DCG IRIS Limited Event report: UK Floods (5331A)

TIDMIRIS

RNS Number : 5331A

DCG IRIS Limited

20 February 2014

DCG IRIS LIMITED

Event Report: UK Floods

The Company today received the following report from Credit Suisse AG ('Credit Suisse'), the investment manager of CS IRIS Low Volatility Plus Fund Limited (the 'Master Fund'), in which the Company invests substantially all of its assets.

Opinions expressed in the report are those of Credit Suisse AG.

"Event Report: UK Floods

Large parts of the United Kingdom have experienced the wettest December and January since detailed data was first published in 1910, with heavy rainfall continuing into mid-February. According to the UK Met Office, the main cause of the wet winter weather has been a strong North Atlantic jet stream which is tracking more southerly than its usual position, resulting in a series of winter storms affecting the UK. The 2013/2014 European winter storm season has already seen the most severe sequence of storms since 1990 and has produced 17 low pressure systems since early December, many of which have made landfall on the shores of the UK.

December and January have seen especially high storm activity in the UK, including winter storms Xaver, Dirk and Erich in December. The high rainfall has left the ground saturated and groundwater levels are much higher than usual. As a result, several of England's major rivers have burst their banks, including the Thames, the Severn and the (Dorset) Stour. More than 120 flood warnings have been issued across the UK. In addition, high spring tides and large waves caused by strong winds have caused damage in coastal areas.

While most flood barriers have held up well and protected more than 200,000 properties according to government officials, some flood defences have failed, for example in south western England, prompting evacuation. The floods have also claimed several lives. Rail travel across England has been severely disrupted and roads had to be closed due to the floods, falling trees and landslides. Winter storms regularly caused power outages, leaving tens of thousands of homes without power.

Going into the second half of February, the UK Met Office stated that it expects "more normal unsettled winter weather" with still more rain to come, but much less than has been experienced over the last weeks. However, given the high groundwater levels, some areas can be expected to remain flooded for weeks.

Early estimates expect insurance losses to top GBP1 billion (around $1.7 billion). While we believe this to be a reasonable first estimate, our analysis and assessment gives a higher insured, loss possibly reaching $2 billion or higher, given the extent and duration of the flooding.

The master fund has some exposure to UK flood risk. However, based on the fund's exposure and the industry loss estimates, we do not expect an impact on the NAV of the fund.

We will keep you updated of any significant developments. Please do not hesitate to contact us if you have any questions"

For further information please contact:

Dexion Capital (Guernsey) Limited

+44 (0) 1481 743940

Christopher Copperwaite

Dexion Capital plc

+44 (0) 20 7832 0900

Robert Peel

Media Enquiries:

Anthony Payne and Max Hilton

Peregrine Communications

Tel (Direct): +44 20 3178 6869 / +44 20 3178 6873