HYPERION INSURANCE GROUP LIMITEDweb-resources.hyperiongrp.com/cmsmedia/1315/2007_hyperion_report.… · HYPERION INSURANCE GROUP LIMITED ... • Opened sixth office for Howden India

HYPERION INSURANCE GROUP LIMITED

REPORT & ACCOUNTS

YEAR ENDED 30 SEPTEMBER 2007

ARGENTINA

AUSTRALIA

BRAZIL

COLOMBIA

DUBAI

FINLAND

GERMANY

ICELAND

INDIA

ISRAEL

ITALY

POLAND

PUERTO RICO

SPAIN

SWEDEN

UNITED KINGDOM

UNITED STATES


REPORT & ACCOUNTS


2006-2007 At A Glance 02

Chairman’s Statement 04

Chief Executive’s Review 06

Key Milestones 08

Group Structure 09

Board Structure 10

Group Broking 12

Group Underwriting 22

Financial Statements 33

01HYPERION INSURANCE GROUP

CONTENTS

2006-2007 AT A GLANCE

£ 220,363,000GROSS WRITTEN PREMIUM

GWP is a key measure of the overall size ofthe Group’s business. The significant growthin GWP reflects the increasing scale andreach of the Group’s operations.

£ 8,145,000EBITDA

The Group’s emphasis is on profitablegrowth across all of its operations and we target a profit margin of 20% on ourestablished businesses.

£ 20,317,000BROKING INCOME

£18,009,000UNDERWRITING INCOME

Having both broking and underwriting inthe same Group provides a high level ofversatility and increases access to marketsand customers.

408PEOPLE EMPLOYED

People are our most important asset. Onlyby continuing to seek out and employtalented individuals can we maintain ourprofessionalism and achieve our growthtargets.

02 HYPERION INSURANCE GROUP

AT A GLANCE

2003 2004 2005 2006 2007

2000 2001 2002 2003 2004 2005 2006 2007

2000 2001 2002 2003 2004 2005 2006 2007

2000 2001 2002 2003 2004 2005 2006 2007

94,665

619

914

50 69102

175232

272

355408

1,759

5,170

2,245

6,787

Underwriting

Broking

3,659

10,478

6,606

13,689

8,894

17,990

14,228

19,17318,009

20,317

3,691

1,3401,806

3,590 3,407

5,204

6,997

8,145

138,669

172,252193,267

220,363250,000

200,000

150,000

100,000

50,000

0

9,0008,0007,0006,0005,0004,0003,0002,0001,000

0

25,000

20,000

15,000

10,000

5,000

0

500

400

300

200

100

0

£ ‘0

00£

‘000

£ ‘0

00N

umbe

r


AT A GLANCE

KEY FACTS• Founded in 1994 in the UK as a wholesale broker, now

an international insurance group with four key operatingplatforms: wholesale, retail and reinsurance broking, andunderwriting

• Three main brands: CFC Underwriting, DUAL andHowden

• 51 offices in 17 countries employing over 400 peoplearound the world

• Achieved annual compound growth rate of approximately40% since 1995

• Reported turnover of £39.2 million for the financial yearended 30th September 2007 and EBITDA of £8.1 million

2006-2007HIGHLIGHTSOCTOBER 2006• Opened fifth office for Howden India in Kolkata

DECEMBER 2006• Acquired 70% shareholding in Spanish warranty provider

Avant Garantías SL• Opened third office in Spain for Howden Iberia in Valencia• Opened sixth office for Howden India in Vadodara

JANUARY 2007• Recognised by the Sunday Times Buyout Track 100 as

one of Britain’s fastest growing independent companiesbacked by private equity

• Established first international Hyperion ‘hub’ in Spain• Opened fourth office in Spain for Howden Iberia in Seville

MARCH 2007• Holm & Co adopted Howden brand and becomes

Howden AB

APRIL 2007• Awarded a Queen’s Award for Enterprise in International

Trade

MAY 2007• Completed rights issue raising £5.5m new capital

JUNE 2007• Established fourth VK Howden operation with the

opening of an office in Argentina

JULY 2007• Hyperion ranked 13th in Post Magazine’s influential Top

25 City Brokers list

AUGUST 2007• Howden India expansion from six to a network of 22

offices commenced

SEPTEMBER 2007• DUAL Australia extends its operation by establishing a

third office in Perth,Western Australia

The Hyperion Insurance Group has achieved an annual compoundgrowth rate of approximately 40%since 1995.

In April 2007, theHyperion Insurance Groupwas awarded a Queen’sAward for Enterprise in International Trade.

TERRITORIES AND PRODUCT LINES

The Hyperion Insurance Group currently operates in 16countries and 60% of our income comes from territoriesoutside the UK.The Queen’s Award for Enterprise inInternational Trade reflects the Group’s fast growingglobal presence. Hyperion is a focused on providingspecialist insurance products to its clients, these include:

Bankers Blanket BondClinical Trials / Life SciencesCommercial CrimeConstruction All RisksCyber Liability / EsuranceDirectors & Officers LiabilityEmployee BenefitsEmployers LiabilityEmployment Practice LiabilityManagement LiabilityMedical MalpracticePension Trustee LiabilityProduct LiabilityProfessional IndemnityPropertyPublic LiabilityPublic Offering Securities LiabilityReinsuranceStock Exchange Liability


CHAIRMAN’S STATEMENT

“ This is a very significant step for theGroup. 3i Growth Capital brings notonly capital to enable us to financefurther development, it also brings astrong reputation and significant market and industry expertise.”

RICHARD ELIASCHAIRMAN


CHAIRMAN’S STATEMENT

CHAIRMAN’S STATEMENTTHE YEAR ENDED 30 SEPTEMBER 2007 has provedto be yet another successful one for our group ofcompanies. Although the market background remainschallenging, the Group has achieved further growth inunderlying revenues and profitability.

Group revenue increased by 15% to £39.2 million (2006:£34.1 million). Operating profit before exceptionalexpenses, depreciation and goodwill amortisation increasedto £8.1 million (2006: £7.0 million), an increase of 15%.

The Group’s underwriting agency, DUAL, increased grosswritten premiums by 11% to £70 million, and alsocontinued to benefit from profit commissions on businesswritten in prior years. Its overall revenues increased by29% to £15.8 million.

CFC Underwriting had an excellent year, reporting increasesin revenue and profit of 30% and 22% respectively.

The Group’s broking operations continued to operate inweak market conditions with further declines in premiumrates, alongside the weakness of the US dollar. In thiscontext increasing revenue by over 10% is a creditableachievement. Our recent operations in Miami and Spainsucceeded in trading ahead of expectations.

Our international presence has continued to develop. InIndia, we have opened a number of regional offices and areimplementing plans to distribute a wider range of financialproducts. We have also established operations in Dubai,Baltimore, Brazil and Poland. We have plans for furtherexpansion in the Far East and Eastern Europe.

During 2007, much consideration was given to the futuregrowth and development of the Group and I am pleased toreport that 3i Growth Capital acquired a 27% interest inthe Group on 31 March 2008. Concurrently, a number ofthe Group’s principal minority interests were acquiredpartly for cash and shares in Hyperion, resulting in asubstantially simpler Group structure.

This is a very significant step for the Group. 3i GrowthCapital brings not only capital to enable us to financefurther development, it also brings a strong reputation andsignificant market and industry expertise. I therefore fullyexpect that we will see an acceleration of profitablegrowth.

Discussions over a period of six months with 3i GrowthCapital and its advisers placed a heavy burden on theGroup’s senior management and it is to their great credit

that these discussions were brought to a successfulconclusion. It is also a tribute to the overall strength of theGroup and the quality of its people that 3i Growth Capitalhas become an investor. On behalf of the Board and theshareholders, I extend our thanks to them for all theirefforts throughout the year.

Mark Pangborn and Rony Davidoff retired from the Boardon 17 December 2007 and 31 March 2008 respectively.They have both made an important contribution to thisGroup over many years for which we extend our thanksand wish them well in the future.

We welcome David Whileman from 3i onto the Board andare looking forward to working with him and drawing fromhis valuable experience.

As for myself, I have concluded that this is an appropriatetime to retire as Chairman and will be stepping down oncemy replacement has been selected. It has been animmensely rewarding experience to have worked andserved alongside men of the calibre of David Howden, myfellow Board members and my many other colleaguesthroughout the Group. I shall leave the Board in the fullconfidence that the Hyperion Insurance Group is set tobecome one of the world leaders in the insurance industry.

RICHARD ELIASCHAIRMAN


CHIEF EXECUTIVE’S REVIEW

“Our ability to maintain an exceptionalgrowth record for over 14 years anddeliver increased profitability is not onlya credit to everyone in the Group butalso reflects the strength of our businessmodel and Group strategy. ”

DAVID HOWDENCHIEF EXECUTIVE


CHIEF EXECUTIVE’S REVIEW

CHIEF EXECUTIVE’S REVIEWTHIS HAS BEEN A PARTICULARLY exciting year forthe Group. Before turning to a review of the year ended 30September 2007, I am delighted to report that we recentlysuccessfully concluded negotiations with 3i Growth Capitalwhich has now become a significant minority investor inthe Group. In addition to its initial investment of £28.3million, for which it acquired a 27% stake in the Group, 3ihas committed a further £25 million for funding growth.

3i brings more than just capital to the Group. Having hadthe good fortune to be backed by BP Marsh and CompanyLimited since our formation 14 years ago, it was vital to usthat any new investor should have the same long termview, as well as respect for the culture of the Group. Inessence, we were looking for an investor who would notonly share our values but who also had the experience andfinancial muscle to help the Group move to the next stagein its development.

In selecting 3i as our partner it was important to us that itshared our ambition to build a world beating specialistinsurance business, enhancing the existing entrepreneurialflair and supporting our ability to attract and retain thevery best people.We will capitalise on 3i’s long establishedbrand, global network and considerable managementexpertise to expand into new territories and products.

Hyperion’s success over the years has been due to itsunique structure, a structure which has acted as a magnetfor talent. 3i’s investment allows us to rearrange theexisting minority shareholdings so as to achieve a closeralignment of interests between these talented people.Combining this alignment with increased financial firepowermakes possible a faster pace of organic growth in all ourexisting businesses, as well as the ability to finance strategicacquisitions and start up operations as we enter into newinternational markets. The reorganisation of theshareholding structure also delivers significant cash flowbenefits to the Group, and this will further increase ouravailability of funds, by allowing us to access debt, witnessedby the new £14 million working capital facility we have justput in place with HSBC.

There continues to be surplus capital and thereforecapacity in the insurance market, with the result that itremains highly competitive.This competition, combinedwith few large losses from natural disasters, placessignificant downward pressure on insurance premiums. Inaddition, the dollar – the currency for many insuranceplacements, even outside the USA – continues to remainweak.A soft market and a weak dollar mean that these aredifficult times for insurance intermediation businesses.

Against such a negative background, it is very pleasing toreport that the Group has continued to grow at pace andto deliver increased profits. The Group reported revenuesof £39.2 million, an increase of 15% on the previous year.Operating profits before exceptional costs, depreciation,goodwill and interest amounted to £8.1 million,representing growth of over 15%. Importantly this wasachieved organically, not through acquisitions.

Our ability to maintain an exceptional growth record forover 14 years and deliver increased profitability is not onlya credit to everyone in the Group but also reflects thestrength of our business model and Group strategy.

Hyperion has a distinctive business model, combiningwholesale, retail and reinsurance broking and underwritingagency businesses.This simultaneously delivers a scaleableinternational platform offering global distribution andstrong relationships with business producers andunderwriters.

Our business model is designed to exploit the fast growingliability sector, allowing choice for entering new markets,giving an ability to extract earnings from all points in thevalue chain and providing an intransient hedge across theinsurance cycle.This is due to two factors. On the onehand the Group’s underwriting agencies thrive on theavailability of profit commission through the soft market,earned from high premiums written in the hard market.On the other, the revenues of our broking businessesdecline in a soft market but increase significantly during a hard market as rates rise. Thus the broking andunderwriting agency businesses in Hyperion tend naturallyto balance each other through the movement in theinsurance cycle.

In summary, our Group’s achievements and record offinancial performance can largely be attributed to theentrepreneurial spirit and quality of its people, our strongfocus on meeting the insurance needs of our clients andour product and distribution expertise.

DAVID HOWDENCHIEF EXECUTIVE


KEY MILESTONES

KEY MILESTONES1994• Howden Insurance Brokers formed in buyout from a division of SBJ

1997• Made first acquisition – UK retail broker Spear Gulland

1998• Hyperion Insurance Group formed following the division of the business into two operating platforms – broking (Howden)

and underwriting (DUAL)• First international underwriting operation established in Spain – DUAL Ibérica

1999• First international broking operation established in Spain – Howden Iberia, now operating offices in Barcelona, Madrid, Seville

and Valencia

1999• Second international broking operation established, representative office of Howden Insurance Brokers – Howden Iceland

2000• Second underwriting agency launched – CFC Underwriting• Second international underwriting office established in Italy – DUAL Italia• Retail broking operation launched in Finland – Howden Oy

2003• Created first Israeli broker specialising in business critical risks – Davidoff Howden• Established DUAL underwriting operation in the United Kingdom – DUAL Corporate Risks, now operating offices in London

and Manchester

2004• Acquired Lloyd’s reinsurance broker – JK Buckenham• Entered Australian underwriting market – DUAL Australia, now operating offices in Melbourne, Perth and Sydney• Established presence in Sweden through acquisition of top 5 broker Holm & Co – Howden AB• Established wholesale and retail broking operation in India – Howden India, now expanding to 22 offices

2005• Recognised by the Sunday Times PwC Profit Track 100 as one of Britain’s most profitable independent companies• Established German underwriting operation – DUAL Deutschland

2006• Established a footprint in The Americas – VK Howden based in Miami, now operating offices in Argentina, Brazil, Colombia

and Puerto Rico• Acquired a major shareholding in vehicle extended warranty specialist in Spain – Avant Garantías SL

2007• Awarded a Queen’s Award for Enterprise in International Trade• Entered the North American market with the acquisition of Baltimore-based broker IPM – Howden Inc

2008• Retail broking operation launched in United Arab Emirates – Howden Dubai• Established footprint in Central and Eastern Europe – Howden Poland• £50 million equity investment by 3i Growth Capital


GROUP STRUCTURE

HYPERION INSURANCE GROUP

INSURANCEUNDERWRITING

AVANTSpain

CFC UNDERWRITINGUnited Kingdom

DUALAustralia

Germany

Italy

Spain

United Kingdom

VK UNDERWRITINGUnited States

WHOLESALE, RETAIL & REINSURANCE BROKING

HOWDENArgentina

Brazil

Colombia

Dubai

Finland

Iceland

India

Israel

Poland

Puerto Rico

Spain

Sweden

United Kingdom

United States

44% GROUP INCOME6 TERRITORIES

12 OFFICES


39 OFFICES


BOARD STRUCTURE

BOARD STRUCTURERICHARD ELIASCHAIRMANRichard formerly owned City-based broker Spear Gulland, which specialised in Financial Institutions’ Crime insurance. He joinedforces with David Howden in 1997 becoming Chairman of the Group’s broking arm, Howden, where his international experiencehas proved invaluable. He is also Chairman of the Howden operations in Sweden, Finland, and India.

For over 30 years, Richard has advised many of the major financial institutions around the world, predominantly in the fields ofCrime and Liability insurance. He has been responsible for the development of new and innovative policy coverages and maintainsa particular interest in overseeing and negotiating favourable claims settlements for clients.

DAVID HOWDENCHIEF EXECUTIVEDavid has over 26 years of experience in the insurance industry and is a leading expert in the field of Directors & Officers andProfessional Indemnity insurance both in the UK and overseas. David is a major force behind the growth and success of theGroup. He has an extensive knowledge of each particular company’s areas of specialisation, and the territories in which the Groupoperates and continues to maintain key client relationships.

