================================================================================

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    Form 10-Q

|X|  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

                  For the quarterly period ended March 31, 2003

                                       OR

|_|  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

                         Commission File Number 1-12823

                           LaSalle Re Holdings Limited
             (Exact name of registrant as specified in its charter)

            Bermuda                                           Not applicable
(State or other jurisdiction of                               (IRS Employer
 incorporation or organization)                           Identification Number)

            The LOM Building, 27 Reid Street, Hamilton HM11, Bermuda
                    (Address of principal executive offices)

                                  441-292-3339
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports); and (2) has been subject to such
filing requirements for the past 90 days. |X| Yes |_| No

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes |_| No |X|

The number of the Registrant's Common Shares (par value $1.00 per share)
outstanding as of May 8, 2003, was 20,432,043.
<PAGE>

                           LaSalle Re Holdings Limited
                               INDEX TO FORM 10-Q

                         PART I - FINANCIAL INFORMATION

                                                                            Page
                                                                            ----
ITEM 1.  Unaudited Consolidated Financial Statements

         Consolidated Balance Sheet
         March 31, 2003 and December 31, 2002 .............................    1

         Consolidated Statement of Operations
         and Comprehensive Income
         Three Months Ended March 31, 2003 and 2002 .......................    2

         Consolidated Statement of Cash Flows
         Three Months Ended March 31, 2003 and 2002 .......................    3

         Consolidated Statement of Changes in Shareholders' Equity
         Three Months Ended March 31, 2003 and 2002 .......................    4

         Notes to Unaudited Consolidated Financial Statements .............    5

ITEM 2.  Management's Discussion and Analysis of
         Financial Condition and Results of Operations ....................    9

ITEM 3.  Qualitative and Quantitative Disclosures About Market Risk .......   27

ITEM 4.  Controls and Procedures ..........................................   28

                           PART II - OTHER INFORMATION

ITEM 1.  Legal Proceedings ................................................   29

ITEM 2.  Changes in Securities and Use of Proceeds ........................   29

ITEM 3.  Defaults upon Senior Securities ..................................   29

ITEM 4.  Submission of Matters to a Vote of Security Holders ..............   29

ITEM 5.  Other information ................................................   29

ITEM 6.  Exhibits and Reports on Form 8-K .................................   29

Signatures ................................................................   33


                                       i
<PAGE>

                           LaSalle Re Holdings Limited
                           Consolidated Balance Sheet
            (Amounts expressed in thousands of United States dollars,
                        except share and per share data)
                      March 31, 2003 and December 31, 2002

<TABLE>
<CAPTION>
                                                        (Unaudited)
                                                            2003           2002
                                                        -----------    -----------
<S>                                                     <C>            <C>
ASSETS
Debt securities available for sale, at fair value       $   512,626    $   555,837
Cash and cash equivalents                                   197,761        175,449
Accrued investment income                                     7,111          7,879
Premiums receivable                                         229,765        251,699
Reinsurance recoverable balances                            916,179        912,974
Prepaid reinsurance premiums                                104,497        114,645
Deferred policy acquisition costs                            44,444         37,091
Trenwick Group Ltd. advances                                  9,994          9,898
Trenwick Group Ltd. loan                                     75,000         75,000
Reinsurance deposits and other assets                        12,975         14,455
                                                        -----------    -----------
Total assets                                            $ 2,110,352    $ 2,154,927
                                                        ===========    ===========

LIABILITIES
Unpaid claims and claims expenses                       $ 1,448,457    $ 1,475,821
Unearned premium income                                     263,865        243,675
Reinsurance balances payable                                192,931        246,311
Due to affiliates                                            22,106         24,488
Other liabilities                                            46,424         29,695
                                                        -----------    -----------
Total liabilities                                         1,973,783      2,019,990
                                                        -----------    -----------

SHAREHOLDERS' EQUITY
Series A preferred shares, $1.00 par value, 3,000,000
   shares issued and outstanding, at liquidation value       75,000         75,000
Common shares, $1.00 par value, 20,432,043
   shares issued and outstanding                             20,432         20,432
Additional paid in capital                                  307,914        307,914
Retained earnings                                          (267,401)      (267,829)
Accumulated other comprehensive income (loss)                   624           (580)
                                                        -----------    -----------
Total shareholders' equity                                  136,569        134,937
                                                        -----------    -----------
Total liabilities and shareholders' equity              $ 2,110,352    $ 2,154,927
                                                        ===========    ===========
</TABLE>

The accompanying notes are an integral part of these statements.


                                       1
<PAGE>

                           LaSalle Re Holdings Limited
          Consolidated Statement of Operations and Comprehensive Income
                                   (Unaudited)
            (Amounts expressed in thousands of United States dollars)
                   Three Months Ended March 31, 2003 and 2002

                                                        2003            2002
                                                     ----------      ----------
REVENUES
Net premiums earned                                  $   69,820      $  106,824
Net investment income                                     6,880          11,833
Net realized investment gains                               325           1,516
Other income                                                 97             331
                                                     ----------      ----------
Total revenues                                           77,122         120,504
                                                     ----------      ----------

EXPENSES
Claims and claims expenses incurred                      33,555          79,235
Policy acquisition costs                                 20,195          27,439
Underwriting expenses                                    15,930          11,686
Interest expense                                          5,264           1,373
Foreign currency losses                                     109             168
                                                     ----------      ----------
Total expenses                                           75,053         119,901
                                                     ----------      ----------

Income before income taxes and
cumulative effect of change
  in accounting principles                                2,069             603
Applicable income taxes                                      --             219
                                                     ----------      ----------
Income before cumulative effect of change
  in accounting principles                                2,069             384
Cumulative effect of change
  in accounting for goodwill                                 --          11,586
                                                     ----------      ----------
Net income                                                2,069          11,970
Preferred share dividends                                 1,641           1,641
                                                     ----------      ----------
Net income available to
  common shareholders                                $      428      $   10,329
                                                     ==========      ==========
COMPREHENSIVE INCOME (LOSS)
Net income                                           $    2,069      $   11,970
Other comprehensive income (loss):
  Net unrealized investment gains (losses)                2,391          (7,280)
  Foreign currency translation adjustment                (1,187)             --
                                                     ----------      ----------
  Total other comprehensive income                        1,204          (7,280)
                                                     ----------      ----------
Comprehensive income                                 $    3,273      $    4,690
                                                     ==========      ==========

The accompanying notes are an integral part of these statements.


                                       2
<PAGE>

                           LaSalle Re Holdings Limited
                      Consolidated Statement of Cash Flows
                                   (Unaudited)
            (Amounts expressed in thousands of United States dollars)
                   Three Months Ended March 31, 2003 and 2002

                                                        2003            2002
                                                     ----------      ----------
OPERATING ACTIVITIES
Premiums collected, net of acquisition costs         $  133,510      $  134,192
Ceded premiums paid, net of acquisition costs           (60,174)       (126,694)
Claims and claims expenses paid                         (83,846)        (32,612)
Claims and claims expenses recovered                      5,053         102,059
Underwriting expenses paid                              (15,518)        (15,289)
                                                     ----------      ----------
Cash for underwriting activities                        (20,975)         61,656
Net investment income received                            7,630          16,161
Other income received, net of expenses                        2             903
Income taxes recovered (paid)                                (7)            164
Interest expense paid                                       (60)             --
                                                     ----------      ----------
Cash from operating activities                          (13,410)         78,884
                                                     ----------      ----------
INVESTING ACTIVITIES
Debt securities sales                                    51,130          33,070
Debt securities maturities                               46,185          29,004
Debt securities purchases                               (60,315)        (54,315)
Additions to premises and equipment                          --               3
                                                     ----------      ----------
Cash from (for) investing activities                     37,000           7,762
                                                     ----------      ----------
FINANCING ACTIVITIES
Indebtedness repayment                                       --          (1,234)
Preferred share dividends paid                               --          (1,641)
Common share dividends paid                                  --          (2,000)
                                                     ----------      ----------
Cash for financing activities                                --          (4,875)
                                                     ----------      ----------
Effect of exchange rate on cash                          (1,278)         (2,264)

Change in cash and cash equivalents                      22,312          79,507
Cash and cash equivalents,
  beginning of period                                   175,449         113,168
                                                     ----------      ----------
Cash and cash equivalents, end of period             $  197,761      $  192,675
                                                     ==========      ==========

The accompanying notes are an integral part of these statements.


                                        3
<PAGE>

                           LaSalle Re Holdings Limited
            Consolidated Statement of Changes in Shareholders' Equity
                                   (Unaudited)
            (Amounts expressed in thousands of United States dollars)
                   Three Months Ended March 31, 2003 and 2002

                                                        2003            2002
                                                     ----------      ----------

Shareholders' equity, beginning of period            $  134,937      $  309,500

PREFERRED & COMMON SHARES AND
    ADDITIONAL PAID-IN CAPITAL                               --              --

RETAINED EARNINGS
    Net income                                            2,069          11,970
    Preferred share dividends                            (1,641)         (1,641)
    Common share dividends                                   --          (2,000)

ACCUMULATED OTHER
    COMPREHENSIVE INCOME
    Other comprehensive income (loss)                     1,204          (7,280)
                                                     ----------      ----------
Shareholders' equity, end of period                  $  136,569      $  310,549
                                                     ==========      ==========

The accompanying notes are an integral part of these statements.


                                       4
<PAGE>

                           LaSalle Re Holdings Limited
              Notes to Unaudited Consolidated Financial Statements
            (Amounts expressed in thousands of United States dollars)
                   Three Months Ended March 31, 2003 and 2002

Note 1
Organization & Basis of Presentation

Organization

LaSalle Re Holdings Limited (the "Company") was incorporated on September 20,
1995 under the laws of Bermuda to act as an investment holding company. LaSalle
Re Limited ("LaSalle Re") was incorporated on October 26, 1993 under the laws of
Bermuda and commenced operations on November 22, 1993. LaSalle Re is licensed
under the Insurance Act, 1978 as amended by the Insurance Amendment Act, 1995 of
Bermuda to write insurance business, and operated as a multi-line reinsurance
company, with emphasis on property catastrophe business. Effective April 1,
2002, the Company sold LaSalle Re's in-force business to Endurance Specialty
Insurance Ltd. and placed LaSalle Re into runoff.

