Policy Year Accounts

CIRCULATED TO ALL P&I CLASS MEMBERS

At their meeting on 12 October, 2001 your Directors reviewed the position of the P&I Class policy year accounts and made the following decisions:

1998/1999 To be closed without further supplementary call. (NB final call 100% of the original projected estimated total call).

1999/2000 Position to be reviewed in October, 2002. No further calls anticipated. (NB expected final call 100% of the original projected estimated total call).

2000/2001 To collect the balance of the original estimated total call equivalent to 25% of the advance call, payable in two equal instalments on 20 November, 2001 and 1 January, 2002. (NB expected final call 100% of the original projected estimated total call).

2001/2002 The policy year will be reviewed in October, 2002. The balance of the estimated total call, equivalent to 25% of the advance call, remains unchanged. (NB expected final call 100% of the original projected estimated total call).

The Managers’ current assessment of release fees (i.e. in addition to the outstanding element of the estimated total call) on the open policy years is as follows:

1999/2000 | 2000/2001 | 2001/2002

5% 10% 25%

The Directors believe that the decisions ensure that the policy years remain properly funded and that they reflect the overall financial strength of the Association.

JP CRICHTON

JOINT MANAGING DIRECTOR

North Insurance Management Limited

As Managers on behalf of the North of England P&I Association Limited