David began his career as an insurance broker with Alexander Howden in 1980. A year later he moved to Nelson, Hurst & Marsh,to focus on the production and broking of Professional Liability business, remaining there until 1988. David then formed a newsubsidiary of Lloyd’s broker Regis Low to specialise in Professional Liability and Directors & Officers Liability insurance. Followingthe acquisition of Regis Low by Steel Burrill Jones Limited in 1991, David was appointed Managing Director for SBJ ProfessionalRisks. Howden Insurance Brokers was created from a buyout of that division in 1994.

STEPHEN CROWTHEREXECUTIVE DIRECTORStephen’s career spans 35 years in both broking and underwriting within the London insurance market. Having started hisinsurance career at The Dominion Insurance Company in 1972, Stephen spent 20 years at Nelson Hurst & Marsh Ltd (nowLockton) and at Archer Underwriting Agencies Ltd (now Canopius) where he was Managing Director at both companies.

Prior to joining DUAL, Stephen worked for eight years as Investment Director at BP Marsh & Partners Plc, a privateequity/development capital company where he held several non-executive positions in Lloyd’s brokers, underwriters and otherfinancial services companies.

LUIS MUÑOZ-ROJAS ENTRECANALESEXECUTIVE DIRECTORLuis is a founding Director of DUAL International. He opened the first DUAL operation in Madrid in August 1998, havingpreviously served as Director of GyC America, a reinsurance broking subsidiary of Gil y Carvajal. Luis began his insurance career in 1989 working with GyC Partners, the British subsidiary of the GyC Group.


BOARD STRUCTURE

RICHARD HORTONFINANCE DIRECTORRichard is a qualified Chartered Accountant with extensive experience in financial management and control, corporate finance, andmergers and acquisitions. As Group Finance Director, he is responsible for all aspects of the Group’s financial management andreporting, including the assessment of potential acquisitions and their subsequent integration into the Group.

BRIAN MARSH OBENON EXECUTIVE DIRECTORBrian started his career in insurance broking and underwriting in Lloyd’s and the London and international markets over 40 yearsago and was, from 1979 to 1990, Chairman of the Nelson Hurst & Marsh Group, before founding the Group. He has over 30 yearsof experience in building, buying and selling financial services businesses particularly in the insurance sector.

DAVID WHILEMANNON EXECUTIVE DIRECTORDavid is a Partner in the 3i Growth Capital business, investing up to €250m for stakes in market-leading businesses in the UK andacross Europe. He specialises in originating and leading investments into private companies seeking to accelerate their growth, bothorganically and through acquisition. Past investments include Foster & Partners, the global architects, Hayley Conference Centresand Morgan McKinley, the financial services business. David is a chartered accountant and prior to 3i worked in the insolvencydivision within PricewaterhouseCoopers.

TIM HOWDENNON EXECUTIVE DIRECTORTim Howden was appointed to the Hyperion Board in 1997 and is the Chairman of the Remuneration Committee and a memberof the Audit Committee.Tim has wide board experience both as a Non Executive Director of several companies including FinningInternational Inc in Canada and SSL International Plc, and as an Executive Director of Albert Fisher Plc and RHM Plc, of which hebecame Group Managing Director.

EMILE WOOLFNON EXECUTIVE DIRECTOREmile is a senior consultant to the insurance and litigation support department for Kingston Smith Chartered Accountants. He is a qualified Chartered Accountant, former Chairman of the ICAEW’s Professional Indemnity Insurance Panel and the jointAdvisory Panel of Participating Insurers, Emile provides expert reports on technical accounting matters, audit reports andindependence/ethical issues.



39 OFFICES

BROKING


GROUP BROKING

GROUP BROKINGINTRODUCTIONInsurance broking was the foundation of the HyperionInsurance Group with the formation of Howden InsuranceBrokers in 1994. From one operation in London, thenetwork of offices has grown to now number 39worldwide. Over the past 14 years, the Group brokingoperations have grown exponentially across the world asoutstanding local insurance professionals have beenidentified in their territories.

HOWDEN BROKING GROUPThe Howden Broking Group comprises wholesale, retailand reinsurance broking models, with its principlesubsidiary located at Lloyd’s of London. Retail brokersdistribute directly to the ultimate insured whereaswholesale brokers place business generated by otherinsurance brokers in the London and other internationalinsurance markets. Reinsurance broking is the process ofplacing insurance for insurance companies in order tospread the risk for the direct insurer. These methods ofbroking provide their own distinct advantages to the Groupand allow complete flexibility when entering a newterritory or product line.

Initially the Group’s main focus was the two mutuallycompatible product lines of Professional Indemnityinsurance and Directors & Officers Liability insurance.However, client demand for the same professional approachto other insurance lines has grown. Howden has beenquick to meet these needs and is now a global provider ofa range of specialist insurances.

HOWDEN OFFICES• Howden Insurance Brokers Limited – Leeds and London• Howden Insurance Brokers AB – Stockholm• Howden Insurance Brokers Oy – Helsinki• Howden Insurance Brokers India Private Limited –

Bangalore, Hyderabad, Kolkata, Mumbai, New Delhi andVadodara (in process of expanding to a total network of22 offices)

• VK Howden LLC – Bogota, Buenos Aires, Miami, Rio deJaneiro and San Juan

• Howden Iberia SA – Barcelona, Madrid, Seville andValencia

• Howden Iceland – Reykjavik• Davidoff Howden Insurance Brokers 2002 Limited –

Tel Aviv• Howden Insurance Brokers Inc – Baltimore• Howden Poland – Warsaw• Howden Insurance Brokers LLC – Dubai


GROUP BROKING - HOWDEN BROKING GROUP

HOWDEN BROKING GROUPDESPITE MARKET CONDITIONS, the Howden Broking Group recorded strong results with revenue increasing by over 10% from £19 million to £21 million.

Following the establishment of VK Howden in Miami to initially focus on the Latin American market, we opened an office in BuenosAires, extending our product range to include General Liability. We are in the process of opening an office in Rio de Janeiro which,combined with our existing offices in Puerto Rico and Colombia, give us excellent distribution in this developing region.

With the success of Howden India in marketing Employee Benefits to employees of our major corporate clients, the Groupapproved Howden India’s plans to develop a retail insurance business. The roll out of this important initiative is underway withoffices now being established in 22 cities and we are in the process of recruiting over 300 new staff.

The Group expanded its presence in the USA and enhanced its expertise in Life Sciences with the acquisition of IPM, a specialistbroker in Baltimore, now renamed Howden Inc.

In London, Howden, the Group’s Lloyd’s broker, broadened its product offering with the addition of General Liability, ProductLiability and Life Sciences, to complement our acquisition in the USA.

Shortly after the year end, the Group established a retail and wholesale broking presence in Dubai and we are also at an advancedstage in setting up a wholesale and reinsurance operation in Singapore. These two operations will significantly strengthen theGroup’s international wholesale broking operations by providing access to regional markets.

“The roll out of thisimportant initiative isunderway with officesnow being establishedin 22 cities and we arein the process ofrecruiting over 300new staff. ”

DAVID HOWDENCHAIRMANHOWDEN BROKING GROUP



FINLANDTHE MARKETIn 2007, Finland witnessed the full implementation of the Acton Insurance Intermediaries which has meant that all brokingincome is now to be derived directly from the clients. Thishas made the Finnish insurance broker environment one ofthe toughest in the world.

The market has also seen the continued decline in thenumber of financial institutions domiciled in the country as aresult of mergers and acquisitions.

Since its formation in 2000, Howden Insurance Brokers Oyhas operated as a niche broker specialising in Directors &Officers Liability (D&O), Bankers Blanket Bond (BBB) andProfessional Indemnity (PI). We have taken measures toexpand both our client base and our product portfolio,while maintaining our focus on Liability lines.

Howden Oy is the only broker in Finland which specialises instrategic risks. Our close cooperation with HowdenInsurance Brokers in London gives us a clear advantage overour competitors in this challenging market.

One of our key priorities is to enhance Nordic cooperationwithin the Howden Broking Group, a move which we firmlybelieve will prove extremely beneficial for both our clientsand companies within the group, not only in Sweden andFinland, but also in adjacent regions.

2006-2007 HIGHLIGHTSIn 2006, there was a radical shift from commission-based tofee-based earnings. At Howden Oy we have been successful in

maintaining our client portfolio despite these developmentsand the very competitive market environment which exists.Howden Oy secured its first large group ProfessionalIndemnity/General Liability (PI/GL) scheme in early 2007.The client – a professional association – and its membershave been very satisfied with the scheme, and in September agroup Property/Business Interruption scheme for the sameentity was given the green light. In addition, we were selectedby a leading Finnish credit insurer as their preferred partnersfor placing their D&O risk.

OUR PEOPLEFor Howden Oy, 2006-2007 was a period of change. A newManaging Director joined the company in January 2007 andhis recruitment was followed by the appointment of adedicated Sales Director. At the end of the year HowdenInsurance Brokers Oy employed six people, including fourregistered insurance brokers.

THE FUTUREThe regulatory changes have had a major impact on theFinnish market. However, we are extremely confident that ourstrategy will ensure that Howden Oy maintains its marketleading position and that we remain the preferred partner forour clients who know that our service is second to none.

Based on the results of a comprehensive client surveyconducted by Howden Oy in March 2007, we have establishedtwo very clear goals for the future. Our first goal is to developa more extensive Liability insurance portfolio for our clients.Our second is to broaden our client base by targeting high-techcompanies which are seeking to expand their operations.

“We are extremelyconfident that ourstrategy will ensurethat Howden Oymaintains its marketleading position. ”

PASI HEIKKINENMANAGING DIRECTORHOWDEN OY

INDIATHE MARKETThe size of the Non-Life insurance market in India isapproximately US$6.5 billion in gross written premium, andaccounts for 0.6% of the country’s GDP. By comparison theLife insurance market generates a total premium of overUS$40 billion and accounts for over 4% of GDP.

The IRDA (the regulatory authority in India) has recentlyannounced the dismantling of Non-Life insurance tariffsleading to fierce price competition amongst direct insurers.Prices on Property insurance risks are expected to fall byover 60% in the ensuing months. Rates in the Liability andMarine segments continue to fall.

It is expected that the short-term volatility caused by thedismantling of the tariffs will finally give way to a moremature market. Brokers who are currently fighting for a smallportion of the market share are likely to gradually emerge asan important distribution channel as the market matures.

2006-2007 HIGHLIGHTSHaving achieved a growth in income of over 57% compared tothe previous year, we have maintained our strong performanceby posting another set of impressive figures for 2006-2007.While profit before tax is down by 34%, this is entirely onaccount of unbudgeted expenditure incurred in starting a newbusiness initiative to be launched in 2007-2008.

We are privileged to count some of the top companies inIndia amongst our customers, and have succeeded in adding157 new customers this year. New business accounted forover 35% of income in 2006-2007.

OUR PEOPLEHowden is proud of the quality of its people and the way in which we work together to generate business value. As of 30 September 2007, the team in India was composed of 65people.

Our professionals come from a multi-disciplinary background.The company has a campus recruitment programme andrecruits ‘management trainees’ from reputed businessschools.To retain and nurture talent, Howden places a strongemphasis on capability development and has put in placevarious training programmes including induction modules.

THE FUTUREHowden India shall continue to seek growth in its existingbusiness despite a very soft market. We expect to continueour strong income growth next year, driven largely by ourentry into the Personal Lines insurance segment (with afocus on selling Life insurance products to individuals).Through this new initiative the company aspires to become aleading distributor of retail insurance products in India,providing its customers with quality advice and a range ofproducts.Achieving this will entail establishing our operationsacross 22 cities in India supported by a dedicated staff ofover 350 people, which will double the Hyperion headcount.



“Having achieved agrowth in income ofover 57% compared tothe previous year, wehave maintained ourstrong performance byposting another set ofimpressive figures.”

PRAVEEN VASHISHTAMANAGING DIRECTORHOWDEN INDIA

ISRAELTHE MARKETThe local insurance market in Israel is similar to that of anyother local insurance market at present, in that it is verycompetitive, and premium rates are very low.This year rateshave continued to fall, declining by a further 20% - 30%. Inreal terms, policy premiums are on average less than half thelevel they were at three years ago.

Competition has increased as more brokers and risk carriershave entered the market. In addition, the insurance markethas not experienced any substantial claims, which might havestabilised the market or even pushed rates up.The weaknessof the various stock markets has resulted in only a verylimited number of Initial Public Offerings, which has proved achallenge as we are the largest Directors & Officers (D&O)insurance broker in Israel.

2006-2007 HIGHLIGHTS2006 was an exceptionally good year for Davidoff Howden,bearing in mind the softness of the market and the increasedcompetition. In 2006, Davidoff Howden succeeded in winningsome 308 new accounts (compared to 226 in the previousyear) generating US$5 million in new premium income.

During the twelve months, the company achieved a 30%increase in income compared to the previous year, whichresulted in a 50% rise in profit year on year – a trulyimpressive performance.

We continued to focus on product devolvement during 2006and have now become the market leader in insuring LifeSciences – Clinical Trials.

OUR PEOPLEDavidoff Howden currently employs 30 people, of which overhalf are lawyers.

The company places great value on the importance of trainingand each account executive undergoes an extensive period oftraining before they are given the opportunity to meet a client.

Davidoff Howden only deals directly with clients, preferringsuch a relationship to working through other brokers. In thepast three years, the company has obtained an average ofover 50 new clients per quarter.

We are fully committed to the continual training anddevelopment of our staff to ensure that we have the bestquality human resources in the insurance market.

THE FUTUREGoing forward, Davidoff Howden will maintain its position asthe leading business critical insurance broker in the region,while enhancing our market share through gaining newaccounts.

Growth is one of our key drivers for success and we will be seeking organic growth opportunities in the forthcomingyear.

The company is currently investing substantial efforts toenter new product lines, including Medical Malpractice andProduct Liability. We firmly believe that, together with LifeScience, these three products will become powerful enginesfor growth.



“During the twelvemonths, the companyachieved a 30%increase in incomecompared to theprevious year, whichresulted in a 50% risein profit year on year. ”

DANNY SEVERCHAIRMANDAVIDOFF HOWDEN

LATIN AMERICATHE MARKET Market conditions in 2007 were marked by decliningpremiums and increasing competition. New capacitycontinues to enter the markets we serve which increases thechoice available to clients. New capacity providers typicallyhave ambitious premium targets and it is usually throughlower premiums that they hope to gain market share.

While this market environment results in increasedcompetition and margin pressures, it also provides forinteresting opportunities. Insurers are more flexible and areseeking competitive advantage in the development of newproducts which we can often capitalise on.

2006-2007 HIGHLIGHTSThere were two principle strategic goals that VK Howden set out to achieve in 2007: expanding our regional presencethrough new offices; and being able to offer a wider range ofproducts to our clients and partners.

In June 2007, we opened an office in Buenos Aires, Argentina,providing greater presence and coverage to the SouthernCone region of South America. This office will allow us toestablish closer relationships with our clients in Argentinaand provide a stepping stone into the neighbouring market ofChile. Additionally, we have received a very positive receptionfrom both Mexico and Brazil, and we will consider furtherregional expansion.

After a considerable amount of legislative work, we receivedthe Lloyd’s Coverholder designation which has enabled us tosecure additional products to offer including Professional

Indemnity for most professions (lawyers, accountants,architects, etc). Additionally, we launched several GeneralLiability products, including Employers Liability and ProductExports, which were very well received by the market.

OUR PEOPLE Our firm is its people. Our insurance professionals are highlytechnical, with virtually all having amassed substantial brokingand underwriting experience in their careers. The technicalexpertise of our people, business producers, brokers andsupport staff is unmatched by any of our competitors whichprovides our firm with a strong competitive advantage in themarkets we serve. At the end of this financial year we hadten people spanning four offices in three countries.

