Chaucer Holdings PLC – New Lloyd’s Syndicate - 15.10.07

Chaucer Holdings PLC announced on 4 October that "it has reached agreement with Lightyear Capital LLC ("Lightyear"), a New York-based private equity firm focused on financial services investing, and Wurttembergische Versicherung AG ("WurttVers"), a leading German insurer, for the establishment of a new Lloyd's syndicate ("Antares Syndicate 1274"). The full press release is attached.

Antares Syndicate 1274 has obtained approval in principle from the Lloyd's Franchise Board to begin writing for the 2008 year of account with an underwriting capacity of £135 million. Chaucer Syndicates Limited, a leading provider of third party syndicate services, will manage the syndicate.

Antares Holdings Limited ("Antares"), a new Bermudian-based holding company,
established by the Lightyear-led investor group, which includes up to £15
million from Chaucer, is sponsoring Antares Syndicate 1274.

Antares Syndicate 1274 will underwrite a diversified portfolio of specialty insurance business including property, casualty, marine and aviation risks with a worldwide geographical spread. Through an arrangement with WurttVers, Antares will assume the renewal rights to the existing London Market portfolio of WurttVers and acquire its UK subsidiary, Wurttembergische UK Limited ("WurttUK"), bringing to Lloyd's a new base of diversified specialty insurance opportunities.

Stephen Redmond, a highly respected London Market figure, will serve as the
incoming Chief Executive Officer of Antares and Active Underwriter of Antares
Syndicate 1274. Stephen is a former Chairman of the Institute of London
Underwriters and has previously acted as a member of numerous London Market
committees. For the past five years, Stephen has headed the underwriting and
management team responsible for the successful development of WurttVers' London
Market portfolio. The executive team and staff of WurttUK (includes Stephen Jebergh ex Kiln aviation underwriter and Joe Battle, ex Charman and Axis marine underwriter) will join Stephen.

This transaction is in line with Chaucer's strategy of developing additional
income streams from the management of third party syndicates. By supporting the
creation of Antares and Antares Syndicate 1274, Chaucer seeks to maximise the
return to shareholders from these activities.

Bob Stuchbery, Chaucer's Chief Underwriting Officer, commented:"We are delighted to support the entry of the Antares Syndicate 1274 to the Lloyd's market. We believe that the combination of an industry experienced investor group led by Lightyear, a well-established and motivated underwriting team and our managing agency expertise provides an excellent business opportunity."

Stephen Redmond, proposed Active Underwriter, added: "The Lloyd's platform is the optimal franchise for our clients and for the diversified portfolio of business to be underwritten by the Antares syndicate in 2008. Our experience, technical expertise and ability to lead business can only develop further within the Lloyd's environment. Led by Lightyear's proven track record in the specialty insurance market and Chaucer's expertise as the leading manager of third-party syndicates, we look forward to introducing our existing portfolio to the Lloyd's market."