TO THE MEMBERS

Dear Sirs,

1995 POLICY YEAR SUPPLEMENTARY CALL
1997 POLICY YEAR ADVANCE CALL

At their meeting on 21st October 1996, the Board of Directors reviewed the development of the Association's policy year funds and reserves, and took the following decisions.

1995 Policy Year Supplementary Call

The original estimate of supplementary call for this policy year was 40 per cent. However, thanks to substantial growth in the reserves as a result of investment income during the year, the Board has decided to order a reduced supplementary call of 30 per cent.

Debit notes for the call will be issued on 11th November, 1996 with provision for payment within 30 days.

1997 Policy Year Advance Call

Growth in world trade and other economic factors mean that the Association should plan for an upward trend in claims in the coming year. With this in mind, the Directors have ordered a general increase in premium ratings of 5 per cent for the 1997 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)