HUA Plc Presentation - Results for year ended 31 st December 2006 Page 1 Heritage Underwriting Agency Plc Presentation Results for the year ended 31 December 2006 Issued: 28 March 2007 Richard Pexton – CEO Nick Denniston - CFO

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 2 Disclaimer notice This presentation contains or may contain forward-looking statements. It is important to note that the Company’s actual results could differ materially from the results anticipated or projected in such forward-looking statements, based on a number of important factors. The company does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Past performance cannot be relied on as a guide to future performance.

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 3 n Highlights n Overview (slide 4) n Agency and HUA premium growth 2005 to 2007(slide 5) n Outlook (slide 6) n Financial Review n Results summary (slide 8) n Review of results – profit before tax (slide 9) n Underwriting analysis (slide 10) n Investment returns (slide 11) n Balance sheet and gearing(slide 12) n Worldwide property (Syndicate 1200) n Underwriting syndicate analysis (slide 14) n Catastrophe exposure management (slide 15) n Incurred losses since 2002 (slide 16) n Non US liability (Syndicate 3245) n Underwriting syndicate analysis (slide 18) n Premium rates and geographical analysis(slide 19) n Summary(slide 20) Agenda

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 4 Overview n Premium income was up 82% to £110.9m. n Profit before tax £10.3m (2005: loss £4.6m). n Earnings per ordinary share were 17p (2005: (13)p) n Return on equity 25% (2005: (18)%) n Net tangible assets per share (fully diluted) up 30% to 78p (2005: 60p) n The combined ratio improved to 90% (88% excluding foreign exchange impact) (2005: 119%) n The claims ratio fell from 90% to 53% n Raised and fully deployed £33m of equity n Established mid year underwriting vehicle at Lloyds to write additional £35m of capacity

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 5 Agency and HUA premium growth 2005 to 2007 £m (Premium Capacity - excluding acquisition costs)

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 6 n 2007 written premium income to date is £107m for worldwide property and £15m for non US liability. n Rates for balance of 2007 are expected to be stable in our core accounts with the Florida’s state backed insurance funds having minimal impact on our commercial lines business - <2% of premium income. n HUA underwriting participation increased for 2007 to £139m from £99m (2006), up 40%. n 2007 will also benefit from a full years premium from the new personal accident and auto physical damage underwriting teams which will add diversity to the property book. n More reinsurance catastrophe cover bought at similar prices to last year. We continue to focus on aggregate management and risk dispersion for our loss mitigation. n Loss activity continues at a low level. Outlook

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 7 Financial Review

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 8 Results summary attributable to ordinary shareholders 2006 £m 2005 £m Change £m Net earned premiums Investment return and other income Revenue Net insurance claims(39.6)(34.6)(5.0) Expenses/Acquisition costs(31.3)(13.3)(18.0) Results of operating activities11.9(4.1)16.0 Financing(1.6)(0.5)(1.1) Profit before tax10.3(4.6)14.9 Earnings per share17p(13)p30p Dividend per share2.5p- Net tangible assets per share78p60p18p

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 9 Review of results – profit before tax attributable to ordinary shareholders 2006 £m 2005 £m Change £m Underwriting profit7.5(7.2)14.7 Other income3.73.8(0.1) Operating expenses(3.3)(2.4)(0.9) Investment income Financing(1.6)(0.5)(1.1) Profit before tax10.3(4.6)14.9 Return on equity25%(18)%43%

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 10 Underwriting result attributable to ordinary shareholders 2006 £m 2005 £m Change £m Gross Premium Net earned premium Claims ratio53% 90%(37)% Expense ratio37% 29%8% Combined ratio90% 119%(29)% Impact of Katrina on combined ration/a 29%n/a

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 11 Investment returns attributable to ordinary shareholders Year end cash and investments 2006 £m 2005 £m Change £m – HUA Group – Syndicates (Heritage share) Total n The HUA Group return on weighted average cash investments was 5.1% (2005: 4.4%). Merrill Lynch 1-3 year A-AAA non-gilt index (weighted 75:25) with equivalent benchmarks set for US dollars, Canadian dollars and Euros. The following investment returns were achieved in 2006: %% Sterling4.05.0(1.0) Euro US Dollar Canadian Dollar

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 12 n NTA per share 78p at the end of 2006 n Debt to capital employed is 29% (net of cash 13%) n Free cash at holding company level £15.1m Balance sheet and gearing Change £m Investments held as Funds at Lloyds Other financial investments and cash balances19.8(0.7)20.5 Long term loan notes(23.6)(12.0)(11.6) Net other assets/(liabilities)0.66.1(5.5) Interest in syndicates1.7(3.4)5.1 Total Group net assets

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 13 Worldwide Property (Syndicate 1200)

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 14 Worldwide Property Underwriting syndicate analysis- ordinary shareholders 2006 £m 2005 £m Change (%) Gross written premium – Syndicate (100%) % – Heritage share % Earned premium – Heritage share % Claims ratio52%92%(40%) Combined ratio88%121%(33%) Impact of Katrina on combined ration/a29%n/a Rate change (open market facultative)27%n/a

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 15 Worldwide property Catastrophe exposure management Cat modelling n Minimise exposure to any one Lloyd’s prescribed catastrophe loss to no more than approximately 20% of premium capacity. n 2007 business plan includes significant catastrophe allowances, approximately 17% of premium capacity to withstand three to four hurricanes of Wilma scale. n More reinsurance purchased in EventIndustry loss HUA’s total participation (%) European windstorm $30bn2.1% Miami wind-storm $100bn19.0% LA earthquake $65bn9.4% Gulf of Mexico wind-storm $100bn9.5% Results of selected RDS at 2/07

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 16 Worldwide property - incurred losses since 2002

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 17 Non US Liability (Syndicate 3245)

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 18 Non US Liability Underwriting syndicate analysis- Ordinary shareholders only 2006 £m 2005 £m Change (%) Gross Premium – Syndicate (100%) % – Heritage share % Earned premium – Heritage share % Claims ratio57%63%(6%) Combined ratio95%104%(9%) Rate change (all classes)(7%) -

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 19 Premium rates and geographical analysis Premium rate developmentGeographical business mix Premium levels experienced on renewals (2000 = 100%)

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 20 Summary n 19% growth in managed capacity to £315m for 2007 year of account. n Heritage share of capacity increases to 44% for n US property rates remain extremely attractive. n Unearned premium reserve of £33.0 (2005: £20.2) n Good start to 2007 with £122.9m total premium written, up 35% on this time last year. n Premium written to date attributable to ordinary shareholders at £55.3m, up 61% on this time last year. n Further organic growth for 2007 with the addition of new underwriting teams.

HUA Plc Presentation - Results for year ended 31 st December 2006 Page 21 Q&A