TO THE MEMBERS

Dear Sirs

CALLS
1994 POLICY YEAR SUPPLEMENTARY CALL
1996 POLICY YEAR ADVANCE CALL

At their meeting on 23rd October, 1995, the Board of Directors reviewed the development of the Association's policy year funds and reserves. The Board saw no reason to change the estimates of supplementary call for the 1993 policy year (for which no further call is expected) and 1995 policy year (for which a 40 per cent supplementary call is estimated). In respect of the 1994 and 1996 policy years the Board took the following decisions:

1994 Policy Year Supplementary Call

The Directors decided to order a 40 per cent supplementary call; this conforms with the original estimate that was notified to Members in October, 1993.

Debit notes for the call will be issued on 6th November, 1995 with provision for payment within 30 days.

1996 Policy Year Advance Call

The growth in world trade and other factors are contributing to an upward trend in claims in recent years. Bearing this in mind, the Directors have ordered a general increase in premium ratings of 5 per cent for the 1996 policy year. This increase is to be applied before adjustment up or down to an individual Member's rating in the light of his loss record and any further relevant factors affecting the risk presented by his fleet.

The estimate of supplementary call is 40 per cent.

Yours faithfully

THOS R. MILLER & SON (BERMUDA)