AML: Amlin Plc: Notice of AGM UK Regulatory Announcement LONDON AMLIN plc (“Amlin”) RELEASE OF ANNUAL REPORT AND NOTICE OF AGM The following documents have today been made available to shareholders: 1. 2012 Annual Report 2. Notice of 2013 Annual General Meeting 3. Form of Proxy for 2013 Annual General Meeting Copies of the Annual Report and Notice of AGM may be viewed at the “Download Centre” of the Company’s website at www.amlin.com. In accordance with Listing Rule 9.6.1, copies have been uploaded to the National Storage Mechanism and will shortly be available for inspection at www.hemscott.com/nsm.do. COMPLIANCE WITH DTR 6.3.5 – EXTRACTS FROM THE 2012 ANNUAL REPORT The information below, which is extracted from the 2012 Annual Report, is included solely for the purpose of complying with DTR 6.3.5. It should be read in conjunction with the Company’s Preliminary Announcement issued on 4 March 2013 (available at www.amlin.com). Together these constitute the material required by DTR 6.3.5 to be communicated to the media in unedited full text via a Regulatory Information Service. This material is not a substitute for reading the full 2012 Annual Report. The information contained in this announcement and in the Preliminary Announcement does not constitute the Group’s statutory accounts, but is derived from those accounts. Principal Risks and Uncertainties Principal risks Nature of risk Key controls and mitigation strategies • Mitigation strategies for each underlying risk exposure as outlined below • Additionally, the risk management framework developed ensures that potential risk exposures are considered individually and in aggregation Risks associated with one or more of a • Corporate Centre Risk portfolio of principal maintain a risk profile risks occurring and within the Group’s ORSA Enterprise-level Risk providing an aggregated providing an impact on the enterprise-wide view of organisation as a risk exposures for the whole. Group Executive and the Board • Stress testing of a combination of material risks to determine impact on capital • Reverse stress testing of the ultimate impact of combinations of material risks on business model viability and reputation • Underlying strategy and diversity of exposure The risk of claims • Aggregate exposure arising from inherent limits uncertainties in the Underwriting – occurrence of insurance • Probable maximum loss Catastrophe Risk losses associated with limits natural or man-made catastrophic events. • Modelling of loss scenarios including stochastic DFA Modelling • Reinsurance programme • Underwriting authority limits per contract and peer review • Business planning The risks of unexpected processes Underwriting – or unbudgeted increase Attritional Risk in cost of small or • Technical pricing large insurance claims. assessment and underwriting strategy • Reinsurance programme • Monitoring and performance review • Amlin Europe, Amlin Re Europe: Local actuarial and underwriting jointly produce reserves, supplemented by independent review by Group Actuarial and Corporate Centre Risk The risk of unexpected • Amlin Underwriting or unbudgeted increase Limited, Amlin Bermuda: Underwriting - in claims emanating Underwriting and claims Reserving Risk from business written teams produce reserves, where profit has been benchmarked by independent declared. actuarial best estimates produced by Group Actuarial. Additional review and challenge from Corporate Centre Risk • Entity level reserves set in excess of actuarial best estimate • Reinsurance programme • Investment policy and strategic asset allocation Market Risk The risk arising from • Tactical asset – Investment Market fluctuations in values allocation Volatility of investments. • Diversified portfolio • Modelling and monitoring of investment risk • Asset/liability matching Impact on the value of for major currencies balance sheet or Market Risk earnings arising from • Hedging of Amlin Bermuda – Currency Fluctuation the movement in value US dollar and Amlin Europe of sterling against key euro net asset exposures non-functional currencies. • Sale of foreign currency profits • Reinsurance selection and rating The risk of loss if a counterparty fails to • Controls over exposure Credit Risk perform its obligations placed with reinsurer –Reinsurance or fails to perform Counterparty them in a timely • Reinsurance debt credit fashion. control • Collateralised reinsurance The risk of loss if an • Credit control Credit Risk insurance or treasury procedures –Intermediary intermediary fails to Counterparty meet credit obligations • Broker debt credit in a timely fashion. control • Stress testing of The risk arising from liquidity needs arising Liquidity Risk- insufficient financial from major catastrophe (including resources being events Asset/Liability available to meet matching) liabilities as they • Maintaining sufficient fall due. liquidity in investment portfolio to address claims needs • Procedural controls including workflow management implemented through management organisation Risks resulting from • Monitoring of compliance inadequate or failed with established internal processes, procedures and processes people and systems, or Operational Risk from external • Employee manual and Human Resource policies events, including regulatory control • Risk event and near miss failures. reporting process • Internal Model validation and data quality controls • Business Continuity Management planning • Long-term strategies developed addressing diversification of Risks associated with underwriting platform the appropriateness of business strategy in • Acquisition due Strategic risk the face of the diligence and risk external assessment processes environment. • Risk event and near miss reporting process • Emerging risk reporting process Directors’ Responsibility Statement pursuant to DTR 4 Pursuant to the Disclosure and Transparency Rules of the Financial Services Authority each of the directors, whose names and functions are listed in the section of the Annual Report entitled ‘Board of Directors’ confirm that, to the best of each person’s knowledge and belief: The financial statements, prepared in accordance with IFRSs as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and loss of the Group and Company; and The directors’ report contained in the annual report includes a fair review of the development and performance of the business and the position of the Company and Group, together with a description of the principal risks and uncertainties that they face. 5 April 2013 Enquiries: Mark Stevens 020 7746 1000 Group Company Secretary Amlin plc Contact: Amlin Plc
AML: Amlin Plc: Notice of AGM
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