N O V E M B E R

Transcription

1 NOVEMBER 2017

2 CONTENTS introduction FACTS & FIGURES Introduction 6 Executive Commentary /17 Timeline 12 Financial Year Overall Result 14 Summary of 2016/17 Totals in USD (Millions) 18 Summary of 2016/17 in USD (Millions) 19 Financial Year Result 20 International Group Clubs Aggregate Policy Year Results 21 Total Incurred P&I Claims at Development Points in 000s of USD 22 Claims Incurred per total Gross Ton Entered 23 Churn Estimate 23 Estimates Cost of Notified Pool Claims (USD Millions) 25 Number of Pool Claims 26 Investment Income 27 Solvency II Analysis 28 Free Reserves 29 7 Year Investment Return Summary expressed as a %age of Total Assets 30 Entered Tonnage Expressed in Millions of GT 31 Market share 32 Entered Tonnage Totals 33 General Increases 34 P&I Supplementary Call Record 35 Average Expense Ratios (AER) 36 7 Year Combined Ratio 37 Pooling Share Percentages Reinsurance Structure 40 Excess of Loss Reinsurance Rates 41 Premiums (in USD millions) 42 Claims (in USD millions) 43 2

3 CLUB INFO contacts Alternative markets Standard and Poor s Ratings 47 Summary of Clubs Financial Position 48 American Steamship Owners Mutual P&I Association Inc. 50 The Britannia Steamship Insurance Association Ltd 52 Assuranceforeningen Gard Gjensidig 54 The Japan Ship Owners Mutual Protection & Indemnity Association 56 London Steamship Owners Mutual Insurance Association Ltd 58 The North Of England P&I Association Ltd 60 The Shipowners Mutual P&I Association Ltd (Luxembourg) 62 Assuranceforeningen Skuld 64 The Standard Club 66 Steamship Mutual P&I Association 68 The Swedish Club 70 The United Kingdom Mutual Steamship Assurance Association Ltd 72 The West of England Ship Owners Mutual Insurance Association 74 Fixed premium 79 British Marine 80 Carina 81 Charterama B.V 82 Charterers P&I Club 83 China Shipowners Mutual Assurance Association 84 Coastal Marine Services 85 Eagle Ocean Marine 86 Hanseatic Underwriters 87 Hydor 88 Ingosstrakh Insurance Co 89 Korean P&I Club 90 Lodestar Marine 91 MMI 92 Navigators 93 Norwegian Hull Club 94 Raetsmarine Insurance B.V 95 Rosgosstrakh Limited 96 Thomas Miller Specialty (Formerly Osprey) 97 FP Marine Contacts 101 3

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5 introduction P&I REVIEW

6 Introduction Welcome to the latest FP Marine P&I Review. We hope you find it both interesting and informative. Whilst it provides detailed commentary on the forthcoming P&I renewals, it also contains comprehensive historic financial data on both the International Group Clubs as a whole and more specific information on each of the individual Clubs, as well as a selected cross section of the, now numerous, commercial fixed premium providers. FP Marine is part of the Hyperion Insurance Group and as well as including the Howden offices around the world, the Group is now joined by RKH Specialty. This provides us with retail and wholesale solutions across the whole spectrum of the marine industry and with representation in most major maritime centres. We will however continue to operate under our existing individual brands in order to maintain continuity with our trading partners and provide the best service to our new and existing clients. 6

7 One of the major areas of focus is our P&I expertise and with the renewal season upon us and in anticipation of the remaining period leading up to 20th February 2018, we are pleased to present our annual review on the International Group Clubs, as well as the fixed premium insurers. As usual, I hope that it will be very helpful to you in evaluating your current P&I providers and how they compare to others, although we are of course happy to discuss this with you and provide you with further market background information and support, to make sure you achieve your best solution. Over the last 12 months the International Group of P&I Clubs has continued to enjoy exceptionally buoyant results overall with a truly dramatic increase of USD480 million in their free reserves for the period. With a shipping market that is still difficult, the question remains whether the Clubs really need to maintain this level of free reserves, especially as they have all now passed the Solvency II test. Also, given the reserves, are the Clubs now doing enough to provide to their Members with insurance products at cost, or better than cost, which should be possible? We look forward to being of assistance to you during this renewal season and hopefully on other lines of marine insurance through 2018 and beyond. Your sincerely, Richard Walker Chairman 7

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9 Executive Commentary At the time of writing this commentary, a few Clubs have advised their intentions for next renewal at 20 th February 2018 and so far, there are no proposals for a general increase in premiums from their Membership. We will of course be publishing a renewal update once all of the Clubs have held their board meetings and the Group wide position is declared. However at this moment in time we are not expecting any Club to feel the need to seek any increases in premium whatsoever at the 20th February 2018 renewal so the more pertinent question is by how much, or little, are the Clubs willing and able to reduce the costs of their products to their Members. Already, certain Clubs have agreed to return premium on the current year, but not actually reduce the basic rating. The Clubs figures are analysed in far more depth later in this report but on a pure underwriting profit/loss basis 10 of the 13 International Group Clubs made a surplus during 2016/17 and two of those making an underwriting loss returned premium regardless. All 13 Clubs managed to secure positive investment income which, for the International Group as a whole, we calculate to be an additional USD432,800,000, so once investment income is taken into consideration 12 of the 13 Clubs were in profit for the 2016/17 year notwithstanding the level of return premiums allowed. While we understand that the sums involved were not as large as the levels of investment income earned, the Clubs were also widely reported to have benefited from a rebate of premiums previously paid into the International Group s multicellular captive reinsurance vehicle, Hydra, as the claims figures there were also much better than had originally been envisaged. The exact accounting for this is unclear in most Clubs reports, but it is a further indication of the overall benign claims environment. 9

10 All of the above has led to the International Group as a whole now having amassed total free reserves of USD5,321,000,000 which is an increase of UDSD480,000,000 over the last 12 months. Some Clubs have reported an increase in claims activity during the last 12 months but this is more than offset by level of investment income generated. This increase in claims seen by those Clubs is most likely the result of misfortune striking one or two of them, who, as happens every year, have individually seen abnormally high frequency of large claims. The wider claims picture remains though, on the whole, one where claims levels remain benign and, whilst there may be signs that claims incurred have bottomed out, these are isolated at this point in time. For all of the above reasons it is our contention that even a Group wide position of a zero general increase is insufficient. Ship owners deserve to see some of their money returned to them, not simply by returning premiums that were artificially too high on prior years, but also by way of a general reduction in P&I premium from renewal. The Clubs could generally be more creative in finding ways to get funds back into the hands of their membership aside from simple premium rebates. Naturally as part of any renewal process, an individual Member s claims record would also continue to be taken into consideration and if further premium adjustment up or down is warranted this would be included within the Clubs bespoke renewal proposals for each of its Members. Were the Clubs to take up this proposed initiative it would also redress the often mentioned impact of the churn - being where newly acquired vessels have come on risk sometimes at premium levels substantially lower than existing similar vessels in an owners fleet, which does not reward loyalty and payment of past General Increases. 10

11 In so far as other issues are concerned The other unknown issue at this time is After all Hydra was created to provide That being said it is unlikely that there the English domiciled Clubs have to to what extent the current hardening an insurance vehicle which gave the would be much appetite within the develop a solution to deal with Brexit. of the commercial re-insurance market, International Group the ability to reduce Group for Hydra to participate on the Interestingly each Club appears to post the most eventful hurricane season the level of participation of commercial upper layers of the excess of loss re- be striving to develop its own plan for a number of years, will be holding re-insurers in its re-insurance program insurance contract where the premium rather than working together in a up over the coming weeks while the and thereby dilute the impact of any paid is more a function of securing collaborative way to find a common International Group s re-insurance increase in re-insurance premiums that capacity rather than the actual risk solution. Clearly this will involve some contract is being negotiated. the market may be seeking. involved. Though there is a converse passporting costs and also the expense argument that says this is exactly the of establishing acceptable offices within The results on the Clubs excess of area Hydra should be involved in. the European Union and the attendant loss contract have generally run well re-structuring of management costs for so any desire from underwriters to those offices that this will also incur. We increase costs should be resisted do not though foresee any wholesale by the group and their re-insurance movement of the management of any brokers. If those negotiations were to English P&I Club re-locating to Europe become entrenched the Group always or indeed a flight from London as the has the ability to consider increasing global centre of the P&I market. the involvement of Hydra going forward. Moreover the Group can look at the layers on which Hydra currently participates. 11

12 2016/17 Timeline NOV 16 DEC 16 JAN 17 FEB 17 MAR 17 The UK Club announce a mutual premium discount of 3% in respect of policy year ; North of England allow a 5% return of mutual premium in respect of the policy year by way of credits against future instalments due; Skuld confirm that the 2.5% mutual premium credit in respect of the is granted, and also advised that the 2.5% credit will be continued in respect of ; The Japan Club announces that it will reduce the deferred call on the policy year from 40% to 20%; North of England opens an office in Shanghai; General Increase season ends with all clubs announcing a zero % general increase and, as noted above, several opting to return premiums to members; Amendments to the Marine Labour Convention come into force requiring owners to display financial security certificates in respect liability for outstanding wages, repatriation and compensation for crew death / disability; Skuld complete the acquisition of 100% of SMA/Gerling Norway, now to be rebranded as Skuld Marine Agency; Group excess reinsurance programme renews with further reductions across all vessel categories including passenger vessels. Individual Club retentions remain at $ 10 million and Hydra simplifies and increases its participation on the first excess layer somewhat; No US reinsurers are included on either the group programme or the Hydra reinsurance programme, and so the fallback cover is no longer required; The London Club restructures its corporate governance process and forms a smaller Board of Directors to deal with the increasing load of statutory and regulatory matters. 3 senior members of the management committee are to be on this Board; West of England announce that Tom Bowsher will succeed Peter Spendlove as CEO of West of England Insurance Services (Luxembourg) SA effective September 2017; Standard & Poors raises its rating for West of England from BBB+ to A-, outlook stable; Minor amendments made to the TOPIA and STOPIA agreements; The American Club celebrates its 100th anniversary; 12

