RNS Number:3993T
BRIT Insurance Holdings PLC
18 December 2003


PRESS RELEASE
18 December 2003
For immediate release

                          Brit Insurance Holdings PLC

                                 Trading Update


Brit Insurance Holdings PLC ("Brit" or "the Group"), the UK general insurer is
pleased to make the following pre-close season trading update.


Underwriting environment

Underwriting conditions in our target areas continue to be exceptionally
positive. Continued high rates and low loss incidence have meant that the Group
continues to meet its own internal forecasts. So far, the current renewal season
is firmer than we would have expected with the reinsurance account in particular
holding up well.

Brit anticipates that the wider insurance industry will see further
deterioration in the results for 2001 and prior years. Because of the Group's
very small exposures to those years and its conservative reserving policy, this
is expected to have little or no effect on Brit. We anticipate that the reserve
strengthening in the industry will be a factor in maintaining underwriting
discipline and have a continuing positive effect on insurance rates.


Capital requirement

We note developments on industry capital adequacy models, both at company and
group level, particularly FSA Consultation Papers CP190 and CP204 which will
have the effect of increasing capital requirements for insurers. Brit has
anticipated this and is therefore well positioned for these changes which the
industry will need to begin to implement during 2004. This gives us great
confidence for longer term stability of performance while providing a
satisfactory return on capital to our shareholders.


Neil Eckert, Chief Executive of Brit, said: "We have experienced another year of
exceptional underwriting conditions. Our target areas, particularly the UK
commercial market, are seeing continued opportunity for profitable growth and we
are pleased with the progress we have made. We have taken strong decisions
during the year, such as our decision to stop underwriting airline business, and
have remained firm on our policy of allocating capital to classes with the best
prospect for high returns.

The outlook for 2004 is positive and we will continue to deliver on our
objectives. We look forward to announcing our final results on 2nd March 2004."


Contact:

Neil Eckert, Chief Executive, Brit Insurance Holdings PLC        020 7984 8500
David Haggie, Haggie Financial                                   020 7417 8989
Peter Rigby, Haggie Financial                                    07803 851 426


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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