TO THE MEMBERS

Dear Sirs

1999 POLICY YEAR SUPPLEMENTARY CALL

2001 POLICY YEAR GENERAL INCREASE

At their meeting on 23rd October 2000 the Directors decided to order a 30 per cent supplementary call for the 1999 policy year instead of the 40 per cent originally planned. No further call is expected, so that 1999 is now the seventh year out of the last eight that the Association has reduced the planned supplementary call requirement.

The benefit of any equivalent reduction in total cost for any policy year from 2000 onwards will be declared as a Mutual Premium Discount.

Looking ahead, the Directors are determined to maintain the financial strength of the Association and reduce the size of the underwriting deficits, and with this in mind they have ordered a general increase in premium rating for the 2001 policy year of 7.5%, pursuant to Rule 17(A).

Yours faithfully

THOMAS MILLER (BERMUDA) LTD.