TO THE MEMBERS

Dear Sirs,

1996 Policy Year Supplementary Call
1998 Policy Year Advance Call

The continued strong reserves of the Association have allowed the Directors to reduce once again the supplementary call requirement originally advised to Members. At its meeting on 20 October the Board decided to order a 25 per cent supplementary call for the 1996 policy year, as compared with the 40 per cent call planned and advised to Members prior to the commencement of that year. Debit notes will be issued on 11 November 1997 with provision for payment within 30 days thereafter.

Looking ahead the Board is determined to maintain the financial strength of the Association. Growth in world trade and other economic factors mean that the Association should plan for a modest 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 1998 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.

Yours faithfully,

THOS. R. MILLER & SON (BERMUDA)