THE FUTUREWe expect to continue our regional expansion in LatinAmerica as well as to launch additional products.Additionally, we are looking forward to launching a newbrokerage strategy in the US during the course of fiscal year2008. Although market conditions for 2008 are expected tobe challenging, we are optimistic about our firm’s ability tocontinue to deliver high quality service and offer nicheproducts to underserved markets.



“ The technical expertise of our people,business producers,brokers and support staff is unmatched by any of our competitors.”

BOBBY VERNONMANAGING DIRECTORVK HOWDEN

SPAIN & PORTUGALTHE MARKETThe insurance market in Spain proved a very challengingenvironment in 2007.Worth over €52 billion, the market hasmirrored developments in the Spanish economy, increasing bya compound rate of 7.2% over the last three years.

While Spain is the tenth largest insurance market in theworld, on a per capita basis the country ranks only 24th interms of insurance spend. This statistic indicates theenormous potential for growth which exists in the country,despite uncertainties surrounding economic developmentsover the next few years.

2006-2007 HIGHLIGHTSThis year has marked a dramatic period of change for us.Having commenced the year with only one branded officebased in Madrid, we finished with a coherent and integratednetwork of four offices.

The opening of our office in Seville will provide a springboardfor Portuguese business, while a new office in Valencia will beable to take advantage of the €1.5 billion set to be investedin the city. The full integration of Howden Coselusancompletes our network, with an office in Spain’s second cityof Barcelona. Our overall headcount has also increased, withthe appointment of over 20 new insurance professionals.

In parallel with our geographic expansion, our business lineshave been rationalised and restructured by combiningreinsurance and wholesale operations.This has producedgreater efficiency and allowed a more targeted and aggressiveapproach to retail business.

We ended this financial year with a turnover of €2.1 million,a 300% increase on the previous year’s figures.

OUR PEOPLEHowden Iberia’s staff is renowned in the sector for both itslevels of professionalism and creativity. Our young team iscomposed of more than 25 committed and enthusiastic high-calibre professionals, who are succeeding in making HowdenIberia a highly desirable company to work for. We areextremely proud of the fact that our team effectivelycombines international expertise, a creative approach and aclear focus on providing unrivalled service to our clients.

THE FUTUREThere are two main drivers which will direct our focus overthe next year.

The first is to capitalise on the newly consolidated businessplatform that has been established over the last year, in orderto achieve the aggressive targets which have been set for thenext three-year period.

The second, and of equal importance, is to continually striveto attract exceptional talent into our team. We know thatthe only way to achieve our goals is by bringing on boardnew and talented professionals that will reinforce HowdenIberia’s clear advantage in this market.



“ We ended this financialyear with a turnover of€2.1 million, a 300%increase on the previousyear’s figures.”

JOSE-MANUEL GONZALEZ PEREZMANAGING DIRECTORHOWDEN IBERIA

SWEDENTHE MARKETThe Swedish insurance market has for some time beenconsidered a well established and mature marketplace. Premiumlevels are low compared to other international markets and thisis unlikely to change in the immediate future. The market iscomprised of huge international and global insurancecompanies. Also of note is the fact that in Sweden there is noinsurance premium tax except on Auto Liability insurance.

2006-2007 HIGHLIGHTSThe major highlight of 2007 was undoubtedly the fact thatwe achieved yet another successful result. For the fifthconsecutive year we managed to exceed the previous year’sturnover as well as profit. During 2007, profit increased by43%, while premium growth of 15% was achieved.

The global insurance market rates are at their lowest for tenyears, and only dedication and talent enabled us to succeedagain. We grew our international client base while maintainingour market status. Our rating was maintained at AAA asdefined by Soliditet (Swedish benchmark) and we areassessed as Risk Class 5 (lowest risk) by UC, Sweden’sleading business and credit information agency.

OUR PEOPLEHowden AB is a well renowned insurance broker, whichhandles a broad range of large Swedish and internationalclients.We specialise in all lines of Corporate Non-Lifeinsurance including Trade Finance supporting cover. It istherefore paramount that we employ the best staff, withthe necessary expertise and experience, and operate withinthe most effective structure.

All of our specialist brokers have a wealth of experience inboth the broking and insurance markets, or have held riskmanagement positions in big corporations. We have strivedto establish an extremely creative and innovative group ofpeople, and to achieve the best balance between age andexperience.

THE FUTUREOur aim is simple: we want to grow by 30% in the next fewyears. Insurance is a people-driven business and therefore wemust continue to recruit the right people to acquire newbusiness.We will focus on the mid-size to large industrysector, including real estate and construction, as well asknowledge-based organisations such as law firms, banks,financial institutions, IT and other consultancy firms.

Howden AB is also investing in a new product line – TradeFinance – where we are confident we will achieve substantialgrowth of income and management fees supporting ouroverall financial objectives for the coming years.



“During 2007, profitincreased by 43%,while premium growthof 15% was achieved. ”

GUNNAR HOLMMANAGING DIRECTORHOWDEN AB

UNITED KINGDOMTHE MARKETIn the UK, Howden Insurance Brokers’ client marketplacecomprises the investment industry, the professions andaffinity business, all on a direct basis. Internationally weprovide expertise and placement services for a wide varietyof clients via our sister companies, other brokers andinsurance companies.

Trading conditions for the year were challenging. Challengesincluded the continued decline of insurance premiums in allsectors, coupled with an adverse dollar exchange rate.Furthermore, local insurance markets developed strongly,creating less demand for London placement services.

Notwithstanding this, our UK business developed strongly,and particularly our investment industry focused team,which further consolidated its dominant position in theprovision of Management Liability insurance to PrivateEquity, Hedge and other fund managers. Our internationaldivisions confronted their challenges with flexibility andimagination, performing well and delivering many newproducts and initiatives to both current and newterritories.

2006-2007 HIGHLIGHTSOur strategy of product diversification gained traction withthe establishment of a Property division. Our experiencedand talented team successfully put their operation on themap in this, their first full year of trading.We also addedGeneral Third Party and Product Liability, Life Sciences andMedical Malpractice capabilities, all of which have been verywell received by our clients.

Efficiency remains a key theme. It is pleasing to report thatwe made further significant advances during the course ofthe year, alongside full participation in the London MarketReform initiatives.

The year closed with the successful formal integration of thereinsurance broker JK Buckenham Limited into Howden.

OUR PEOPLETenacity, dynamism and an overriding desire to win are keycharacteristics of our team in London; characteristics whichare essential in the current trading conditions. Our newrecruits have thoroughly enjoyed being part of a motivatedand successful team.

We will continue to attract exceptional people and teams,which are the key to our success.

THE FUTUREOur industry is changing fast and we must be in the vanguardof the evolution. Consequently, our focus in the coming yearcomprises three distinct elements. Firstly, we will continue todrive efficiency throughout the business. This must bepursued rigorously as it is a key antidote to current tradingconditions. Secondly, we will reinforce our initiatives todevelop greater competitive advantage across our productlines; delivery of new products and expertise to our clientsreflects our imperative for remaining market leaders in ourchosen fields.Thirdly, we will actively focus on growth, bothorganic and through acquisition, so as to continue to build onour track record of success and to support the advance ofHowden Broking Group.



“Our industry ischanging fast and wemust be in thevanguard of theevolution. ”

TIM COLESCHIEF EXECUTIVEHOWDEN



12 OFFICES

UNDERWRITING


GROUP UNDERWRITING

GROUP UNDERWRITINGINTRODUCTIONThe underwriting arm of Hyperion was formed in 1998 whenthe Group’s first underwriting agency, DUAL Ibérica, wasestablished in Madrid. An underwriting agency has a binding(or delegated) authority given by an insurer to grant cover onthe insurer’s behalf within certain pre-agreed parameters.Underwriting agency businesses act as a virtual insurer,performing all of the functions typically performed by aninsurer other than retaining the ultimate balance sheet risk.Hyperion operates underwriting agency businesses throughAvant, CFC Underwriting, DUAL and VK Underwriting.

AVANT In December 2006 Hyperion entered in a commercialpartnership with a Spanish Engineering Group to acquire amajor share in Avant Garantías SL. Avant is based in Madridand specialises in providing Extended Warranty insuranceproducts to the motor industry. In 2007, after changing themanagement structure, Avant was officially registered withthe Spanish regulatory authority as an underwriting agency.

CFC UNDERWRITINGCFC Underwriting was established in 2000 to takeadvantage of growing technology industry risks and is basedin the Lloyd’s building in London. Although specialising inLiability insurance for technology businesses, it has remainedflexible in its approach to underwriting risk and hasdeveloped new lines wherever an opportunity exists. In theUSA, for example, it provides its broker clients with aLiability product designed to satisfy USA requirements forminimum insurance coverage of nursing homes.

DUALDUAL is the largest underwriting agency in Hyperion andconsists of eight offices in Germany, Italy, Spain, the UnitedKingdom and Australia.These offices are supported by aheadquarters in London, DUAL International. Initiallyfocusing on Directors & Officers and Professional Indemnity,it has broadened its offering to brokers with PensionTrustee Liability, Employment Practice Liability, andCommercial Crime and Fraud products. Its strategy hasalways been to sell insurance to low risk / low volatilityassureds focusing on profitable underwriting.

VK UNDERWRITINGThe origins of VK Underwriting date back to 2003, when a Miami-based intermediary established a contract tounderwrite Directors & Officers Liability insurance on behalf ofseveral prominent insurance providers. Over the last five years,the company has expanded its product offering to include a fullsuite of Liability products. VK Underwriting continues to focuson SME companies domiciled mostly in Latin America.

AVANT OFFICE• Avant Garantías SL – Madrid

CFC UNDERWRITING OFFICE• CFC Underwriting Limited – London

DUAL OFFICES• DUAL International Limited – London• DUAL Corporate Risks Limited – London and

Manchester• DUAL Australia Pty. Limited – Melbourne, Perth and

Sydney• DUAL Deutschland GmbH – Cologne• DUAL Ibérica Riesgos Profesionales SA – Madrid• DUAL Italia SpA – Milan

VK UNDERWRITING OFFICE• VK Underwriting – Miami

DUAL INTERNATIONALDUAL HAS ENJOYED A PARTICULARLY strong year. It collected substantial profit commission of £2.4 million on closedbinders and its written premium grew from £61 million to £70 million, an increase of 15%.

DUAL Corporate Risks, the UK operation, launched a new Directors & Officers product, and has recently expanded itsProfessional Indemnity expertise to encourage more international miscellaneous business. It is currently developing DUAL Focus,which will further extend its market and product reach.

The fledgling office in Germany had a very successful year with written premium 23% ahead of expectations. Australia alsoachieved a strong result, with offices now in Sydney, Melbourne and Perth, and has just established an office in Hong Kong todevelop business from Asia.

In Southern Europe, the DUAL Ibérica and DUAL Italia offices showed positive growth in extremely tough market conditions.We hope to establish offices in Barcelona and in Lisbon during the coming year to focus on accessing more profitable businessfrom the Catalonia region of Spain and from Portugal.

Whilst the past year has once again seen rates fall in general, our underwriters in each country in which we operate are still ableto identify discrete portfolios of business where we believe that rates are at a level at which good profits can be made.

We continue to be extremely well supported by brokers, with each office maintaining the highest possible levels of service,whereby differentiating us from our competitors.


GROUP UNDERWRITING - DUAL

“Our underwriters ineach country in whichwe operate are stillable to identify discreteportfolios of businesswhere we believe thatrates are at a level atwhich good profits canbe made. ”

STEPHEN CROWTHERCHAIRMANDUAL INTERNATIONAL

AUSTRALIATHE MARKET The Australian market maintains its position as one of thelargest Professional Lines markets in the world, totalling someA$1.3 billion in insurance premiums. Whilst it is competitive,the growth potential remains very high due to the continuedrise in the range of professions requiring ProfessionalIndemnity (PI) cover either for contractual reasons or otherpurposes. For Directors & Officers (D&O) and ManagementLiability the potential is even higher, as less than 5% of privatecompanies currently purchase these forms of insurance.

2006-2007 HIGHLIGHTS2007 has proved a very significant year for both productdevelopment and geographic expansion, with the undoubtedhighlight being the opening of our new office in Perth.

Our decision to establish an office in Perth reflects the factthat Western Australia is the fastest growing economic regionin the country and has the highest per capita output of anyAustralian state or territory.

The Perth operation is our third DUAL office to open inAustralia in just three years. Our Sydney and Melbourneoffices have shown a 26% increase in gross written premiumthis year. By expanding into Perth we now have a strongfoothold in each of the three main financial centres in thecountry. This solid platform will enable us to capitalise on themany opportunities afforded by the country, especially in theunderdeveloped mid-market sector.

Australia is the fourth largest investment market globally withover A$1.3 trillion in funds under management. To meet the

demands of this sector, we have broadened our productcapability and developed PI, D&O and Crime productsspecifically for the Financial Institutions marketplace. We havealso launched new products aimed at capitalising on thegrowing sectors of information technology, financialinstitutions and the not-for-profit businesses.

OUR PEOPLEOur people are our strength and always will be. Over the last12 months, we have expanded our team from 16 members to27. At DUAL Australia, we encourage a culture of “workhard, play hard”, a fact which has been key to our success.

We value the strength of our relationships with our clients,which is why we always celebrate the passing of any majormilestones by making donations to charities of their choice.

THE FUTUREAt DUAL Australia, we have completed the first three yearsof our plan to reach critical mass in the local market and tobuild a platform for continued growth. With over 6,000current clients, we have succeeded in establishing a strongand secure platform from which we will benefit from theexpansion that occurred in 2007. This growth will continuein 2008, as we seek product expansion in Australia andgeographic expansion into Asia.



“At DUAL Australia,we have completedthe first three years ofour plan to reachcritical mass in thelocal market and tobuild a platform forcontinued growth. ”

DAMIEN COATESMANAGING DIRECTORDUAL AUSTRALIA

GERMANYTHE MARKETThe size of the German Non-Life insurance market isestimated at €55 billion of gross written premium, of whichDirectors & Officers (D&O) accounts for €350 million.DUAL is one of approximately 25 suppliers which underwriteD&O in Germany. Although a relatively immature market,D&O is becoming a key product for insurance brokers andmid-market product penetration is growing quickly from itscurrent level of 15%.

The German insurance industry is extremely competitive andthese market conditions resulted in a premium ratereduction of approximately 20% in 2007. In response, manyinsurers are now providing new and expansive policies. Wehave reacted positively to these market developments andhave remained at the forefront of policy development.

The market witnessed some very large and complex D&Oclaims this year, involving companies such as DaimlerChrysler,Deutsche Bank and Volkswagen. The ongoing media coveragehas further raised awareness of the need for D&O coverage.

2006-2007 HIGHLIGHTSIn 2007, our number one highlight was the fact that wesucceeded in finishing our second year of business 25% aheadof budget. Our gross written premium income wasapproximately €5 million – a very impressive achievementfor such a young business.

DUAL Deutschland has gained a reputation for its levels ofexpertise and knowledge of the insurance market. It is nowacknowledged by many brokers that when seeking a quote

on D&O risks you must involve us. This is testament to ourstanding in this competitive market. Market researchconducted recently by the largest broker in Germanydescribed DUAL as a “remarkable market player”.

The launch of our combined D&O/Professional Indemnity(PI) product for financial institutions was welcomed by themarket this year, breaking a long-standing quasi-monopoly.

OUR PEOPLEOur policy is to only employ engaging, service-driven, highlymotivated staff. Within our management and underwritingdepartments, industry experience is combined with degree-level knowledge in relevant areas such as law, businessadministration and insurance science.

We know that for us to succeed in an increasinglycommoditised market, we must provide fault-free, outstandingclient service. We also appreciate the importance of ensuringthat staff enjoy their work as every part of our businessinvolves relationships.That is why our clients know that whenthey deal with DUAL, the enthusiasm of our team is genuine.

THE FUTUREThe German D&O and PI market is still underdeveloped.Managers are becoming increasingly aware, however, of therisks of being held liable for financial losses. We thereforefully expect to benefit from the rapid increase in premiumvolume levels in this market over the next three years.



