Decisions and Instructions

At the meeting in London, November 29th 2007, the Board of Directors decided upon its policy with regard to premium for the policy year February 20th 2008 to February 20th 2009.

The Board of Directors:

• noted that the open policy years have developed according to predictions with the exception of pool claims, but that claims over years in general continue to increase in cost. The current policy year is performing as targeted through its first eleven months. The retention for the Association will be USD 7,000,000 for 2008/2009.

• decided that calls have to be levied to reflect the Association’s exposure. A general increase of 15% shall be levied and the Association shall aim to maintain a 0% supplementary call for 2008/2009 and preceding open years. The release call for 2008/2009 policy year is set to 25%.

• instructed the management to contact each Member individually to discuss renewals for 2008/2009. After levying the mandatory general increase, the new call shall be adjusted by any changes in the International Group’s reinsurance cost. The call shall also reflect the exposure of the Association’s retention as well as estimated contributions to pool claims, together with an assessment of the Member’s records and risk exposure.

Please find the complete circular enclosed below