AGM Statement

24 May 2006 12:00

Kiln PLC24 May 2006 Kiln plc AGM trading statement Kiln plc, the specialist Lloyd's insurance group, held its annual generalmeeting today at which chairman Nick Cosh made a statement on current tradingconditions. Following the hurricanes in 2005, trading conditions have shown considerableimprovements and this trend, which began immediately after the hurricanes, hascontinued and accelerated as 2006 has progressed. For Kiln's flagship Syndicate510, rates are up 13% when compared to the same period last year, withreinsurance and marine pricing up 19% and 32% respectively. Kiln continues tolead the majority of business that it writes. Budgeted premium income for the year to the end of April is up by over 17%compared with the same period last year, with the marine and property divisionsshowing particular strength. The actual risk count in Syndicate 510 is over 11%lower than it was at this point last year which, combined with the increasedpremium income and rates, reflects the continuing discipline and control thatthe company is applying to its underwriting exposure. The table below sets out the changes both in rating on renewal business and inthe number of risks accepted by Syndicate 510 when compared to the portfoliounderwritten 12 months ago. Mid May 2006/2005 1 May 2006/2005 Rate changes Risk count changes Accident and Health 100.3% 91.5%Property 109.4% 85.0%Reinsurance 119.2% 87.1%Marine 132.0% 98.9%Aviation 97.9% 87.0%Total Syndicate 510 113.0% 88.6% Nick Cosh, chairman of Kiln said "The new underwriting environment is continuing to evolve, with marked pricingincreases to date in areas such as reinsurance, offshore energy and property; webelieve that this will continue to develop and change as the year progresses.Kiln is continuing to take good advantage of the rating conditions, whilecontrolling exposure carefully across all classes of business." On Wednesday of next week Kiln will announce its syndicate forecasts for the2004 and 2005 years of account for its four Lloyd's syndicates and Kiln plc willannounce its interim results for the six months to 30 June 2006 on 12 September2006. Enquiries: Kiln plc 020 7886 9000 Nick Cosh Kate Rogers College Hill 020 7457 2020 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 £803 million of capacity under management for the 2006 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