On August 26, 1994, LaSalle Re incorporated a subsidiary company in the United
Kingdom to act as a representative office for the Company. In addition, on June
11, 1996, LaSalle Re incorporated a subsidiary company in Bermuda to provide
capital support to selected syndicates at Lloyd's of London ("Lloyd's").
Following the Trenwick/LaSalle business combination referred to below, the
Company closed its UK representative office and ceased to actively participate
as a corporate member in Lloyd's.

On September 27, 2000, the Company completed a business combination with
Trenwick Group Ltd. ("Trenwick") and Trenwick Group Inc. Under the terms of the
business combination, the common shareholders of the Company, Trenwick, Trenwick
Group Inc., and the minority shareholders of LaSalle Re exchanged their shares
on a one-for-one basis for shares in Trenwick. Following this transaction, the
Company became a wholly owned subsidiary of Trenwick.

On December 10, 2002, Trenwick contributed the capital stock of Oak Dedicated
Limited, Oak Dedicated Two Limited and Oak Dedicated Three Limited, three
corporate members at Lloyd's (collectively called the "Oak Entities"), to the
Company. In connection with its contribution of the capital stock of the Oak
Entities to the Company in December 2002, Trenwick agreed to forgive $127,698 of
indebtedness due from the Oak Entities, which was recorded as other income.
Concurrent with the transaction, LaSalle Re contributed $81,638 to the Oak
Entities. The Oak Entities participate in Lloyd's syndicates which are managed
by Trenwick Managing Agents ("TMA"), a wholly owned subsidiary of Trenwick. As
the Company and the Oak Entities were under common control, the contribution of
the ownership from Trenwick was accounted for at historical cost, in a manner
similar to a pooling of interests business combination, accordingly, the results
of operations for the three months ended March 31, 2002 have been restated to
reflect the combined operating results of the Company and the Oak Entities.


                                       5
<PAGE>

Trenwick announced on May 9, 2003 that its Board of Directors has authorized the
senior management of TMA to seek alternative sources of capital to replace
Trenwick's ownership of TMA and the current capacity provided by Trenwick and
its subsidiaries on composite Syndicate 839 and life Syndicate 44 from industry
partners, private equity and other financial sources.

Basis of Presentation

These interim financial statements include the accounts of LaSalle Re Holdings
Limited and its subsidiaries after elimination of significant intercompany
accounts and transactions. Certain items in prior financial statements have been
reclassified to conform to current presentation.

These interim financial statements have been prepared in conformity with
accounting principles that are generally accepted in the United States of
America, sometimes referred to as U.S. GAAP. To prepare these interim financial
statements, management is required to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements, as well as the
reported amounts of revenues and expenses during the reporting periods. Actual
amounts may differ from these estimates.

The interim financial statements are unaudited; however, in the opinion of
management, the interim financial statements include all adjustments, consisting
only of normal recurring adjustments, necessary for a fair statement of the
results for interim periods. These interim statements should be read in
conjunction with the audited financial statements and related notes included in
the Annual Report on Form 10-K of LaSalle Re Holdings Ltd. for the year ended
December 31, 2002.

Note 2
Series A Preferred Shares

The payment of dividends on the Company's Series A preferred shares was
suspended effective November 29, 2002. Accrued dividends of $1,641 and $3,282
are included in other liabilities in the accompanying Consolidated Balance Sheet
at December 31, 2002 and March 31, 2003, respectively.

Note 3
Segment Information

Prior to December 31, 2002, the Company conducted its business in two segments:
worldwide property catastrophe reinsurance through LaSalle Re and Lloyd's
syndicates through LaSalle Re Corporate Capital, both of which are now in
runoff. Effective December 31, 2002, the Company conducts business through the
Oak Entities which participate in Lloyd's Syndicate 839 (Refer to Note 1). The
worldwide property catastrophe reinsurance segment, which was formerly written
by LaSalle Re, provided reinsurance for property catastrophe and for other lines
of business, which have similar characteristics, namely high severity and low
frequency. Effective April 1, 2002, LaSalle Re ceased underwriting property
catastrophe reinsurance.


                                       6
<PAGE>

The following tables present business segment financial information for the
Company as of March 31, 2003 and December 31, 2002 and for the three months
ended March 31, 2003 and 2002.

Total assets:                                          2003             2002
                                                   -----------      -----------
Worldwide property catastrophe reinsurance         $   331,895      $   364,798
Lloyd's syndicates                                   1,778,457        1,790,129
                                                   -----------      -----------
Total assets                                       $ 2,110,352      $ 2,154,927
                                                   ===========      ===========

Total revenues:                                        2003             2002
                                                   -----------      -----------
Worldwide property catastrophe reinsurance         $     6,110      $    37,842
Lloyd's syndicates                                      71,012           82,662
                                                   -----------      -----------
Total revenues                                     $    77,122      $   120,504
                                                   ===========      ===========

Net income:                                            2003             2002
                                                   -----------      -----------
Worldwide property catastrophe reinsurance         $     4,597      $    16,084
Lloyd's syndicates                                      (2,528)          (4,114)
                                                   -----------      -----------
Net income                                         $     2,069      $    11,970
                                                   ===========      ===========

Note 4
Underwriting Activities

The components of premiums written and earned for the three months ended March
31, 2003 and 2002 are as follows:

                                           2003              2002
                                        ----------        ----------
           Gross premiums written       $  138,727        $  189,881
           Ceded premiums written          (36,088)          (60,996)
                                        ----------        ----------
           Net premiums written         $  102,639        $  128,885
                                        ==========        ==========

           Gross premiums earned        $  114,412        $  156,600
           Ceded premiums earned           (44,592)          (49,776)
                                        ----------        ----------
           Net premiums earned          $   69,820        $  106,824
                                        ==========        ==========


Note 5
Accounting Standards

Effective January 1, 2002, the Company adopted Statement of Financial Accounting
Standard No. 142 which amended the accounting for goodwill and other intangible
assets. This new statement required the Company to credit the negative goodwill
balance of $11,586 to operations as of January 1, 2002 as a cumulative effect of
change in accounting principle.

Note 6
Amendment to Credit Facility

During the period since December 31, 2002, Trenwick and the various lending
institutions (the "Banks") extending the letter of credit facility to support
Trenwick's operations at Lloyd's have entered into additional amendments and
numerous waivers. These amendments and waivers provide for, among other things,
waivers of potential covenant defaults, reductions in certain financial
covenants, additional financial reporting, approval of certain employee and
other payments, and extension of numerous deadlines imposed under previous
amendments, including that to replace, refinance, or restructure Trenwick
America Corporation's senior notes by March 1,


                                       7
<PAGE>

2003. In April 2002, Trenwick pledged the capital stock of the Company, which
was a guarantor of the obligations under the credit agreement, and LaSalle Re as
collateral to the Banks. In addition, Trenwick has agreed to provide the Banks a
security interest in, and the assets and property of, its direct and indirect
subsidiaries (including the Company) as additional collateral for the Banks, and
to cause the subsidiaries to provide a guaranty to the Banks, subject to
applicable laws and regulations and certain existing contractual rights of
holders of other indebtedness.


                                       8
<PAGE>

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

The following discussion highlights material factors affecting LaSalle Re
Holdings Limited's results of operations for the three months ended March 31,
2003 and 2002. This discussion and analysis should be read in conjunction with
the unaudited interim financial statements and notes thereto of LaSalle Re
Holdings Limited contained in this Quarterly Report on Form 10-Q as well as in
conjunction with the audited financial statements and related notes included in
the Annual Report on Form 10-K of LaSalle Re Holdings Ltd. for the year ended
December 31, 2002.

Overview

LaSalle Re Holdings Limited (the "Company"), which is a wholly owned subsidiary
of Trenwick Group Ltd. ("Trenwick"), until April 1, 2002 primarily wrote
property catastrophe reinsurance on a worldwide basis through its subsidiary,
LaSalle Re Limited ("LaSalle Re"). On April 1, 2002, the Company sold LaSalle
Re's in-force business to Endurance Specialty Insurance Ltd. and placed LaSalle
Re into runoff. Property catastrophe reinsurance contracts cover unpredictable
events such as hurricanes, windstorms, hailstorms, earthquakes, fires,
industrial explosions, freezes, riots, floods and other man-made or natural
disasters.

The Company's other business consisted primarily of participations in certain
Lloyd's of London ("Lloyd's") syndicates through LaSalle Re Capital, which
provided capital support to those syndicates. Effective for the 2001
underwriting year at Lloyd's, LaSalle Re Capital withdrew its capital support
from all Lloyd's syndicates. LaSalle Re Capital, which was incorporated in
Bermuda in November 1996, is currently inactive. On December 10, 2002, LaSalle
Re, with the permission of the Bermuda Monetary Authority ("BMA"), again became
a corporate capital provider at Lloyd's pursuant to an agreement between
Trenwick, LaSalle Re and the Company whereby the Oak Entities were contributed
by Trenwick to LaSalle Re. The Oak Entities (three separate subsidiaries), which
are incorporated in the United Kingdom, participate in Lloyd's syndicates
managed by Trenwick Managing Agents ("TMA"), a wholly owned subsidiary of
Trenwick. The contribution of the Oak Entities by Trenwick to LaSalle Re,
together with an additional investment in the Oak Entities by LaSalle Re of
$81.6 million, was completed as part of Trenwick's underwriting capital at
Lloyd's for the 2003 year of account. In return for its investment, LaSalle Re
will receive 43% of the economic interest (prior to the deduction of the banks'
letter of credit fees and profit participation referred to below) in the 2003
year of account of syndicates managed by TMA at Lloyd's and will also
participate in the economic interest in the results of such syndicates for the
2002 and prior years of account. Trenwick announced on May 9, 2003 that its
Board of Directors has authorized the senior management of TMA to seek
alternative sources of capital to replace Trenwick's ownership of TMA and the
current capacity provided by Trenwick and its subsidiaries on composite
Syndicate 839 and life Syndicate 44 from industry partners, private equity and
other financial sources.

On November 29, 2002, the Company suspended the payment of dividends on its
Series A Preferred Shares as a result of restrictions on the Company under
Trenwick's credit agreement with various lending institutions, under which the
Company is a guarantor. The Company intends to accrue the dividends until
payment is reinstated, if ever. The


                                       9
<PAGE>

Company does not expect to be able to pay dividends to the holders of the Series
A Preferred Shares for the foreseeable future, if ever.

Critical Accounting Policies

The accounting policies described below are those the Company considers critical
in preparing its consolidated financial statements. These policies include
significant estimates made by management using information available at the time
the estimates are made. However, as described below, these estimates could
change materially if different information or assumptions were used.

