Underwriting

Overview

The Group derives business from the Syndicate through a combination of its participation via the Omega Dedicated corporate member and through quota share reinsurances with Omega Specialty as detailed in the table below.

From the 2010 year of account, Omega will participate in the gross underwriting of the Syndicate through the 20.0% quota share and 38.8% of the remaining 80.0% representing an approximate economic gross underwriting interest of 51.2% prior to Managing Agency profit commission. Some outwards reinsurance from the Syndicate does not inure for the benefit of the quota share. Where this is the case the Group buys its own reinsurances.

During 2009, Omega concluded a capacity offer with third-party members that, together with capacity acquired at the Lloyd’s November Auctions, increased its share of Syndicate 958 from 16.4% to 38.8%.

In September 2010 Omega acquired a further 1.7% of capacity in the Lloyd's auctions to take our ownership to 40.5% and economic interest to 52.4% for the 2011 year of account.

Underwriting Focus

The Syndicate has focused predominantly on short-tail, diversified property orientated insurance and reinsurance with a focus on small to medium sized insureds, with whom the Omega Group has built longstanding relationships.

Major Classes Underwritten Include:

• Non-marine property insurance
• Motor insurance and reinsurance
• Property catastrophe treaty
• Energy and marine insurance and reinsurance
• Property per risk treaty reinsurance
• Liability insurance and reinsurance
• Professional indemnity insurance
• Other lines including Satellite, Personal Accident and Kidnap & Ransom

Syndicate 958 Capacity and Profit Forecasts

Year of account	2010	2009	2008	2007
Effective capacity	US$420m	US$496m	US$478m	US$441m
Omega retained share of capacity	38.8%	16.4%	16.4%	15.2%
Quota share reinsurance with Omega Specialty	20.0%	20.0%	20.0%	27.5%
Forecast profit as a % of stamp capacity	n/a	5-10%	0-5%	16.4%

Group Share of Syndicate 958

Gross Premiums Written by Class of Business (%)

2009:	20.9%		30.2%		7.9%		5.6%		7.1%		13.2%		10.6%		4.5%
	Non-marine property insurance		Property catastrophe reinsurance		Marine insurance & reinsurance		Liability insurance & reinsurance		Property per risk treaty reinsurance		Professional indemnity insurance		Motor insurance & reinsurance		Other
2008:	27.7%		19.0%		6.6%		6.0%		6.0%		22.4%		9.0%		3.4%

Gross Premiums Written by Geography (%)

2009:	73.8%		18.2%		4.7%		3.2%
	US		UK		Other Europe		Other
2008:	62.5%		13.0%		8.8%		15.7%