“Our number onehighlight was the factthat we succeeded infinishing our secondyear of business 25%ahead of budget.”

HEINER EICKHOFFMANAGING DIRECTORDUAL DEUTSCHLAND

ITALYTHE MARKETThe Italian insurance market has undergone extensive changeover the last year due to the introduction of new regulationsby the ISVAP (the regulatory authority in Italy). In essence,the rules relate to the qualifications, behaviour, transparencyand responsibility of insurance intermediaries and aredesigned to align Italy with the most developed insurancemarkets.

In conjunction, the Italian Government has approved a newlaw that will increase market competitiveness through greaterliberalisation of distribution within the insurance sector.

In terms of the health of the market, rates remain low, and thistrend looks set to continue as the regulatory developmentscreate a more open and competitive sector in Italy.

2006-2007 HIGHLIGHTSWe are very proud that, despite the soft market conditions,we increased our underwritten premium by 10% overall in2007. Of particular note is the fact that we succeeded inincreasing our written premiums in the very competitiveProfessional Indemnity (PI) market by 25% compared to 2006.

At year end, we had underwritten €10.7 million of grosswritten premiums.The number of underwritten policies hadincreased by 27%, with a 51% rise in PI and a 24% increase inDirectors & Officers (D&O) – an impressive performancegiven the market conditions.

We continued to invest in affinity marketing initiativesalongside our traditional capacity to offer tailor-made

solutions in conjunction with ‘off the shelf ’ products.Significantly, our ‘off the shelf ’ products now represent 50%of PI and 29% of D&O sales, highlighting our ability to meetthe constantly changing demands of the market.

In addition, our distribution network of brokers andintermediaries has grown this year to over 400 certifiedintermediaries across Italy.

OUR PEOPLEOur stated goals are to create innovative products, providehigh quality service, and retain and improve relationships withour distribution network. The only way to achieve this isthrough employing and cultivating highly motivated individualswho want to achieve these goals with us.

THE FUTUREGoing forward, we will focus on our ability to satisfy theneeds of our distribution network, the quality of ourproducts, and our brand awareness to maintain our enviableposition as a benchmark company within the PI and D&Omarkets.

We are working hard to make the most of all of theopportunities which the recent developments in this markethave created. One such opportunity involves capitalising onthe liberalisation of the market.This will enable us to createour own sales force of insurance agents which, alongside ourexisting broker network, will give us a broad and diversifieddistribution base.



“We succeeded inincreasing our writtenpremiums in the verycompetitiveProfessional Indemnitymarket by 25%compared to 2006. ”

MAURIZIO GHILOSSOMANAGING DIRECTORDUAL ITALIA

SPAIN & PORTUGALTHE MARKETSpain and Portugal have both undergone rapid and diverseeconomic and cultural changes during the last 15 years. Inparallel with these developments, the insurance industry hasexperienced a similar period of change. This has been feltparticularly in the Financial Lines market in which DUALIbérica operates.

Premium levels reached their peak in 2000, when rates wereadjusted to allow for dramatic increases in claims volumesand the growth of a more litigious society. However, duringthe past year the activities of many insurers have revealedthat not only are they prepared to underwrite business atthe low levels of the early 1990s, but many are pushing rateseven lower in a bid to drive up their market share.

As occurred in the late 1990s, the Financial Lines insurancemarket appears once again to be failing to take stock of theSpanish and Portuguese economy, and the forecast increase inthe amount of claims.

2006-2007 HIGHLIGHTSDespite very competitive and aggressive market conditions,we have succeeded in achieving the budgeted revenuestream, €31.8 million in gross written premium.We haveachieved this by maintaining the prudent underwritingparameters established to ensure acceptable earnings fromprofit commissions.

Most of the strategic and commercial objectives defined atthe beginning of the year have been satisfactorily achieved.The shift to a portfolio in which non-construction related

professionals have gained greater prominence is an impressiveachievement given the current economic environment.

OUR PEOPLEThroughout nearly ten years of trading, the DUAL team hasclearly demonstrated an ability to meet budgets and maintainsolid underwriting parameters.This is a unique achievementin the Spanish and Portuguese market, and an enviable onefrom a global perspective.

We have only been able to achieve this success because ofthe outstanding levels of experience and expertise embodiedby our team.

THE FUTUREDUAL’s undeniably solid foundations will ensure we continueto maintain the levels of growth achieved over the last nineyears. Our brand is based upon sustainable competitivedifferences and a strong commercial focus on new businessopportunities.This combines with a recognised reputation forhandling claims and an obsessive focus on underwritingprofitability.

180 producing brokers value what DUAL stands for, making itone of the leading choices in the market. Our challenge is tomake sure that we maintain this enviable position.



“DUAL’s undeniably solidfoundations will ensure wecontinue to maintain thelevels of growth achievedover the last nine years. ”

LUIS MUÑOZ-ROJAS ENTRECANALESMANAGING DIRECTORDUAL IBÉRICA

UNITED KINGDOMTHE MARKETBeing at the hub of the world’s insurance market, both ouroffices in London and Manchester constantly face intensecompetition across all lines of business. Currently, rates in theFinancial Lines market are at their lowest for ten years.Theseconditions are set to continue, despite widespreadspeculation that the sub-prime credit crisis will provide ourmarket with serious financial challenges going forward.Thesechallenges will be largely due to an expected influx of claimsemanating from lenders against their mortgage advisors.

2006-2007 HIGHLIGHTSThere are a number of significant highlights to report duringthe past year.

Our gross written premium surpassed €40 million, which isan increase of 16% on the previous year.

We have performed exceptionally well in generating profitcommission. XL syndicate paid DUAL Corporate Risks over€2 million of profit commission for the underwriting amountduring 2004, and forecasted profit commission from ArchInsurance Company (Europe) for the year ending 2005 is€5.6 million.

This year we launched our ‘Evolution’ series of Directors &Officers (D&O) products in response to changing regulationfor company directors and officers, which has set thebenchmark for quality wordings in all our regions.

We have also significantly expanded our ProfessionalIndemnity (PI) expertise to provide brokers and their clients

a wider offering of more tailored wordings for a greaterrange of niche professional businesses. Since 2006, grosswritten premium for PI has increased by 43%. This expansion,coupled with a targeted push further into the regionalbroking markets, puts us in an ideal position to provide ourcompetitive underwriting services to a much broader market.

OUR PEOPLEDUAL has welcomed a significant number of new people intothe company this year, notably boosting our size and capacityacross all departments. It is at the core of our philosophythat we invest in people of the highest quality, expertise andmotivation in order to remain competitive in such difficultmarket conditions. Having recruited several highlyexperienced specialists within the industry, it is clear that notonly are we desirable to work with, but also to work for.

THE FUTUREOur success has always been founded upon offering superiorservice to our brokers and delivering excellent underwritingresults for our capital providers.

Predictions are that 2008 will remain a highly challengingmarket, with cautious economic forecasts and increased PIclaims activity. However, by sticking closely to our focusedunderwriting strategy we will maintain our success andcontinue to perform with strength.



“By sticking closely toour focusedunderwriting strategywe will maintain oursuccess and continueto perform withstrength.”

RUSSELL KILPATRICKMANAGING DIRECTORDUAL CORPORATE RISKS

UNITED KINGDOMTHE MARKETThe market has softened for all of our product lines over thelast three years, but the overall market size has grown as aresult of increasing market penetration. We expectcontinued growth in each of our key product lines over thenext three years.

2006-2007 HIGHLIGHTSOur gross premium income (GPI) has grown by over 17% onthe previous year. We have chosen our areas of growthcarefully, and stagnated product lines that we do not thinkwill make the requisite underwriting profit during the secondphase of the soft market.

We have a sophisticated and disciplined approach tounderwriting. We employ rigorous market and riskselection criteria, based on providing cover for low riskmicro businesses serviced through a low cost distributionnetwork, and carefully selected, well managed businesses inchallenging classes (using actuarially verified risk and pricingmodels).

During 2007, we exported our ProSurance product suitefrom Australia to Canada, and sold more than 1,000 policiesin our first year, and we also successfully relaunched ourproposition for US Nursing Homes. Increased productinnovation, product turnover and market segmentation areall key parts of our soft market strategy, so we are verypleased to have employed our first Product DevelopmentDirector to ensure that CFC will retain its entrepreneurialspirit as the business grows.

OUR PEOPLEWe now employ 18 people who are all based at Lloyd’s ofLondon. The company benefits from a strong managementteam with over 80 years of combined experience of theLondon and international insurance markets. Significantemphasis is placed on enhancing the service and productculture of the business by employing highly motivated, topcalibre people.

THE FUTUREOur pace of growth is set to accelerate, with GPI expectedto grow 40% in 2008. The acceleration is a result of anumber of new product lines gaining significant momentum.In fact, notwithstanding difficult market conditions, CFC isnow growing faster than ever before.

Our success has always been founded on four strategicthemes: superior underwriting performance, productinnovation, distribution via a well-established internationalbroker network, and the maintenance of a strong serviceculture. Medium term initiatives will see a broadening of theproduct range to offer PI cover in parallel industry sectors.Longer term, the focus will be on applying our proven riskmodelling and pricing approach to new ‘high-risk’ sectorswhere careful, data-driven risk selection can deliver strongunderwriting performance.


GROUP UNDERWRITING - CFC UNDERWRITING

“Our pace of growth isset to accelerate, withGPI expected to grow40% in 2008.”

DAVID WALSHMANAGING DIRECTORCFC UNDERWRITING

UNITED STATESTHE MARKET Despite having both sides of the insurance coin under oneroof, the reality is that market conditions are difficult forboth brokers and capacity providers alike as premiumsdecline and competition increases. Fortunately, the SMEunderwriting segment we currently serve in Latin America isrelatively protected by local regulation, which prevents largeswings in foreign reinsurance capacity levels.As a result,premiums have held up better on a percentage basis thanlarger multinational Liability accounts.

2006-2007 HIGHLIGHTSOur strategic goals this year at VK Underwriting haveunsurprisingly mirrored those of our sister brokingoperation. The ability to enter a new territory as eitherbroker or underwriter echoes that of the Group.Thisflexibility allows us to maximise our distribution channels inany chosen market, thereby ensuring our underwritingoperation swiftly establishes a foothold.

The new office in Buenos Aires enhances our presence andmarket exposure to the ‘Southern Cone’ region of SouthAmerica, an area well known for its Liability market andwhich has been difficult to adequately serve from abroad.

The outstanding achievement of becoming a Lloyd’s CoverHolder in August 2007 will enable us to provide our brokerswith a full suite of Indemnity products for most classes ofprofessionals.

OUR PEOPLEAll of our underwriters possess a vast amount of technical

knowledge coupled with extensive regional experience in themarkets they serve. Like our sister group on the brokerageside, the technical background of our people is unmatched byany of our competitors, providing us with a strongcompetitive advantage.

Service is core to our success and we have been fortunate inattracting people who are committed to providing outstandinglevels of service to both our clients and partners.

THE FUTUREThroughout 2008 we will be looking for furtheropportunities to expand our regional office networkthroughout Latin America. We will use our existing networkof offices as a springboard into these new territories. Thisregional expansion will go hand in hand with additionalproducts for brokers.

In addition, we are working towards developing anunderwriting strategy for the US market which will furthercomplement and support our brokerage distributionnetwork.

Although market conditions for 2008 are expected to betesting, we are optimistic about our ability to continue todeliver high quality service in offering niche products inunderserved markets.


GROUP UNDERWRITING - VK UNDERWRITING

“Throughout 2008 wewill be looking forfurther opportunities to expand our regionaloffice networkthroughout LatinAmerica.”

MATT KELLYCHIEF UNDERWRITING OFFICERVK UNDERWRITING



FINANCIAL STATEMENTS


Directors’ Report 34

Statement of Directors’ Responsibilities 37

Independent Auditors’ Report 38

Consolidated Profit and Loss Account 39

Statement of Total Recognised Gains and Losses 39

Consolidated and Company Balance Sheets 40

Consolidated Cash Flow Statement 41

Reconciliation of Net Cash Flow to Movement in Net Funds 41

Notes to the Consolidated Financial Statements 42

Hyperion Contact Details 62



The directors submit their report and audited financial statements

for Hyperion Insurance Group Limited (“the Company”) together

with the consolidated financial statements of the Group for the year

ended 30 September 2007.

PRINCIPAL ACTIVITYThe principal activity of the Company during the year was that of

a holding and investment company for a group of insurance

intermediaries.The Group’s trading operations comprise

wholesale and retail insurance broking, reinsurance broking and

underwriting agencies.

REVIEW OF THE BUSINESSThe Board is pleased to report that, against a difficult market

background, the Group reported 15% growth in operating income

to £39.2m (2006 - £34.1m). Operating profits, before exceptional

expenses, increased by 10% to £6.5m (2006 - £5.9m).

The Group’s broking operations reported revenues of £20.7m

(2006- £19.2m).This result reflects further growth in overseas

operations, notably Spain, and the impact of further declines in

premiums and brokerage, and the impact of the weak US dollar.

Against this difficult background, the Group’s broking operations

reported profits of £2.7m (2006 - £3.5m), which is a satisfactory

result, and reflects further initial startup losses of Howden Property

and Howden Leeds.

The larger of the Group’s underwriting agency operations, DUAL,

had a successful year. Net written premium increased by 12% to

£57.2m and total revenues by 30% to £15.8m.This result reflects

further underlying growth and profit commission arising from

business written in prior years.Whilst all DUAL offices reported

satisfactory results, particularly strong performances were achieved

in Australia and Germany.

CFC, the Group’s other underwriting agency operation, had a very

successful year. Revenues increased by 21% to £2.7m, and profits by

45% to £0.9m.As with DUAL, this result reflects profit commission

on historic business.

Whilst the market background remains difficult, the prospects for

the Group are very positive. Since the year end, the Group has

established an operation in Dubai, acquired a broking operation in

Baltimore, and extended its presence in Latin America. Other

opportunities are also being explored.

The Group raised an additional £5.5m of equity capital during the

year (full details of this capital raising are set out in note 21 of these

financial statements) to strengthen the capital base further.Taking

into account the preferred shares, which are required to be included

in creditors, the Group’s capital base is now £17m.

The Group’s trading operations are geographically diverse, with

different market positions and specialisms.A number, such as

Howden Iberia and VK Howden, were recently established and

have yet to complete their initial development phase.Accordingly,

there is no one financial performance indicator that is used to

monitor the Group’s operations.The management focus is on

revenue and profit against historic and budgeted performance

levels, and in the DUAL business, there is close monitoring of the

underlying underwriting performance. Businesses that do not

achieve a ratio of profit before tax to revenue of at least 15% are

carefully scrutinised and the objective is to achieve, in developed

businesses, a ratio of at least 20%.The Group also monitors

revenue and profit per employee, and overall brokerage as a

percentage of premium.

RESULTS AND DIVIDENDSThe profit of the Group for the year after taxation amounted to

£2.1m (2006 - £2.7m).The loss of the Company was £0.4m (2006:

profit of £1.4m). Equity dividends of £0.3m (2006 - £0.7m) were

paid during the year.

DIRECTORSThe directors who served during the year are listed below:

R J R Elias Chairman

D P Howden Chief Executive

R P Horton Finance Director

L. Muñoz-Rojas Entrecanales

S J Crowther

R Davidoff Resigned 31 March 2008

M N Pangborn Resigned 17 December 2007

T S Howden

E H Woolf

B P Marsh

The beneficial interests of the directors in the shares of the

Company at the beginning and end of the year are shown in note 21

to the financial statements.

Directors’ interests in the share capital of other Group companies

are disclosed where applicable in the financial statements of those

companies.

BP Marsh & Partners Plc owned 27.9% of the Company at the

beginning and end of the year. BP Marsh and S J Crowther have

interests in the share capital of BP Marsh & Partners Plc.

