Results to 31 December 2006

1. Results to 31 December 2006 23 March 2007

2. Agenda • Slides • Headline numbers 2 • Business segment results 3-7 • Tax 8 • Free cash flow 9 • Other highlights 10 • Outlook 11-13 • Appendices 14-25

3. Headline numbers 31.12.06 31.12.05 Revenue up 17%£79.1m £67.7m Profit before tax up 28%£13.4m £10.4m EPS up 14% 31.3p 27.5p Dividend up 20%12.00p 10.00p Interest cover (times)5.3 7.8 Note: PBT and EPS are adjusted for goodwill and acquired customer relationship intangible amortisation, and interest cover is based on adjusted profit before interest payable

4. Management results • Revenue £35.4m (05 £33.0m), +7% • Result* £8.0m (05 £6.3m), +27% • Margin 22.5% (05 19.1%) • Widespread growth • Signal payroll growth (existing members + West Coast) • Standard (Milan IT System) • MDU (UK Liveries and care homes and Australia Capricorn) • Risk Management (USA growth) • Investment Management (incl insurance company synergies) *before goodwill and customer relationship intangible amortisation, unallocated FX and share of associates/ jvs

5. Services results • Revenue £35.4m (05 £34.2m), +4% • Result* £5.0m (05 £4.6m), +8% • Margin 14.2% (05 13.6%) • Aviation continuing strongly (Asia Pacific, Latin America, liability claims) • Marine good (hull and hurricane claims) • Energy flat (Mexico, Houston and Canada offset UK) • Non-Marine development (UK, Miami, Dubai) *before goodwill and customer relationship intangible amortisation, unallocated FX and share of associates/ jvs

6. Run-off activities

7. Run-off services results • Revenue £8.4m (05 £0.5m) • Result* £1.0m (05 £0.1m) • Margin 12.5% • Maintained market position • Good flow of potential deals • Consolidation of IoM position • acquisition of Vertex • acquired remaining 40% minority interest in FITA (now LCLA) *before goodwill and customer relationship intangible amortisation, unallocated FX and share of associates/ jvs

8. Insurance companies results • Revenue £5.5m (05 £0.4m) • Result* £1.0m (05 £0.6m) • Commutation successes, Bestpark reserves deterioration • Consolidation of Life businesses onto IoM (incl Premium Life) • Strong cash flow from LCLI (£4.8m divis, plus £4.2m loans) • Partial BIL disposal in July 06 (49.99%) to maximise value potential of tax assets *before goodwill and customer relationship intangible amortisation, unallocated FX and share of associates/ jvs

9. Tax 2006 2005 £m £m UK @ 30% 1.8 0.9 Overseas 0.5 0.3 Deferred tax (1.1) (0.2) PYAs (0.3) (0.6) Associates/ jvs 0.1 0.1 Total 1.0 0.5 Effective tax rate 8.6% 3.8% Underlying tax rate 17.8% 6.1% • Note: • - cash tax payments will be lower (BIL losses) • growth trend in overseas profit (North America/ Mexico)

10. Free cash flow 2006 2005 £m £m Operating cash flow* 18.9 7.8 Net capex (tangible/ intangible) (1.8) (1.6) Interest receivable 0.7 0.3 Total 17.8 6.5 *excluding movement in client monies

11. Other highlights • Net debt £35.5m, £9.2m below 31/12/05 • Cash from LCLI (IoM) used to repay debt • LCL acquisition loans repaid • LCL acquisition costs paid early 2006 • Pensions deficit reduced by £4.6m • higher bond yields • but longevity issues

12. Outlook - Management • Public Sector Unit • London Authorities Mutual • Fire Brigades • Unitary Authorities • Signal • Self-insured targets • Standard • Renewal • Risk Management • Latin America

13. Outlook - Services • Aviation • Indonesian claims • Arch • Mexico • Energy • Buncefield • US Onshore/Middle East • Marine • Average Adjusting claims • Mega yacht business • Non-Marine • Vopak fuel terminal • IT consulting work

14. Outlook – Run-off • Deals under consideration • Favourable environment • EU Reinsurance Directive • but insurers’ balance sheets have strengthened • Potential for synergies

15. Appendices • Slides • Details of full year 2006 • Cash flow 15-17 • Net debt 18 • Foreign exchange 19-20 • General background • Acquisition history 21 • Business overview 22 • Track record 23-24 • Dividend policy 25

16. Cash flow *Excl client funds

17. Cash flow from operations *Excl client funds

18. Cash flow - receivables/ payables

19. Net debt

20. Foreign exchange impact USD vs £ H1 05 H2 05 H1 06 H2 06 • Average 1.87 1.77 1.79 1.89

21. Foreign exchange impact 31.12.06 31.12.05 Av USD rate 1.85 1.75 Closing USD rate 1.97 1.73 FX loss (£11k) (£459k) Loss on underlyings (£345k) Profit on hedges £334k

22. Acquisition history

23. Revenue 06* Business overview Services £35.4m £35.4m £8.4m £5.5m Management Run-off services Insurance cos *before eliminations Result 06 Management Division Insurance cos £1.0m £1.0m Management Run-off services • Mutuals, Investment management, Captives, Risk management, New mutual development £8.0m £5.0m Services Services Division Revenue by location 06 Europe £6.9m 2006 – 9% 2005 – 4% • Loss adjusting and Claims management, Average adjusting, Outsourcing & advisory Bermuda £27.9m 2006 – 35% 2005 – 39% UK £25.0m 2006 – 32% 2005 – 32% Run-off Division • Administration, advisory services • Life and non-life insurance Asia £7.8m 2006 – 10% 2005 – 12% N. America £11.6m 2006 – 15% 2005 – 13%

24. Track record Revenue Profit before tax* Earnings per share* *before goodwill and acquired customer relationship intangible amortisation

25. Track record *before goodwill and acquired customer relationship intangible amortisation

26. Dividend policy *before goodwill and acquired customer relationship intangible amortisation

27. Disclaimer This presentation contains certain forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors, including demand and pricing; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; exchange rate fluctuations and other changes in business conditions; the actions of competitors and other factors.