13 APR 17 May 17 jul 17 AUG 17 SEP 17 The Swedish Club are to apply a 4% premium discount on the policy year by way of an allowance against the 3rd instalment of the mutual premium for that year; Gard forego the entirety of the 25% deferred call on the policy year at the cost of $ 90.0 million in call income; Britannia announces a $ 20 million total capital distribution to mutual members with Class 3 entries as at 9 May 2017; West of England open a branch office in Singapore; The first Solvency & Financial Condition Reports required under the Solvency II regulations, for the applicable clubs, start to be released to the public; The Japan Club announces that is will reduce the deferred call on the policy year from 40% to 30%; The Swedish Club announce six monthly figures to 30 June 2017: a $19.0 million increase in Free Reserves to $213.8 million featuring an underwriting surplus of $ 6.0 million; The Shipowners Club announce six monthly figures to 30 June 2017: a $25.0 million increase in Free Reserves to $319.0 million, featuring an underwriting surplus of $0.7 million; Skuld announce six monthly figures to 28 August 2017: a $7.8 million increase in Free Reserves to $401.8 million featuring an underwriting deficit of $22.2 million and a $30.0 million investment return; West of England projects that is Free Reserves at 20 February 2018 will fall slightly to $ 305 million. Claims experience is getting worse with a greater frequency of high value claims seen in the year. 13

14 Financial Year Overall Result USD millions TOTAL American -4,992-2,190 1,256 3,115-5,990-8,801 Britannia 78,346-32,871 73,669 33,881-22, ,065 Gard 124,748 39,674 49,481 44,307 49, ,394 Japan 21,293 14,760 16,358-1,534-9,403 41,474 London 27,305 3,293-3,230 6,615 9,360 43,343 North 2,512 90,154-22, ,777 68,233 SOP 14,663-20,895 1,418 23,222 40,873 59,281 Skuld 45,845 13, ,123 16, ,646 Standard 40,400 9,800 11,800 5,900 10,000 77,900 Steamship 69,969 64,134 74,988 14,992-9, ,452 Swedish 11,041-1,061 19,377 16,444 6,417 52,218 UK 10,533-1,225 19,065 35,948 8,054 72,375 West 29,851 32,969 27,496 18,775 18, ,156 Total 471, , , , ,188 1,287, Notes: In USD thousands. Britannia includes Boudicca estimated results.

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17 FACTS & FIGURES INTERNATIONAL GRoUP OF P&I CLUBS 17

18 Summary of 2016/17 Totals in USD (Millions) 127 TOTAL U/W PROFIT/LOSS 2016/ TOTAL INVESTMENT INCOME 2016/ TOTAL SURPLUS FEB ,303 TOTAL FREE RESERVES FEB 2016/17 1,204 TOTAL OWNED GT FEB ,40 AVERAGE FREE RESERVES PER OWNED GT FEB AVERAGE NET COMBINED RATIO 2016/17

19 Summary of 2016/17 in USD (Millions) CLUB U/W PROFIT/LOSS 2016/17 (USD M) NET COMBINED RATIO 2016/17 INVESTMENT INCOME 2016/17 (USD M) SURPLUS FEB 2017 (USD M) FREE RESERVES FEB 2017 (USD M) TOTAL OWNED GT FEB 2017 (USD M) FREE RESERVES PER OWNED GT FEB 2017 American % USD 3.32 Britannia* % USD 5.96 Gard** 31 95% , USD 5.24 Japan % USD 2.28 London % USD 4.34 North 11 96% USD 3.08 Shipowners % USD Skuld 9 98% USD 4.34 Standard 18 95% USD 3.42 Steamship % USD 6.03 Swedish 2 98% USD 4.16 UK % 44*** USD 4.01 West % USD 3.72 Notes: Figure in Orange are consolidayed figures covering all lines of business rather than P&I alone. * Includes Boudicca. ** GARD net combined ratio and Surplus are net of USD 90m return on 2016 deferred call. On ETC basis the NRC is 83% and the surplus USD 215m. *** UK investment income is net of USD 7.5m interest paid on perpetual subordinated securities. 19

20 Financial Year Result USD millions TOTAL American -8,916-1,966-6,512-10,936-21,719-50,049 Britannia 45,848-2,331 70,731-13,326-61,774 39,148 Gard 28, ,236 35,515-24,755-61,342 81,872 Japan 23,949 17, ,308-26,797 28,331 London 1,696 15,319-29,915-18,736-14,398-46,034 North -19, ,126-59,783-17,500-9,830-6,137 SOP 2,802 3,247 11,438 2,334 8,938 28,759 Skuld 9,226 22,070-11,704 3, ,521 Standard 17,500 17, ,200-39,600-9,000 Steamship 41,935 76,172 63,304 9,289-33, ,925 Swedish 5, ,692 8,084-13,372 19,096 UK -22,126 17,820-14,807-7,069-20,052-46,234 West 23,217 30,149 4,549-1,397-4,136 52,382 Total 149, ,891 81,814-60, , , Notes: In USD thousands. Britannia includes Boudicca estimated results.

21 International Group Clubs Aggregate Policy Year Results CALL INCOME IN 000S OF USD UNDERWRITING RESULT IN 000S OF USD AT 12 MONTHS AT 24 MONTHS AT 36 MONTHS AT 12 MONTHS AT 24 MONTHS AT 36 MONTHS ,170, (176,112) ,417,108 3,511, (192,078) (45,864) ,490,495 3,596,454 3,572, (267,218) (2,322) 55, ,392,786 3,481,906 3,501, (406,097) (238,794) (136,860) CLAIMS INCURRED IN 000S OF USD OVERALL RESULT IN 000S OF USD AT 12 MONTHS AT 24 MONTHS AT 36 MONTHS AT 12 MONTHS AT 24 MONTHS AT 36 MONTHS ,193, (40,936) ,431,861 2,371, (111,733) 12, ,529,918 2,349,732 2,268, (170,342) 91, , ,609,200 2,550,414 2,453, (223,473) (65,488) 32,893 21

22 Total Incurred P&I Claims at Development Points in 000s of USD MONTHS 22

23 Claims Incurred per total Gross Ton Entered Churn Estimate USD/GT / / / / / / / / FINANCIAL YEAR POLICY YEAR CHANGE IN PY PREMIUM PER TOTAL GTE, ADJUSTED TO REMOVE THE IMPACT OF OVER AND UNDER CALLING AVERAGE GENERAL INCREASE, WEIGHTED BY PREMIUM VOLUME DIFFERENCE BETWEEN Notes: FY data excludes Marine & Energy claims. Notes: The data is designed to show how the change in premium expected due to the application of a general increase differs from what actually happened. Data is whole market. 23

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25 Estimates Cost of Notified Pool Claims (USD Millions) YEAR NO. OF CLAIMS 12M 24M 36M 48M 60M 72M 84M 96M 108M 120M Notes: Data as of 20th February. 25

26 Number of Pool Claims

27 Investment Income CLUB AVERAGE American 1.41% 0.14% 2.93% 5.03% 5.31% 2.44% 4.77% 3.19% Britannia 3.39% -2.04% 0.60% 4.08% 3.44% 3.38% 5.59% 2.59% Gard 5.02% -0.93% 1.54% 3.20% 4.93% 2.53% 6.93% 3.22% Japan 1.30% 1.18% 1.90% 1.90% 1.66% 1.84% 1.00% 1.54% London 6.65% -2.91% 6.72% 6.11% 6.00% 4.15% 5.87% 4.69% North 2.35% -0.77% 3.21% 1.36% 1.27% 1.44% 1.81% 1.52% Shipowners 3.05% -0.99% 2.26% 3.37% 6.12% 3.87% 4.28% 3.01% Skuld 3.03% -1.52% 2.66% 3.95% 2.53% 2.27% 4.19% 2.37% Standard 2.84% -0.50% 1.76% 1.06% 5.34% 6.65% 7.32% 3.18% Steamship 2.63% -0.24% 1.80% 0.51% 2.50% 3.87% 3.20% 1.98% Swedish 2.34% -0.63% 1.21% 2.51% 5.50% 1.07% 3.74% 2.14% UK 3.42% -1.29% 3.65% 3.20% 2.26% 0.48% 4.10% 2.27% West 2.56% 1.53% 3.70% 3.34% 4.11% 2.38% 6.64% 3.46% Market 3.32% -0.79% 2.33% 2.85% 2.76% 2.67% 4.94% 2.66% Notes: Yields used are based on total assets excluding reinsurance recoverables. This is for 7 year average. 27

28 Solvency II Analysis CLUB SOLVENCY CAPITAL REQUIREMENT TIER 1 CAPITAL TOTAL CAPITAL COVER TIER 1 COVER TOTAL Britannia % % Steamship % % Standard % % Swedish % % West of England % % UK % % Gard % % London % % Shipowners % % Skuld % % MARKET AVERAGE % % North of England (UK) % % 28

29 Free Reserves This data is based on the same reporting group as used in other analysis within this document, except for North of England. Due to its corporate structure, this club does not present Solvency II information on the same basis as the combined financial statements which are used for analysis throughout the rest of this report. Data relating to those elements of the Group that are subject to UK regulation are included for information only but is not truly comparable with the peer group. The American and Japan Clubs are not subject to the Solvency II regime. Terminology: PER POLICY YEAR PREMIUM Free Reserves as percentage of policy year premium (exc. supplementary calls). BY POLICY YEAR American ** 76.06% 87.33% 57.78% 57.49% 55.53% Britannia * % % % % % Japan 89.94% 77.66% 80.72% 68.83% 87.58% London % % % % % SCR Tier 1 Total Capital Cover Solvency Capital Requirement, as laid down by the regulatory body responsible for the supervision of the particular club / reporting group. Precise terminology, and rules for establishing the SCR, may vary between regulators. This is the basic capital as shown in the Solvency II adjusted balance sheet. This includes ancillary funds available to the club, predominantly reflecting the ability to make excess calls but may also include restricted or ring fenced, funds in the balance sheet (eg in respect of Hydra) that are not permitted to form part of Tier 1 capital. Shows the percentage by which available capital exceeds Solvency II requirements Shipowners % % % % % Steamship % % % 98.92% % United Kingdom ** % % % % % West of England % % % % % BY FINANCIAL YEAR Gard % % % % % North of England % 87.46% 71.77% 81.42% 85.46% Skuld 98.89% 84.94% 84.54% 88.18% 97.01% Standard % % % % % Swedish % % % 95.63% 87.10% Market Average % % % % % Notes: * Includes pledged assets in Boudicca Insurance Co Ltd. ** includes subordinated and surplus loan notes as part of free reserve. Financial year data is used where the particular Club has a higher degree of diversification. The impact of under-calling is ignored in the above figures, which uses actual premium called. 29

