1. HARDY UNDERWRITING GROUP PLC

2. BACKGROUND Lloyd’s insurance business. Syndicate 382 commenced trading for the 1975 YOA. Hardy Underwriting Limited commenced underwriting in 1995 80% ownership of £54 million syndicate for 2002 YOA. Average return on syndicate 382 stamp capacity of 17.2 %.

3. HIGHLIGHTS Excellent syndicate track record. Preserved capital in difficult underwriting conditions. Underwriting conditions have improved considerably. Raising £25m

4. THE SYNDICATE Consistently outperformed Lloyd’s Global Market. Note 1 All results are shown after the deduction of illustrative personal expenses for an individual name as a percentage of capacity. Source:2001 syndicate report and accounts

5. BEST / WORST RESULTS FOR SYNDICATE 382 YearBestYearWorst % 198437.41998(1.3) 198534.619900.2 197634.619992.98 198630.119923.9 199328.919914.2 Results are expressed as a % of syndicate capacity after illustrative expenses for an individual Name for all closed years of account. Data source: 2001 syndicate reports and accounts

6. THE SYNDICATE – PROFIT NOT VOLUME The syndicate result is expressed after illustrative expenses for an individual Name. The 2000 and 2001 figures are estimates obtained from the syndicate business plan. Data source: 2001 syndicate report and accounts and business plan

7. RECENT EVENTS Market conditions improving progressively since 2000. Major losses in 2001 accelerated already improving ratings. WTC impact.

8. THE OPPORTUNITIES More risks meet underwriting requirements of the Group. Expand underwriting of the Group. Raise profile of Hardy among brokers and clients. Strengthen the balance of the book of business.

9. USE OF PROCEEDS Establish and capitalise a quota share syndicate to write increased business in 2002.* Fund mandatory capacity offer in 2002 and back any resultant increase in the Group’s capacity in 2003. Future expansion of underwriting. Working capital to fulfil strategy. * Subject to consent from non-aligned members of Syndicate 382

10. FINANCIAL HIGHLIGHTS Profit before tax of £3, 192,000 (2000 - £1,621,000) Operating profit, assuming long term rate of return, of £4,648,000 (2000 - £1,097,000) Combined ratio 83.2% (2000 – 91.8%) Dividend proposed 6.5p (2000 – 6.0p) WTC exposure less than 4% of syndicate 382’s 2001 stamp capacity ($2.6m gross and net)

11. APPENDICES

12. CORPORATE HISTORY 1975:Syndicate 382 commenced trading. 1978:Hardy Underwriting Agency (HUA) established. 1995:Hardy Underwriting (HU) commenced underwriting as a corporate member. 1996:Hardy Underwriting Group plc (HUG) formed. Acquisition of HU and HUA by HUG. HUG raised £1.8million via an open offer. Formation of Hardy Names Limited as a corporate member. HUG admitted to AIM @ 125p per share 1997:HUG raised £2.5m. 1998:Raised £17.7m. 1999:HUG’s share of Syndicate 382 increased to 71%. Admitted to the official list of the London Stock Exchange. 2000 – 2002Strengthened Management team.

13. THE SYNDICATE Composite syndicate - predominantly short tail. Syndicate 382 estimated net premium income split by major class Source: revised business plan (Feb 2002)

14. THE SYNDICATE Progressive increase in own capacity ownership. * 2003 anticipated owned capacity

15. THE BOARD Peter Hardy (aged 62) (Chairman) Until January 2002, Peter Hardy was Chief Executive of Hobbit, when he became Non-executive Chairman. He is also the Chairman of Hardy (Underwriting Agencies) Limited and a director of the other group subsidiaries. Peter Hardy has worked in the Lloyd’s market since 1959 and was appointed in 1969 as the underwriter of syndicate 30 under the management of C.T. Bowring (Underwriting Agencies) Limited. He became the underwriter for syndicate 382 in 1975 and was a founding director of the managing agent in 1978. He ceased as Active Underwriter of syndicate 382 at the end of 1998. Barbara Merry (aged 44) (Chief Executive) Barbara Merry qualified as a chartered accountant in [1983]. She joined the Board on 29 January 2002, having been appointed Chief Executive of the Group on 14 January 2002. She is also a director of the other Group companies. Prior to this, she was Managing Director of Omega Underwriting Agents Limited and a director of the other Omega group companies. Barbara Merry has extensive Lloyd’s experience, having worked at the corporation for 14 years, latterly was a general manager in the regulatory division.

16. Adrian Walker (aged 45) (Active Underwriter) Adrian Walker joined the Board and assumed the role of Active Underwriter for syndicate 382 on 9 January 2001. Prior to this appointment he was a Non-executive Director on the board of Hardy (Underwriting Agencies) Ltd (appointed 13 April 2000). He is also a director of the other Group companies. He was previously employed by Amlin PLC as the underwriter for syndicate 902 (A J Walker & Others), a position he had held since March 1995 having previously been the deputy for the syndicate since 1988. David Dunning (aged 43) (Finance Director) David Dunning was appointed as Finance Director in August 2000. He is a fellow of the Association of Chartered Certified Accountants, having qualified in 1987, and is an associate member of the Chartered Institute of Bankers. In 2000, he obtained an MBA from Manchester Business School. From 1997 to 2000 he was Director of Financial Planning and Analysis at Hiscox plc. Prior to that he was with Royal & Sun Alliance. He is also a director of the other Group companies. Nigel Ellis (aged 62) (Non-executive) Nigel Ellis is a chartered accountant and is presently Chairman of Quintain Estates. From to he was Non-executive Chairman of Hobbit. Previously he was Finance Director of BAA plc and its subsidiaries.

17. Alastair Leslie (aged 67) (Non-executive) Alastair Leslie joined Willis Faber & Dumas Limited in 1955 and was managing director of Willis Faber & Dumas Agencies Limited from 1976 until 1985. He formed A.P. Leslie Underwriting Agencies Limited in 1976. This business was acquired by Wellington Underwriting Holdings Limited in 1990 and subsequently changed it name to Wellington Members Agency Limited. He retired in 1992 but remains a director of various private companies. Pierre van der Mersch (aged 67) (Non-executive) Pierre van der Mersch is chairman and chief executive of Brederode S.A., which is listed on the Brussels Stock Exchange. The Brederode Group has substantial interests in the insurance sector, principally in Belgium, Bermuda, the United States and at Lloyd’s where it set up Athanor Limited as one of the first corporate members in 1993. Pierre van der Mersch is also a non-executive director of SVB Holdings plc, another Lloyd’s listed group.