Unpaid Claims and Claims Expenses

Claims and claims expenses are recorded as incurred, at management's best
estimate, in order to match claims and claims expense costs with premiums over
the contract periods. The amount provided for unpaid claims and claims expenses
consists of any unpaid reported claims and claims expenses and estimates for
incurred but not reported claims and claims expenses, net of estimated salvage
and subrogation. The estimates for claims and claims expenses incurred but not
reported were developed based on historical claims and claims expense experience
and an actuarial evaluation of expected claims and claims expense experience.
Reserves for unpaid claims and claims expenses, by their very nature, do not
represent an exact calculation of the liability and, while the Company has
established reserves equal to the current best estimate of ultimate losses,
there remains a likelihood that further changes in such claim estimates, either
upward or downward, will occur in the future. Adjustments to previously reported
reserves for unpaid claims and claims expenses are considered changes in
estimates for accounting purposes and are reflected in the income statement in
the period in which the adjustment becomes known.

Unpaid claims and claims expenses are recorded based on actuarial estimates of
losses inherent in that period's claims, including losses for which claims have
not yet been reported. Estimates of unpaid claims and claims expenses rely on
actuarial observations of ultimate loss experience for similar historical
events. Historical insurance industry experience indicates that a high degree of
inherent variability exists in assessing the ultimate amount of losses under
short-duration property and casualty contracts. This inherent variability is
particularly significant for liability-related exposures, including latent
claims issues (such as asbestos and environmental related coverage disputes),
because of the extended period of time, often many years, that transpires
between when a given claim event occurs and the ultimate full settlement of such
claim. This situation is then further exacerbated for reinsurance entities (as
opposed to primary insurers) due to coverage often being provided on an
"excess-of-loss" basis and the resulting time lags in receiving current claims
data. Additionally, the uncertainty is increased as a result of the diversity of
development patterns among different types of reinsurance and the necessary
reliance on ceding companies for information regarding reported claims and
differing reserving practices among ceding companies. Other items that have been
considered in determining reserves but may develop differently than currently
estimated include:


                                       10
<PAGE>

     o    September 11, 2001 related claims, particularly with respect to
          catastrophe coverage underwritten in LaSalle Re;

     o    United Kingdom liability claims;

     o    Claims against insured financial services companies for certain types
          of practices including alleged misallocations of shares in initial
          public offerings;

     o    Ultimate losses on business underwritten in the last four years, as
          reserve estimates are inherently more uncertain on recent business,
          where reported loss activity is still low relative to ultimate losses;

     o    Reinsurance collectibility - Trenwick reviews and monitors its
          reinsurance recoverables from its reinsurers and makes provision for
          uncollectible reinsurance as appropriate. However, given the magnitude
          of reinsurance recoverables, $916 million at March 31 2003, the
          Company has a significant exposure to collectibility issues.

The Company's management continually evaluates the potential for changes in
unpaid claims and claims expenses to adjust recorded reserves and to proactively
modify underwriting criteria and product offerings. In recent periods and
continuing throughout 2002, the level of reported claims activity related to
prior year loss events, particularly for liability-related exposures
underwritten in 1997 through 2001, has been significantly higher than
anticipated. Full consideration of these trends was incorporated into a
comprehensive reserve study completed in the fourth quarter of 2002. Insurance
reserves, by their very nature, do not represent an exact calculation of
liability and, while the Company has established reserves equal to the current
best estimate of ultimate losses, there remains a likelihood that further
changes in such loss estimates, either upward or downward, will occur in the
future.

Reinsurance Recoverable Balances

The Company purchases reinsurance to reduce its exposure on individual risks,
catastrophic losses and other large losses. The Company estimates the amount of
uncollectible receivables from its reinsurers each period and establishes an
allowance for uncollectible amounts. The amount of the allowance is based on the
age of unpaid amounts, information about the creditworthiness of the Company's
reinsurers, and other relevant information. Estimates of uncollectible
reinsurance amounts are reviewed quarterly, and changes are recorded in the
period they become known. A significant change in the level of uncollectible
reinsurance amounts would have a significant effect on the Company's results of
operations and financial position.

Investments

Investments are classified as available for sale and recorded at fair value, and
unrealized investment gains and losses are reflected in shareholders' equity.
Investment income is recorded when earned, and capital gains and losses are
recognized when investments are sold. Investments are reviewed periodically to
determine if they have suffered an impairment of value that is considered other
than temporary. If investments are determined to be impaired, a capital loss is
recognized at the date of determination.

Testing for impairment of investments also requires significant management
judgment. The identification of potentially impaired investments, the
determination of their fair value and the assessment of whether any decline in
value is other than temporary are the key


                                       11
<PAGE>

judgment elements. The discovery of new information and the passage of time can
significantly change these judgments. Revisions of impairment judgments are made
when new information becomes known, and any resulting impairment adjustments are
made at that time. The current economic environment and recent volatility of
securities markets increase the difficulty of determining fair value and
assessing investment impairment. The same influences tend to increase the risk
of potentially impaired assets.

The Company seeks to match the maturities of invested assets with the payment of
expected liabilities. By doing this, the Company attempts to make cash available
as payments become due. If a significant mismatch of the maturities of assets
and liabilities were to occur and the Company had to liquidate investments prior
to their maturity, it may incur realized losses and the effect on the Company's
results of operations could be significant.

Deferred Income Taxes

Deferred income tax assets and liabilities are computed based on temporary
differences between financial statement and income tax bases of assets and
liabilities using enacted income tax rates in effect for the year in which the
differences are expected to reverse. FASB Statement No. 109 requires a valuation
allowance to be recorded when it is more likely than not that some or all of the
deferred tax assets will not be realized. Due to the Company's cumulative losses
generated in recent years by the Oak Entities and uncertainties as to the amount
of taxable income to be generated in future years, as of December 31, 2002, the
Company could not support the future realizability of its net deferred tax
asset. The effects of this determination on the Company's results from
operations were significant. As of December 31, 2002, the Company established a
valuation allowance of $44.8 million, so as to record a valuation allowance for
the full amount of its net deferred tax asset applicable to the Oak Entities. As
of March 31, 2003, the Company maintained a valuation allowance for the full
amount of its net deferred tax asset. The Company's Bermuda operations are not
subject to income tax.

Results of Operations - Three Months Ended March 31, 2003 and 2002

<TABLE>
<CAPTION>
                                                           2003           2002          Change
                                                         --------       --------       --------
                                                                     (in thousands)
<S>                                                      <C>            <C>            <C>
Underwriting income (loss)                               $    140       $(11,536)      $ 11,676
Net investment income                                       6,880         11,833         (4,953)
Foreign currency losses                                      (109)          (168)            59
Interest expense                                           (5,264)        (1,373)        (3,891)
Other income                                                   97            331           (234)
                                                         --------       --------       --------
Pre-tax operating income (loss)                             1,744           (913)         2,657
Applicable income taxes (benefit)                              --            219           (219)
                                                         --------       --------       --------
Operating income (loss)                                     1,744         (1,132)         2,876
Net realized investment gains                                 325          1,516         (1,191)
Cumulative effect of change in accounting principle            --         11,586        (11,586)
                                                         --------       --------       --------
Net income                                               $  2,069       $ 11,970       $ (9,901)
                                                         ========       ========       ========
</TABLE>


                                       12
<PAGE>

Operating income of $1.7 million in the three months ended March 31, 2003
represented a $2.8 million increase compared to operating loss of $1.1 million
recorded in the three months ended March 31, 2002. This was principally due to
adverse loss development in 2002 related to the September 11th terrorist attacks
partially offset by reduced investment income.

<TABLE>
<CAPTION>
                                                 2003           2002           Change
                                               --------       --------        --------
                                                           (in thousands)
<S>                                            <C>            <C>             <C>
Net premiums earned                            $ 69,820       $106,824        $(37,004)
                                               --------       --------        --------
Claims and claims expenses  incurred             33,555         79,235         (45,680)
Acquisition costs & underwriting expenses        36,125         39,125          (3,000)
                                               --------       --------        --------
Total expenses                                   69,680        118,360         (48,680)
                                               --------       --------        --------
Net underwriting income (loss)                 $    140        (11,536)         11,676
                                               ========       ========        ========

Loss ratio                                         48.1%          74.2%           26.1%
Underwriting expense ratio                         51.7%          36.6%           15.1%
Combined ratio                                     99.8%         110.8%          (11.0)%
</TABLE>

The underwriting income of $0.1 million in the first quarter of 2003 represented
an $11.7 million increase compared to the underwriting loss of $11.6 million in
the first quarter of 2002. The increase in underwriting income as well as the
decrease in the combined ratio was primarily due to adverse loss development in
2002 of $25.7 million resulting from the September 11th terrorist attacks
partially offset by related premiums paid to the Company during the first
quarter of 2002 to reinstate coverage following the September 11th terrorist
attacks.

Premiums written

Gross premiums written for the first three months of 2003 were $138.7 million
compared to $189.9 million for the first three months of 2002, a decrease of
$51.2 million or 35.8%. Details of gross premiums written are provided below:

                                             2003          2002         Change
                                           --------      --------      --------
                                                      (in thousands)
Lloyd's syndicates                         $136,326      $108,543      $ 27,783
Worldwide property catastrophe                2,401        81,338       (78,937)
                                           --------      --------      --------
Gross premiums written                     $138,727      $189,881      $(51,154)
                                           ========      ========      ========

The increase of $27.8 million in Lloyd's gross premiums written for the first
quarter of 2003 compared to $108.5 million in the first quarter of 2002 was
primarily due to additional treaty insurance and other casualty lines of
business formerly underwritten by Trenwick's U.K. subsidiary, Trenwick
International Limited, which are now written through Syndicate 839 of Lloyd's.

The Company's property catastrophe business was sold effective April 1, 2002 to
Endurance Specialty Insurance Ltd. ("Endurance") which resulted in the gross
written property catastrophe premium decrease of $78.9 million in the first
quarter of 2003. Gross premiums written of $2.4 million for the three months
ended March 31, 2003 represent adjustment premiums received related to business
written prior to April 1, 2002.