30 7 Year Investment Return Summary expressed as a %age of Total Assets AVERAGE BEST WORST London 4.69% % % West of England 3.46% % % Gard 3.22% % % American 3.19% % % Standard 3.18% % % Shipowners 3.01% % % Market Average 2.66% % % Britannia 2.59% % % Skuld 2.37% % % UK 2.27% % % Swedish 2.14% % % Steamship 1.98% % % Japan 1.54% % % North of England 1.52% % % 30

31 Entered Tonnage Expressed in Millions of GT (P) American Owned Charter Britannia Owned Charter Gard Owned Charter Japan Owned Charter London Owned Charter North of England Owned Charter Shipowners Owned Charter Skuld Owned Charter Standard Owned Charter Steamship Owned Charter Swedish Owned Charter United Kingdom Owned Charter West of England Owned Charter Totals Owned Charter Total

32 3.71% SWEDISH 6.62% STEAMSHIP 10.51% STANDARD 11.49% UNITED KINGDOM 7.93% SKULD 6.27% WEST OF ENGLAND 2.11% SHIPOWNERS market share 1.35% AMERICAN 11.15% NORTH OF ENGLAND 9.02% BRITANNIA 18.32% 7.79% 3.74% LONDON JAPAN GARD 32

33 Entered Tonnage Totals OWNED CHARTERED TOTAL 33

34 General Increases HISTORICAL GENERAL INCREASE - P&I HISTORICAL GENERAL INCREASE - FD&D American 0.0% 2.5% 4.5% 10.0% 10.0% 5.0% 2.0% Britannia 0.0% 2.5% 2.5% 8.1% 10.5% 5.0% 5.0% Gard (1) 0% 0.0% 2.5% 2.5% 5.0% 5.0% 5.0% 0.0% Japan 0.0% 3.0% 3.0% 7.5% 5.0% 3.0% 10.0% London 0.0% 5.0% 6.0% 10.0% 12.5% 5.0% 5.0% North of England 0.0% 2.50% 4.75% 7.5% 15.0% 5.0% 3.0% Shipowners 0.0% 0.0% 0.0% 5.0% 5.0% 0.0% 0.0% Skuld (2) 0.0% 0.0% 0.0% 0.0% 8.5% 0.0% 0.0% Standard 0% 0.0% 2.5% 5.0% 12.5% 7.5% 5.0% 3.5% Steamship 0% 0.0% 0.0% 0.0% 10.0% 7.5% 5.0% 0.0% Swedish 0.0% 0.0% 2.5% 7.5% 7.5% 5.0% 2.5% United Kingdom 0% 0.0% 2.5% 6.2% 10.0% 7.5% 3.0% 5.0% West of England 0% 0.0% 2.5% 7.5% 7.5% 5.0% 5.0% 5.0% American 0.0% 0.0% 4.5% 10.0% 10.0% 5.0% 10.0% Britannia 0.0% 0.0% 0.0% 0.0% 10.0% 0.0% 0.0% Gard (1) 0% 0.0% 2.5% 10.0% 5.0% 5.0% 5.0% 10.0% Japan 0.0% 0.0% 0.0% 7.5% 0.0% 0.0% 0.0% London 0.0% 5.0% 6.0% 10.0% 12.5% 5.0% 7.5% North of England 0.0% 0.0% 2.5% 5.0% 10.0% 10.0% 10.0% Shipowners 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Skuld (2) 0.0% 0.0% 0.0% 0.0% 8.5% 0.0% 0.0% Standard 0% 0.0% 0.0% 5.0% 12.5% 15.0% 5.0% 3.5% Steamship 0% 0.0% 0.0% 0.0% 10.0% 7.5% 5.0% 0.0% Swedish 0.0% 0.0% 5.0% 5.0% 5.0% 5.0% 10.0% United Kingdom 0.0% 0.0% 0.0% 5.0% 7.5% 3.0% 5.0% West of England 0% 0.0% 0.0% 7.5% 9.0% 10.0% 7.5% 10.0% Notes: (1) Gard express their premium plans in terms of Combined net ratio which is then converted to an effective General Increase. (2) Skuld have abandoned General Increases and figures shown in this table are their anticipated incremental premium requirements where advised. 34

35 P&I Supplementary Call Record American Original 0% 0% 0% 0% 0% 0% 25% 25% 20% Latest 0% 0% 0% 0% 0% 0% 25% 25% 20% Britannia Original 45% 45% 45% 45% 45% 45% 40% 40% 40% 40% Latest 45% 45% 45% 40% 35% 45% 40% 40% 40% 32.50% Gard Original 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Latest 0% 25% 0% 15% 15% 15% 15% 20% 15% 10% Japan Original 40% 40% 40% 40% 40% 40% 40% 40% 40% Latest 40% 40% 30% 20% 40% 40% 40% 50% 40% London Original 0% 0% 0% 0% 0% 0% 0% 0% 40% North of England Latest 0% 0% 0% 0% 0% 0% 0% 0% 40% Original 0% 0% 0% 0% 0% 0% 0% 0% 0% Latest 0% -5% 0% 0% 0% 0% 0% 0% 0% Shipowners Original 0% 0% 0% 0% 0% 0% 0% 10% 10% Latest 0% 0% 0% 0% 0% 0% 0% 0% 0% Skuld Original 0% 0% 0% 0% 0% 0% 0% 0% 0% Latest 0% -2.5% -2.5% 0% 0% 0% 0% 0% 0% Standard Original 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Latest 0% -5% -5% 0% 0% 0% 0% 0% 0% 0% Steamship Original 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Latest 0% 0% 0% -10% -10% 0% 0% 0% 0% 0% Swedish Original 0% 0% 0% 0% 0% 0% 0% 0% 0% Latest -4% 0% 0% 0% 0% 0% 0% 0% 0% United Kingdom Original 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% West of England Latest 0% 0% 0% -3.0% -2.5% 0% 0% -2.5% 0% 0% Original 0% 35% 35% 35% 35% 35% 30% 30% 30% 30% Latest 0% 35% 35% 35% 35% 35% 30% 30% 30% 30% 35

36 Average Expense Ratios (AER) 20/02/ /02/ /02/ /02/ /02/ /02/ /02/11 20/02/ /02/2009 American 25.70% 24.20% 21.60% 19.30% 19.30% 18.30% 16.50% 15.30% 15.20% Britannia 9.42% 9.12% 8.43% 8.03% 8.49% 8.49% 8.09% 8.16% 8.39% Gard 12.02% 11.84% 11.40% 11.30% 14.10% 13.00% 11.40% 11.80% 11.40% Japan 5.46% 5.18% 5.25% 5.73% 5.69% 6.18% 6.27% 6.56% 6.69% London 9.51% 9.52% 8.78% 8.36% 9.63% 9.00% 8.70% 8.90% 9.40% North of England 12.00% 12.40% 12.40% 12.50% 13.10% 12.60% 11.90% 11.40% 10.80% Shipowners 22.00% 21.00% 20.00% 18.00% 20.00% 20.00% 19.00% 19.00% 19.00% Skuld 12.80% 12.80% 12.90% 12.30% 12.30% 12.40% 12.10% 12.20% 12.70% Standard 12.40% 12.20% 11.40% 10.90% 13.20% 13.40% 13.30% 13.30% 16.50% Steamship 12.10% 12.10% 11.80% 11.30% 12.40% 12.30% 12.00% 11.80% 11.60% Swedish 13.30% 13.30% 13.00% 12.10% 13.30% 13.00% 11.60% 11.40% 10.90% United Kingdom 10.22% 10.17% 9.66% 9.35% 9.47% 9.46% 9.16% 9.37% 9.96% West of England 15.15% 15.50% 14.86% 14.24% 15.43% 14.75% 13.66% 13.79% 13.82% Average 13.24% 13.03% 12.42% 11.80% 12.80% 12.53% 11.82% 11.77% 12.03% Notes: The AER is itself a 5 tear rolling average and so is already averaged over time The market average figure is simple - i.e. not weighted. 36

37 7 Year Combined Ratio 100% American Club Britannia Gard Japan Club London Club North of England Shipowners Club Skuld Standard Club Steamship Mutual Swedish Club Uk Club West of England Policy Year % % % 94.72% % % 96.11% 98.75% % % % % % Financial Year % % 97.10% 95.95% % 95.83% 92.91% 95.43% % 92.03% 97.19% % 99.98% 37

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39 Pooling Share Percentages /2 2012/3 2013/4 2014/5pp 2015/6pp 2016/7p 2017/8p AMERICAN BRITANNIA GARD JAPAN LONDON NORTH OF ENGLAND SHIPOWNERS SKULD STANDARD STEAMSHIP SWEDISH UK WEST OF ENGLAND 39

40 2017 Reinsurance Structure 3.1bn P&I Including overspill protection, Hydra participation, pooling, private placements and individual club retentions. 2.1bn Collective Overspill Excess of Underlying 12 months at Noon GMT 20th February, MULTI-YEAR PRIVATE PLACEMENT 1.1bn Third Layer Excess of Underlying OIL POLLUTION MULTI-YEAR PRIVATE PLACEMENT MULTI-YEAR PRIVATE PLACEMENT 1bn 600m Second Layer Market Share: 85% First Layer Market Share: 55% First Layer Hydra Share: 30% 5% Private Placement 5% Private Placement 5% Private Placement Second Layer Market Share: 85% First Layer Market Share: 55% First Layer Hydra Share: 30% 5% Private Placement 5% Private Placement 5% Private Placement 350m 100m 80m 45m 30m 10m Hydra Layer Upper Pool Layer - Reinsured by Hydra Lower Pool Layer - Reinsured by Hydra Lower Pool Layer Individual Club Retention (ICR) 7.5% ICR 100m 80m 45m 30m 10m Single per-vessel retention OWNED ENTRIES 40

