Finally, the Exhibit below shows the Quarter on Quarter average premium movements (Q2 2007 is indexed at 100). We continue to see a small (<1%) increase in Q1 2009 relative to Q4 2008. Interestingly this was mainly due to new business (+3%) vs renewals (-1%).

Packages include all popular SME and Micro packages (eg Tradesman, Shops and Offices) and typically total some 10% of a broker’s portfolio. Average premiums have remained flat over Q1 2009 relative to Full Year 2008, with New Business premiums increasing by some 4% and Renewal premiums actually decreasing by 6%.

Looking at Quarterly average premium movements relative to the equivalent quarter 12 months earlier, we can see the reduction in average premium was evident across 2008 but has now reduced to zero in Q1 2009, a good sign for the rest of the year.

Looking at Quarter on Quarter Indexed average premium movements, we saw a small reduction in Q1 2009, but this reduction was significantly less that the equivalent period last year, and one needs to take account of the fact that there appears to be a cyclical reduction in average premiums during the first quarter of the calendar year.

Property Owners includes all property Owners related premiums from £500 to £65,000. The statistics show that the outlook for this class of business continues to remain poor in terms of average premium increases. Average premiums have actually fallen by 9% for Q1 2009 vs Full Year 2008, with New Business premiums falling severely and Renewal premiums actually increasing, continuing the trend we saw in Q4 2008.

Looking at Quarterly average premium movements relative to the equivalent quarter 12 months earlier, the rate of reduction has increased significantly in Q1 2009. This is the most severe Quarter on Quarter reduction we have seen across the classes in our sample. The average premium reduction has been most severe for new business.

The Quarter on Quarter index below shows a similar story. While a turnaround looked on the cards for Q4 2008, sadly this upturn has not materialised and this class has continued to show reductions against the previous quarter, meaning that any intended average premium increases last year were not able to be carried through into 2009.

Motor Fleet Business represents some 20% of a typical broker portfolio. Average Premiums for Q1 continue to remain flat vs. full year 2008 levels, with New Business premiums continuing to increase by some 5% and Renewal premiums continuing to fall.

Looking at Quarterly average premium movements relative to the equivalent quarter 12 months earlier, there continues to be a mixed overall result with minimal movements up or down.

Looking at quarter on quarter movements, we see a pleasing increase in average premium of around 3% against Q4 2008 although average premium levels remain below where they were 12 months ago.

Basis of Calculation - All renewal and new business trades on Acturis System in a particular class for 2007, 2008 and 2009 with extreme values removed: Combined: £500-£65,000 premiums; Packages £50-£4,000 premiums; Property Owners £125-£60,000 premiums; Fleet £500 – £60,000 premiums. Property Owners includes commercial, residential and mixed business.