TO THE MEMBERS

Dear Sirs,

CLOSURE OF THE 1997 POLICY YEAR

At their meeting on 17th April the Board decided to close the 1997 policy year without further call. Members will recall that a reduced supplementary call of 25 per cent (in place of the originally planned 40 per cent) was charged in November, 1998.

Estimates of supplementary call for the other open policy years remain unchanged, as follows:

1998 Policy Year

No further call anticipated.

1999 Policy Year

40 per cent (the actual call will be decided by the Board at its meeting in October, 2000).

2000 Policy Year

Nil*

*The 2000 Policy Year is the first year of the mutual premium system: three instalments each of 25 per cent are charged during the policy year itself; the final 25 per cent instalment falls due for payment in December, 2001, at which time the Board will decide whether or not to declare a mutual premium discount.

Yours faithfully,

 THOMAS MILLER (BERMUDA) LTD.