41 Excess of Loss Reinsurance Rates BASIC US TRADING SURCHARGE D TANKER C TANKER DRY PASSENGER SBT NON SBT TBA TBA TBA TBA TBA TBA 41

42 Premiums (in USD millions) PREMIUMS TOTAL GTE P/GT American Britannia Gard Japan London North SOP Skuld Standard Steamship Swedish UK West Market

43 Claims (in USD millions) PREMIUMS TOTAL GTE C/GT American Britannia Gard Japan London North SOP Skuld Standard Steamship Swedish UK West Market

44 44

45 CLUB INFO INTERNATIONAL GRoUP OF P&I CLUBS 45

46 46

47 Standard and Poor s Ratings CURRENT American BBB- BBB- BBB- BBB- BBB- BB+ BB+ Britannia A A A A pi A pi A pi A pi Ratings BBB or higher are regarded as having financial security characteristics that outweigh any vulnerabilities, and are likely to have the ability to meet financial commitments. Gard A+ A+ A+ A+ A+ A+ A AA: Very Strong financial security characteristics. Japan BBB+ BBB+ BBB+ BBB+ BBB+ BBB BBB pi London BBB BBB BBB BBB pi BBB pi BBB pi BBB pi A: Strong financial security characteristics, but is somewhat more likely to be affected by adverse business conditions than are insurers with higher ratings. North of England A A A A A A A Shipowners A A A- A- A- A- BBB pi BBB: Good financial security characteristics, but is more likely to be affected by adverse business conditions than are higher rated insurers. Skuld A A A A A A A- Standard A A A A A A A Ratings BB or lower are regarded as having vulnerable characteristics that may outweigh the strengths. Steamship A A A- A- A- A- A- Swedish BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB BB: Marginal financial security characteristics. Positive attributes exist, but adverse business conditions lead to insufficient ability to meet financial requirements. United Kingdom A A A A A- A- A- West of England A- A- BBB+ BBB BBB BBB- BBpi B: Weak financial security characteristics. Adverse business conditions will likely impair the ability to meet financial commitments. + or signs show relative standing within the major rating category. Notes: PI ratings are based on public data only, others are based on a periodic review by S&P analysts. 47

48 Summary of Clubs Financial Position (USD millions) AMERICAN CLUB BRITANNIA GARD JAPAN CLUB LONDON CLUB NORTH OF ENGLAND SHIPOWNERS CLUB SKULD STANDARD CLUB STEAMSHIP MUTUAL SWEDISH CLUB UK CLUB WEST OF ENGLAND TOTAL ETC CALLS ,290.6 ADDITIONAL / RETURN CALLS ,243.2 TOTAL EXPENDITURE ,346.2 UNDERWRITING RESULT RESERVE TRANSFER INVESTMENT INCOME ALLOCATED /2016 PY P&I CLASS ETC CALLS ,588.8 ADDITIONAL / RETURN CALLS ,515.3 TOTAL EXPENDITURE ,561.4 UNDERWRITING RESULT RESERVE TRANSFER INVESTMENT INCOME ALLOCATED PY P&I CLASS ETC CALLS ,693.4 ADDITIONAL / RETURN CALLS ,572.4 TOTAL EXPENDITURE , UNDERWRITING RESULT RESERVE TRANSFER INVESTMENT INCOME ALLOCATED

49 Summary of Clubs Financial Position (USD millions) AMERICAN CLUB BRITANNIA GARD JAPAN CLUB LONDON CLUB NORTH OF ENGLAND SHIPOWNERS CLUB SKULD STANDARD CLUB STEAMSHIP MUTUAL SWEDISH CLUB UK CLUB WEST OF ENGLAND TOTAL FREE RESERVES OLDER YEARS BALANCES ,042.7 OTHER RESERVES OTHER FUNDING P&I CLASS RESERVE ,058.8 OTHER CLASS SURPLUS ETC TOTAL FREE RESERVE ,321.3 P&L ACCOUNT - ALL CLASSES ETC CALLS ,103.5 ADDITIONAL CALLS , TOTAL EXPENDITURE , UNDERWRITING RESULT INVESTMENT RETURN EXCHANGE TAX ETC P&I CLASS FREE RESERVE 20-FEB , FEB , FEB , FEB , , FEB , ,058.8 % MOVEMENT IN FREE RESERVES % -6% 8% -6% 7% -2% 17% 6% 3% -5% 0% 2% 0% 2% % 7% 3% -5% 4% -2% 8% 11% -4% 3% 11% 7% 9% 4% % 15% 5% 15% -2% -6% 0% -1% 0% 28% 12% 4% -11% 5% % -6% 4% 9% 2% 33% -7% 6% 3% 15% -1% 0% 17% 5% % 17% 13% 11% 18% 3% 5% 17% 13% 18% 6% 2% 20% 11% 49

50 American Steamship Owners Mutual P&I Association Inc. Managers: Shipowners Claims Bureau HEAD QUARTERS NEW YORK, USA ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION S&P RATING BBB- (INCREASE TO BBB- FROM BB+ IN 2013) TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS 40% 20% 31% 9% PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 55% AMERICAS ASIA PACIFIC EUROPE 19% 24% 1% REST OF WORLD CALL HISTORY FORECAST CALL 0% 0% 0% 0% 0% 0% LATEST ESTIMATE 0% 0% 0% 0% 0% 0% RELEASE CALL 20.0% 20.0% 15.0% 12.5% - - GENERAL INCREASE 0.0% 2.5% 4.5% 10% 10% 5% GENERAL INCREASE ON ETC 0.0% 2.5% 4.5% 10% 10% 5% OWNED TONNAGE MARKET SHARE (OGT) 1.29% 1.35% 1.21% 1.50% 1.47% 1.49% CHARTERED TONNAGE

51 FINANCIAL YEAR (USD M) POLICY YEAR (USD M) FY UNDERWRITING RESULT INVESTMENT RESULT BUDGETED CALL INCOME EXCESS CALL INCOME EXCHANGE RESULT TOTAL CALL INCOME OTHER RESULT REINSURANCE COST FY SURPLUS/DEFICIT NET PREMIUM INCOME FREE RESERVE CLAIMS HYBRID CAPITAL EXPENSES TOTAL FREE RESERVE TOTAL COSTS PY UNDERWRITING RESULT *ACQUISITION COST IS INCLUDED IN EXPENSES ANALYSIS FREE RESERVES / PREMIUM * 84.81% 78.65% 51.81% 51.71% 49.95% COMMENTARY PY COMBINED RATIO * % 96.55% % % % INVESTMENT YIELD 1.41% 0.14% 2.93% 5.03% 5.31% AVERAGE EXPENSE RATIO 25.70% 24.20% 21.60% 19.30% 19.30% *EXCLUDING EXCESS CALL INCOME During the year the Club saw its new subsidiary company, American Hellenic Hull Insurance begin to accept business, predominantly a portfolio transferred from the former Hellenic Hull Mutual. Minimal activity from this new entity was reflected in the calendar year 2016 results. The Club reports that the first quarter of 2017 was a successful one, with free reserves, including the surplus note, approximating $ 80 million. The Club recently celebrated its 100th anniversary. STILL OPEN FUTURE DATA 51

52 The Britannia Steamship Insurance Association Ltd Managers: Tindall Riley (Britannia) Ltd HEAD QUARTERS LONDON, ENGLAND ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION S&P RATING A (LAST CHANGED IN 2014 WHEN WENT INTERACTIVE; PREVIOUSLY API) 31% 32% 36% 1% 45% 5% 47% EUROPE AMERICAS TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 3% REST OF WORLD ASIA PACIFIC CALL HISTORY FORECAST CALL 45% 45% 45% 45% 45% 40% LATEST ESTIMATE 45% 45% 40% 35% 45% 40% RELEASE CALL 15.0% 15.0% 7. 5% GENERAL INCREASE 0.0% 2.5% 2.5% 2.5% 12.5% 5.0% GENERAL INCREASE ON ETC 0.0% 2.5% 2.5% 8.1% 10.5% 5.0% OWNED TONNAGE MARKET SHARE (OGT) % 9.55% 9.79% 10.41% 10.95% CHARTERED TONNAGE

53 FINANCIAL YEAR (USD M) POLICY YEAR (USD M) FY UNDERWRITING RESULT INVESTMENT RESULT BUDGETED CALL INCOME EXCESS CALL INCOME EXCHANGE RESULT TOTAL CALL INCOME OTHER RESULT REINSURANCE COST FY SURPLUS/DEFICIT NET PREMIUM INCOME FREE RESERVE CLAIMS BOUDICCA NET ASSETS EXPENSES TOTAL FREE RESERVE TOTAL COSTS SOLVENCY II TIER 1 CAPITAL PY UNDERWRITING RESULT SOLVENCY II ALL TIER CAPITAL *ACQUISITION COST IS INCLUDED IN EXPENSES SOLVENCY CAPITAL REQUIREMENT ANALYSIS COMMENTARY FREE RESERVES / PREMIUM * % % % % % PY COMBINED RATIO * % % 97.39% % % FY COMBINED RATIO 96.43% % **85.64 ** % % % INVESTMENT YIELD 3.39% -2.04% 0.60% 4.08% 3.44% The Club continued its recent practice of reducing the deferred call on open years, further reducing the deferred call on to 35% and reducing the deferred call on to 40% from 45%. Additionally, Britannia announced a capital distribution of $ 20 million to members in May 2017, which is not reflected in the figures in this report; there are suggestions in the market that this may be repeated in the future, but this has not been confirmed by the Club. The Club itself benefited form a capital distribution form its Hydra cell in the year, amounting to $ 5.7 million. AVERAGE EXPENSE RATIO 9.42% 9.12% 8.43% 8.03% 8.49% *EXCLUDING EXCESS CALL INCOME STILL OPEN FUTURE DATA **REFLECTING BOUDICCA (IFFY) 53

