October Review 2011

The UK Club's financial position has improved strongly over the last

three years. Total assets are currently in excess of $1.6 billion.

The expected combined ratio for 2011/12 year is below 100 per cent.

If achieved at the year-end the Club will have had two successive

years of balanced underwriting. The Club is continuing to meet its

long term target of 100 per cent combined ratio.

The surplus for the year to date of $8 million has increased the free

reserve and hybrid capital from $478 million to $486 million.

In Standard and Poor's capital model the Club's capital adequacy is now

in the AAA range. This combined with a free reserves per gross ton

figure of $4.5 puts the Club's financial strength at the top level of its

peer group in the P&I sector.