TO THE MEMBERS

CLOSURE OF THE 1999 POLICY YEAR

Dear Sirs

At their meeting on 22nd April the Directors decided to close the 1999 policy year without further call. Members will recall that a reduced supplementary call of 30 per cent (in place of the originally planned 40 per cent) was charged in November, 2000.

The position regarding the other open years remains as follows:

2000 Policy Year

The 2000 policy year was the first year of the mutual premium system. No supplementary premium is anticipated, and the Board expects to close this policy year in April, 2003.

2001 Policy Year

The final 25 per cent instalment of the mutual premium for the year is due for payment in December, 2002. No supplementary premium is anticipated.

2002 Policy Year

As in the case of the 2001 policy year, three instalments each of 25 per cent of the mutual premium are charged during the (2002) policy year itself, and the final 25 per cent instalment falls due for payment in December of next year. There is no reason to expect a supplementary premium.

Yours faithfully

Thomas Miller (Bermuda) Ltd.