54 Assuranceforeningen Gard Gjensidig Managers: Gard Services AS HEAD QUARTERS ARENDAL, NORWAY ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION S&P RATING A+ (LAST CHANGE: INCREASE TO A+ FROM A IN 2012) 38% 18% 30% 3% 8% 3% 10% AMERICAS 62% EUROPE 28% TANKER / GAS CARRIER PASSENGER / FERRY FISHING ASIA PACIFIC CONTAINER / GENERAL CARGO BULKERS OFFSHORE HARBOUR CRAFT TUG N BARGE YACHTS DREDGERS OTHER 0% REST OF WORLD CALL HISTORY FORECAST CALL 25% 25% 25% 25% 25% 25% LATEST ESTIMATE 25% 0% 15% 15% 15% 15% RELEASE CALL 20.0% 5.0% 5.0% GENERAL INCREASE 0.0% 2.5% 2.5% 5.0% 5.0% 5.0% GENERAL INCREASE ON ETC 0.0% 2.5% 2.5% 5.0% 5.0% 5.0% OWNED TONNAGE MARKET SHARE (OGT) 17.87% 18.32% 18.44% 18.75% % 17.17% CHARTERED TONNAGE

55 FINANCIAL YEAR (USD M) POLICY YEAR (USD M) FY UNDERWRITING RESULT INVESTMENT RESULT BUDGETED CALL INCOME EXCESS CALL INCOME EXCHANGE RESULT TOTAL CALL INCOME OTHER RESULT REINSURANCE COST FY SURPLUS/DEFICIT NET PREMIUM INCOME TOTAL FREE RESERVE CLAIMS SOLVENCY II TIER 1 CAPITAL EXPENSES SOLVENCY II ALL TIER CAPITAL TOTAL COSTS SOLVENCY CAPITAL REQUIREMENT PY UNDERWRITING RESULT *ACQUISITION COST IS INCLUDED IN EXPENSES ANALYSIS FREE RESERVES / PREMIUM * % % % % % PY COMBINED RATIO * % 99.55% 93.95% 95.17% % FY COMBINED RATIO 94.70% 82.25% 94.89% % % INVESTMENT YIELD 5.02% -0.93% 1.54% 3.20% 4.93% AVERAGE EXPENSE RATIO 12.02% % % % 14.10% *EXCLUDING EXCESS CALL INCOME COMMENTARY Gard once more amended its deferred call for , this year waiving it completely thus effectively reducing the financial year underwriting profit by $ 90 million: nonetheless they still reported an underwriting profit of close to $ 30 million. In a year of contrasting fortunes, the Club actually incurred a financial year underwriting loss of $ 7 million on its M&E portfolio. The Club made substantial unrealised gains on its investment portfolio in the year and had derisked its involvement in equities significantly by the year end. STILL OPEN FUTURE DATA 55

56 The Japan Ship Owners Mutual Protection & Indemnity Association Managers: Self-Managed HEAD QUARTERS TOKYO, JAPAN ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION S&P RATING BBB+ (UPGRADED TO BBB+ FROM BBB IN 2013) 20% 10.6% 58.6% 10.8% 0% AMERICAS 0% EUROPE 100% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 0% REST OF WORLD ASIA PACIFIC CALL HISTORY FORECAST CALL 40% 40% 40% 40% 40% 40% LATEST ESTIMATE 40% 40% 30% 20% 40% 40% RELEASE CALL 5.0% 5.0% 5.0% 5.0% - - GENERAL INCREASE 0.0% 3.0% 3.0% 7. 5% 5% 3% GENERAL INCREASE ON ETC 0.0% 3.0% 3.0% 7. 5% 5% 3% OWNED TONNAGE MARKET SHARE (OGT) 7.48% 7.79% 8.12% 8.44% 8.66% 8.90% CHARTERED TONNAGE

57 FINANCIAL YEAR (USD M) POLICY YEAR (USD M) FY UNDERWRITING RESULT INVESTMENT RESULT EXCHANGE RESULT OTHER RESULT FY SURPLUS/DEFICIT TOTAL FREE RESERVE SOLVENCY II TIER 1 CAPITAL n/a SOLVENCY II ALL TIER CAPITAL n/a SOLVENCY CAPITAL REQUIREMENT n/a n/a BUDGETED CALL INCOME EXCESS CALL INCOME TOTAL CALL INCOME REINSURANCE COST NET PREMIUM INCOME CLAIMS EXPENSES TOTAL COSTS PY UNDERWRITING RESULT *ACQUISITION COST IS INCLUDED IN EXPENSES ANALYSIS FREE RESERVES / PREMIUM * % 73.00% 70.02% 68.81% % PY COMBINED RATIO * % 81.32% 72.84% 97.16% 90.96% FY COMBINED RATIO 85.97% 80.67% % % % INVESTMENT YIELD 1.30% 1.18% 1.90% 1.90% 1.66% AVERAGE EXPENSE RATIO 5.46% 5.18% 5.25% 5.73% 5.69% COMMENTARY Interpretation of the Club s financial statements continue to be made more difficult by exchange rate adjustments, albeit less pervasive this year. The Japan Club continues to see growth in Free Reserve despite fierce rate competition being seen in its fixed premium coastal business. The Club has reduced its deferred call in respect of older policy years to 20% from 40% and to 30% from 40%. This has resulted in the waiver of a lost $ 50 million of call income in the past 12 months. *EXCLUDING EXCESS CALL INCOME STILL OPEN FUTURE DATA 57

58 London Steamship Owners Mutual Insurance Association Ltd Managers: A Bilbrough & Co Ltd HEAD QUARTERS LONDON, ENGLAND ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION S&P RATING BBB (LAST CHANGED IN 2014 FROM BBBPI) 29% 19% 52% 2% AMERICAS 67% EUROPE 31% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 0% REST OF WORLD ASIA PACIFIC CALL HISTORY FORECAST CALL 0% 0% 0% 0% 0% 0% LATEST ESTIMATE 0% 0% 0% 0% 0% 0% RELEASE CALL 15.0% 15.0% 12.5% 5.0% - - GENERAL INCREASE 0.0% 5.0% 6.0% 10.0% 12.5% 5.0% GENERAL INCREASE ON ETC 0.0% 5.0% 6.0% 10.0% 12.5% 5.0% OWNED TONNAGE MARKET SHARE (OGT) 3.71% 3.74% 3.94% 3.95% 3.97% 4.01% CHARTERED TONNAGE

59 FINANCIAL YEAR (USD M) POLICY YEAR (USD M) FY UNDERWRITING RESULT INVESTMENT RESULT BUDGETED CALL INCOME EXCESS CALL INCOME EXCHANGE RESULT TOTAL CALL INCOME OTHER RESULT REINSURANCE COST FY SURPLUS/DEFICIT NET PREMIUM INCOME TOTAL FREE RESERVE CLAIMS SOLVENCY II TIER 1 CAPITAL EXPENSES SOLVENCY II ALL TIER CAPITAL TOTAL COSTS SOLVENCY CAPITAL REQUIREMENT PY UNDERWRITING RESULT *ACQUISITION COST IS INCLUDED IN EXPENSES ANALYSIS FREE RESERVES / PREMIUM * % % % % % PY COMBINED RATIO * % % % % % FY COMBINED RATIO 97.71% 80.67% % % % INVESTMENT YIELD 6.65% -2.91% 6.72% 6.11% 6.00% AVERAGE EXPENSE RATIO 9.51% 9.52% 8.78% 8.36% 9.63% COMMENTARY As noted last year, the Club continues to suffer more than most by fluctuations in the incidence and value of large claims. This is mainly due to its relatively small size, earning around $ 80 million in net premium income and seeing a $ 45 million swing in its underwriting result between 2015 and The 2017 results drops neatly into the middle of those two extremes. In contrast the Club continues to achieve a consistently above average investment yield despite not being obviously positioned heavily in equities. *EXCLUDING EXCESS CALL INCOME STILL OPEN FUTURE DATA 59

60 The North Of England P&I Association Ltd Managers: North Insurance Management Ltd HEAD QUARTERS NEWCASTLE UPON TYNE, ENGLAND ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION S&P RATING A (UNCHANGED IN LAST 7 YEARS) 32% 25% 35% 8% 6% AMERICAS 47% EUROPE 35% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 12% REST OF WORLD ASIA PACIFIC CALL HISTORY FORECAST CALL LATEST ESTIMATE % 11.15% 11.18% % 11.96% 12.12% RELEASE CALL GENERAL INCREASE 0.0% 2.5% 4.75% 7. 5% 15.0% 5.0% GENERAL INCREASE ON ETC 0.0% 2.5% 4.75% 7. 5% 15.0% 5.0% OWNED TONNAGE MARKET SHARE (OGT) 3.71% 3.74% 3.94% 3.95% 3.97% 4.01% CHARTERED TONNAGE

61 FINANCIAL YEAR (USD M) POLICY YEAR (USD M) FY UNDERWRITING RESULT INVESTMENT RESULT BUDGETED CALL INCOME EXCESS CALL INCOME EXCHANGE RESULT TOTAL CALL INCOME OTHER RESULT REINSURANCE COST FY SURPLUS/DEFICIT NET PREMIUM INCOME TOTAL FREE RESERVE CLAIMS SOLVENCY II TIER 1 CAPITAL EXPENSES SOLVENCY II ALL TIER CAPITAL TOTAL COSTS SOLVENCY CAPITAL REQUIREMENT PY UNDERWRITING RESULT *ACQUISITION COST IS INCLUDED IN EXPENSES ANALYSIS FREE RESERVES / PREMIUM * % % 91.55% 90.18% 93.95% PY COMBINED RATIO * 93.09% 92.01% % 97.45% % FY COMBINED RATIO 97.71% % 104% 103% INVESTMENT YIELD 2.35% -0.77% 3.21% 1.36% 1.27% COMMENTARY The Club reduced its estimated total premium by 5% in respect of the policy year and returned some $ 14 million to owners, despite having made an underwriting loss. It has to be said though that the underwriting loss was in no small way due to continued funding issues relating to its defined benefits pension fund. The Club have taken steps to staunch the bleeding from this source, which was closed to new entrants many years ago. AVERAGE EXPENSE RATIO 12.00% 12.40% 12.40% 12.50% 13.10% *EXCLUDING EXCESS CALL INCOME STILL OPEN FUTURE DATA 61

