Hardy announces dividend restructure; dividend up 21%

Following a recent review of its overall capital management strategy, Hardy Underwriting Group has today
announced that:

• the final dividend for the year ended 31 December 2006 will be 10p per share (a 21% increase on last year's dividend of 8.25p);

• with effect from the year ending 31 December 2007, the Hardy Underwriting board expects to increase dividends by 10% year on year, subject to underlying business growth and profitability;

• from 2007 onwards, an interim dividend will be paid which will amount to approximately 30% of the expected overall dividend for the year; and

• a dividend reinvestment plan is to be introduced with effect from the 2006 final dividend, which will be payable on 30 May 2007.

David Mann, chairman of Hardy Underwriting, said: 'We have always had an active capital management strategy but felt that it would be helpful to be more explicit about what this means for shareholders in practice, not least because this is an important means through which we can convey our confidence about the future prospects of the business.'