                                       13
<PAGE>

Premiums earned

                                           2003           2002          Change
                                         --------       --------       --------
                                                     (in thousands)
Gross premiums written                   $138,727       $189,881       $(51,154)
Change in gross unearned premiums         (24,315)       (33,281)         8,966
                                         --------       --------       --------
Gross premiums earned                     114,412        156,600        (42,188)
                                         --------       --------       --------

Gross premiums ceded                      (36,088)       (60,996)        24,908
Change in ceded unearned premiums          (8,504)        11,220        (19,724)
                                         --------       --------       --------
Ceded premiums earned                     (44,592)       (49,776)         5,184
                                         --------       --------       --------
Net premiums earned                      $ 69,820       $106,824       $ 37,004
                                         ========       ========       ========

Gross premiums ceded for the three months ended March 31, 2003 were $36.1
million compared to $61.0 million for the three months ended March 31, 2002. The
decrease of $24.9 million was due to the Company's sale of LaSalle Re's in-force
business to Endurance.

Net premiums earned for the three months ended March 31, 2003 were $69.8 million
compared to $106.8 million for the three months ended March 31, 2002. The
decrease of $37.0 million was principally due to the Company's sale of LaSalle
Re's in-force business to Endurance.

Claims and claims expenses

Claims and claims expenses for the three months ended March 31, 2003 were $33.5
million compared to $79.2 million for the same period in 2002, a decrease of
$45.7 million. The decrease in claims and claims expenses in 2003 is partially
attributable to the inclusion, in 2002, of loss development related to the
September 11th terrorist attacks of $25.7 million.

Underwriting expenses

                                          2003           2002          Change
                                        --------       --------       --------
                                                    (in thousands)
Policy acquisition costs                $ 20,195       $ 27,439       $ (7,244)
Underwriting costs                        15,930         11,686          4,244
                                        --------       --------       --------
Total underwriting expenses             $ 36,125       $ 39,125         (3,000)
                                        ========       ========       ========

Underwriting expense ratio                  51.7%          36.6%          15.1%
                                        ========       ========       ========

Total underwriting expenses, comprising policy acquisition costs and
underwriting expenses for the first quarter of 2003 decreased by $3.0 million
compared to underwriting expenses for the first quarter of 2002. Policy
acquisition costs are lower as earned premiums are lower. Underwriting costs
have increased due to the increased level of business written by the Oak
Entities.


                                       14
<PAGE>

Net investment income

                                         2003           2002           Change
                                       --------       --------       ---------
                                                   (in thousands)
Average invested assets                $718,403       $848,104       $(129,701)
Average annualized yields                   4.0%           5.8%           (1.8)%
                                       --------       --------       ---------
Investment income - portfolio          $  7,271       $ 12,323       $  (5,052)

Investment income - non-portfolio          (115)          (171)             56
Investment expenses                        (276)          (319)             43
                                       --------       --------       ---------
Net investment income                  $  6,880       $ 11,833       $  (4,953)
                                       ========       ========       =========

Net investment income for the three months ended March 31, 2003 was $6.9 million
compared to $11.8 million for the same period in 2002. The decrease of $4.9
million was due to lower market yields and lower invested assets due to the
dividend paid by the Company to Trenwick of $258 million in June 2002.

Foreign currency losses

The Company recorded foreign currency losses of $0.1 million for the three
months ended March 31, 2003, compared to losses of $0.2 million for the three
months ended March 31, 2002.

Non-operating income and expenses

Net realized gains on investments were $0.3 million during the three months
ended March 31, 2003, compared to $1.5 million for the three months ended March
31, 2002. The gains in 2003 and 2002 were a result of security sales executed to
fund claims payments.

The Company has adopted Statement of Financial Accounting Standard No. 142. As a
result, the Company wrote-off its negative goodwill in the three month period
ended March 31, 2002. This had the effect of increasing net income by $11.6
million as a cumulative change in accounting principle.

Liquidity and Capital Resources

As a holding company, the Company's assets consist primarily of all of the
outstanding voting stock of LaSalle Re. The Company's operating capital is
derived from dividends and other permitted payments from LaSalle Re and its
subsidiaries, including fees for services provided to LaSalle Re and its
subsidiaries which are subject to review by the Bermuda Monetary Authority. The
Company's ability to generate operating capital is limited and its ability to
meet its obligations is dependent upon funding from LaSalle Re. There is
substantial uncertainty as to what amount of future funds it will receive from
LaSalle Re.

As of March 31, 2003, the Company's consolidated investments and cash totaled
$785.4 million as compared to $806.3 million at December 31, 2002, both of which
included a loan to Trenwick of $75 million. Interest is charged on this loan at
a rate equal to that generated by the Company's investment portfolio and the
loan is


                                       15
<PAGE>

repayable upon demand. The Company has provided a 100% valuation reserve
on the intercompany interest receivable as of December 31, 2002 and March 31,
2003.

As of March 31, 2003, the Company's consolidated shareholder equity totaled
$136.6 million compared to $134.9 million at December 31, 2002. During the three
months ended March 31, 2003, the unrealized appreciation of debt securities
increased by $2.4 million resulting from higher valuation of corporate bonds
caused by lower market yields.

Cash provided by the Company's operating activities for the three months ended
March 31, 2003 was $13.4 million compared to cash provided of $78.9 million in
the comparable period of 2002. The reduction of cash flow from operations was
due primarily to an overall increase in premiums ceded offset by lower claims
and claims expenses paid.

Net cash provided by investing activities during the three months ended March
31, 2003 was $37.0 million compared to $7.8 million provide from investing
activities for the same period in 2002. The increase of $29.2 million results
from the timing of investments made by the Company and the timing of payments
for claims and claims expenses.

Net cash used in financing activities during the three months ended March 31,
2003 was $0.0 million as no dividends were paid in 2003 nor was any indebtedness
repaid.

Financings, Financing Capacity and Capitalization

Concurrently with the Trenwick/LaSalle business combination in September of
2000, Trenwick America Corporation ("Trenwick America") and Trenwick Holdings
Limited ("Trenwick Holdings"), Trenwick's U.S. and U.K. holding companies,
entered into an amended and restated $490 million credit agreement with various
lending institutions (the "Banks"), which was guaranteed by the Company. The
credit agreement consisted of both a $260 million revolving credit facility and
a $230 million letter of credit facility. The revolving credit facility was
subsequently converted into a four-year term loan and repaid in full on June 17,
2002. Additionally, on December 24, 2002, the credit agreement was amended to
reduce the letter of credit facility, which is utilized by Trenwick to support
its underwriting operations at Lloyd's, to the currently outstanding $182.5
million. The letter of credit facility is scheduled to terminate on December 31,
2003, although the letters of credit issued pursuant to the facility will not
expire until December 31, 2006.

Pursuant to a guaranty agreement entered into concurrently with the credit
agreement, Trenwick has guaranteed the obligations of Trenwick America and
Trenwick Holdings under the credit agreement. In April of 2002, Trenwick pledged
the capital stock of the Company, which was a guarantor of the obligations under
the credit agreement, and LaSalle Re as collateral to the Banks. In December of
2002, Trenwick agreed to provide the Banks additional security interests as
described below.

On October 18, 2002, A.M. Best Company lowered the financial strength ratings of
Trenwick's operating subsidiaries below "A-". The lowered A.M. Best Company
ratings constituted an event of default under the credit agreement. In addition,
increases in Trenwick's reserves for unpaid claims and claims expenses and the
establishment of a deferred tax asset reserve related to Trenwick's United
States subsidiaries in the third


                                       16
<PAGE>

quarter of 2002 resulted in Trenwick violating the financial covenants in the
credit agreement requiring Trenwick to maintain a minimum tangible net worth and
minimum risk-based capital. On November 13, 2002, Trenwick, its subsidiaries and
the Banks executed a forbearance agreement with respect to the events of default
arising from Trenwick's lowered A.M. Best Company ratings and financial covenant
violations.

Subsequently, an amendment and waiver of default under the credit agreement and
amendment to the guaranty agreement were entered into on December 24, 2002 (the
"December Amendments"). The December Amendments extended the letter of credit
facility through December 31, 2003 to support Trenwick's underwriting operation
at Lloyd's for the 2003 year of account. To those Banks extending their letters
of credit, Trenwick agreed to pay a 5% per annum cash letter of credit fee,
issue pay-in-kind notes bearing interest at LIBOR plus 2.5% per annum to
evidence an additional 3.16% per annum letter of credit fee, issue warrants
equal to 10% of Trenwick's fully diluted equity capital, and pay 15% of the
profits earned by Trenwick's Lloyd's operations, including those of the Oak
Entities owned by LaSalle Re, for the 2002 and 2003 Lloyd's years of account. In
addition, Trenwick, Trenwick America and Trenwick Holdings agreed to provide the
Banks a security interest in, and the assets and property of, their direct and
indirect subsidiaries (including the Company) as additional collateral for the
Banks, and to cause the subsidiaries to provide a guaranty to the Banks, subject
to applicable laws and regulations and certain existing contractual rights of
holders of other indebtedness. On April 25, 2003, Trenwick issued to the Banks
an aggregate of 3,678,686 warrants to purchase common stock, representing 10% of
the fully diluted equity capital of Trenwick as of such date. The warrants have
a term of eight years from the date of issuance and have an exercise price of
$0.19 per share.

The December Amendments also prohibit Trenwick and its subsidiaries from
declaring or paying any dividends (including on Trenwick's common shares, the
Series A Preferred Shares of the Company and the capital securities issued by
Trenwick Capital Trust I). The December Amendments and the other amendments and
waivers entered into in the first quarter of 2003 waive certain other defaults,
add covenants further restricting the operation of Trenwick's business
(including that of the Company), prohibit Trenwick from making certain payments
without the Banks' approval, prohibit Trenwick and its subsidiaries from selling
or otherwise disposing of any assets or property (including the Company),
require Trenwick to regularly report certain financial information to the Banks,
and adjust downward certain of the financial covenants.

Pursuant to the December Amendments, Trenwick is required to collateralize with
cash, cash equivalents and marketable securities 60% of the outstanding letters
of credit by August 1, 2003. If it is unable to do so, Trenwick's insurance
company subsidiaries will be prohibited from underwriting any insurance or
reinsurance business without the Banks' prior approval. In addition, Trenwick is
required to use its best efforts to terminate the letters of credit by December
31, 2003. In order to do so, the letters of credit would need to be replaced
with other letters of credit or collateral acceptable to Lloyd's. In the event
Trenwick has not terminated the letters of credit by December 31, 2003, it is
required on such date to collateralize with cash, cash equivalents and
marketable securities the full amount of the outstanding letters of credit. At
this time, Trenwick does not have sufficient available liquidity to
collateralize the letters of credit as required by the December Amendments.
Additionally, Trenwick does not believe that it will be able to replace the
letters of credit with other letters of credit or collateral acceptable to
Lloyd's.