62 The Shipowners Mutual P&I Association Ltd (Luxembourg) Managers: The Shipowners Protection Ltd HEAD QUARTERS LONDON, ENGLAND ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION S&P RATING A- (LAST CHANGE: INCREASE TO A- FROM BBB IN 2012) 5% 5% 13% 14% 63% 15% 20% EUROPE 50% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER AMERICAS 15% REST OF WORLD ASIA PACIFIC CALL HISTORY FORECAST CALL 0% 0% 0% 0% 0% 0% LATEST ESTIMATE 0% 0% 0% 0% 0% 0% RELEASE CALL 0.0% 0.0% 0.0% GENERAL INCREASE 0% 0% 0% 5.0% 5.0% 0.0% GENERAL INCREASE ON ETC 0% 0% 0% 5.0% 5.0% 0.0% OWNED TONNAGE MARKET SHARE (OGT) 2.06% 2.11% 2.11% 2.13% 2.22% 2.05% CHARTERED TONNAGE

63 FINANCIAL YEAR (USD M) POLICY YEAR (USD M) FY UNDERWRITING RESULT INVESTMENT RESULT BUDGETED CALL INCOME EXCESS CALL INCOME EXCHANGE RESULT TOTAL CALL INCOME OTHER RESULT REINSURANCE COST FY SURPLUS/DEFICIT NET PREMIUM INCOME TOTAL FREE RESERVE CLAIMS SOLVENCY II TIER 1 CAPITAL EXPENSES SOLVENCY II ALL TIER CAPITAL TOTAL COSTS SOLVENCY CAPITAL REQUIREMENT PY UNDERWRITING RESULT *ACQUISITION COST IS INCLUDED IN EXPENSES ANALYSIS FREE RESERVES / PREMIUM * % % % % % PY COMBINED RATIO * % 99.34% % 89.96% % FY COMBINED RATIO 98.37% 97.92% 93.66% 98.72% 94.82% INVESTMENT YIELD 3.05% -0.99% 2.26% 3.37% 6.12% AVERAGE EXPENSE RATIO 22.00% 21.00% 20.00% 18.00% 20.00% *EXCLUDING EXCESS CALL INCOME COMMENTARY With its primary competition being with the fixed premium commercial market as opposed to other IG Clubs, Shipowners is under little pressure to return premium to its members, but just might surprise us. The Club has reported on its results for the 6 months to 30 June 17: it has increased Free Reserves to $ million, based on an investment performance which generated an $ 24.3million net income. A technical surplus of $ 0.7 million completed the result, which is in line with the modest underwriting surplus seen in the 12 months ending in December STILL OPEN FUTURE DATA 63

64 Assuranceforeningen Skuld Managers: Self-Managed HEAD QUARTERS OSLO, NORWAY ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION S&P RATING A (LAST CHANGE: INCREASE TO A FROM A- IN 2012) 43% 16% 32% 2% 7% TANKER / GAS CARRIER PASSENGER / FERRY FISHING 9% AMERICAS 50% EUROPE 38% ASIA PACIFIC CONTAINER / GENERAL CARGO BULKERS OFFSHORE HARBOUR CRAFT TUG N BARGE YACHTS DREDGERS OTHER 3% REST OF WORLD CALL HISTORY FORECAST CALL 0% 0% 0% 0% 0% 0% LATEST ESTIMATE 0% -2.5% -2.5% 0% 0% 0% RELEASE CALL 15.0% 7. 5% 3.0% 0.0% - - GENERAL INCREASE n/a n/a n/a n/a n/a n/a GENERAL INCREASE ON ETC n/a n/a n/a n/a 8.5% 5.0% OWNED TONNAGE MARKET SHARE (OGT) 7.97% 7.93% 7.46% 7. 28% 7. 55% 7.90% CHARTERED TONNAGE

65 FINANCIAL YEAR (USD M) POLICY YEAR (USD M) FY UNDERWRITING RESULT INVESTMENT RESULT BUDGETED CALL INCOME EXCESS CALL INCOME EXCHANGE RESULT TOTAL CALL INCOME OTHER RESULT REINSURANCE COST FY SURPLUS/DEFICIT NET PREMIUM INCOME TOTAL FREE RESERVE CLAIMS SOLVENCY II TIER 1 CAPITAL EXPENSES SOLVENCY II ALL TIER CAPITAL TOTAL COSTS SOLVENCY CAPITAL REQUIREMENT PY UNDERWRITING RESULT *ACQUISITION COST IS INCLUDED IN EXPENSES ANALYSIS FREE RESERVES / PREMIUM * % % % % % PY COMBINED RATIO * % 92.87% 96.38% 95.64% % FY COMBINED RATIO 96.41% 92.21% 99% 100% 96% INVESTMENT YIELD 3.03% -1.52% 2.66% 3.95% 2.53% AVERAGE EXPENSE RATIO 12.80% 12.80% 12.90% 12.30% 12.30% COMMENTARY The Club completed the acquisition of Gerling Europe in the year and this has been renamed Skuld Marine, Skuld Marine controls a $ 40 million book of hull & machinery business that is being integrated onto Skuld paper. The Club applied its 2.5% premium credit in and has announced that this will continue for next year. The Club has reported on its results for the 6 months to 20 August In this period they have increased Free Reserves by $ 7.8 million to $ million, based on a continued strong investment performance which generated a $ 30.0 million net income. A technical deficit of $ 22.2 million arose in the period. *EXCLUDING EXCESS CALL INCOME STILL OPEN FUTURE DATA *MUTUAL PREMIUM CREDIT 65

66 The Standard Club Managers: Charles Taylor & Co (Bermuda) HEAD QUARTERS LONDON, ENGLAND ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION S&P RATING A (LAST CHANGE: UNCHANGED IN LAST 7 YEARS) 32% 31% 22% 2% 11% 2% 12% 51% EUROPE 27% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER AMERICAS 10% REST OF WORLD ASIA PACIFIC CALL HISTORY FORECAST CALL 0% 0% 0% 0% 0% 0% LATEST ESTIMATE -5% -5% 0% 0% 0% 0% RELEASE CALL 6.0% 0.0% 0.0% GENERAL INCREASE 0.0% 2.5% 5.0% 12.5% 7. 5% 5.0% GENERAL INCREASE ON ETC 0.0% 2.5% 5.0% 12.5% 7. 5% 5.0% OWNED TONNAGE MARKET SHARE (OGT) 10.63% 10.50% 10.32% 9.43% 10.17% 9.26% CHARTERED TONNAGE

67 FINANCIAL YEAR (USD M) POLICY YEAR (USD M) FY UNDERWRITING RESULT INVESTMENT RESULT BUDGETED CALL INCOME EXCESS CALL INCOME EXCHANGE RESULT TOTAL CALL INCOME OTHER RESULT REINSURANCE COST FY SURPLUS/DEFICIT NET PREMIUM INCOME TOTAL FREE RESERVE CLAIMS SOLVENCY II TIER 1 CAPITAL EXPENSES SOLVENCY II ALL TIER CAPITAL TOTAL COSTS SOLVENCY CAPITAL REQUIREMENT PY UNDERWRITING RESULT *ACQUISITION COST IS INCLUDED IN EXPENSES ANALYSIS FREE RESERVES / PREMIUM * % % % % % PY COMBINED RATIO * 91.68% % 95.26% % % FY COMBINED RATIO 92.79% 92.95% % % % INVESTMENT YIELD 2.84% -0.50% 1.76% 1.06% 5.34% AVERAGE EXPENSE RATIO 12.40% 12.20% % 10.90% 13.20% *EXCLUDING EXCESS CALL INCOME COMMENTARY The Club was announced a rebate to members in respect of the policy year, returning 5% of that policy year s mutual premium at the estimated cost of $ 11.5 million. Despite this the Club reported a financial year underwriting surplus of $ 17.5 million and an overall surplus of more than $ 40 million on the year. During the year the Club acquired a share in Hydor AS, an MGA in Norway, which will act as a coverholder for Standard syndicate The Club s investment property (also its London headquarters) was down value by $ 5.9 million in the year, reducing investment yields. The Club has just announced a 5% return of mutual premium will also be made on the 2017/18 policy year. STILL OPEN FUTURE DATA 67

68 Steamship Mutual P&I Association Managers: Steamship Mutual Management (Bermuda) Ltd HEAD QUARTERS LONDON, ENGLAND ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION S&P RATING A (LAST CHANGE: INCREASE TO A FROM A- IN 2016) 24% 24% 38% 11% 3% 19% 34% EUROPE 38% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER AMERICAS 9% REST OF WORLD ASIA PACIFIC CALL HISTORY FORECAST CALL 0% 0% 0% 0% 0% 0% LATEST ESTIMATE 0% 0% -10% -10% 0% 0% RELEASE CALL 12.5% 2.5% 0% GENERAL INCREASE 0% 0% 0% 10.0% 7. 5% 5.0% GENERAL INCREASE ON ETC 0% 0% 0% 10.0% 7. 5% 5.0% OWNED TONNAGE MARKET SHARE (OGT) % 6.54% 6.23% 6.15% 6.17% CHARTERED TONNAGE

69 FINANCIAL YEAR (USD M) POLICY YEAR (USD M) FY UNDERWRITING RESULT INVESTMENT RESULT BUDGETED CALL INCOME EXCESS CALL INCOME EXCHANGE RESULT TOTAL CALL INCOME OTHER RESULT REINSURANCE COST FY SURPLUS/DEFICIT NET PREMIUM INCOME TOTAL FREE RESERVE CLAIMS SOLVENCY II TIER 1 CAPITAL EXPENSES SOLVENCY II ALL TIER CAPITAL TOTAL COSTS SOLVENCY CAPITAL REQUIREMENT PY UNDERWRITING RESULT *ACQUISITION COST IS INCLUDED IN EXPENSES ANALYSIS FREE RESERVES / PREMIUM * % % % 98.92% % PY COMBINED RATIO * 98.37% 97.16% 86.36% 99.16% % FY COMBINED RATIO 81.07% 70.32% 76.00% 96.33% % INVESTMENT YIELD 2.63% -0.24% 1.80% 0.51% 2.50% AVERAGE EXPENSE RATIO 12.10% 12.10% % % 12.40% *EXCLUDING EXCESS CALL INCOME COMMENTARY Steamship was another Club to announce a rebate to members in the autumn of They returned 10% of the policy year s premium at the estimated cost of $ 25.8 million. Nonetheless they still reported a financial year underwriting surplus of $ 41.9 million for and an aggregate underwriting surplus of more than $ 180 million over the last 3 financial years. Much of this has been attributed to favourable back year development. As a result of these sustained profit levels the Club has ceased to buy certain aggregation reinsurance protections on their retained layer and pooling losses. The Club has recently announced that it will be returning 10% of the policy year premium to its membership for the 2015/16 year. STILL OPEN FUTURE DATA 69

