"The market is challenging with margins tight in a number of lines. Whilst the Board remains confident that adequate returns remain, increasing selectivity is required and premium growth will become more limited in order to protect returns. We continue to monitor the rating environment closely and maintain our selective and focused approach to underwriting. Rather than push for significant growth at this point in the cycle we believe now is the time to position ourselves for a correction in the market. With this in mind, the Group continues to focus on building the quality of its resources and infrastructure so that it is well placed to take advantage of market opportunities as they arise."

"In February 2010 AM Best placed the ratings of Omega, Omega Specialty and Omega US under review with negative implications due to 'uncertainty regarding Board composition, operational management and future strategy'. The decision to put the ratings under review was prompted by the uncertainty at the time about any future board's actions. The management team is working closely and continually with AM Best to give them comfort and clarity over these points.

With market conditions increasingly challenging Omega has tempered its growth plan in a number of areas. The board will undertake a review of the Group's overall capital position in the second half in light of the business plans, the effect, of the Atlantic wind season, which lasts from July to November, on market opportunities, and increasing clarity around Solvency II and its implications."