                                       17
<PAGE>

Since December 2002, Trenwick has entered into additional amendments and
numerous waivers with the Banks providing for, among other things, waivers of
potential covenant defaults, further reductions in certain financial covenants,
additional financial reporting, approval of certain employee and other payments,
approval of the extension of the maturity of Trenwick America's senior notes
from April 1, 2003 to August 1, 2003, the payment of interest accrued through
April 1, 2003 to the holders of the senior notes and extension of numerous
deadlines imposed under the December Amendments.

If there is an event of default under the credit agreement, including as a
result of Trenwick failing to collateralize the letters of credit as described
above, or if there is an event of default under other outstanding indebtedness
of Trenwick or its subsidiaries, including under the senior notes, resulting in
a cross default under the credit agreement, Trenwick may be required to fully
and immediately collateralize the outstanding letters of credit under the terms
of the guaranty agreement. No liability for any such amounts has been reflected
in Trenwick's financial statements for any future event of default. If the
events of default occur and are not waived, there is substantial doubt as to
Trenwick's ability to continue as a going concern and Trenwick and/or one or
more of its subsidiaries may be forced to seek protection from creditors through
proceedings commenced in Bermuda and other jurisdictions including the United
States. In addition, at any time one or more of the insurance regulatory
authorities having jurisdiction over Trenwick's insurance company subsidiaries
(including the Bermuda Monetary Authority with respect to the Company and
LaSalle Re, or the Financial Services Authority or Lloyd's in the United
Kingdom, with respect to Trenwick's Lloyd's operations) may commence voluntary
or involuntary proceedings for the formal supervision, rehabilitation or
liquidation of Trenwick or its subsidiaries, including the Company, or one or
more of the creditors of Trenwick or its subsidiaries, including the Company,
may commence proceedings against Trenwick or its subsidiaries seeking their
liquidation.

Trenwick's ability to refinance its existing debt obligations or raise
additional capital is dependent upon several factors, including financial
conditions with respect to both the equity and debt markets and the ratings of
its securities as established by the rating agencies. As a result of the
continued deterioration of Trenwick's financial condition, its senior debt
ratings have been downgraded by Standard & Poor's Corporation to "D" and
withdrawn by Moody's Investor Services. Trenwick's ability to refinance its
outstanding debt obligations, as well as the cost of such borrowings, has been
materially adversely affected by these ratings downgrades and withdrawals.

Catastrophe Equity Put

On September 27, 2000, Trenwick assumed the benefits and obligations of LaSalle
Re under a $100 million catastrophe equity put option. The catastrophe equity
put option was amended and restated as of January 1, 2001 and amended as of
January 25, 2002. As amended, the catastrophe equity put option enabled Trenwick
to raise up to $55 million of equity, through the issue of convertible preferred
shares to European Reinsurance Company of Zurich ("European Re"), a subsidiary
of Swiss Reinsurance Company, in the event there was a qualifying catastrophic
event or events occurring prior to January 1, 2002.

As a result of the terrorist attacks of September 11, 2001, LaSalle Re incurred
in excess of $140 million in catastrophe losses as defined under the catastrophe
equity put option


                                       18
<PAGE>

agreement and Trenwick delivered notice of exercise of the catastrophe equity
put on March 28, 2002. On July 1, 2002, Trenwick commenced an arbitration
proceeding seeking $55 million in damages and other relief against European Re.
The claims arose out of European Re's failure to meet its obligations under the
catastrophe equity put. On September 6, 2002, the catastrophe equity put option
was amended and restated and the pending arbitration proceedings were
terminated. Under the terms of the second restated agreement, European Re
purchased 550,000 of Trenwick's Series B Cumulative Perpetual Preferred Shares
(the "Series B Shares") with a liquidation preference of $100 per share for an
aggregate purchase price of $40 million. The Series B Shares bear cumulative
dividends, payable quarterly in arrears, based upon the Series B Shares'
Standard & Poor's rating at LIBOR plus a margin. At March 31, 2003, the Series B
Shares were rated "D" by Standard & Poor's, therefore the current dividend rate
is 6%. If the Standard & Poor's rating remains below "BBB-" on the fifth
anniversary, the factors adjust upward by an additional 0.50%.

The Series B Shares are convertible into common shares of Trenwick after five
years or upon the occurrence of certain "special conversion events" or the
failure of Trenwick to maintain certain levels of capital. On February 20, 2003,
Trenwick delivered a notice to European Re that Trenwick's GAAP Net Worth (as
defined in the Certificate of Designation, Preferences and Rights (the
"Certificate of Designation") of the Series B Shares) had fallen below $225
million. Trenwick's GAAP Net Worth did not equal or exceed $225 million during
the period from February 20, 2003 through April 21, 2003 (which is 60 days after
the date of notice). As a result, a Net Worth Conversion Event (as defined in
the Certificate of Designation) occurred on April 21, 2003, and the Series B
Shares are now convertible at the option of European Re into Trenwick common
shares upon no less than 60 trading days advance notice to Trenwick. European Re
has not delivered to Trenwick such a notice of conversion. As of December 31,
2002, the Series B Shares would be settled upon conversion with approximately
12.2 million common shares, or 33% of Trenwick's common shares, based on the
year end figures for 2002. Trenwick has recently been notified by European Re
that European Re believes Trenwick's calculation of the number of common shares
to be received upon conversion of the Series B Preferred Shares is erroneous and
that under European Re's interpretation of the documentation the Series B
Preferred Shares would have been entitled to convert into approximately 48.1
million shares, or 56.6% of the common shares, based on the year end figures for
2002. Trenwick believes its calculation is correct but intends to discuss this
issue with European Re. If European Re converts its Series B Preferred Shares,
there would be substantial dilution to the holders of the common shares, and
this conversion could result in European Re obtaining control of Trenwick, and
therefore the Company, subject to compliance with applicable insurance law and
regulation.

Accounting Standards

In January 2003, the FASB issued Interpretation No. ("FIN") 46, Consolidation of
Variable Interest Entities, which the Company intends to adopt on July 1, 2003.
FIN 46's consolidation criteria are based on analysis of risks and rewards, not
control, and represent a significant and complex modification of previous
accounting principles. FIN 46 represents an accounting change, not a change in
the underlying economics of asset sales. Under its provisions, certain assets
previously sold to special purpose entities (SPEs) could be consolidated and, if
consolidated, any assets and liabilities now on the books related to those SPEs
would be removed. Because the Company has not


                                       19
<PAGE>

traditionally engaged in the types of securitization transactions within the
scope of FIN 46, management does not believe adoption of the interpretation will
impact future results.

                           FUTURE BUSINESS OPERATIONS

The future operations of the Company and its financial results will differ
materially from those of 2002 and prior years as the Company has sold the
in-force business of its primary operating subsidiary, LaSalle Re, and has
placed LaSalle Re into runoff. In addition, under the terms of Trenwick's
agreements with the Banks, and particularly under the December Amendments,
Trenwick and its subsidiaries, including the Company, are subject to financial
and operational restrictions which limit their flexibility to pursue business
and strategic alternatives. These restrictions will apply so long as Trenwick
and its subsidiaries (including the Company) have unpaid reimbursement
obligations to the Banks with respect to the letters of credit. In addition, the
Company and LaSalle Re have material receivables from Trenwick, as described
above in "- Liquidity and Capital Resources," which may not be realizable
because of the current uncertainties of Trenwick's financial condition.

The result of the foregoing is that the future operations of the Company, at
least in the next several years, are likely to consist substantially of the
management in runoff of LaSalle Re, including administration of claims,
regulatory reporting, settlement of reinsurance agreements (including
commutations thereof where appropriate), cash and investment management and
related matters, and the participation in Lloyd's syndicates through the Oak
Entities as corporate capital providers. The Company currently does not have
sufficient capital to continue to support its Lloyd's operations and if
substitute capital or new ownership is not arranged in the near future it is
likely that the Company's Lloyd's operations will be placed into runoff.

The costs involved in the runoff operations of LaSalle Re are likely to differ
significantly from those of prior years, where a significant portion of the
operating costs related to underwriting, marketing and securing reinsurance for
new business. The reimbursement of costs as they relate directly to LaSalle Re's
runoff will be subject to review by the Bermuda Monetary Authority (the "BMA")
which may challenge these costs or impose other restrictions with respect to the
runoff including the provision of an acceptable runoff plan. Adverse loss
developments, weakness in reinsurance recoveries or the failure to realize the
value of its investments including the intercompany receivables, among other
factors, could significantly and negatively impact the success of any runoff. It
is unlikely that any amounts will be available to the equity holders of the
Company until such time as the BMA has been assured of the minimum capital and
solvency of LaSalle Re. In addition, the BMA has recently notified the Company
that it will not permit the granting of a security interest in LaSalle Re's
assets to the Banks as collateral under Trenwick's credit agreement. In the
event that the runoff is not successful, it is also possible that LaSalle Re may
be placed under the control of the BMA, voluntarily or involuntarily, through
rehabilitation, liquidation or other similar proceedings.

                                  RISK FACTORS

You should carefully consider the risks described below regarding us and our
Series A Preferred Shares. The risks and uncertainties described below are not
the only ones we face. There may be additional risks and uncertainties. If any
of the following risks


                                       20
<PAGE>

actually occur or continue to occur, our business, financial condition or
results of operations could be materially and adversely affected and the trading
price of our Series A Preferred Shares could decline further.

Our auditors have expressed doubt as to our ability to continue as a going
concern.

Our independent accountants, PricewaterhouseCoopers LLP, have stated, in their
audit report with respect to our financial statements as at and for the twelve
months ended December 31, 2002, that substantial doubt exists as to our ability
to continue as a going concern. Trenwick's and our ability to operate continue
to be adversely impacted by the deterioration in Trenwick's financial condition
and its lack of available financial resources to meet its obligations including
amounts owed to the Company and LaSalle Re.

Our Series A Preferred Shares have been delisted and deregistered by the New
York Stock Exchange.

The New York Stock Exchange's application for removal from listing of our Series
A Preferred Shares was granted by the Securities and Exchange Commission by
order dated April 29, 2003, and the removal from listing and registration became
effective prior to the opening of the New York Stock Exchange on April 30, 2003.
Our Series A Preferred Shares were quoted on the Over-The-Counter (OTC) Bulletin
Board beginning on Tuesday, March 25, 2003.

