Kiln Ltd – Proposed return of surplus capital - 7.11.07

Kiln yesterday announced its intention to return up to £60 million of surplus capital and proposed sale of Kiln's 20% interest in WRB Europe to WR Berkley.

The Board of Kiln Ltd is pleased to announce the following:

Proposed return of surplus capital

In accordance with its objective of generating value for shareholders by
underwriting for profit rather than volume, Kiln announced on 6 July 2007 that its managed Lloyd's underwriting capacity for the 2008 year of account would be reduced to £847 million. Following a detailed review of the Group's expected capital requirements for the 2008 year of account and beyond the Board has concluded that, after providing for the retention of sufficient capital to support the Group, including its international expansion plans and dividend commitments and assuming that the sale of its 20% interest in W. R. Berkley Insurance (Europe), Limited ('WRB Europe') proceeds as anticipated (as referred to below), the Group is currently expected to have surplus capital of approximately £60 million by the year end, equivalent to some 21% of the Group's market capitalisation as at 5 November 2007 of £280 million.

Kiln Ltd chief executive officer Edward Creasy commented:

'Kiln is firmly committed to a strategy of active capital management in order to enhance shareholder returns. We are delighted to be in a position to return a
substantial sum to shareholders, including the proceeds of our successful
investment in WRB Europe, while retaining sufficient capital to pursue our
strategic plans.'