asset management fees	2.7	4.0	6.8
Other administrative expenses	7.1	6.1	16.1
ACI disentanglement and integration costs	12.8	8.2	16.8
Non-underwriting exchange (gains)/losses	(1.0)	(0.8)	4.3
	43.3	26.6	69.2
	142.9	123.5	263.0

Net financial investments	30 June 2012 £m	30 June 2011 £m	31 December 2011 £m
Assets
Financial assets held for trading at fair value through income
Shares and other variable yield securities	213.9	345.1	203.3
Debt and other fixed income securities	2,645.1	3,130.4	2,728.1
Property funds	133.6	90.3	117.3
Derivative instruments	8.7	10.1	19.4
Other financial assets at fair value through income
Participation in investment pools	967.6	560.0	1,000.2
Deposits with credit institutions	110.6	1.0	-
Other	2.1	1.9	2.7
Available for sale financial assets
Unlisted equities	4.2	9.0	4.2
Other
Derivative instruments in designated hedge accounting relationships	3.3	-	5.2
Total financial assets	4,089.1	4,147.8	4,080.4

Liabilities
Financial liabilities held for trading at fair value through income
Derivative instruments	(4.2)	(27.7)	(8.5)
Other
Derivative instruments in designated hedge accounting relationships	(3.6)	-	(2.5)
Total financial liabilities	(7.8)	(27.7)	(11.0)
Net financial assets	4,081.3	4,120.1	4,069.4

	30 June 2012				30 June 2011		31 December 2011
Asset allocation	Underwriting assets £m	Capital assets £m	Total assets £m	%	Total assets £m	%	Total assets £m	%
Type of asset
Bonds	1,788.2	865.0	2,653.2	63.3	3,150.7	76.0	2,739.0	65.5
Other liquid investments	724.2	462.8	1,187.0	28.3	547.6	13.2	1,114.7	26.7
Global equities	-	218.7	218.7	5.2	355.3	8.6	208.0	5.0
Property funds	-	133.6	133.6	3.2	90.3	2.2	117.3	2.8
	2,512.4	1,680.1	4,192.5	100.0	4,143.9	100.0	4,179.0	100.0
Type of bond
Government securities	480.7	166.2	646.9	24.4	1,059.2	33.6	759.2	27.7
Government index-linked securities	-	-	-	-	20.9	0.7	24.7	0.9
Government agencies/guaranteed⁽¹⁾	91.2	8.2	99.4	3.7	129.1	4.1	110.2	4.0
Supranational	14.1	4.1	18.2	0.7	41.0	1.3	17.3	0.6
Asset backed securities	38.6	7.5	46.1	1.8	75.1	2.4	50.1	1.8
Mortgage backed securities	72.4	140.6	213.0	8.0	138.2	4.4	161.0	5.9
Corporate bonds	153.7	114.9	268.6	10.1	285.9	9.1	260.3	9.5
Pooled vehicles⁽²⁾	933.3	423.5	1,356.8	51.1	1,361.6	43.2	1,348.7	49.3
Insurance linked securities	4.2	-	4.2	0.2	39.7	1.2	7.5	0.3
	1,788.2	865.0	2,653.2	100.0	3,150.7	100.0	2,739.0	100.0
Assets by region⁽³⁾ (excluding pooled vehicles)
UK	179.5	191.3	370.8	13.1	307.0	11.2	296.4	10.4
US and Canada	709.9	511.1	1,221.0	43.1	986.5	35.9	1,145.8	40.5
Europe (excluding UK)	497.7	478.9	976.6	34.4	1,302.1	47.3	947.3	33.5
Far East	177.1	49.7	226.8	8.0	109.1	4.0	409.4	14.5
Emerging markets	14.9	25.6	40.5	1.4	45.1	1.6	31.4	1.1
	1,579.1	1,256.6	2,835.7	100.0	2,749.8	100.0	2,830.3	100.0

	30 June 2012 £m	30 June 2011 £m	31 December 2011 £m
Net financial investments	4,081.3	4,120.1	4,069.4

Assets/(liabilities) shown separately in the financial statements:
Accrued income	9.1	18.4	11.2
Net unsettled payables for investments purchased	(30.6)	(9.5)	(5.1)
Cash funds held by financial institutions	135.3	21.2	112.0
Assets not analysed in the investment asset allocation table:
Liquid investments	(2.2)	1.0	0.6
Unlisted equities	(0.2)	(0.2)	(0.2)
Margin and collateral relating to derivative instruments	(0.2)	(7.1)	(8.9)
Total investments in asset allocation tables above	4,192.5	4,143.9	4,179.0