70 The Swedish Club Managers: Self-Managed HEAD QUARTERS GOTHENBURG, SWEDEN ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION S&P RATING BBB+ (LAST CHANGE: INCREASE TO BBB+ FROM BBB IN 2012) 20% 41% 36% 1% 2% 6% 46% EUROPE 48% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER AMERICAS 0% REST OF WORLD ASIA PACIFIC CALL HISTORY FORECAST CALL 0% 0% 0% 0% 0% 0% LATEST ESTIMATE -4.0% 0% 0% 0% 0% 0% RELEASE CALL 15.0% 10.0% 5.0% GENERAL INCREASE 0.0% 0.0% 2.5% 7. 5% 7. 5% 5.0% GENERAL INCREASE ON ETC 0.0% 0.0% 2.5% 7. 5% 7. 5% 5.0% OWNED TONNAGE MARKET SHARE (OGT) 3.86% 3.71% 3.65% 3.72% 3.49% 3.43% CHARTERED TONNAGE

71 FINANCIAL YEAR (USD M) POLICY YEAR (USD M) FY UNDERWRITING RESULT INVESTMENT RESULT BUDGETED CALL INCOME EXCESS CALL INCOME EXCHANGE RESULT TOTAL CALL INCOME OTHER RESULT REINSURANCE COST FY SURPLUS/DEFICIT NET PREMIUM INCOME TOTAL FREE RESERVE CLAIMS SOLVENCY II TIER 1 CAPITAL EXPENSES SOLVENCY II ALL TIER CAPITAL TOTAL COSTS SOLVENCY CAPITAL REQUIREMENT PY UNDERWRITING RESULT *ACQUISITION COST IS INCLUDED IN EXPENSES ANALYSIS COMMENTARY FREE RESERVES / PREMIUM * % % % % % PY COMBINED RATIO * 98.48% % 94.80% % % FY COMBINED RATIO 95.06% 99.85% 96% 111% 111% INVESTMENT YIELD 2.34% -0.63% 1.21% 2.51% 5.50% The Club has announced a 4% return of premium after the renewal was completed, having not incorporated it as part of the autumn renewal circulars. At 30 June 2017 this amounted to $ 3.3 million but the amount should increase as the year develops. The Club reported a 6 month increase in Free Reserves, at 30 June 2017, to $ million, based on an investment performance which generated an $ 16.3 million net income. A technical surplus of $ 6.0 million arose, $ 2.7 million after allowing for the P&I discount noted above. AVERAGE EXPENSE RATIO 13.30% 13.30% 13.00% 12.10% 13.30% *EXCLUDING EXCESS CALL INCOME STILL OPEN FUTURE DATA 71

72 The United Kingdom Mutual Steamship Assurance Association Ltd Managers: Thomas Miller Bermuda Ltd HEAD QUARTERS LONDON, ENGLAND ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION S&P RATING 54% A (LAST CHANGE: INCREASE TO A FROM A- IN 2014) TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS 41% 13% 37% 6% 3% PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 11% AMERICAS 0% EUROPE REST OF WORLD 35% ASIA PACIFIC CALL HISTORY FORECAST CALL 0% 0% 0% 0% 0% 0% LATEST ESTIMATE 0% 0% -3.0% -2.5% 0% 0% RELEASE CALL 5% 0% GENERAL INCREASE 0.0% 2.5% 6.5% 10% 7. 5% 3.0% GENERAL INCREASE ON ETC 0.0% 2.5% 6.5% 10.0% 7. 5% 3.0% OWNED TONNAGE MARKET SHARE (OGT) % 11.49% 11.45% % % 11.43% CHARTERED TONNAGE

73 FINANCIAL YEAR (USD M) POLICY YEAR (USD M) FY UNDERWRITING RESULT INVESTMENT RESULT BUDGETED CALL INCOME EXCESS CALL INCOME EXCHANGE RESULT TOTAL CALL INCOME OTHER RESULT REINSURANCE COST FY SURPLUS/DEFICIT NET PREMIUM INCOME FREE RESERVE CLAIMS HYBRID CAPITAL EXPENSES TOTAL FREE RESERVE TOTAL COSTS SOLVENCY II TIER 1 CAPITAL PY UNDERWRITING RESULT SOLVENCY II ALL TIER CAPITAL *ACQUISITION COST IS INCLUDED IN EXPENSES SOLVENCY CAPITAL REQUIREMENT ANALYSIS COMMENTARY FREE RESERVES / PREMIUM * % % % % % PY COMBINED RATIO * % 95.70% 95.40% % % FY COMBINED RATIO % 93.7% 102% 107% 98% INVESTMENT YIELD 3.42% -1.29% 3.65% 3.20% 2.26% The Club continued its policy of making small returns of premium to members where it considers it appropriate, which have totalled $ 18.3 million in the past 3 years, which largely explains the $ 19.1 million financial year underwriting loss over the last three years. Breakeven underwriting taken to a new level! Following the disappointing (in their words) failure to achieve a merger with Britannia last year, the Club is to carry out a strategic review to help position the Club for the coming years which should possibly incorporate determining whether the hybrid capital should be renewed when it matures in June AVERAGE EXPENSE RATIO 10.22% 10.17% 9.66% 9.35% 9.47% *EXCLUDING EXCESS CALL INCOME STILL OPEN FUTURE DATA 73

74 The West of England Ship Owners Mutual Insurance Association Managers: The West Of England Ship Owners Insurance Services HEAD QUARTERS LONDON, ENGLAND ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION S&P RATING 49% A- (LAST CHANGE: INCREASE TO A- FROM BBB+ IN 2016) TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS 32% 26% 39% 2% 1% PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 5% AMERICAS 8% EUROPE REST OF WORLD 38% ASIA PACIFIC CALL HISTORY FORECAST CALL 35% 35% 35% 35% 35% 30% LATEST ESTIMATE 35% 35% 35% 35% 35% 30% RELEASE CALL 20.0% 10.0% 0.0% GENERAL INCREASE 0.0% 0.0% 2.5% 7. 5% 3.5% 5.0% GENERAL INCREASE ON ETC 0.0% 0.0% 2.5% 7. 5% 7. 5% 5.0% OWNED TONNAGE MARKET SHARE (OGT) 6.80% 6.27% 6.02% 5.37% 5.06% 5.02% CHARTERED TONNAGE

75 FINANCIAL YEAR (USD M) POLICY YEAR (USD M) FY UNDERWRITING RESULT INVESTMENT RESULT BUDGETED CALL INCOME EXCESS CALL INCOME EXCHANGE RESULT TOTAL CALL INCOME OTHER RESULT REINSURANCE COST FY SURPLUS/DEFICIT NET PREMIUM INCOME TOTAL FREE RESERVE CLAIMS SOLVENCY II TIER 1 CAPITAL EXPENSES SOLVENCY II ALL TIER CAPITAL TOTAL COSTS SOLVENCY CAPITAL REQUIREMENT PY UNDERWRITING RESULT *ACQUISITION COST IS INCLUDED IN EXPENSES ANALYSIS FREE RESERVES / PREMIUM * % % % % % PY COMBINED RATIO * % % 84.84% % % FY COMBINED RATIO 85.15% 80.94% 97.01% % % INVESTMENT YIELD 2.56% 1.53% 3.70% 3.34% 3.76% AVERAGE EXPENSE RATIO 15.15% 15.50% 14.86% 14.24% 15.43% *EXCLUDING EXCESS CALL INCOME COMMENTARY The past three years have been particularly kind to the West of England with an aggregate underwriting surplus of just under $ 60 million. Given their above average investment performance, the Club is now well positioned to deal with Solvency II issues as well as to potentially return funds to members. However, its early announcement of a couple of weeks ago makes no mention of any such decision and merely references a zero general increase for that year. Based on its August 2017 financial position, the Club is projecting that is Free Reserves at 20 February 2018 will fall slightly to $ 305 million. Managing Director Peter Spendlove stood down in September after 22 years in the role. STILL OPEN FUTURE DATA 75

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77 Alternative markets non international group clubs and fixed facilities 77

78 78

79 Fixed premium There is a significant number of commercial market fixed premium P&I providers that provide an alternative option to the International Group of P&I Clubs for owners of certain size, types or flag vessels. These insurers are gradually broadening the parameters of the business they are willing to cover and therefore any review of the P&I industry is not complete without some key data on their product. The commercial market insurers do not typically produce the levels of data typical with the International Group Clubs, but as one of the leading commercial market brokers our understanding and analysis of the sector, as it relates to each individual client s profile and circumstances, is designed to assist clients considering an alternative approach. Contact us if you would like to know more. 79

80 British Marine ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS 1% LONDON, UK 6% 22% 20% 14% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE 9% 5% 23% FISHING YACHTS DREDGERS OTHER 37% 11% EUROPE AMERICAS 17% AFR I C A M E INDIA 32% ASIA PACIFIC 3% AUSTRALASIA SECURITY QBE INSURANCE (EUROPE LTD) S&P RATING A+ CLUB DATA NOTES PREMIUM INCOME USD M GT GTM UNITS # LIMIT USD M MAXIMUM SIZE GTK 10k

81 Carina ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS LONDON, UK 5% 3% 15% 7% TANKER / GAS CARRIER 64% 6% PASSENGER / FERRY FISHING 18% EUROPE AMERICAS 43% 39% ASIA PACIFIC LLOYD S (MANY DIFFERENT SYNDICATES ON SLIP) SECURITY CONTAINER / GENERAL CARGO BULKERS OFFSHORE HARBOUR CRAFT TUG N BARGE YACHTS DREDGERS OTHER S&P RATING A+ CLUB DATA NOTES PREMIUM INCOME USD M START UP - GT GTM UNITS # LIMIT USD M MAXIMUM SIZE GTK 5.0k