In light of the significant developments and other factors referred to in this
Report, which have materially and adversely impacted the Company, its operations
and its future prospects, it is unlikely that our Series A Preferred Shares will
realize significant value in the near term, if at all. As a result, it is
possible that a market will not continue in our Series A Preferred Shares, in
which case the liquidity of the securities may be severely limited.

By letter dated March 24, 2003, the BMA issued permission for the free
transferability on an interim basis of Trenwick's and the Company's shares while
they are quoted on the OTC Bulletin Board. This permission is contingent on the
condition that the BMA is notified promptly of any instances in which Trenwick
or the Company become aware that a new shareholder has obtained 5% or more of
either company's shares, including background information on any such new 5%
shareholder.

In the absence of the permission granted by the BMA discussed in the previous
paragraph, as a consequence of the suspension of trading, all transfers of
shares involving holders of Trenwick's or the Company's securities would be
required to be approved by the BMA before they could be entered into Trenwick's
or the Company's share register. This procedure would only apply to share
transfers involving shareholders who hold shares in their own name on Trenwick's
or the Company's share register (a "record holder"). Shareholders who hold
through nominees, brokers, or banks, which in turn have accounts through other
nominees, would not be affected by this approval procedure unless one of the
parties to the transfer becomes a record holder on Trenwick's or the Company's
share register or the number of shares held by an existing record holder is
increased or decreased by the transfer. If the BMA's free transferability
permission is rescinded, this pre-approval process will cause a delay in share
transfers.

We are unable to pay dividends and will continue to be unable to do so for the
foreseeable future.


                                       21
<PAGE>

In connection with other actions being taken in the fourth quarter of 2002, on
November 29, 2002, the Company elected to suspend the payment of dividends to
holders of our Series A Preferred Shares effective immediately, as a result of
restrictions on the Company under Trenwick's credit agreement with various
lending institutions. The Company intends to accrue the dividends until payment
is reinstated. We do not expect to be able to pay dividends to holders of our
Series A Preferred Shares for the foreseeable future.

We have guaranteed the obligations of Trenwick and Trenwick Holdings under
Trenwick's credit agreement, which guaranty is supported by a security interest
in all of LaSalle Re's shares.

Trenwick currently has outstanding $182.5 million of letters of credit issued by
the banks under its credit facility. Trenwick is obligated to reimburse the
banks for any amounts drawn on these letters of credit, and for related fees and
expenses. No amounts have been drawn on the letters of credit to date. The banks
have provided Trenwick with several waivers of potential defaults and extensions
of deadlines under the credit facility, but Trenwick does not presently have the
liquidity necessary to satisfy the banks by the deadlines that have been
imposed. The Company has guaranteed the obligations of Trenwick and Trenwick
Holdings under the credit facility and has pledged as security all of its shares
of LaSalle Re. If potential events of default under the credit facility are not
cured or waived by its lenders, the Banks could exercise their rights under the
pledge. As a result, upon the occurrence of an event of default, there is
substantial doubt as to our ability to continue as a going concern.

Trenwick has issued convertible preferred shares that may result in substantial
dilution to existing Trenwick common shareholders and/or a change in control of
Trenwick, and therefore the Company. Neither we nor Trenwick have the ability to
control settlement of Trenwick's convertible preferred shares.

As a result of the September 11, 2001 terrorist attacks, LaSalle Re incurred
large catastrophe losses that enabled Trenwick to exercise its rights under a
catastrophe equity put option with European Reinsurance Company of Zurich, a
subsidiary of Swiss Reinsurance Company ("European Re"). In this transaction,
Trenwick issued Series B convertible preferred shares to European Re for a
purchase price of $40 million. These Series B shares are convertible into
Trenwick's common shares upon the occurrence of certain events, including
Trenwick's failure to maintain a net worth (as defined) under generally accepted
accounting principles of $225 million. Trenwick's net worth is below $225
million, and European Re is able to convert the Series B preferred shares into
Trenwick common shares upon not less than 60 trading days' notice to Trenwick.
As of December 31, 2002, the Series B Shares would be settled upon conversion
with approximately 12.2 million common shares, or 33% of Trenwick's common
shares, based on the year end figures for 2002. Trenwick has recently been
notified by European Re that European Re believes Trenwick's calculation of the
number of common shares to be received upon conversion of the Series B Preferred
Shares is erroneous and that under European Re's interpretation of the
documentation the Series B Preferred Shares would have been entitled to convert
into approximately 48.1 million shares, or 56.6% of the common shares, based on
the year end figures for 2002. Trenwick believes its calculation is correct but
intends to discuss this issue with European Re. If European Re converts its
Series B Preferred Shares, there would be substantial dilution to the holders of
the common shares, and this conversion could


                                       22
<PAGE>

result in European Re obtaining control of Trenwick, and therefore the Company,
subject to compliance with applicable insurance law and regulation.

We are a holding company and substantially all of our assets are held in LaSalle
Re and LaSalle Re's participation in Lloyd's. LaSalle Re's assets are generally
unavailable to pay the debts of the holding company and there is substantial
uncertainty as to whether we will ultimately receive any value from them.

We are a holding company with no material assets other than the stock of our
operating subsidiaries, our intercompany receivables due from Trenwick (the
collectability of which are in doubt), and LaSalle Re's participation in
Lloyd's. Our ability to pay dividends to our shareholders will be dependent on
the earnings and cash flows of LaSalle Re in runoff and our Lloyd's operations
and their ability to pay dividends or to advance or repay funds to us. Payment
of dividends and advances and repayments from LaSalle Re is regulated by the BMA
and regulatory restrictions, including minimum solvency and liquidity
thresholds. We do not expect LaSalle Re will be able to pay dividends or advance
or repay any funds to us in the foreseeable future.

We are in discussions with the BMA concerning capital adequacy and other issues
relating to LaSalle Re, and the BMA may institute supervision, rehabilitation,
conservation or liquidation proceedings with respect to LaSalle Re.

We have been engaged in discussions with the BMA and with LaSalle Re's consent,
the BMA has restricted the license of LaSalle Re to prohibit it from writing any
new business without its prior written approval. The BMA, as well as regulators
in the United Kingdom and the United States, which regulate Trenwick's other
insurance company subsidiaries, may act independently of one another with
respect to the insurance company domiciled in its jurisdiction. Any action by an
insurance regulator, such as the commencement of voluntary or involuntary
supervision, rehabilitation, conservation or liquidation proceedings with
respect to one of these companies, could precipitate additional actions by the
other insurance regulators. In the event of any such proceedings, it is unlikely
that the assets of the insurance companies will be available to satisfy each
other's liabilities, or the liabilities of Trenwick or the Company.

Our financial strength ratings have been significantly downgraded or withdrawn
by Rating Agencies.

Our financial strength ratings have been downgraded significantly by Standard &
Poor's, and Fitch, and have been withdrawn by Moody's Investor Services. These
downgrades generally reflect the ratings services' views that our business
prospects and financial flexibility are very limited.

LaSalle Re's catastrophe liability and other insurance business, from which we
historically derived a majority of our revenue, has ceased to write new business
and is in runoff.

We have placed LaSalle Re's catastrophe liability and other insurance business
into runoff and no new business is being written in LaSalle Re. Our objective is
to maximize the economic value of the runoff through effective claims
settlement, commutation of assumed obligations where appropriate, collection of
reinsurance recoverables and effective cash management. While it is possible
that some positive economic value may result over time from the runoff of
LaSalle Re's business, we do not expect it to


                                       23
<PAGE>

contribute significantly to our revenue or results of operations in the near
term, if at all, and there are significant uncertainties that could if realized
adversely affect our ability to continue a solvent runoff of LaSalle Re.

We do not have adequate capital to continue to support our Lloyd's operations
and if substitute capital or new ownership is not arranged in the near future it
is likely that our Lloyd's operations will be placed into runoff.

We do not currently have sufficient capital to provide continued financial
support to permit us to continue to operate Syndicates 839 and 44 at Lloyd's. We
have recently authorized the senior management of our Lloyd's operations to
pursue other alternatives to obtaining future capital support. In the event that
we are unable to raise substitute capital or to transfer our ownership to an
entity with adequate financial strength to support the continued operations, it
is likely that Lloyd's will withdraw the authority of these syndicates to
continue to write business and we will place these syndicates in runoff. There
can be no assurance that there will be any proceeds derived from our Lloyd's
operations in the event that they are placed in runoff.

Our ability to attract and retain key management personnel has been negatively
affected.

We have experienced the loss of most of our personnel in the last year,
including a majority of our senior executives. A number of executive positions
at the Company, including the position of Acting Chief Executive Officer, are
now being filled by consultants under short term arrangements or by employees or
consultants of Trenwick. Our ability to operate our business has been, and will
continue to be, dependent on our ability and the ability of Trenwick to retain
the services of key senior executive officers and to attract and retain
additional qualified personnel in the future as employees and consultants. The
loss of the services of any of our key executive officers or the inability to
hire and retain other highly qualified personnel in the future could adversely
affect our ability to conduct our business. Our financial situation and that of
our subsidiaries has made it, and likely will continue to make it, difficult to
retain key employees and consultants.

Our reinsurers may not satisfy their obligations to us.

Our business model relied to a large extent on reinsurance to reduce our
underwriting risk. As of March 31, 2003, our reinsurance recoverable balance was
approximately $916 million. LaSalle Re is subject to credit risk with respect to
its reinsurers because the transfer of risk to a reinsurer does not relieve
LaSalle Re of its liability to the insureds. In addition, reinsurers may be
unwilling to pay us even though they have the financial resources and are
contractually obligated to do so. Unfavorable arbitration decisions or the
failure of one or more of the reinsurers to honor their obligations or make
timely payments would impact our cash flow and could cause us to incur
significant losses. In the event of the rehabilitation, supervision,
conservation or liquidation of LaSalle Re, we may not be able to influence the
outcome of the collectibility of reinsurance recoverables, in that it will be
the responsibility of the regulators supervising such proceedings.

If actual claims exceed our loss reserves, our financial results could be
significantly adversely affected.


                                       24
<PAGE>

We establish loss reserves to cover our estimated liability for the payment of
all losses and loss expenses incurred with respect to premiums earned on the
policies that we write. We utilize actuarial models as well as historical
insurance industry loss development patterns to establish appropriate loss
reserves, as well as estimates of future trends in claims severity, frequency
and other factors. Establishing an appropriate level of loss reserves is an
inherently uncertain process. Accordingly, actual claims and claim expenses paid
will likely deviate, perhaps substantially, from the reserve estimates reflected
in our consolidated financial statements.