Assets and liabilities by business segment At 30 June 2012	Amlin London £m	Amlin UK £m	Amlin Bermuda £m	Amlin Re Europe £m	Amlin European Insurance £m	Other corporate companies £m	Intra group items £m	Total £m
Assets	2,540.2	797.7	2,012.5	247.4	1,742.3	3,262.0	(3,426.9)	7,175.2
Liabilities	(2,479.9)	(786.8)	(1,026.0)	(254.8)	(1,547.3)	(1,581.8)	1,991.1	(5,685.5)
Total net assets	60.3	10.9	986.5	(7.4)	195.0	1,680.2	(1,435.8)	1,489.7

Restated Income and expenses by business segment Six months ended 30 June 2011	Amlin London £m	Amlin UK £m	Amlin Bermuda £m	Amlin Re Europe £m	Amlin European Insurance £m	Other corporate companies £m	Intra group items £m	Total £m
Analysed by geographic segment
UK	120.9	142.2	144.9	5.6	-	-	(115.3)	298.3
North America	362.9	9.9	145.1	-	-	-	-	517.9
Europe	70.0	11.6	25.0	61.7	221.2	-	(3.4)	386.1
Worldwide	13.7	-	-	11.9	120.7	-	-	146.3
Other	111.7	3.7	50.6	-	-	-	-	166.0
Gross written premium	679.2	167.4	365.6	79.2	341.9	-	(118.7)	1,514.6
Net written premium	468.8	140.1	354.5	70.4	282.5	-	(1.4)	1,314.9

Gross earned premium	461.1	128.5	235.8	21.3	290.7	-	(80.8)	1,056.6
Reinsurance premium ceded	(135.5)	(22.2)	(8.8)	(2.2)	(51.1)	-	82.5	(137.3)
Net earned premium	325.6	106.3	227.0	19.1	239.6	-	1.7	919.3
Insurance claims and claims settlement expenses	(421.0)	(112.3)	(283.2)	(12.4)	(274.9)	-	78.7	(1,025.1)
Reinsurance recoveries	147.4	29.4	10.4	0.6	69.6	-	(80.9)	176.5
Expenses for the acquisition of insurance contracts	(82.5)	(21.8)	(31.2)	(2.6)	(38.0)	-	(1.5)	(177.6)
Underwriting expenses	(31.3)	(13.1)	(5.5)	(4.3)	(37.7)	(0.2)	(4.8)	(96.9)
Loss attributable to underwriting	(61.8)	(11.5)	(82.5)	0.4	(41.4)	(0.2)	(6.8)	(203.8)
Investment return	8.5	4.2	20.4	-	5.2	11.0	(4.0)	45.3
Other operating income⁽¹⁾	13.0	3.0	-	-	0.7	4.4	(14.6)	6.5
Agency expenses⁽²⁾	(11.4)	(3.1)	-	-	(0.4)	-	14.9	-
Other non-underwriting expenses	(0.3)	(0.1)	(0.8)	(1.2)	(10.6)	(1.4)	(12.2)	(26.6)
Result of operating activities	(52.0)	(7.5)	(62.9)	(0.8)	(46.5)	13.8	(22.7)	(178.6)
Finance costs⁽³⁾								(13.7)
Loss before taxation								(192.3)
Claims ratio	84%	78%	120%	62%	86%			92%
Expense ratio	35%	33%	16%	36%	32%			30%
Combined ratio	119%	111%	136%	98%	118%			122%

Restated Assets and liabilities by business segment At 30 June 2011	Amlin London £m	Amlin UK £m	Amlin Bermuda £m	Amlin Re Europe £m	Amlin European Insurance £m	Other corporate companies £m	Intra group items £m	Total £m
Assets	1,992.3	677.9	1,790.9	81.7	1,931.2	4,377.9	(4,042.7)	6,809.2
Liabilities	(2,017.0)	(680.8)	(920.3)	(85.0)	(1,674.9)	(2,243.1)	2,286.5	(5,334.6)
Total net assets	(24.7)	(2.9)	870.6	(3.3)	256.3	2,134.8	(1,756.2)	1,474.6

