TO THE MEMBERS

Dear Sirs

POLICY YEAR REVIEW AND FINANCIAL HIGHLIGHTS AT 20th FEBRUARY 2007Review of Open Policy Years2004 policy year

Claims on the 2004 policy year are still at a record level but are now stabilising after 36 months of development. This was a heavy claims year both in the Club retention and at Pool level. Although the year is in deficit the Directors decided at their meeting in May 2007 to close the 2004 policy year with no supplementary premium being required.

2005 policy year

Although the 2005 policy year began with a number of large claims in the first quarter the subsequent quarters improved considerably albeit with a brief pick up just before the year end. The claims for this year are expected to come below those for 2004 and 2006. No supplementary premium is estimated for this year.

2006 policy year

Notified claims on the Pool by all clubs in the International Group have already exceeded the previous record level of the 2004 policy year in terms of the position at the twelve month stage. The rapid development of claims on the year makes it particularly difficult to forecast the final claims outcome for the year. Claims within the Club retention are running at similar levels to those of the 2005policy year but below the levels of 2002 and 2004. No supplementary premium is estimated for this year.

Financial Year Highlights

At their May Board meeting the Directors approved the Report and Financial Statements for the year ended 20th February, 2007. A separate Club publication - Financial Highlights 2007 - accompanies this circular giving a detailed summary of the Club's financial results for the year to February 2007.

The Club's full financial statements, together with the Directors' Report and Review of the Year will be published, as usual, in July.

Yours faithfully

THOMAS MILLER (BERMUDA) LTD.CONTACT

• Members requiring further information should contact their usual Club contact