Release Call Assessments - May 2013

CIRCULAR REF: 2013/019

CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS

The Directors approved the Financial Year Report & Statements for the year ended 20 February 2013 at their meeting on Wednesday 15 May 2013, and made the following decisions in respect of Release Calls.  

P&I Class

Policy Year 2010/2011 – the release call is reduced to Nil.

Policy Year 2011/2012 – the release call is reduced to Nil.

Policy Year 2012/2013 – the release call is reduced to 15%.

Policy Year 2013/2014 – the release call is set at 20%.

FD&D Class

Policy Year 2010/2011 – the release call is reduced to Nil.

Policy Year 2011/2012 – the release call is reduced to Nil.

Policy Year 2012/2013 – the release call is reduced to 10%.

Policy Year 2013/2014 – the release call is set at 20%.

The release call percentages reflect the risk that it may be necessary for the Club to make an unbudgeted supplementary call.  The Board has taken into account the factors set out in Clause 8 of the 2013 International Group Agreement, namely premium risk, catastrophe risk, reserve risk, counter-party default risk, market risk and operational risk, which are similar to factors that have previously been utilised in calculating appropriate levels of release calls.  In accordance with normal practice, the release call percentages will be reviewed again in October 2013, to take account of the Club’s position at the half year development stage.

AA WILSON and PA JENNINGS

JOINT MANAGING DIRECTORS – North Insurance Management Limited

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