Restated Income and expenses by business segment Year ended 31 December 2011	Amlin London £m	Amlin UK £m	Amlin Bermuda £m	Amlin Re Europe £m	Amlin European Insurance £m	Other corporate companies £m	Intra group items £m	Total £m
Analysed by geographic segment
UK	151.2	283.2	220.0	9.0	-	-	(185.2)	478.2
North America	544.5	8.3	201.8	2.2	-	-	(0.7)	756.1
Europe	81.4	14.9	25.8	90.3	309.1	-	(0.9)	520.6
Worldwide	17.1	0.7	0.1	-	279.6	-	-	297.5
Other	160.7	5.3	79.8	5.9	-	-	-	251.7
Gross written premium	954.9	312.4	527.5	107.4	588.7	-	(186.8)	2,304.1
Net written premium	675.3	261.3	503.8	98.3	480.1	-	(5.6)	2,013.2

Gross earned premium	938.2	280.3	499.8	58.3	620.2	-	(173.6)	2,223.2
Reinsurance premium ceded	(268.7)	(49.1)	(21.2)	(7.4)	(120.4)	-	171.0	(295.8)
Net earned premium	669.5	231.2	478.6	50.9	499.8	-	(2.6)	1,927.4
Insurance claims and claims settlement expenses	(751.2)	(205.7)	(504.7)	(38.3)	(497.9)	-	128.2	(1,869.6)
Reinsurance recoveries	300.3	45.3	54.5	1.8	99.6	-	(131.3)	370.2
Expenses for the acquisition of insurance contracts	(172.1)	(52.8)	(66.5)	(7.6)	(91.9)	-	10.7	(380.2)
Underwriting expenses	(60.4)	(25.9)	(20.0)	(9.4)	(76.2)	-	(1.9)	(193.8)
Loss attributable to underwriting	(13.9)	(7.9)	(58.1)	(2.6)	(66.6)	-	3.1	(146.0)
Investment return	17.5	5.0	4.5	0.1	(15.1)	29.0	(0.5)	40.5
Other operating income⁽¹⁾	24.8	6.4	0.6	-	1.9	11.2	(36.1)	8.8
Agency expenses⁽²⁾	(20.2)	(5.3)	-	-	(0.7)	-	26.2	-
Other non-underwriting expenses	(0.6)	(0.2)	(4.4)	(1.9)	(26.2)	(49.0)	13.1	(69.2)
Result of operating activities	7.6	(2.0)	(57.4)	(4.4)	(106.7)	(8.8)	5.8	(165.9)
Finance costs⁽³⁾								(27.8)
Share of loss after tax of associates and joint venture								(0.1)
Loss before taxation								(193.8)
Claims ratio	67%	69%	94%	72%	80%			78%
Expense ratio	35%	34%	18%	33%	33%			30%
Combined ratio	102%	103%	112%	105%	113%			108%

Six months ended 30 June 2012	Management information £m	Reconciling items £m	IFRS Income statement £m
Gross written premium	1,814.7	-	1,814.7
Net written premium	1,488.8	16.7	1,505.5

Gross earned premium	1,172.1	-	1,172.1
Reinsurance premium ceded	(184.4)	2.6	(181.8)
Net earned premium	987.7	2.6	990.3
Insurance claims and claims settlement expenses	(540.9)	-	(540.9)
Reinsurance recoveries	18.3	-	18.3
Expenses for the acquisition of insurance contracts	(211.7)	-	(211.7)
Underwriting expenses	(99.6)	-	(99.6)
Profit attributable to underwriting	153.8	2.6	156.4
Investment return	84.7	(2.6)	82.1
Other operating income	2.3	-	2.3
Other non-underwriting expenses	(43.3)	-	(43.3)
Result of operating activities	197.5	-	197.5
Finance costs	(13.4)	-	(13.4)
Share of profit after tax of associates and joint venture	0.4	-	0.4
Profit before taxation	184.5	-	184.5

	6 months 2012 £m	6 months 2011 £m	12 months 2011 £m
Investment income
- dividend income	5.7	7.0	12.2
- interest income	16.4	22.6	42.8
- cash and cash equivalents interest income	2.8	0.5	5.7
	24.9	30.1	60.7
Net realised gains/(losses)
on assets held for trading
- equity securities	4.2	10.7	12.8
- debt securities	11.2	32.2	29.2
- property funds	0.7	0.7	2.6
- derivative instruments	1.2	2.3	(8.7)
on assets classified as other than trading
- participation in investment pools	1.7	-	2.4
	19.0	45.9	38.3
Net unrealised gains/(losses)
on assets held for trading
- equity securities	4.7	(4.6)	(29.4)
- debt securities	36.8	(20.8)	(35.1)
- property funds	3.2	3.0	1.7
- derivative instruments	(6.5)	(8.3)	4.1
on assets classified as other than trading
- participation in investment pools	-	-	0.2
	38.2	(30.7)	(58.5)
	82.1	45.3	40.5