Our results of operations and financial condition depend upon our ability to
assess accurately the potential losses associated with the risks that we insure
and reinsure. To the extent actual claims continue to exceed our expectations,
we will be required to immediately recognize the less favorable experience. This
could cause a material increase in our liabilities and a reduction in our
profitability, including an operating loss and reduction of capital in the
period in which such action occurs.

The effects of emerging claim and coverage issues on our business are uncertain.

As industry practices and legal, judicial, social and other environmental
conditions change, unexpected and unintended issues related to claims and
coverage may emerge. These issues may adversely affect our business by either
extending coverage beyond our underwriting intent or by increasing the number or
size of claims. In some instances, these changes may not become apparent until
some time after we have issued insurance or reinsurance contracts that are
affected by the changes. As a result, the full extent of liability under our
insurance or reinsurance contracts may not be known for many years after a
contract is issued.

Recent events may result in political, regulatory and industry initiatives which
could adversely affect our business.

The supply of insurance and reinsurance coverage has decreased due to withdrawal
of capacity and substantial reductions in capital resulting from, among other
things, the terrorist attacks of September 11, 2001. This tightening of supply
may result in governmental intervention in the worldwide insurance and
reinsurance markets. We are currently unable to predict the extent to which new
political, regulatory and industry initiatives may affect the demand for our
products or the risks which may be available for us to consider underwriting. At
the same time, threats of further terrorist attacks and the military initiatives
and political unrest in the Middle East and Asia have adversely affected general
economic, market and political conditions, increasing many of the risks
associated with the insurance markets worldwide.

The insurance and reinsurance business is historically cyclical, and we expect
to experience periods with excess underwriting capacity and unfavorable premium
rates.

Historically, insurers and reinsurers have experienced significant fluctuations
in operating results due to competition, frequency of occurrence or severity of
catastrophic events, levels of capacity, general economic conditions and other
factors. The supply of insurance and reinsurance is related to prevailing
prices, the level of insured losses and the level of industry surplus which, in
turn, may fluctuate in response to changes in rates of return on investments
being earned in the insurance and reinsurance industry. As a result, the
property and casualty insurance and reinsurance industry historically has been a
cyclical industry characterized by periods of intense price competition due to


                                       25
<PAGE>

excessive underwriting capacity as well as periods when shortages of capacity
permitted favorable premium levels. Although premium levels for many products
have increased recently, the supply of insurance and reinsurance may increase,
either by capital provided by new entrants or by the commitment of additional
capital by existing insurers or reinsurers, which may cause prices to decrease.
Any of these factors could lead to a significant reduction in premium rates,
less favorable policy terms and fewer submissions for our underwriting services.
In addition to these considerations, changes in the frequency and severity of
losses suffered by insureds and insurers may affect the cycles of the insurance
and reinsurance business significantly, and we expect to experience the effects
of such cyclicality.

U.S. persons who own our shares may have more difficulty in protecting their
interests than U.S. persons who are shareholders of a U.S. corporation.

The Bermuda Companies Act, which applies to us, differs in certain material
respects from laws generally applicable to U.S. corporations and their
shareholders. Set forth below is a summary of certain significant provisions of
the Companies Act which includes, where relevant, information on modifications
thereto adopted pursuant to our bye-laws, applicable to us, which differ in
certain respects from provisions of Delaware corporate law. Because the
following statements are summaries, they do not discuss all aspects of Bermuda
law that may be relevant to us and our shareholders.

Interested Directors. Under Bermuda law and our bye-laws, a transaction entered
into by us, in which a director has an interest, will not be voidable by us, and
such director will not be liable to us for any profit realized pursuant to such
transaction, provided the nature of the interest is disclosed at the first
opportunity at a meeting of directors, or in writing to the directors. In
addition, our bye-laws allow a director to be taken into account in determining
whether a quorum is present and to vote on a transaction in which that director
has an interest following a declaration of the interest pursuant to the
Companies Act provided that the director is not disqualified from doing so by
the chairman of the meeting. Under Delaware law, such transaction would not be
voidable if:

     o    The material facts as to such interested director's relationship or
          interests were disclosed or were known to the board of directors and
          the board of directors in good faith authorized the transaction by the
          affirmative vote of a majority of the disinterested directors;

     o    Such material facts were disclosed or were known to the shareholders
          entitled to vote on such transaction and the transaction was
          specifically approved in good faith by vote of the majority of shares
          entitled to vote thereon; or

     o    The transaction was fair as to the corporation as of the time it was
          authorized, approved or ratified.

Certain Transactions with Significant Shareholders. As a Bermuda company, we may
enter into certain business transactions with our significant shareholders,
including asset sales, in which a significant shareholder receives, or could
receive, a financial benefit that is greater than that received, or to be
received, by other shareholders with prior approval from our board of directors
but without obtaining prior approval from our shareholders.

Shareholders' Suits. The rights of shareholders under Bermuda law are not as
extensive as the rights of shareholders in many U.S. jurisdictions. Class
actions and derivative actions are generally not available to shareholders under
the laws of Bermuda. However, the Bermuda courts ordinarily would be expected to
follow English


                                       26
<PAGE>

case law precedent, which would permit a shareholder to commence an action in
the name of the company to remedy a wrong done to the company where an act is
alleged to be beyond the corporate power of the company, is illegal or would
result in the violation of our memorandum of association or bye-laws.
Furthermore, courts would review acts that are alleged to constitute a fraud
against the minority shareholders or where an act requires the approval of a
greater percentage of our shareholders than actually approved it. The winning
party in such an action generally would be able to recover a portion of
attorneys' fees incurred in connection with such action. Our bye-laws provide
that shareholders waive all claims or rights of action that they might have,
individually or in the right of the company, against any director or officer for
any act or failure to act in the performance of such director's or officer's
duties, except with respect to any fraud or dishonesty of such director or
officer.

Indemnification of Directors and Officers. Under Bermuda law and our bye-laws,
we may indemnify our directors, officers or any other person appointed to a
committee of the board of directors (and their respective heirs, executors or
administrators) to the full extent permitted by law against all actions, costs,
charges, liabilities, loss, damage or expense incurred or sustained by such
person by reason of any act done, concurred in or omitted in the conduct of our
business or in the discharge of his/her duties; provided that such
indemnification shall not extend to any matter in which any of such persons is
found, in a final judgment or decree not subject to appeal, to have committed
fraud or dishonesty.

We are a Bermuda company and it may be difficult for you to enforce judgments
against us or our directors and executive officers.

We are incorporated pursuant to the laws of Bermuda and our business is based in
Bermuda. In addition, certain of our current and former directors and officers
may reside outside the United States, and all or a substantial portion of our
assets and the assets of such persons are located in jurisdictions outside the
United States. As such, it may be difficult or impossible to effect service of
process within the United States upon us or those persons or to recover against
us or them on judgments of U.S. courts, including judgments predicated upon
civil liability provisions of the U.S. federal securities laws. Further, no
claim may be brought in Bermuda against us or our directors and officers in the
first instance for violation of U.S. federal securities laws because these laws
have no extraterritorial jurisdiction under Bermuda law and do not have force of
law in Bermuda. A Bermuda court may, however, impose civil liability on us or
our directors and officers if the facts alleged in a complaint constitute or
give rise to a cause of action under Bermuda law.

Further, there is no treaty in effect between the United States and Bermuda
providing for the enforcement of judgments of U.S. courts, and there are grounds
upon which Bermuda courts may not enforce judgments of U.S. courts. Because
judgments of U.S. courts are not automatically enforceable in Bermuda, it may be
difficult for you to recover against us based upon such judgments.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

The Company reviewed the change in its exposure to market risks since December
31, 2002. In addition, the components of its investment holdings and its risk
management strategy and objectives have not materially changed. Therefore, the
Company believes


                                       27
<PAGE>

that the potential for loss in each market risk sector described in its Annual
Report on Form 10-K for the year ended December 31, 2002 has not materially
changed.

ITEM 4. CONTROLS AND PROCEDURES

Within the 90 days prior to the filing date of this report, the Company carried
out an evaluation, under the supervision and with the participation of our
management, including the Acting Chief Executive Officer and Chief Financial
Officer, of the effectiveness of the design and operation of our disclosure
controls and procedures pursuant to Rule 13a-15 promulgated under the Securities
and Exchange Act of 1934. Based on that evaluation, our management, including
the Acting Chief Executive Officer and Chief Financial Officer, concluded that
our disclosure controls and procedures are effective in timely alerting them to
material information required to be included in our periodic reports to be filed
with the Securities and Exchange Commission. In addition, there have been no
significant changes in our internal controls or in other factors that could
significantly affect these controls subsequent to the date of their evaluation,
including any corrective actions with regard to significant deficiencies or
material weaknesses. It should be noted that the design of any system of
controls is based in part upon certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions, regardless of
how remote.


                                       28
<PAGE>

                           LaSalle Re Holdings Limited
                           PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS.

          LaSalle Re Holdings Limited is party to various legal proceedings
          arising in the normal course of its business. LaSalle Re Holdings
          Limited does not believe that the eventual outcome of any such
          proceeding will have a material effect on its financial condition or
          business. LaSalle Re Holdings Limited's subsidiaries are regularly
          engaged in the investigation and defense of claims arising out of the
          conduct of their business. Pursuant to LaSalle Re Holdings Limited's
          insurance and reinsurance arrangements, disputes are generally
          required to be finally settled by arbitration.

ITEM 2.   CHANGES IN SECURITIES AND USE OF PROCEEDS.

          As discussed above in Part I, Item 2 -- "Management's Discussion and
          Analysis of Financial Condition and Results of Operations -
          Financings, Financing Capacity and Capitalization," the December 2002
          amendments to Trenwick's credit agreement prohibit the Company from
          declaring or paying any dividends on its Series A Preferred Shares.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES.

          None.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

          None.

ITEM 5.   OTHER INFORMATION

          None.

ITEM 6    EXHIBITS AND REPORTS ON FORM 8-K.

     (a)  Exhibits.

          10.1   Fifth Amendment to the Credit Agreement, dated as of January
                 16, 2003, among Trenwick America Corporation, Trenwick Holdings
                 Limited, Trenwick UK Holdings Limited, the lending institutions
                 from time to time party to the Credit Agreement, Wachovia Bank,
                 National Association and JPMorgan Chase Bank. Incorporated by
                 reference to Exhibit 99.1 to LaSalle Re Holdings Limited's
                 Current Report on Form 8-K, filed on March 18, 2003 (File No.
                 1-12823).