Murofo Investments SL owned 12.9% of the Company at the

beginning of the year and 17.4% at the end of the year. L. Muñoz-

Rojas Entrecanales has an interest in the share capital of Murofo

Investments SL.

DIRECTORS’ REPORT


DIRECTORS’ REPORT

DIRECTORS AND OFFICERS LIABILITYINSURANCEThe Company has purchased insurance to cover directors and

officers liability, as permitted by section 310(3)(a) of the Companies

Act 1985 (as amended).

CORPORATE GOVERNANCEHyperion is committed to maintaining high standards of corporate

governance. We recognise that good governance helps the business

to deliver our strategy and safeguard shareholders’ long term

interests. We believe that the Combined Code provides a useful

guide and we apply these principles as appropriate to a group of

our size.

THE BOARDThe Board is responsible for maintaining effective control over

significant strategy, financial, organisational, legal and regulatory

matters. It meets at least six times a year. Management supplies the

Board with appropriate and timely information and the directors are

free to seek any further information they consider necessary.

In addition to the Chairman, the Board currently comprises four

executive directors, and three non-executive directors who bring an

appropriate balance of experience and knowledge, whereby the

Board’s decision making cannot be dominated by an individual or

small group.

AUDIT, REMUNERATION AND INVESTMENTCOMMITTEESThe Board has delegated certain responsibilities to Committees that

are described below, all of which have formally constituted terms of

reference. It does not consider that it is of sufficient size to justify

the establishment of a permanent Nominations Committee and all

matters relating to Board appointments are therefore dealt with by

the Board itself, or by a subcommittee specifically formed for that

purpose.

Audit Committee

The Audit Committee comprises two non-executive directors and is

chaired by Emile Woolf.The Committee meets at least four times a

year and is attended, by invitation, by the Company’s external

auditors, the finance director and members of his staff, compliance

officers and internal audit.

The Committee’s role is to assist the Hyperion Board and the

Boards of its subsidiaries in fulfilling their responsibilities with

regards to accounting policies, internal control, financial reporting

functions, risk assessment, compliance and related matters.

Remuneration Committee

The Remuneration Committee comprises David Howden, the Chief

Executive, and two non-executive directors. The Committee is

chaired by Tim Howden and meets at least four times a year. Other

individuals such as the group human resources manager and

external advisers may be invited to attend for all or part of any

meeting as and when appropriate.

The Committee’s overall responsibility is to balance the various

interests of shareholders, the Company and its employees, with the

aim of ensuring that the Company, through its remuneration policy

is able to attract, retain and motivate management and senior staff

of appropriate experience and expertise.

Investment Committee

This Committee comprises two executive directors, one non-

executive director and the Group’s chief operating officer and is

chaired by David Howden.The Committee is responsible for

reviewing, approving and recommending major investment

opportunities.

INTERNAL CONTROL & RISK MANAGEMENTThe Board is responsible for maintaining a sound system of internal

control and risk management, and for reviewing its effectiveness to

safeguard shareholders’ investments and Group assets.There is no

absolute means of preventing material loss and/or misstatement and

the Group’s internal controls reflect a balanced judgement, taking

into account the direct costs of controls as well as the indirect

costs of being over-bureaucratic, which provides reasonable

assurance against material loss and/or misstatement.

The Group’s internal controls are tested and key business risks are

evaluated on a continuing basis, using Internal Audit, Compliance,

and other relevant expertise.The Group maintains insurance cover

against certain risks, including fidelity insurance.

PRINCIPAL BUSINESS RISKS AND UNCERTAINTIESThe Group’s operations specialise in business critical liability

insurance such as professional indemnity insurance, directors and

officers liability insurance and related products.The Group is thus

exposed to the cyclical factors that affect the insurance market, and

premiums and commissions.Whilst its underwriting agency

operations are not directly responsible for claims, claims costs do

affect the level of profit commission that the Group receives.

Further, the Group’s international focus (which is one of its most

important strengths) exposes its revenues to currency fluctuations,

mainly Sterling/Dollar and Sterling/Euro.The Group has floating-rate

borrowings in Sterling and Euros and is therefore also exposed to

interest rate movements in those currencies.

DIRECTORS’ REPORT (CONTINUED)


DIRECTORS’ REPORT

The Group is ambitious and seeks to grow by means of acquisitions

and organic growth. Such activities are inherently uncertain,

particularly start-up operations where the timing and quantum of

revenue build-up cannot be forecast with precision, and there is no

developed book of renewals.The Group seeks to minimise such

uncertainties with due diligence, warranties and the like.

In all its principal operations, the Group is also exposed to

regulatory risk, and also an element of political risk in certain

geographic regions, such as the Middle East and Latin America.

The Group uses a number of internal performance indicators to

monitor and assess its business. In particular, renewal and attrition

rates are carefully reviewed. In the main, however, the Group

focuses on the profit before tax to revenue margin which it targets

at least 20%.

FINANCIAL RISK MANAGEMENTThe Group's financial risk management objective is broadly to seek

to make neither profit nor loss from exposure to currency or

interest rate risks. Its policy is to finance working capital through

retained earnings and bank borrowings at prevailing market interest

rates. Acquisitions are funded through the combination of retained

earnings and additional equity.

The Group’s working capital comprises principally of insurance

debtors, creditors and cash as described in note 1(l). These

insurance balances are denominated in various currencies,

predominantly Sterling, US Dollars and Euros. To minimise the

foreign exchange exposure the Group will endeavour to match

foreign currency assets with liabilities of similar maturities and vice

versa. Where this is not possible, for material exposures, the Group

will endeavour occasionally to purchase an appropriate financial

instrument.

The Group’s exposure to the price risk of financial instruments is

therefore minimal. In addition, as the counterparties to all financial

instruments are the Group’s bankers, the exposure to credit and

liquidity risks in respect of these instruments is low.

EMPLOYMENT POLICIESThe Board recognises that the continuing success of the Group

depends on its employees and its ability to continue to adopt

policies created to attract, motivate and retain employees of the

highest calibre.

The Group is an equal opportunities employer and bases decisions

on individual ability regardless of race, religion, gender, age or

disability. The Group’s equal opportunities policy is designed to

ensure that disabled persons are given the same consideration as

others when they apply for jobs, and enjoy the same training, career

development and prospects as other employees.

The Group seeks to achieve a common awareness among its

employees of the financial and economic factors affecting the

business by consultation and effective employee communication

through a variety of media.

PROVISION OF INFORMATION TO THE AUDITORSAs far as each of the directors are aware, at the time this report

was approved, there is no relevant available information of which

the auditors are unaware; and they have taken all steps that ought to

have been taken to make themselves aware of any relevant audit

information and to establish that the auditors are aware of that

information.

POST BALANCE SHEET EVENTOn 31 March 2008, 3i Group Plc acquired a 26.6% interest in the

Company. Details of this transaction and its impact upon the

Company and certain of its subsidiaries are disclosed in note 27 to

the financial statements.

By order of the Board

HG PallotSECRETARY

31 March 2008

DIRECTORS’ REPORT (CONTINUED)


DIRECTORS’ REPORT

The directors are responsible for preparing the annual report and

the financial statements in accordance with applicable law and

regulations.

Company law requires the directors to prepare financial

statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance

with United Kingdom Generally Accepted Accounting Practice

(United Kingdom Accounting Standards and applicable law).The

financial statements are required to give a true and fair view of the

state of affairs of the Company and the Group and of the profit or

loss of the Group for that period. In preparing these financial

statements the directors are required to:

• select suitable accounting policies and then apply them

consistently;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been

followed, subject to any material departures disclosed and

explained in the financial statements;

• prepare the financial statements on the going concern basis

unless it is inappropriate to presume that the Company will

continue in business.

The directors are responsible for keeping proper accounting

records that disclose with reasonable accuracy at any time the

financial position of the Company and the Group and enable them

to ensure that the financial statements comply with the Companies

Act 1985.They are also responsible for safeguarding the assets of

the Group and hence for taking reasonable steps for the

prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of

the corporate and financial information included on the Company’s

website. Legislation in the United Kingdom governing the

preparation and dissemination of the financial statements and

other information included in annual reports may differ from

legislation in other jurisdictions.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES


STATEMENT OF DIRECTORS’ RESPONSIBILITIES

We have audited the Group and parent company financial

statements (“the financial statements”) of Hyperion Insurance

Group Limited for the year ended 30 September 2007 which

comprise the consolidated profit and loss account, the

consolidated statement of total recognised gains and losses, the

consolidated and Company balance sheets, the consolidated cash

flow statement and the related notes.The financial statements have

been prepared under the accounting policies set out therein.

This report is made solely to the Company’s members, as a body,

in accordance with section 235 of the Companies Act 1985. Our

audit work has been undertaken so that we might state to the

Company’s members those matters we are required to state to

them in an auditors’ report and for no other purpose.To the

fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the Company and the

Company’s members as a body, for our audit work, for this report,

or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORSAND AUDITORSThe directors’ responsibilities for preparing the annual report and

the financial statements in accordance with applicable law and

United Kingdom accounting standards (“United Kingdom Generally

Accepted Accounting Practice”) are set out in the statement of

directors’ responsibilities.

Our responsibility is to audit the financial statements in

accordance with relevant legal and regulatory requirements and

International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial

statements give a true and fair view and have been properly

prepared in accordance with the Companies Act 1985.We also

report to you whether in our opinion the information given in the

directors’ report is consistent with the financial statements.

In addition we report to you if, in our opinion, the Company has

not kept proper accounting records, if we have not received all the

information and explanations we require for our audit, or if

information specified by law regarding directors’ remuneration and

other transactions is not disclosed.

We read the directors’ report and consider the implications for

our report if we become aware of any apparent misstatements

within it.

BASIS OF AUDIT OPINIONWe conducted our audit in accordance with International

Standards on Auditing (UK and Ireland) issued by the Auditing

Practices Board.An audit includes examination, on a test basis, of

evidence relevant to the amounts and disclosures in the financial

statements. It also includes an assessment of the significant

estimates and judgments made by the directors in the preparation

of the financial statements, and of whether the accounting policies

are appropriate to the Group’s and Company’s circumstances,

consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the

information and explanations we considered necessary in order to

provide us with sufficient evidence to give reasonable assurance

that the financial statements are free from material misstatement,

whether caused by fraud or other irregularity or error. In forming

our opinion we also evaluated the overall adequacy of the

presentation of information in the financial statements.

OPINIONIn our opinion:

• the financial statements give a true and fair view, in accordance

with United Kingdom Generally Accepted Accounting Practice,

of the state of the Group’s and the parent company’s affairs as

at 30 September 2007 and of the Group’s profit for the year

then ended;

• the financial statements have been properly prepared in

accordance with the Companies Act 1985; and

• the information given in the directors’ report is consistent with

the financial statements.

PKF (UK) LLPREGISTERED AUDITORSLONDON, UK

31 March 2008

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OFHYPERION INSURANCE GROUP LIMITED


INDEPENDENT AUDITORS’ REPORT

CONTINUING EXCEPTIONAL 2007 2006

NOTE OPERATIONS ITEMS (NOTE 5) TOTAL TOTAL

£'000 £'000 £'000 £'000

Turnover 2 38,326 - 38,326 33,401

Fiduciary investment income 803 - 803 642

Other income 121 - 121 60

Total operating income 39,250 - 39,250 34,103

Administrative expenses (32,797) (1,466) (34,263) (28,172)

Operating profit 3 6,453 (1,466) 4,987 5,931

Share of operating profit of

associated undertakings 13 - 13 38

Profit/(loss) on sale of tangible

fixed assets 1 - 1 (8)

Non-fiduciary investment income 203 - 203 64

Interest payable and similar charges 9 (802) - (802) (716)

Profit on ordinary activities

before taxation 5,868 (1,466) 4,402 5,309

Taxation 11 (2,579) 302 (2,277) (2,563)

Profit on ordinary activities

after taxation 3,289 (1,164) 2,125 2,746

Minority interests (2,096) - (2,096) (1,868)

Profit for the financial year 1,193 (1,164) 29 878

The notes on pages 42 to 61 form part of these financial statements.

CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2007



STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESFOR THE YEAR ENDED 30 SEPTEMBER 2007

2007 2006

£’000 £’000

Profit for the financial year 29 878

Currency translation differences on foreign currency net investments (35) (32)

Total recognised gains and losses relating to the year (6) 846

All amounts relate to continuing operations.


2007 2007 2006 2006

GROUP COMPANY GROUP COMPANY

NOTE £’000 £’000 £’000 £’000

Fixed assets

Intangible 12 6,338 - 6,221 -

Tangible 13 2,245 606 2,087 451

Investments in subsidiary undertakings 14 - 7,938 - 7,441

Investment in associated undertakings 15 125 - 112 -

8,708 8,544 8,420 7,892

Current assets

Debtors 16 85,263 7,390 70,591 3,324

Cash at bank and in hand 17 32,423 2,072 25,852 1,963

117,686 9,462 96,443 5,287

Creditors

Amounts falling due within one year 18 (105,576) (2,645) (88,771) (1,970)

Net current assets 12,110 6,817 7,672 3,317

Total assets less current liabilities 20,818 15,361 16,092 11,209

Creditors

Amounts falling due after more

than one year 19 (7,671) (6,733) (8,899) (7,427)

Net assets 13,147 8,628 7,193 3,782

Capital and reserves

Called up share capital 21 212 212 176 176

Share premium account 22 9,288 9,288 3,800 3,800

Profit and loss account 22 716 (872) 983 (194)

Shareholders’ funds 10,216 8,628 4,959 3,782

Minority interests 2,931 - 2,234 -

Capital employed 13,147 8,628 7,193 3,782


The financial statements were signed as approved and authorised for issue by the Board on 31 March 2008.

Signed on behalf of the board of Directors.

D P HowdenR P Horton

CONSOLIDATED AND COMPANY BALANCE SHEETSAS AT 30 SEPTEMBER 2007



2007 2006

NOTE £’000 £’000

Net cash inflow from operating activities 4 8,601 2,954

Returns on investments and servicing of finance 26(a) (1,521) (1,813)

Taxation (2,777) (1,762)

Capital expenditure and financial investment 26(a) (870) (924)

Net cash outflow from acquisitions and disposals 26(a) (1,439) (711)

Equity dividends paid 10 (261) (700)

Cash inflow/(outflow) before use of liquid resources and financing 1,733 (2,956)

Financing 26(a) 5,131 6,249

Increase in cash 6,864 3,293

All amounts relate to continuing operations.

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDSFOR THE YEAR ENDED 30 SEPTEMBER 2007

2007 2006

NOTE £’000 £’000

Increase in cash in the year 6,864 3,293

Cash inflow from debt and lease financing 26(a) 393 (2,814)

Movement in net funds in the year resulting from cash flows 7,257 479

New finance leases (107) -

Movement in net funds in the year 7,150 479

Net funds at 1 October 17,164 16,685

Net funds at 30 September 26(b) 24,314 17,164

CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 30 SEPTEMBER 2007



The following accounting policies have been applied consistently in

dealing with items that are considered material in relation to the

financial statements.

(A) BASIS OF PREPARATIONThe financial statements have been prepared under the

historical cost convention and in accordance with applicable

UK accounting standards.

(B) BASIS OF CONSOLIDATIONThe Group’s financial statements consolidate the financial

statements of the Company and its subsidiary undertakings

for the year ended 30 September 2007 using the acquisition

method.The results of acquired businesses are consolidated

from the date on which effective control passes to the

Group.

As permitted by section 230 of the Companies Act 1985 no

separate profit and loss account has been provided for

Hyperion Insurance Group Limited.

Associated undertakings are accounted for using the net

equity method.

(C) TURNOVERTurnover represents brokerage and commission, which is

credited to income on the inception date of the risk, or the

date of issue of the prime documents by the Group,

whichever is the later.

Adjustments to brokerage arising from premium additions or

reductions are taken into account as and when they are

known and booked.

Profit commission is booked when the amounts due can be

estimated with a reasonable degree of certainty.

