Ariel Holdings - July 2009

Ariel Holdings ("Ariel") , a Bermuda-based reinsurer and insurer, announced a recommended cash offer of 365 pence per share for Atrium Underwriting ("Atrium") , the listed Lloyd's insurer. The offer values the whole of the issued and to be issued share capital of Atrium at £193mlion representing a premium of 24% to the average of the Closing Prices over the last 30 Business Days and 18% to the Closing Price of 310.5 pence per Atrium Share on 19 July 2007.

The combined business will have greater scale and breadth of underwriting skill base, particularly in specialty lines business. This is expected to provide the enlarged group with more flexibility to take advantage of opportunities in specific classes throughout the insurance cycle as they arise.

The offer will initially be open for acceptance until 3:00pm (London time) on 29 August 2007.

Canaccord Genuity acted as financial advisor to Ariel Holdings.