82 Charterama B.V ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS 3% ROTTERDAM, NETHERLANDS 21% 3o% 45% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE 1% FISHING YACHTS DREDGERS OTHER 79% 5% EUROPE AMERICAS 2% AFR I C A M E INDIA 14% ASIA PACIFIC SECURITY ROYAL SUN ALLIANCE S&P RATING A CLUB DATA NOTES PREMIUM INCOME USD M GT GTM UNITS # LIMIT USD M MAXIMUM SIZE GTK N/A

83 Charterers P&I Club ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS LONDON, UK 3% 18% 76% 3% TANKER / GAS CARRIER PASSENGER / FERRY FISHING LINER TRADE OFFSHORE YACHTS BULKERS HARBOUR CRAFT DREDGERS 4% AMERICAS 31% EUROPE 9% AFR I C A M E 44% ASIA PACIFIC 12% INDIA AUSTRALASIA SECURITY MUNICH RE S&P RATING AA- TUG N BARGE OTHER CLUB DATA NOTES PREMIUM INCOME USD M GT GTM UNITS # LIMIT USD M MAXIMUM SIZE GTK N/A

84 China Shipowners Mutual Assurance Association ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS SHANGHAI, CHINA SECURITY 15% 23% 61% 1% TANKER / GAS CARRIER PASSENGER / FERRY FISHING 100% ASIA PACIFIC MUTUAL + IG CLUBS S&P RATING CONTAINER / GENERAL CARGO BULKERS OFFSHORE HARBOUR CRAFT TUG N BARGE YACHTS DREDGERS OTHER N/A CLUB DATA NOTES PREMIUM INCOME USD M DATA CEASED TO BE MADE PUBLIC GT GTM UNITS # LIMIT USD M MAXIMUM SIZE GTK

85 Coastal Marine Services Ltd ENTERED GT BY VESSEL TYPE 8% ENTERED GT BY REGION HEAD QUARTERS LONDON, UK 2% 5% 20% 37% 23% 5% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 30% AMERICAS 60% EUROPE 7% AFR I C A, M E INDIA 3% ASIA PACIFIC SECURITY LLOYD S S&P RATING AA- CLUB DATA NOTES PREMIUM INCOME USD M START UP - GT GTM UNITS # LIMIT USD M MAXIMUM SIZE GTK

86 Eagle Ocean Marine ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS NEW YORK USA SECURITY 15% 53% 30% 2% 5% 10% EUROPE 80% AMERICAN P&I CLUB (LARGELY REINSURED INTO 5 LLOYD S SYNDICATE) TANKER / GAS CARRIER PASSENGER / FERRY FISHING AMERICAS 5% ASIA PACIFIC CONTAINER / GENERAL CARGO SMALL CRAFT OFFSHORE HARBOUR CRAFT TUG N BARGE YACHTS DREDGERS OTHER AFR I C A M E INDIA S&P RATING BBB- CLUB DATA NOTES PREMIUM INCOME USD M GT GTM UNITS # LIMIT USD M MAXIMUM SIZE GTK 25.0k

87 Hanseatic Underwriters ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS HAMBURG AND LONDON 2% 65% 9% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE 3% 6% 2% 10% 3% FISHING YACHTS DREDGERS OTHER 68% EUROPE 9% AMERICAS 9% AFR I C A M E INDIA 14% ASIA PACIFIC SECURITY LLOYD S (6 SYNDICATES ON SLIP) S&P RATING A+ CLUB DATA NOTES PREMIUM INCOME USD M GT GTM UNITS # LIMIT USD M MAXIMUM SIZE GTK 30.0k

88 Hydor ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS OSLO, NORWAY 5% 17% 8% 46% 16% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE 8% FISHING YACHTS DREDGERS OTHER 78% 10% EUROPE AMERICAS 4% AFR I C A M E INDIA 8% ASIA PACIFIC SECURITY LLOYD S (BRIT 2987; STANDARD CLUB) S&P RATING A+ CLUB DATA NOTES PREMIUM INCOME USD M GT GTM UNITS # LIMIT USD M MAXIMUM SIZE GTK 25.0k

89 Ingosstrakh Insurance Co ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS MOSCOW, RUSSIA 1% SECURITY 10% 22% 3% 32% 7% 25% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 2% 66% AMERICAS EUROPE 1% AFR I C A M E INDIA 31% ASIA PACIFIC INGOSSTRAKH INSURANCE CO S&P RATING BBB- CLUB DATA NOTES PREMIUM INCOME USD M GT GTM UNITS # LIMIT USD M 1, MAXIMUM SIZE GTK NO LIMIT

90 Korean P&I Club ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS SEOUL, KOREA SECURITY 15% 42% 24% 6% 9% 4% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 10% AFR I C A M E INDIA 90% ASIA PACIFIC LLOYD S & OTHERS (NB NEW DEAL WITH STANDARD CLUB ALSO IN OFFING) S&P RATING A+ CLUB DATA NOTES PREMIUM INCOME USD M GT GTM UNITS # LIMIT USD M 1, MAXIMUM SIZE GTK 100.0k

91 Lodestar Marine ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS 2% LONDON, UK SECURITY 4% 28% 12% 29% 8% 5% 12% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 22% 35% EUROPE AMERICAS 15% AFR I C A M E INDIA 26% ASIA PACIFIC 2% AUSTRALASIA ROYAL SUN ALLIANCE S&P RATING A CLUB DATA NOTES PREMIUM INCOME USD M START UP Only really applicable to charterers but only 10.0k GT for tankers GT GTM UNITS # LIMIT USD M 1, MAXIMUM SIZE GTK 40.0K

92 MMI ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS 1% 1% 13% *NO USA OR EU BUSINESS AUKLAND, NEW ZEALAND SECURITY 7% 7% 12% 58% 1% 1.9% AMERICAS 0.4% EUROPE 3.7% 89% ASIA PACIFIC MARITIME MUTUAL INSURANCE ASSOCIATION (NZ) LTD TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER AFR I C A M E INDIA 5% AUSTRALASIA S&P RATING N/A BUT BBB BY VEDA, AND EQUIFAX COMPANY CLUB DATA NOTES PREMIUM INCOME USD M AWAITED 13.2 FIRST TIME DATA DISCLOSED Figs include owned, chartered, H&M, cargo and transport operators covers. GT GTM UNITS # Data is the latest available, but is over 12 months old. LIMIT USD M MAXIMUM SIZE GTK - NO LIMIT

93 Navigators ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS LONDON, UK SECURITY 5% 26% 5% 40% 15% 9% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 30% AMERICAS 9% EUROPE 30% REST OF WORLD 31% ASIA PACIFIC NAVIGATORS INSURANCE CO S&P RATING A CLUB DATA NOTES PREMIUM INCOME USD M GT GTM UNITS # LIMIT USD M 1, MAXIMUM SIZE GTK 10.0K

94 Norwegian Hull Club ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS OSLO, NORWAY 21% 59% 20% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 5% AMERICAS 46% EUROPE 1% AFR I C A M E INDIA 48% ASIA PACIFIC SECURITY MUTUAL S&P RATING A CLUB DATA NOTES PREMIUM INCOME USD M GT GTM UNITS # LIMIT USD M MAXIMUM SIZE GTK N/A

95 RaetsMarine Insurance B.V ENTERED GT BY VESSEL TYPE 2% ENTERED GT BY REGION HEAD QUARTERS ROTTERDAM, NETHERLANDS SECURITY 4% 21% 19% 8% 3% 8% 3% 1% 8% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 11% AMERICAS 47% EUROPE 29% 1% R E S T O F WORLD 12% AFR I C A M E INDIA ASIA PACIFIC LLOYD S (AMLIN / MITSUI SUMITOMO) S&P RATING A+ CLUB DATA NOTES OWNED PREMIUM INCOME USD M GT GTM CHARTERED PREMIUM INCOME USD M UNITS # LIMIT USD M 1, MAXIMUM SIZE GTK 40.0k

96 Rosgosstrakh Limited ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS 1% 1% MOSCOW, RUSSIA SECURITY 20% 29% TANKER / GAS CARRIER CONTAINER / GENERAL CARGO BULKERS 14% 12% 2% 21% PASSENGER / FERRY OFFSHORE HARBOUR CRAFT TUG N BARGE FISHING YACHTS DREDGERS OTHER 94% 2% EUROPE AMERICAS 3% AFR I C A M E INDIA 1% ASIA PACIFIC ROSGOSSTRAKH INSURANCE CO S&P RATING BB- CLUB DATA NOTES PREMIUM INCOME USD M GT GTM UNITS # LIMIT USD M MAXIMUM SIZE GTK 25.0K

97 Thomas Miller Specialty (Formerly Osprey) ENTERED GT BY VESSEL TYPE ENTERED GT BY REGION HEAD QUARTERS LONDON, UK 10% 31% SECURITY 2% 11% TANKER / GAS CARRIER 30% 16% PASSENGER / FERRY FISHING 64% 7% AMERICAS EUROPE 8% 21% ASIA PACIFIC LLOYD S S&P RATING CONTAINER / GENERAL CARGO BULKERS OFFSHORE HARBOUR CRAFT TUG N BARGE YACHTS DREDGERS OTHER REST OF WORLD A+ CLUB DATA NOTES PREMIUM INCOME USD M Up to USD 1 billion, but only USD 1 million US business. GT GTM UNITS # LIMIT USD M MAXIMUM SIZE GTK 25.0k

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99 contacts FP MARINE 99

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101 FP Marine Contacts Hong Kong Richard Walker Chairman T M richard.walker@fp-marine.com Trace Yim Regional Director, Asia T M trace.yim@fp-marine.com Stockton Chow Associate Director T M stockton.chow@fp-marine.com Claims May Kwok Senior Claims Manager, Shipping T M may.kwok@fp-marine.com Ellie Wang Claims Manager, Shipping T ellie.wang@fp-marine.com China Beijing Office Wang Wei Chief Representative, Director T M wang.wei@fp-marine.com Taipei Office Wendy Kao Regional Director, Greater China T M +886 (0) wendy.kao@fp-marine.com Chris Lambe Associate Director T M chris.lambe@fp-marine.com Alfred Lau Senior Broker T M alfred.lau@fp-marine.com 101