(D) TANGIBLE FIXED ASSETS ANDDEPRECIATIONTangible fixed assets are stated at cost less depreciation.

Depreciation is provided at rates calculated to write off the

cost of fixed assets, less their estimated residual value, over

their expected useful lives on the following bases:

Short leasehold improvements Over the outstanding

lease period

Furniture, fixtures and fittings 5 years to 10 years

Computer hardware 4 years to 5 years

Computer software 3 years

Motor Vehicles 4 years

(E) GOODWILLGoodwill, being the difference between the fair values of the

net assets acquired and consideration paid, is capitalised and

carried at its book value (original cost less cumulative

amortisation), less any impairment subsequently incurred.

Goodwill is amortised on a straight line basis over its

expected useful life, with a maximum period of 20 years.

(F) INVESTMENTSInvestments in subsidiary and associated undertakings are

carried at cost less any provision for impairment.

(G) OPERATING LEASESOperating lease rentals are charged to the profit and loss

account on a straight-line basis over the lease term.

(H) PENSIONSThe Group operates a defined contribution scheme and

the pension charge in the profit and loss account

represents the amounts payable by the Group to the fund

in respect of the year.

(I) FOREIGN CURRENCYThe results of the foreign subsidiaries have been translated

using the average of monthly exchange rates.Assets and

liabilities of foreign subsidiary undertakings are translated

into Sterling at the rates of exchange ruling on the balance

sheet dates. Exchange differences which arise from

translation of the opening net investment in foreign

subsidiary undertakings are taken to reserves.All other

differences are taken to the profit and loss account.

Transactions denominated in foreign currencies are translated

to Sterling at the exchange rates ruling at the date of the

transaction.Assets and liabilities denominated in foreign

currencies at the balance sheet date are translated into Sterling

at the rates ruling at the balance sheet date. Exchange

differences arising are dealt with through the profit and loss

account.

(J) DEFERRED TAXATIONDeferred taxation is provided on material timing

differences between the incidence of income and

expenditure for taxation and accounts purposes using the

full provision basis in accordance with the provisions set

out in Financial Reporting Standard No. 19 “Deferred Tax”.

Deferred tax assets are only recognised to the extent that

they are considered recoverable against future taxable

profits. Deferred tax balances are not discounted.

1. PRINCIPAL ACCOUNTING POLICIES


NOTES TO THE FINANCIAL STATEMENTS

(K) DIVIDENDSEquity dividends declared at the discretion of the Company

are recognised in the period in which they are declared and

approved by shareholders. Contractual entitlements to

dividends on other shares are recognised on an accruals

basis.

(L) INSURANCE INTERMEDIARY ASSETS ANDLIABILITIESInsurance brokers usually act as agents in placing the

insurable risks of their clients with insurers and as such,

generally, are not liable as principals for the amounts arising

from such transactions. Notwithstanding these legal

relationships, debtors and creditors arising from insurance

broking transactions are shown as assets and liabilities as set

out in notes 16 and 18. This recognises that the insurance

broker is entitled to retain the investment income on any

cash flows arising from these transactions.

Debtors and creditors arising from a transaction between a

client and insurers (e.g. a premium or a claim) are recorded

simultaneously. Consequently, there is a high level of

correlation between the totals reported in respect of

insurance broking debtors and insurance broking creditors.

The position of the insurance broker as an agent means that

generally the credit risk is borne by the principals.There can

be circumstances where the insurance broker acquires

credit risk – through statute, or through the act or omission

of the insurance broker or one of the principals. There is

much legal uncertainty surrounding the circumstances and

the extent of such exposure and consequently they cannot

be evaluated. Therefore, the total of insurance broking

debtors appearing in the balance sheet is not an indication

of credit risk.

It is normal practice for insurance brokers to settle accounts

with other intermediaries, clients, insurers and market

settlement bureaux on a net basis. Thus, large changes in

both insurance broking debtors and creditors can result

from comparatively small cash settlements. For this reason,

the totals of insurance broking debtors give no indication of

future cash flows.

The legal status of this practice of net settlement is

uncertain and in the event of insolvency it is generally

abandoned. Financial Reporting Standard No. 5 “Reporting

the substance of transactions” requires that the offset of

assets and liabilities should be recognised in the financial

statements where, and only where, the offset would survive

the insolvency of the other party.Accordingly, only such

offsets have been recognised in calculating insurance broking

debtors and creditors.

(M) EQUITY INSTRUMENTSAn equity instrument is a security that evidences a residual

interest in the assets of an entity after deducting all its

liabilities.Accordingly, financial instruments are treated as

equity if:

• there is no contractual obligation to deliver cash or

other financial assets or to exchange financial assets or

liabilities on terms that may be unfavourable; and

• the instrument is a non-derivative that contains no

contractual obligation to deliver a variable number of

shares, or is a derivative that will be settled only by the

Company exchanging a fixed amount of cash or other

assets for a fixed number of the Company’s own equity

instruments.

(N) SHARE-BASED PAYMENTSThe Group operates a number of share-based compensation

schemes and applies the requirements of FRS 20 “Share-

based payments” in respect of awards granted after 7

November 2002, until such time as they are fully vested.

The cost of employees’ services received in exchange for the

grant of rights under these schemes is measured at the fair

value of the equity instruments granted and is charged

against profits over the vesting period. For cash settled

schemes the fair value is re-assessed each year and any

changes are recognised in the profit and loss account until

the liability is settled.

1. PRINCIPAL ACCOUNTING POLICIES (CONTINUED)



Turnover is analysed by geographical markets as follows:

2007 2006

GROUP GROUP

£’000 £’000

Brokerage and commissions

United Kingdom 12,686 14,006

Northern Europe 5,494 5,554

Southern Europe 7,492 3,848

Israel 3,252 2,925

Australasia 3,141 2,516

North and South America 4,687 3,147

Other 1,574 1,405

38,326 33,401

3. OPERATING PROFIT

The operating profit is stated after charging:

2007 2006

GROUP GROUP

£’000 £’000

Depreciation of tangible fixed assets owned by the Group 866 759

Amortisation of goodwill 457 307

Goodwill impairment (note 12) 369 -

Auditors’ remuneration (see below) 169 149

Operating lease rentals:

- Equipment 114 53

- Land and buildings 835 821

(Profit)/loss on foreign currency exchange (11) 210

The total remuneration payable by the Group, excluding VAT, to its principal auditors, PKF (UK) LLP, in respect of the audit of these accounts

is shown below, together with fees payable in respect of other work.

2007 2006

GROUP GROUP

£’000 £’000

Audit services:

- Statutory audit of the Company 26 25

- Statutory audit of subsidiaries 98 86

- Audit-related regulatory and supplementary reporting 6 6

Taxation services 60 66

190 183

In addition to the above amounts payable to the principal auditors, fees for audit services of £39,000 (2006 - £32,000) were payable to other

firms. The total fees payable for audit services were therefore £169,000 (2006 - £149,000).

2. TURNOVER



2007 2006

GROUP GROUP

£’000 £’000

Operating profit 4,987 5,931

Foreign exchange differences 3 (32)

Depreciation 866 759

Amortisation of goodwill 457 307

Goodwill impairment 369 -

Increase in debtors (12,620) (4,514)

Increase in creditors 14,539 503

Net cash inflow from operating activities 8,601 2,954

5. EXCEPTIONAL COSTS2007 2006

GROUP GROUP

£’000 £’000

Abortive acquisition costs 91 243

Terminating and replacing senior executives 406 -

Other one-off staff incentives 600 -

Goodwill impairment 369 -

1,466 243

6. DIRECTORS’ EMOLUMENTS2007 2006

GROUP GROUP

£’000 £’000

Directors’ emoluments 1,258 976

Pension contributions 127 95

1,385 1,071

Highest paid director

Salary and benefits 313 277

Annual bonus 125 81

Pension contributions 72 50

510 408

Number Number

Directors 10 9

Directors accruing benefits under personal pension schemes 4 4

4. RECONCILIATION OF OPERATING PROFIT TO NET CASH FLOWS FROM OPERATING ACTIVITIES



Staff costs, including directors’ remuneration, were as follows:

2007 2006 2007 2006

COMPANY COMPANY GROUP GROUP

£’000 £’000 £’000 £’000

Wages and salaries 2,758 1,886 18,483 14,528

Social security costs 369 227 2,356 1,781

Share-based incentives (note 8) 213 213 - -

Pension contributions 141 137 1,099 822

3,481 2,463 21,938 17,131

The average monthly number of employees, including directors, during the year was:

2007 2006 2007 2006

COMPANY COMPANY GROUP GROUP

NUMBER NUMBER NUMBER NUMBER

Directors and senior management 7 6 69 53

Insurance professionals - - 149 129

Administration 19 20 104 103

26 26 322 285

8. SHARE-BASED INCENTIVES

The fair values of share-based incentives are determined using the Black-Scholes valuation model. The significant variables are:

• Share value at date of grant;

• Expected share price volatility of 30%;

• Dividend yield of 3.0%;

• Risk free interest rate of 4.7%.

During the year the total cost recognised by the Group for share-based incentive schemes was £213,000 (2006 - £Nil). Following the

adoption of FRS20 this year the impact on the previous year’s results was not material.

The Group’s principal share-based incentive scheme is the Hyperion Long-Term Incentive Plan made available to executive directors and

other senior employees. Other Group share-based incentive schemes do not have a material impact upon the Group’s results.

In respect of the Hyperion Long-Term Incentive Plan notional units are awarded and are priced with reference to Group turnover and profit

before taxation at grant date, but cannot exceed 5% of the total notional value of the Group. The awards, which vest three years after grant,

are subject to the growth in the value of the notional units, measured over a three year performance period. The participants receive a cash

bonus based on this growth payable in three equal annual instalments over the years following the vesting date. All grants are at the absolute

discretion of the Remuneration Committee, with no employee having the right to receive such a grant. It is currently expected that all

awards will vest on the vesting dates of 1 October 2008 and 8 January 2010.

7. STAFF COSTS



2007 2006

GROUP GROUP

£’000 £’000

Bank loans and overdrafts 123 64

Preferred dividends 246 200

Interest payable on other loans 378 437

Other interest 55 15

802 716

10. DIVIDENDS

2007 2006

GROUP GROUP

£’000 £’000

Ordinary dividends paid 261 619

Preferred and A ordinary dividends paid - 81

261 700

On 11 October 2006, the Company, having sufficient distributable reserves, declared an interim dividend, of £261,000 payable to ordinary

shareholders.

Under the Company’s Articles of Association dividends payable to ordinary shareholders are restricted to 68.81% of the total dividends paid

to all shareholders, including any arrears of preferred dividends. During the year the holders of the Preferred and A Ordinary shares were

not entitled to any additional dividends over and above their fixed preferred dividends which are included in finance costs (2006- additional

entitlement £81,000).

9. INTEREST PAYABLE AND SIMILAR CHARGES



2007 2006

GROUP GROUP

£’000 £’000

(a) The tax charge comprises:

Current tax

UK corporation tax on profits for the year 1,200 1,479

Adjustments in respect of previous years (11) (22)

Overseas tax 1,386 1,153

Total current tax (note 11(b)) 2,575 2,610

Deferred tax

Origination and reversal of timing differences (133) (44)

Adjustments in respect of previous years (165) (3)

Total deferred tax (note 20) (298) (47)

Tax on profit on ordinary activities 2,277 2,563

(b) Factors affecting the tax charge for the year:

The tax assessed for the year is higher than the standard rate of

corporation tax (30%) due to the following reasons:

Profit on ordinary activities before tax 4,402 5,309

Profit on ordinary activities multiplied by the standard rate of

corporation tax in the UK (30%) 1,321 1,592

Effects of:

Expenses not deductible for taxation purposes 231 189

Preferred dividends not deductible for taxation purposes 65 60

Accelerated/(decelerated) capital allowances 37 123

Increase/(decrease) in general provisions 1 (26)

Overseas tax in excess of UK tax 77 156

Non-taxable overseas income (12) (11)

Amortisation and impairment of goodwill 247 92

Unrelieved losses 529 539

Capital losses utilised - (36)

Adjustments to tax charge in respect of previous years (11) (22)

Other timing differences 90 (46)

Current tax charge for the year (note 11(a)) 2,575 2,610

11. TAXATION ON PROFIT ON ORDINARY ACTIVITIES



12. INTANGIBLE FIXED ASSETS



POSITIVE NEGATIVE

GOODWILL GOODWILL TOTAL

GROUP £’000 £’000 £’000

Cost

At beginning of year 7,764 (55) 7,709

Additions 943 - 943

At end of year 8,707 (55) 8,652

Amortisation/impairment

At beginning of year 1,536 (48) 1,488

Provided for during the year 457 - 457

Impairment 369 - 369

At end of year 2,362 (48) 2,314

Net book amount

At 30 September 2007 6,345 (7) 6,338

At 30 September 2006 6,228 (7) 6,221

The additions to goodwill principally arose from the acquisition of Avant Garantías SL (Avant) and shares held by minorities in JK Buckenham

Limited (JKB) and Howden Insurance Brokers Oy (HIB Oy). An analysis of the net assets acquired together with the consideration is as follows:

Avant HIB Oy JKB Others Total

£’000 £’000 £’000 £’000 £’000

Tangible fixed assets 46 - - - 46

Current assets 1,740 - - - 1,740

Current liabilities (2,155) - - - (2,155)

Long-term liabilities - - 50 - 50

(369) - 50 - (319)

Minority interests - 25 - - 25

Net assets/(liabilities)

acquired (369) 25 50 - (294)

Cash consideration 341 108 99 - 548

Legal and related costs 63 - - 77 140

Reduction in deferred

consideration on past

acquisitions - - - (39) (39)

Total consideration 404 108 99 38 649

Goodwill 773 83 49 38 943

On 1 December 2006 the Group acquired 80.0% of the issued share capital of Avant Garantías SL, a company incorporated in Spain dealing

in motor extended warranties and motor management services. The total consideration amounted to £341,000 (€500,000). In addition

legal and other related costs of £63,000 have been included in the total cost of acquisition of £404,000.

Avant Garantías SL’s turnover and loss after taxation for the year ended 31 December 2005 were £951,000 (€1,426,000) and £331,000

(€497,000) respectively. From 1 January 2006 to 30 November 2006 its turnover and loss after taxation were £1,697,000 (€2,512,000)

and £154,000 (€228,000) respectively. For the period 1 December 2006 to 30 September 2007 turnover and loss before taxation were

£1,229,000 (€1,820,000) and £85,000 (€125,000) respectively.These results have not been disclosed on the face of the profit and loss

account as they are not considered material.Trading continues to be disappointing and so impairment to goodwill of £369,000 has been

recognised.

On 31 December 2006 and 30 March 2007 the Group acquired from minority shareholders 25.0% and 22.8% of the issued share capital in

JK Buckenham Limited and Howden Insurance Brokers Oy respectively. The total consideration for these acquisitions amounted to

£207,000.

In addition the Group incurred legal and other costs of £77,000 relating to past acquisitions. Finally, the Group benefited from a reduction in

the settlement value of deferred consideration amounting to £39,000.

13. TANGIBLE FIXED ASSETS

SHORT FIXTURES,

LEASEHOLD MOTOR FITTINGS &

IMPROVEMENTS VEHICLES EQUIPMENT TOTAL

GROUP £’000 £’000 £’000 £’000

Cost

At beginning of year 1,385 95 3,562 5,042

Acquisition of subsidiary - - 46 46

Additions 180 - 827 1,007

Disposals (25) (25) (1,493) (1,543)

At end of year 1,540 70 2,942 4,552

Depreciation

At beginning of year 367 21 2,567 2,955

Provided for the year 293 15 558 866

Disposals (5) (19) (1,490) (1,514)

At end of year 655 17 1,635 2,307

Net book amount

At 30 September 2007 885 53 1,307 2,245

At 30 September 2006 1,018 74 995 2,087

Included in the cost of fixtures, fittings and equipment is £107,000 in respect of assets held under finance leases. The net book value of these

assets was £82,000 and depreciation charged during the year was £25,000.



