Press Release

Catlin Group Limited Trading Statement

4 January 2007

HAMILTON, Bermuda – Catlin Group Limited (‘CGL’: London Stock Exchange), the international specialty property/casualty insurer and reinsurer, today provides a trading update.

2006 was a remarkably catastrophe-free year, and claims experience for the non-catastrophe-exposed portfolio has been generally favourable. The Group’s underwriting portfolio performed strongly overall.

The 2007 renewal season has been broadly in line with expectations. Whilst rates and conditions for catastrophe-exposed business continued to be robust, rates for some non-catastrophe-exposed classes continued to be under pressure. Rates are currently adequate for most classes of business underwritten by Catlin, and Management looks ahead to 2007 with optimism.

Catlin’s offer to acquire Wellington Underwriting plc was declared wholly unconditional at 5.45pm on 18 December 2006. By 8am the following day, all members of the combined underwriting staff were working from a new, purpose-built underwriting floor on the ground level of Catlin’s London office, and the full integration of underwriting operations has since been completed. The integration of financial and support functions is on schedule and will be completed by the end of January, and all staff in London are expected to be relocated by that time.

Catlin is also in the process of refinancing through the debt capital markets the US$500 million bridge facility that was used to finance the acquisition of Wellington.

Stephen Catlin, chief executive of Catlin Group Limited, said:

"We are looking forward to 2007 with confidence and enthusiasm in the light of our successful acquisition of Wellington, the rapid integration of the two businesses and our strong performance in 2006. The enlarged Catlin Group will benefit from the attractive market environment that exists in many of the specialty classes of insurance and reinsurance that we underwrite worldwide."

- ends -

For more information:

Media Relations:

James Burcke,
Head of Communications,
London

Tel:
Mobile:
E-Mail:

+44 (0)20 7458 5710
+44 (0)7958 767 738
james.burcke@catlin.com

Liz Morley,
Maitland, London

Tel:
E-mail:

+44 (0)20 7379 5151
emorley@maitland.co.uk

Investor Relations:

William Spurgin,
Head of Investor Relations,
London

Tel:
Mobile:
E-mail:

+44 (0)20 7458 5726
+44 (0)7710 314 365
william.spurgin@catlin.com

Notes to editors:

1.

Catlin Group Limited, headquartered in Bermuda, is an international specialist property/casualty insurer and reinsurer writing more than 30 classes of business worldwide. Catlin wrote gross premiums of US$1.4 billion in 2005 and more than US$900 million in the six months ended 30 June 2006. Catlin shares are traded on the London Stock Exchange (ticker symbol: CGL). More information about Catlin can be found at www.catlin.com.

2.

On 18 December 2006, Catlin’s offer for the entire issued and to be issued share capital of Wellington Underwriting plc was declared unconditional. The enlarged Catlin Group has a total net asset value of US$1.9 billion.

3.

Catlin operates four underwriting platforms:

  • The Catlin Syndicate at Lloyd’s of London (Syndicate 2003) is a recognised leader of numerous classes of specialty insurance and reinsurance. The Catlin Syndicate is the largest at Lloyd’s in 2007 based on premium capacity of up to £1.25 billion.
  • Catlin Bermuda (Catlin Insurance Company Ltd.), which underwrites property treaty and casualty treaty reinsurance and property and casualty insurance.
  • Catlin UK (Catlin Insurance Company (UK) Ltd.), which specialises in underwriting commercial non-life insurance for UK clients. It also writes other classes of business written by the Catlin Syndicate.

  • Catlin US, which encompasses Catlin’s operations based in the United States. Catlin US includes Catlin Insurance Company Inc., an admitted US insurer which will commence operations soon, and Wellington Specialty Insurance Company, a non-admitted insurer which will soon be rebranded under the Catlin banner. Catlin US has more than 15 underwriting offices in the United States.

4.

Catlin also operates offices worldwide which allow Catlin underwriters to work closely with local policyholders and brokers. The offices are located in Canada (Toronto and Calgary), Australia (Sydney), Singapore, Malaysia (Kuala Lumpur), Hong Kong, Germany (Cologne), Belgium (Antwerp) and Guernsey. Catlin UK has regional offices in Glasgow, Leeds, Derby, Birmingham, Watford and Tonbridge. Catlin recently announced that it will open European offices in Paris, Barcelona, Zurich and Innsbruck in early 2007.