          10.2   Fifth Amendment and Consent to the Holdings Guaranty, dated as
                 of January 16, 2003, among Trenwick Group, Ltd. and the lending
                 institutions from time to time party to the Credit Agreement.
                 Incorporated by reference to Exhibit 99.2 to LaSalle Re
                 Holdings


                                       29
<PAGE>

                 Limited's Current Report on Form 8-K, filed on March 18, 2003
                 (File No. 1-12823).

          10.3   Agreement, dated January 28, 2003, between James F. Billett and
                 Trenwick Group Ltd. Incorporated by reference to Exhibit 99.3
                 to LaSalle Re Holdings Limited's Current Report on Form 8-K,
                 filed on March 18, 2003 (File No. 1-12823).

          10.4   Sixth Amendment and Waiver to the Credit Agreement, dated as of
                 January 27, 2003, among Trenwick America Corporation, Trenwick
                 Holdings Limited, Trenwick UK Holdings Limited, the lending
                 institutions from time to time party to the Credit Agreement,
                 Wachovia Bank, National Association and JPMorgan Chase Bank.
                 Incorporated by reference to Exhibit 99.4 to LaSalle Re
                 Holdings Limited's Current Report on Form 8-K, filed on March
                 18, 2003 (File No. 1-12823).

          10.5   Sixth Amendment and Consent to the Holdings Guaranty, dated as
                 of January 27, 2003, among Trenwick Group Ltd. and the lending
                 institutions form time to time party to the Credit Agreement.
                 Incorporated by reference to Exhibit 99.5 to LaSalle Re
                 Holdings Limited's Current Report on Form 8-K, filed on March
                 18, 2003 (File No. 1-12823).

          10.6   Seventh Amendment and Waiver to the Credit Agreement, dated as
                 of March 7, 2003, among Trenwick America Corporation, Trenwick
                 Holdings Limited, Trenwick UK Holdings Limited, the lending
                 institutions from time to time party to the Credit Agreement,
                 Wachovia Bank, National Association and JPMorgan Chase Bank.
                 Incorporated by reference to Exhibit 99.6 to LaSalle Re
                 Holdings Limited's Current Report on Form 8-K, filed on March
                 18, 2003 (File No. 1-12823).

          10.7   Seventh Amendment to the Holdings Guaranty, dated as of March
                 7, 2003, among Trenwick Group Ltd. and the lending institutions
                 form time to time party to the Credit Agreement. Incorporated
                 by reference to Exhibit 99.7 to LaSalle Re Holdings Limited's
                 Current Report on Form 8-K, filed on March 18, 2003 (File No.
                 1-12823).

          10.8   Fourth Waiver to the Credit Agreement, dated as of March 14,
                 2003, among Trenwick America Corporation, Trenwick Holdings
                 Limited, Trenwick UK Holdings Limited, the lending institutions
                 from time to time party to the Credit Agreement, Wachovia Bank,
                 National Association and JPMorgan Chase Bank. Incorporated by
                 reference to Exhibit 99.8 to LaSalle Re Holdings Limited's
                 Current Report on Form 8-K, filed on March 18, 2003 (File No.
                 1-12823).

          10.9   Fifth Waiver to the Credit Agreement, dated as of March 21,
                 2003, among Trenwick America Corporation, Trenwick Holdings
                 Limited, Trenwick UK Holdings Limited, the lending institutions
                 from time to time party to the Credit Agreement, Wachovia Bank,
                 National Association, Fleet National Bank and JPMorgan Chase
                 Bank. Incorporated by reference to Exhibit 99.1 to LaSalle Re
                 Holdings


                                       30
<PAGE>

                 Limited's Current Report on Form 8-K, filed on April 10, 2003.
                 (File No. 1-12823).

          10.10  Eighth Amendment to the Holdings Guaranty, dated as of March
                 24, 2003, among Trenwick Group Ltd. and the lending
                 institutions party to the Credit Agreement. Incorporated by
                 reference to Exhibit 99.2 to LaSalle Re Holdings Limited's
                 Current Report on Form 8-K, filed on April 10, 2003. (File No.
                 1-12823).

          10.11  Eighth Amendment and Waiver to the Credit Agreement, dated as
                 of March 28, 2003, among Trenwick America Corporation, Trenwick
                 Holdings Limited, Trenwick UK Holdings Limited, the lending
                 institutions from time to time party to the Credit Agreement,
                 Wachovia Bank, National Association, Fleet National Bank and
                 JPMorgan Chase Bank. Incorporated by reference to Exhibit 99.3
                 to LaSalle Re Holdings Limited's Current Report on Form 8-K,
                 filed on April 10, 2003. (File No. 1-12823).

          10.12  Ninth Amendment to the Holdings Guaranty, dated as of March 28,
                 2003, among Trenwick Group Ltd. and the lending institutions
                 party to the Credit Agreement. Incorporated by reference to
                 Exhibit 99.4 to LaSalle Re Holdings Limited's Current Report on
                 Form 8-K, filed on April 10, 2003. (File No. 1-12823).

          10.13  Ninth Amendment and Waiver to the Credit Agreement, dated as of
                 April 8, 2003, among Trenwick America Corporation, Trenwick
                 Holdings Limited, Trenwick UK Holdings Limited, the lending
                 institutions from time to time party to the Credit Agreement,
                 Wachovia Bank, National Association, Fleet National Bank and
                 JPMorgan Chase Bank. Incorporated by reference to Exhibit 99.5
                 to LaSalle Re Holdings Limited's Current Report on Form 8-K,
                 filed on April 10, 2003. (File No. 1-12823).

          10.14  Tenth Amendment and Consent to the Holdings Guaranty, dated as
                 of April 8, 2003, among Trenwick Group Ltd. and the lending
                 institutions party to the Credit Agreement. Incorporated by
                 reference to Exhibit 99.6 to LaSalle Re Holdings Limited's
                 Current Report on Form 8-K, filed on April 10, 2003. (File No.
                 1-12823).

          10.15  Eleventh Amendment and Consent to the Holdings Guaranty, dated
                 as of April 16, 2003, among Trenwick Group Ltd. and the lending
                 institutions party to the Credit Agreement.*

          99.1   Certification of Acting Chief Executive Officer.*

          99.2   Certification of Chief Financial Officer.*

     * Filed herewith

     (b)  Current Reports on Form 8-K


                                       31
<PAGE>

          LaSalle Re Holdings Limited filed Current Reports on Form 8-K on the
          following dates during the first quarter of 2003:

          March 18, 2003, reporting (a) certain amendments to Trenwick's credit
          agreement and related guaranty, (b) Trenwick's delivery of notice to
          the holder of Trenwick's Series B Cumulative Perpetual Preferred
          Shares that Trenwick's GAAP net worth had fallen below $225 million
          and that a Net Worth Conversion Event would occur on April 21, 2003 if
          Trenwick's GAAP net worth did not equal or exceed $225 million on or
          before such date, (c) certain risk-based capital (RBC) and statutory
          capital impairment issues relating to Trenwick's subsidiaries Trenwick
          America Reinsurance Corporation and The Insurance Corporation of New
          York, and discussions with the insurance departments of Connecticut
          and New York relating thereto, (d) the receipt by Trenwick of notice
          from the New York Stock Exchange of the potential suspension from
          trading and delisting of Trenwick's common shares and the Series A
          Preferred Shares of LaSalle Re Holdings Limited and (e) the
          contribution of the Oak Entities to LaSalle Re Limited.

          March 21, 2003, reporting the suspension from trading and delisting by
          the New York Stock Exchange of the common shares of Trenwick and the
          Series A Preferred Shares of LaSalle Re Holdings Limited.


                                       32
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                LaSalle Re Holdings Limited


Date: May 15, 2003              By: /s/ W. Marston Becker
                                    --------------------------------------------
                                    Name: W. Marston Becker
                                    Title: Acting Chief Executive Officer


Date: May 15, 2003              By: /s/ Alan L. Hunte
                                    --------------------------------------------
                                    Name: Alan L. Hunte
                                    Title: President and Chief Financial Officer


                                       33
<PAGE>

                 CERTIFICATION OF ACTING CHIEF EXECUTIVE OFFICER

I, W. Marston Becker, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of LaSalle Re Holdings
     Limited (the "Registrant");

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the Registrant as of, and for, the periods presented in this
     quarterly report;

4.   The Registrant's other certifying officer and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:

     a.   Designed such disclosure controls and procedures to ensure that
          material information relating to the Registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;

     b.   Evaluated the effectiveness of the Registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c.   Presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The Registrant's other certifying officer and I have disclosed, based on
     our most recent evaluation, to the Registrant's auditors and the audit
     committee of Registrant's board of directors (or persons performing the
     equivalent function):

     a.   All significant deficiencies in the design or operation of internal
          controls which could adversely affect the Registrant's ability to
          record, process, summarize and report financial data and have
          identified for the Registrant's auditors any material weaknesses in
          internal controls; and

     b.   Any fraud, whether or not material, that involves management or other
          employees who have a significant role in the Registrant's internal
          controls; and

6.   The Registrant's other certifying officer and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: May 15, 2003


/s/ W. Marston Becker
---------------------
    W. Marston Becker
    Acting Chief Executive Officer


                                       34
<PAGE>

                    CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Alan L. Hunte, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of LaSalle Re Holdings
     Limited (the "Registrant");

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the Registrant as of, and for, the periods presented in this
     quarterly report;

4.   The Registrant's other certifying officer and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:

     a.   Designed such disclosure controls and procedures to ensure that
          material information relating to the Registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;

     b.   Evaluated the effectiveness of the Registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c.   Presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The Registrant's other certifying officer and I have disclosed, based on
     our most recent evaluation, to the Registrant's auditors and the audit
     committee of Registrant's board of directors (or persons performing the
     equivalent function):

     a.   All significant deficiencies in the design or operation of internal
          controls which could adversely affect the Registrant's ability to
          record, process, summarize and report financial data and have
          identified for the Registrant's auditors any material weaknesses in
          internal controls; and

     b.   Any fraud, whether or not material, that involves management or other
          employees who have a significant role in the Registrant's internal
          controls; and

6.   The Registrant's other certifying officer and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: May 15, 2003


/s/ Alan L. Hunte
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    Alan L. Hunte
    President and
    Chief Financial Officer


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