12. INTANGIBLE FIXED ASSETS (CONTINUED)

SHORT FIXTURES,

LEASEHOLD FITTINGS &

IMPROVEMENTS EQUIPMENT TOTAL

COMPANY £’000 £’000 £’000

Cost

At beginning of year 52 1,667 1,719

Additions 154 317 471

Disposals - (568) (568)

At end of year 206 1,416 1,622

Depreciation

At beginning of year 46 1,222 1,268

Provided for the year 17 299 316

Disposals - (568) (568)

At end of year 63 953 1,016

Net book amount

At 30 September 2007 143 463 606

At 30 September 2006 6 445 451

Included in the cost of fixtures, fittings and equipment is £107,000 in respect of assets held under finance leases. The net book value of these

assets was £82,000 and depreciation charged during the year was £25,000.

14. INVESTMENTS IN SUBSIDIARY UNDERTAKINGS

COMPANY £’000

Cost

At beginning of year 7,441

Additions 6,249

Transfers to subsidiary undertaking (5,752)

At end of year 7,938

During the year the Company transferred investments in subsidiaries amounting to £5,752,000 in exchange for ordinary shares in Howden

Broking Group Limited, a wholly owned subsidiary acting as an intermediate holding company. Legal costs associated with this reorganisation

amounted to £33,000.

As described in note 12, the Company acquired 80.0% and 25.0% of the issued share capital in Avant Garantías SL and JK Buckenham

Limited, respectively. The total cost of these acquisitions amounted to £440,000 together with associated legal costs of £63,000. Finally the

Company benefited from a reduction in the settlement value of deferred consideration amounting to £39,000.



13. TANGIBLE FIXED ASSETS (CONTINUED)



14. INVESTMENTS IN SUBSIDIARY UNDERTAKINGS (CONTINUED)

The Group’s principal operating subsidiaries are as follows:

% INTEREST % INTEREST

COUNTRY OF HELD BY THE HELD THROUGH NATURE

NAME OF COMPANY INCORPORATION COMPANY SUBSIDIARIES OF BUSINESS

Howden Insurance Brokers Limited England 99.6 Insurance broking

Dual International Limited England 88.2 Intermediate holding company

& insurance underwriting agency

CFC Underwriting Limited England 59.5 Insurance underwriting agency

Global Services 1999 Limited England 51.0 Intermediate holding company

& insurance broking

J K Buckenham Limited England 100.0 Reinsurance broking

Howden Insurance Brokers AB Sweden 68.5 Insurance broking

VK Howden LLC USA 51.0 Insurance broking

Dual Iberica Riesgod Profesionales SA Spain 66.2 Insurance underwriting agency

Dual Italia SpA Italy 68.4 Insurance underwriting agency

DCR (Holdings) Limited England 70.6 Intermediate holding company

& insurance underwriting agency

Dual Corporate Risks Limited England 70.6 Insurance underwriting agency

Dual Australia Pty Limited Australia 64.9 Insurance underwriting agency

Dual Deutschland GmbH Germany 79.4 Insurance underwriting agency

Howden Insurance Brokers Oy Finland 70.0 Insurance broking

Davidoff Howden Insurance Brokers Israel 51.0 Insurance broking

(2002) Limited

Howden Iberia SA Spain 100.0 Insurance broking

Howden Coselusan Correduria Spain 100.0 Insurance broking

De Seguros SA

Howden Property Limited England 100.0 Insurance broking

Avant Garantías SL Spain 80.0 Motor extended warranties

& motor management services

All subsidiaries are included in the Group consolidated financial statements.

Certain subsidiaries have issued share options to senior executives. If these were fully exercised the dilution to the Group’s interests would be:

NAME OF COMPANY POTENTIAL DILUTION %

CFC Underwriting Limited 1.5

Dual International Limited 5.0

DCR (Holdings) Limited 5.3

Certain executives in Howden Insurance Brokers Limited own 57,500 ordinary £1 shares of which £19 per share remains uncalled. The

participation rights attaching to these ordinary shares are restricted by the uncalled element. Should the uncalled element be paid the Group

would receive £1.1m but the Group’s interest would be diluted to 90.6%.



15. INVESTMENTS IN ASSOCIATED UNDERTAKINGS

The Group has a 26.0% participating interest in the ordinary share capital of Howden India Pvt Limited, an insurance broker operating in

India. A summary of Howden India Pvt Limited’s net assets at 30 September 2007 and results for the year then ended were as follows:

Howden India Pvt Limited

£’000

Turnover 1,051

Profit on ordinary activities before tax 50

Taxation -

Profit on ordinary activities after tax 50

Fixed assets 101

Current assets 554

Current liabilities (99)

Provisions for liabilities and charges (76)

Net assets 480

The Group’s share of net assets at 30 September 2007 and results for the year then ended were as follows:

Howden India Pvt Limited

£’000

At beginning of year 112

Share of profit before tax arising in the year 13

Share of tax charge -

At end of year 125

16. DEBTORS2007 2007 2006 2006


£’000 £’000 £’000 £’000

Due within one year

Insurance debtors (note 1(l)) 76,269 - 66,119 -

Deferred tax recoverable (note 20) 403 67 105 67

Tax recoverable 46 3 32 2

Other debtors 1,829 223 1,250 165

Prepayments and accrued income 6,562 192 2,915 365

Amount due from associated undertaking 43 43 23 23

Amount due from Group undertakings - 3,245 - 1,533

Dividends receivable from Group undertakings - 1,330 - 857

Loans due from Group undertakings - 2,287 - 165

85,152 7,390 70,444 3,177

Due after more than one year

Loan notes receivable 111 - 147 147

85,263 7,390 70,591 3,324



16. DEBTORS (CONTINUED)

The loans due from Group undertakings include £Nil (2006 - £165,000) owed by J K Buckenham Limited.This loan bears interest at 2.5% pa

over the Royal Bank of Scotland Plc base rate.

The loan notes receivable bear interest at 2.75% pa, are repayable on 31 December 2010 and are secured on 12.5% of the shares of Howden

Insurance Brokers AB held by minorities.

17. CASH AND BANK BALANCES

2007 2007 2006 2006


£’000 £’000 £’000 £’000

Insurance balances held on behalf of clients

and insurers (note 1(l)) 25,594 - 18,991 -

Other cash balances 6,829 2,072 6,861 1,963

32,423 2,072 25,852 1,963

The use of insurance balances is restricted in accordance with the regulations governing those accounts.

18. CREDITORS:AMOUNTS FALLING DUE WITHIN ONE YEAR

2007 2007 2006 2006


£’000 £’000 £’000 £’000

Bank overdrafts (secured) 155 - 448 -

Bank loans (secured) 543 - 249 -

Insurance creditors (note 1(l)) 94,968 - 79,620 -

Amount owed to Group undertakings - 88 - 40

Corporation tax 1,740 - 1,928 -

Other taxation and social security costs 847 561 478 349

Obligations due under finance leases 36 36 - -

Dividends payable to minority shareholders 655 - 415 -

Other creditors 2,095 535 1,541 541

Accruals and deferred income 4,537 1,425 4,092 1,040

105,576 2,645 88,771 1,970

The bank loans and overdrafts are secured by means of a debenture over certain of the Group’s assets and bear interest ranging between

2.0% pa over the Bank of Scotland Plc Euro base rate and 2.5% pa over the Royal Bank of Scotland Plc base rate.

Included within other creditors are pension contributions amounting to £69,000 (2006 - £15,000).



19. CREDITORS:AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2007 2007 2006 2006


£’000 £’000 £’000 £’000

Bank loans (note 18) 542 - 1,049 -

Preferred and A ordinary redeemable shares

of £1 each (note 21) 79 79 79 79

Share premium in respect of preferred and

A ordinary redeemable shares (note 21) 4,046 4,046 4,046 4,046

Loans owed to third parties 2,450 2,350 2,450 2,350

Unsecured loan notes 215 215 200 200

Obligations due under finance leases 43 43 - -

Other 296 - 1,075 752

7,671 6,733 8,899 7,427

The bank loans are all payable within two years. £24,000 (2006 - £Nil) of the obligations due under finance leases are payable within two

years with the remaining balance of £19,000 (2006 - £Nil) payable within five years.

The Company owes BP Marsh & Partners Plc £2,350,000 (2006 - £2,350,000).This loan is secured by a debenture over the assets of the

Company and bears interest at the greater of 12.0% pa or the aggregate of 10.0% pa and the Royal Bank of Scotland Plc base rate.The loan

is repayable in fixed annual instalments of £470,000 from 30 September 2010 until 30 September 2014 inclusive.

JK Buckenham Limited owes £100,000 (2006 - £100,000).This loan bears interest at 2.5% pa over the Royal Bank of Scotland Plc base rate

and has no fixed repayment date.The Company owes £215,000 (2006 - £367,000) under similar terms.

20. PROVISION FOR DEFERRED TAX

2007 2007 2006 2006


£’000 £’000 £’000 £’000

Decelerated capital allowances 175 52 68 52

Pension accruals 20 20 - -

Losses carried forward 208 - 11 11

Other short-term timing differences - (5) 26 4

Deferred tax asset (note 16) 403 67 105 67

Asset at start of year 105 67 58 67

Deferred tax credit in profit and loss

account for period (note 11 (a)) 298 - 47 -

Asset at end of year (note 16) 403 67 105 67

The recoverability of tax losses is dependent on there being sufficient future taxable profits. Current forecasts support the partial

recoverability of these losses in the foreseeable future. Accordingly no debtor has been recognised in respect of losses not expected to be

recovered in the foreseeable future.



20. PROVISION FOR DEFERRED TAX (CONTINUED)

Factors that may affect future tax charges

The Group has capital losses of £184,000 (2006 - £68,000) available to carry forward for offset against future capital gains.

The Group has eligible unrelieved foreign tax of £105,000 (2006 - £69,000) available to carry forward for offset against any tax arising on

future overseas Group dividends.

The Group has trade losses of £2,990,000 (2006 - £1,750,000) for offset against future income, subject to certain restrictions.

21. CALLED UP SHARE CAPITAL

2007 2007 2006 2006

GROUP AND COMPANY NUMBER £’000 NUMBER £’000

Authorised

Ordinary shares of £1 each 219,159 219 182,694 183

Preferred cumulative ordinary shares of £1 each 58,049 58 58,049 58

A ordinary redeemable shares of £1 each 21,575 21 21,575 21

Deferred B ordinary shares of £1 each 21,575 22 21,575 22

320,358 320 283,893 284

Classified as equity

Allotted, called up and fully paid

Ordinary shares of £1 each 212,126 212 175,661 176

Allotted, called up and partly paid

Deferred B ordinary shares of £1 each 21,575 - 21,575 -

233,701 212 197,236 176

Classified as debt

Allotted, called up and fully paid

Preferred cumulative ordinary shares of £1 each 58,049 58 58,049 58

A ordinary redeemable shares of £1 each 21,575 21 21,575 21

79,624 79 79,624 79

On 19 April 2007 the authorised share capital of the Company was increased from £283,893 to £320,358 by the creation of an additional

36,465 Ordinary £1 shares. On 18 May 2007 36,465 ordinary £1 shares were allotted for £152 each raising £5,542,000 to fund further

expansion of the Group. Legal costs associated with this issue of capital amounted to £18,000 and have been deducted from the share

premium account.

The classes of shares have the following rights:

Preferred cumulative ordinary shares of £1 each

The shares carry a dividend of 8% of £36.50 on each share.The voting rights of the preferred shares rank equally with the ordinary shares in

all respects.The preferred shares carry no right to convert to ordinary shares.



21. CALLED UP SHARE CAPITAL (CONTINUED)

A ordinary redeemable shares of £1 each

The shares carry a dividend of 8.0% of £36.50 on each share.The A shares carry no voting rights, unless any dividends remain unpaid, in

which case the shares rank equally in all respects with the ordinary shares and the preferred shares. The shares may be redeemed at the

request of the holders but an undertaking has been given that redemption will not be requested in the foreseeable future.

Deferred B ordinary shares of £1 each

After redemption of all of the A shares, the B shares carry a dividend of 8.0% of £36.50 on each share.The voting rights of the B shares rank

equally with the ordinary shares in all respects, unless the holders of A shares are entitled to vote, as described above.The B shares carry no

right to convert to ordinary shares.

As set out in note 27, subsequent to the year end, the Company’s share capital was reclassified as ordinary shares. The deferred B ordinary

shares were paid up and the A ordinary redeemable shares redeemed out of the proceeds.

SHARE OPTIONSThe Company has issued 9,325 share options to subscribe for the Company's shares to certain executives.An analysis of the number of

options in issue is given below:

DATE OF GRANT HELD AT BEGINNING GRANTED HELD AT END OF EXERCISE EXERCISABLE EXPIRY DATE

OF YEAR (NUMBER) (NUMBER) YEAR (NUMBER) PRICE (£) FROM

5 December 2001 1,200 - 1,200 22 6/12/04 6/12/11

10 February 2003 875 - 875 28 11/2/06 11/2/13

14 June 2004 850 - 850 46 15/6/07 15/6/14

14 December 2005 1,000 - 1,000 147 15/12/08 15/6/15

19 July 2006 750 - 750 150 20/7/09 20/7/16

8 December 2006 - 150 150 150 9/12/09 9/12/16

13 February 2007 - 2,000 2,000 150 14/2/10 14/2/17

26 March 2007 - 2,500 2,500 150 27/3/10 27/3/17

4,675 4,650 9,325

The beneficial interests of the directors in the shares of the Company are as follows:

30 SEPTEMBER 2007 1 OCTOBER 2006

PREF. CUM DEF. B PREF. CUM DEF. B

ORDINARY ORDINARY ORDINARY ORDINARY ORDINARY ORDINARY

SHARES SHARES SHARES SHARES SHARES SHARES

NUMBER NUMBER NUMBER NUMBER NUMBER NUMBER

Direct holdings

R J Elias 15,256 2,569 - 15,256 2,569 -

D P Howden 8,530 259 21,575 1,751 259 21,575

D P Howden * 47,552 - - 44,592 - -

M N Pangborn 251 43 - 251 43 -

M N Pangborn * 15,067 6,849 - 18,419 6,674 -

R P Horton * 350 - - - - -

Options

R P Horton 2,000 - - - - -

S J Crowther 2,500 - - - - -

* Shares held in trust in which individual has a beneficial interest

Shares held by companies in which directors have an interest are disclosed in the Directors Report on page 34.



22. SHAREHOLDERS’ EQUITY

SHARE SHARE PROFIT &

CAPITAL PREMIUM LOSS TOTAL

GROUP £’000 £’000 £’000 £’000

At beginning of year 176 3,800 983 4,959

Share capital issued (note 21) 36 5,506 - 5,542

Legal fees associated with issue of share capital - (18) - (18)

Profit for the year - - 29 29

Other recognised gains and losses - - (35) (35)

Dividends - - (261) (261)

At end of year 212 9,288 716 10,216

SHARE SHARE PROFIT &

CAPITAL PREMIUM LOSS TOTAL

COMPANY £’000 £’000 £’000 £’000

At beginning of year 176 3,800 (194) 3,782

Share capital issued (note 21) 36 5,506 - 5,542

Legal fees associated with issue of share capital - (18) - (18)

Loss for the year - - (417) (417)

Dividends - - (261) (261)

At end of year 212 9,288 (872) 8,628

The Company’s loss after taxation was £417,000 (2006 – profit of £1,398,000).

The profit and loss account includes undeclared preferred dividends of £446,000 in respect of the financial years ended 30 September 2006

and 30 September 2007. Under the Company’s Articles of Association this dividend is payable in two equal instalments during the following

financial year out of profits available for distribution. At 30 September 2007 these dividends were neither recommended by the directors

nor paid by the Company. Accordingly at 30 September 2007 the Company had accumulated losses, as defined by the Companies Act 1985,

of £426,000 (2006: distributable reserves of £6,000).

