TO THE MEMBERS

Dear Sirs,

1998 SUPPLEMENTARY CALL

At their meeting on 25th October the Directors decided to order a 30 per cent supplementary call for the 1998 policy year, instead of the 40 per cent originally planned. No further call is expected, so that 1998 is now the sixth year out of the last seven that the Association has reduced the planned supplementary call requirement.

2000 POLICY YEAR

The Directors have decided not to order a general increase in premium rating for the 2000 policy year, pursuant to Rule 17(A). However, they directed the Managers to ensure that the general premium level of the Association is maintained.

As a result of the Rule changes agreed at the Annual General Meeting for the 2000 policy year Members will be debited for Mutual Premium in place of the current advance and supplementary call. The reasons for this change are set out in the papers circulated to all Members for the Annual General Meeting. A further circular explaining the effect of the changes will be sent to all Members shortly.

Yours faithfully

THOMAS MILLER (BERMUDA) LTD