Omega Insurance Holdings Limited – Investment Update - 31.08.07

In light of recent market uncertainty with regard to the investment portfolios
of insurance companies, Omega Insurance Holdings Limited ("Omega") believes it appropriate to reiterate its investment strategy and provide details of the composition of its investment portfolio. The press release is copied below and attached.

"Omega operates a conservative investment strategy designed to avoid fluctuations in the non-underwriting results. The strategy seeks to provide satisfactory returns consistent with the principal aims of diversification of risk, the preservation of capital and liquidity of funds. Investments are primarily in short-duration, high-grade, fixed-income securities. The Group holds no investments in equities. The majority (91%) of Omega's corporate assets are currently in cash or fixed income bonds rated AAA.

As at 31 July the Group's investments may be analysed as follows:

The Group's share of syndicate assets is approximately 7% currently. This
recognises that although the Group's share of the current underwriting year is
15%, much of the Syndicate's reserves relate to earlier periods when the Group's participation was lower.

As a guide to the quality of assets in which the Group is invested the following table shows the fixed income portfolio analysed by credit rating:

The AAA category includes some bonds issued by government sponsored
organisations providing funding to mortgage providers. These total $32m for the syndicate and $31m for corporate assets. The Syndicate also holds $8m of non mortgage-related asset-backed bonds. The Group holds no other asset-backed bonds or mortgage-related securities.

Omega continues to monitor developments but believes the strength and diversity of its portfolio leaves Omega well placed to withstand the current market turbulence".