Hardy Underwriting Group – Trading Update - 24.5.07

Hardy Underwriting Group today reported on the trading environment for its managed syndicates 382 and 38Twenty and on the latest forecast result of syndicate 382 for the 2005 year of account. This is copied below with the press release attached.

Syndicate 382 Estimates

The 2005 forecast result for syndicate 382 is steadily improving and is now
expected to be a profit in the range of 71/2% to 121/2% (previously 6% to 11%).

The 2006 year of account is progressing exceptionally well and an estimate as at
the 30th June 2007 will be released later in the year.

Business volumes for the 2007 year for both syndicates are holding up well
notwithstanding some evidence of rate weakening. Hardy is satisfied that the
combination of low loss incidence to date and acceptable margins provide a
healthy buffer to withstand adverse catastrophe losses in the second part of the
year and so provide the potential for a good result to be achieved for 2007.

David Mann, Chairman of Hardy Underwriting Group, said: "The result for 2005
will be remarkable against a backdrop of such devastating hurricane activity and
the prospect of an overall Lloyd's market loss for that underwriting year. It
serves to validate the Hardy commitment to a diversification strategy. 2006
should also produce a very impressive result."