RNS/Press Announcement

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Monday 14th December 2009

Litigation and arbitrations between R&Q Re (UK) and Equitas in respect of Exxon and Kuwait reinsurance claims ended, removing a longstanding source of uncertainty for the Group.
As a result of payments arising from the settlement, it is anticipated that the Group will make a pre-tax loss for the year, but this is expected to be less than £5m and is a one off hit to the Group’s financials.
No impact on distributable profits from the Insurance Services Division allows maintenance of progressive dividend policy and illustrates robustness of the business model.