23. OPERATING LEASES

At 30 September 2007 the Group had annual commitments under operating leases as follows:

LAND AND BUILDINGS OTHER

2007 2006 2007 2006

£’000 £’000 £’000 £’000

Expiry date:

Within 1 year 366 190 6 3

Between 2 and 5 years 913 579 114 65

In more than 5 years 12 - 1 -



24. PENSION COSTS

The Group operates a defined contribution pension scheme, the assets of which are held separately from those of the Group in an

independently administered fund. The pension cost for the year is shown in note 7.

25. RELATED PARTY TRANSACTIONS

The Company is exempt from disclosing related party transactions with Group companies in which 90.0% of the shares are owned and

which are included in the Group’s consolidated financial statements.

The Group had the following transactions with related parties during the year:

2007 2006

£’000 £’000

Amount received/(expensed) in the year

Brokerage received from Davidoff Insurance Brokers Limited - -

Brokerage received from BP Marsh & Partners Plc - 13

Rental fees payable to Davidoff Insurance Brokers Limited (20) (31)

Commissions received from Davidoff Overseas Insurance Agency (1994) Limited 84 52

IT and other expenses paid to Femi Premium Limited (29) (142)

Fees paid to BP Marsh & Partners Plc (155) (150)

Interest payable to BP Marsh & Partners Plc (360) (381)

Amounts receivable/(payable) at the end of the year

BP Marsh & Partners Plc fees payable (30) (79)

Loan from BP Marsh & Partners Plc (2,350) (2,350)

R Davidoff, a director of the Company, is also a director of Davidoff Insurance Brokers Limited, Davidoff Overseas Insurance Agency (1994)

Limited and Femi Premium Limited. BP Marsh & Partners Plc owned 27.89% of the Company at the end of the year. BP Marsh, a director of

the Company, is also a director of BP Marsh & Partners Plc.

RJP Elias, DP Howden, BP Marsh, R Davidoff, MN Pangborn and L Muñoz-Rojas Entrecanales, hold directly or through undertakings in which

they have an interest, 98% of the preferred capital of the Company. During the year they were entitled on aggregate to preferred dividends of

£241,000 (2006 - £196,000). Directors also received equity dividends in line with their holdings as disclosed in note 21.



26. NOTES TO THE CASH FLOW STATEMENT2007 2006

GROUP GROUP

(A) ANALYSIS OF CASH FLOW FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT £’000 £’000

Returns on investments and servicing of finance

Interest received 203 107

Interest paid (536) (553)

Preferred dividends paid (12) (200)

Interest element of finance lease payments (5) -

Dividends paid to minorities (1,171) (1,167)

(1,521) (1,813)

Capital expenditure and financial investment

Payments to acquire tangible fixed assets (900) (964)

Proceeds from sale of tangible fixed assets 30 40

(870) (924)

Acquisitions and disposals

Purchase of subsidiary undertakings (note 12) (404) (1,522)

Payment of deferred consideration (809) -

Purchase of minority shareholdings (207) -

Costs associated with the purchase of subsidiaries (note 12) (77) (202)

Cash acquired on acquisition of subsidiaries (note 12) - 1,013

Allotment of shares in subsidiary to minorities 58 -

(1,439) (711)

Financing

Issue of ordinary shares (note 21) 5,543 3,486

Share issue costs (note 21) (19) (51)

5,524 3,435

Issue of preferred shares (note 21) - 1,625

Drawdown of bank loans - 2,803

Repayment of bank loans (213) (1,505)

Capital element of finance leases (28) -

Repayments of loans to third parties - (109)

Repayment of loan notes (152) -

(393) 2,814

5,131 6,249



26. NOTES TO THE CASH FLOW STATEMENT (CONTINUED)

BEGINNING CASH FLOWS NON-CASH END

OF YEAR CHANGES OF YEAR

(B) ANALYSIS OF NET FUNDS - GROUP £’000 £’000 £’000 £’000

Cash in hand and at bank 25,852 6,571 - 32,423

Bank overdrafts due within one year (448) 293 - (155)

25,404 6,864 - 32,268

Bank loans due within one year (249) 213 (507) (543)

Bank loans due after more than one year (1,049) - 507 (542)

Preferred shares (4,125) - - (4,125)

Finance leases - 28 (107) (79)

Other debt due after more than one year (2,450) - - (2,450)

Loan notes (367) 152 - (215)

17,164 7,257 (107) 24,314

Non-cash changes

During the year the Group entered into finance leases in respect of assets with a total capital value at inception of £107,000.

27. POST BALANCE SHEET EVENT

On 31 March 2008, 3i Group Plc, and certain investment funds related to it, acquired a 26.6% interest in the Company. This interest

comprised the acquisition of 79,138 ordinary shares from existing shareholders and a placing of ordinary shares and warrants to raise

additional capital of approximately £7.8m.The value attributed to each ordinary share was £260.

Concurrent with this transaction the Company entered into a £14m five year revolving credit facility with HSBC Bank Plc to be used in part

to repay existing debt.This facility bears interest at 1.25% over LIBOR and is secured by cross-guarantees and debentures over the Company

and certain of its UK subsidiary undertakings.

On the same date the Company acquired for a mixture of cash and shares certain minority interests in its trading subsidiaries. In total this

involved the issue of 52,760 ordinary shares at a value per share of £260, and cash payments totalling approximately £7.6m, giving rise to

goodwill of around £19m.

Following this the Group’s effective ownership of certain principal subsidiary undertakings is changed as follows:

Dual International Limited 100%

Dual Corporate Risks Limited 100%

Dual Iberica Riesgos Profesionales SA 90%

Dual Australia Limited 96%

Global Services 1999 Limited 100%

As part of the transaction a single class of share capital in the Company, ordinary shares, remained. The A shares were redeemed for

approximately £1.2m, the B shares were fully paid and converted to ordinary shares raising approximately £1.2m, and the preferred

cumulative shares were converted to ordinary shares.

Also concurrent with this transaction existing share options were exercised raising approximately £540,000 and certain of the Group’s other

share-based incentive schemes were crystallised at a cost of approximately £680,000.

Total transaction costs borne by the Group in respect of these transactions is estimated to amount to approximately £3.6m.The overall

effect of the transactions will be to increase the Group’s net assets and capital employed by around £21m.


HYPERION CONTACT DETAILS

HEAD OFFICE

HYPERION INSURANCE GROUP

LIMITED

Bevis Marks House

24 Bevis Marks

London EC3A 7JB

United Kingdom

Tel: +44 (0)20 7398 4888

Fax: +44 (0)20 7645 9398

Email: [email protected]

Web: www.hyperiongrp.com

BROKING OFFICES

HOWDEN INSURANCE

BROKERS OY

Kalevankatu 20, 2nd floor

FI-00100 Helsinki

Finland

Tel: + 358 (9) 2513 7500

Fax: + 358 (9) 6220 0130


Web: www.howdenins.com

HOWDEN INSURANCE BROKERS

INDIA PRIVATE LIMITED

(MUMBAI)

9th Floor, Express Towers

Nariman Point

Mumbai 400 021

India

Tel: +91 (0)22 6655 8888/00

Fax: +91 (0)22 6654 8833


Web: www.howdenindia.com



(NEW DELHI)

91, Bhandari House

606, 6th Floor, Nehru Place

New Delhi 110 019

India

Tel: +91 (0)11 4655 8010

Fax: +91 (0)11 4655 8020





(BANGALORE)

No.1/2, 4th Floor, G.S. Park

Park Road,Tasker Town

Shivaji Nagar, Bangalore 560 011

India

Tel: +91 (0)80 4002 2403

Fax: +91 (0)80 4130 6885





(HYDERABAD)

6-3-550, 4th Floor, LB Bhavan

Opp. Medinova Diagnostic Services

Somajiguda, Hyderabad 500 082

India

Tel: +91 (0)40 3048 4004

Fax: +91 (0)40 2339 2464





(KOLKATA)

Room No. 308, 3rd Floor, Krishna Building

224,AJC Bose Road

Kolkata 700 017

India

Tel: +91 (0)33 4008 2533

Fax: +91 (0)33 4008 2537





(VADODARA)

T - 5, 5th Floor

National Plaza, RC Dutt Rd

Vadodara 390 007

India

Tel: +91 (0)265 6641 821



HOWDEN ICELAND

Box 210

Holtsbud 91

Gardabaer 210

Iceland

Tel: +354 565 7573

Fax: +354 565 7273


DAVIDOFF HOWDEN INSURANCE

BROKERS (2002) LIMITED

2 Habarzel Street

Ramat HaChayal

Tel-Aviv 69710

Israel

Tel: +972 3 627 0700

Fax: +972 3 760 2618


Web: www.howden.co.il

HOWDEN POLAND

Atrium International Business Centre

Suite 26, 1st Floor

Jana Pawla Str. 23

00-854 Warsaw

Poland

Tel: +48 22 653 9507

Fax: +48 22 653 9383


Web: www.howdengroup.com

HOWDEN IBERIA SA

(MADRID)

C/Casado del Alisal, 10

28014 Madrid

Spain

Tel: +34 (0)91 429 9699

Fax: +34 (0)91 369 2182


Web: www.howdeniberia.com



HOWDEN IBERIA SA

(BARCELONA)

C/Aragón, 264, 1º- 3ª

08007 Barcelona

Spain

Tel: + 34 (0)93 488 0937

Fax: + 34 (0)93 488 0763



HOWDEN IBERIA SA

(VALENCIA)

C/Don Juan de Austria, 4 - 5º puerta 159

46002 Valencia

Spain

Tel: + 34 (0)96 351 8305

Fax: + 34 (0)96 351 8610



HOWDEN IBERIA SA

(SEVILLE)

C/Progreso N39 - Local

41013 Sevilla

Spain

Tel: + 34 (0)954 296 122

Fax: + 34 (0)954 623 824



HOWDEN INSURANCE

BROKERS AB

Nybrogatan 27

S -114 39 Stockholm

Sweden

Tel: +46 8 545 670 20

Fax: +46 8 667 29 10


Web: www.howden.se

HOWDEN INSURANCE

BROKERS LIMITED

(LONDON)

Bevis Marks House

24 Bevis Marks

London

EC3A 7JB

United Kingdom

Tel: +44 (0)20 7623 3806

Fax: +44 (0)20 7623 3807

[email protected]

www.howdeninsurancebrokers.co.uk

HOWDEN INSURANCE

BROKERS LIMITED

(LEEDS)

1200 Century Way

Thorpe Park Business Park

Colton

Leeds

United Kingdom

Tel: +44 (0)113 251 5011

Fax: +44 (0)113 251 5100


Web: www.howdenpro.com

VK HOWDEN LLC

(MIAMI)

9100 S.Dadeland Blvd

Datran 1-Suite 1500

Miami

Florida 33156

United States

Tel: +1 (786) 497 7042

Fax: +1 (786) 228 0521


Web: www.vkhowden.com

VK HOWDEN LLC

(BUENOS AIRES)

Bouchard Plaza Building

Bouchard 557/599 - 20th floor

Suite 2047

Buenos Aires C1106ABG

Agrentina

Tel: +54 11 4850 1200

Fax: +54 11 4850 1201


VK HOWDEN LLC

(BOGOTA)

Carrera 18 No. 86a-14

Oficina 305

Bogota

Colombia

Tel: +571 638 6178

Fax: +571 616 3030



VK HOWDEN LLC

(SAN JUAN)

Calle Reparto Pineiro

Edificio #20 – Oficina 1

Guaynabo

PR 00969

Puerto Rico

Tel: +1 787 272-5000

Fax: +1 787 272 5001

HOWDEN INSURANCE

BROKERS INC

(BALTIMORE)

37 Walker Avenue

Suite 200

Baltimore

MD.21208

United States

Tel: +1 410 486 2400

Fax: +1 410 486 2998


Web: www.howdenbrokers.com

HOWDEN INSURANCE

BROKERS LLC

(DUBAI)

Oud Metha Building

Near Lamcy Plaza

Dubai

U.A.E.

Tel: +971 4 337 4191

Fax: +971 4 337 4043



UNDERWRITING OFFICES

DUAL INTERNATIONAL LIMITED

Bevis Marks House

24 Bevis Marks

London

EC3A 7JB

United Kingdom

Tel: +44 (0)20 7337 9888

Fax: +44 (0)20 7398 4801


Web: www.dualinternational.com

DUAL AUSTRALIA PTY LTD

(SYDNEY)

Mailbox 4

332 Kent Street

Sydney

NSW 2000

Australia

Tel: +61 (0)2 9248 6300

Fax: +61 (0)2 9248 6301


Web: www.dualaustralia.com.au


(MELBOURNE)

Level 11

470 Collins Street

Melbourne

VIC 3000

Australia

Tel: +61 (0)3 8611 3500

Fax: +61 (0)2 9248 6301




(PERTH)

Level 3

1060 Hay Street

West Perth

WA 6005

Australia

Tel: +61 (0)8 9480 0411

Fax: +61 (0)2 9248 6301



DUAL HONG KONG

Suite 1905

Lippo Centre,Tower 2

89 Queensway, Admiralty

Hong Kong

China

Tel: +852 2918 8260

DUAL DEUTSCHLAND GMBH

Schanzenstr. 35

51063 Köln

Germany

Tel: +49 (0)221 16 80 26-0

Fax: +49 (0)221 16 80 26-66


Web: www.dualdeutschland.com

DUAL ITALIA S.P.A

Via Santa Maria Fulcorina, 20

20123 Milano

Italy

Tel: +39 02 72 08 05 97

Fax: +39 02 72 08 05 92


Web: www.dualitalia.com

DUAL IBERICA RIESGOS

PROFESIONALES SA

C/Alfonso XII, 32, 1

28014 Madrid

Spain

Tel: +34 91 369 1258

Fax: +34 91 429 5925


Web: www.dualiberica.com

AVANT GARANTIAS SL

C/Felipe IV

12 Bajo-A

28014 Madrid

Spain

Tel: +34 902 22 22 89

Fax: +34 902 33 33 89


Web: www.avantgarantias.com

DUAL CORPORATE RISKS LIMITED

(LONDON)

4th Floor

140 Leadenhall Street

London

EC3V 4QT

United Kingdom

Tel: +44 (0)20 7337 9888

Fax: +44 (0)20 7337 9889


Web: www.dualcorporaterisks.com

DUAL CORPORATE RISKS LIMITED

(MANCHESTER)

Office 302

82 King Street

Manchester

M2 4WQ

United Kingdom

Tel: +44 (0)161 935 8002

Fax: +44 (0)161 935 8217


Web: www.dualcorporaterisks.com

CFC UNDERWRITING LIMITED

The Lloyd's Building

12 Leadenhall Street

London

EC3V 1LP

United Kingdom

Tel: +44 (0)870 770 1002

Fax: +44 (0)870 770 1005


Web: www.cfcunderwriting.com

VK UNDERWRITING

9100 S.Dadeland Blvd

Datran 1-Suite 1500

Miami

Florida 33156

United States

Tel: +1 (786) 497 7042

Fax: +1 (786) 228 0521



ARGENTINA

AUSTRALIA

BRAZIL

COLOMBIA

DUBAI

FINLAND

GERMANY

ICELAND

INDIA

ISRAEL

ITALY

POLAND

PUERTO RICO

SPAIN

SWEDEN

UNITED KINGDOM

UNITED STATES

Working together to create the Group of the future.

HYPERION INSURANCE GROUP LIMITEDBevis Marks House

24 Bevis MarksLondon EC3A 7JB

Tel: +44(0)20 7398 4888Fax: +44(0)20 7645 9398

Email: [email protected]: www.hyperiongrp.com

Documents

HYPERION INSURANCE GROUP LIMITEDweb-resources.hyperiongrp.com/cmsmedia/1315/2007_hyperion_report.… · HYPERION INSURANCE GROUP LIMITED ... • Opened sixth office for Howden India