Credit rating⁽⁴⁾	30 June 2012 £m	30 June 2011 £m	31 December 2011 £m
AAA	982.8	1,419.9	987.9
AA	1,231.0	1,086.7	1,104.8
A	293.0	511.8	516.9
BBB	49.2	36.1	31.3
Other⁽⁵⁾	97.2	96.2	98.1
Total	2,653.2	3,150.7	2,739.0

	Goodwill £m	Syndicate participations £m	Broker and customer relationships £m	Computer software £m	Other intangibles £m	Total £m
Net book value
At 1 January 2011	61.8	63.2	40.8	17.4	1.3	184.5
Additions	-	-	-	11.0	-	11.0
Acquisitions through business combinations	16.3	-	-	-	-	16.3
Amortisation	-	-	(2.2)	-	(0.3)	(2.5)
Foreign exchange gains	2.8	-	1.3	0.5	-	4.6
At 30 June 2011	80.9	63.2	39.9	28.9	1.0	213.9
Additions	-	-	-	14.7	-	14.7
Adjustments to prior acquisitions	(0.5)	-	-	-	-	(0.5)
Amortisation	-	-	(2.2)	-	(0.2)	(2.4)
Foreign exchange losses	(3.8)	-	(2.0)	(1.0)	-	(6.8)
At 31 December 2011	76.6	63.2	35.7	42.6	0.8	218.9
Additions	-	-	-	2.9	-	2.9
Amortisation	-	-	(2.1)	(0.4)	(0.3)	(2.8)
Foreign exchange losses	(1.6)	-	(0.8)	(0.4)	-	(2.8)
At 30 June 2012	75.0	63.2	32.8	44.7	0.5	216.2

	Number	£m
Allotted, called up and fully paid ordinary shares
At 1 January 2011 and 1 January 2012 issued ordinary shares of 28.125 pence each	502,076,006	141.2
At 30 June 2011, 31 December 2011 and 30 June 2012 issued ordinary shares of 28.125 pence each	502,076,006	141.2

	6 months 2012	6 months 2011	12 months 2011
Profit/(loss) attributable to equity holders of the Parent Company	£168.9m	(£151.7m)	(£149.9m)
Weighted average number of shares in issue	494.7m	494.0m	494.1m
Dilutive shares⁽¹⁾	6.7m	-	-
Adjusted average number of shares in issue	501.4m	494.0m	494.1m
Basic earnings per share	34.1p	(30.7p)	(30.3p)
Diluted earnings per share	33.7p	(30.7p)	(30.3p)

Net assets and tangible net assets per share are as follows:	30 June 2012	30 June 2011	31 December 2011
Net assets	£1,489.7m	£1,474.6m	£1,420.4m
Adjustments for intangible assets	(£216.2m)	(£213.9m)	(£218.9m)
Tangible net assets	£1,273.5m	£1,260.7m	£1,201.5m

Number of shares in issue at end of period/year	502.1m	502.1m	502.1m
Adjustment for ESOT and treasury shares	(7.3m)	(7.9m)	(7.6m)
Basic number of shares after ESOT and treasury shares adjustment	494.8m	494.2m	494.5m

Basic net assets per share	301.1p	298.4p	287.2p
Basic tangible net assets per share	257.4p	255.1p	243.0p

Group	6 months 2012 £m	6 months 2011 £m	12 months 2011 £m
Final dividend for the year ended:
- 31 December 2011 of 15.8 pence per ordinary share	78.2	-	-
- 31 December 2011 of Amlin Plus Limited to non-controlling interests	0.1	-	-
- 31 December 2010 of 15.8 pence per ordinary share	-	78.0	78.0
Interim dividend for the year ended:
- 31 December 2011 of 7.2 pence per ordinary share	-	-	35.6
	78.3	78.0	113.6

	H1 2012 Average rate	At 30 June 2012	H1 2011 Average rate	At 30 June 2011	Full year 2011 Average rate	At 31 December 2011
US dollar	1.58	1.57	1.62	1.61	1.60	1.55
Canadian dollar	1.59	1.60	1.58	1.55	1.59	1.59
Euro	1.22	1.24	1.15	1.11	1.15	1.20
New Zealand dollar	1.96	1.96	2.16	2.17	2.03	2.00
Japanese yen	125.74	125.32	139.44	132.40	127.88	119.54