OUTLINE

• 2016 policy year closed
• Open years developing in line with expectations

TO THE MEMBERS

REVIEW OF OPEN POLICY YEARS

2016 Policy Year
At their meeting in May 2019, the Directors closed the 2016 policy year.The surplus was transferred to the reserves.

2017 Policy Year
The 2017 policy year has continued to develop in line with expectations. After allowing for investment returns, the year is expected to close with a small surplus. No supplementary premium is expected for this year.

2018 Policy Year

After twelve months, the cost of notified claims for the 2018 policy year is high in comparison to recent policy years at the same stage of development. In comparison to recent years, six additional large claims, each with a cost in excess of $3 million, were notified in the 2018 policy year. These additional claims have increased the overall cost of the policy year by nearly $40 million.

In recent years the overall number of claims has decreased steadily. This trend continued in the 2018 policy year.

No supplementary premium is expected for this year.

Review of the Year
The Directors approved the Report and Financial Statements for the year ended 20th February 2019. A detailed summary of the Club's financial results and an explanation of the development of the most recent policy years is contained in the separate publication "2019 Review of theYear" accompanying this circular.

Yours faithfully

THE MANAGERS

For more information

Please contact your usual Club contact or email: ukpandi@thomasmiller.com website:www.ukpandi.com