Kin Group Regulatory News (KIN)

8 Sep 2005 14:01

Kiln PLC08 September 2005 Kiln plc Possible Impact of Hurricane Katrina Kiln is giving preliminary guidance on its initial estimate of the loss causedby Hurricane Katrina. The loss is a complex one, and it will be a substantiallength of time before precise forecasts of the ultimate loss can be made.Complications include the necessary length of time it will take to assesslosses, coverage issues and the potential for litigation. This estimate istherefore based on an insured market loss of US$40 billion, split US$35 billionfor on-shore losses and US$5 billion for off-shore losses. The loss falls principally on Kiln's property catastrophe reinsurance, propertyand marine portfolios of business. The 100% net loss for Kiln's business isexpected to be in the region of £80 million to £100 million, if taken inisolation. We estimate that the equivalent loss to Kiln plc shareholders wouldbe between £30 million and £35 million. Further details will be contained within Kiln's interim results, due to bepublished on Tuesday 13th September. The total managed capacity for Kiln Group is £681 million and £703 million forthe 2004 and 2005 Lloyd's years of account, of which Kiln plc provides 39% and40% for each respective year. The exchange rate used for the estimate is US$1.85 to £1. 8th September 2005 Enquiries: Kiln plc 020 7886 9000 Edward Creasy, Chief Executive Officer Robert Chase Director of Underwriting Kate Rogers, Head of Communications College Hill 020 7457 2020 Tony Friend Roddy Watt Notes to Editors: Kiln, established in 1962, is an international insurance andreinsurance underwriting group that specialises in complex, unusual risk. Kilnplc is listed on the London Stock Exchange. Its operating subsidiary, R J Kiln &Co Limited has £703 million of capacity under management for the 2005 year ofaccount, making it one of the largest agencies trading in the Lloyd's of Londoninsurance market. A recognised leader in each of the five main business areas in which itoperates: reinsurance, accident and health, aviation, marine and special risks,and property, Kiln enjoys a security rating of 'A' (Strong) assigned to Lloyd'sby Standard and Poor's. This information is provided by RNS The company news service from the London Stock Exchange This information is provided by RNS The company news service from the London Stock Exchange