October Review 2012

The UK Club continues to be one of the strongest clubs financially in the International Group.

The Club's funds have continued to strengthen in the first half of 2012 with free reserves and capital increasing by US$8 million to US$494 million. With the Club's owned tonnage at 20th August standing at over 116 million gross tons, this represents free reserves and capital of US$4.23 per gross ton and a free reserve ratio of over 167 per cent.

The UK Club therefore continues to be one of the financially strongest clubs in the International Group. An improving claims performance on back years together with a positive investment performance in the first six months of the 2012 policy year contributed to the increase in free reserves and capital. As reported elsewhere in this October Review, the Club is experiencing an increase in the cost of claims for the 2012 policy year, as anticipated in the Review of the Year 2012.

Since the last year end, the Board has met as a whole and in a number of working committees, with a keen focus on the governance of the UK Club. The improved position of the Club is the result of the collective work of the Board, managers and the strong support of members. The UK Club is dedicated to being the leading ship owner controlled provider of marine liability insurance.