Britannia Underwriting The importance of prudent underwriting cannot be over-emphasised in the successful operation of a P&l club. Britannia's approach is outlined below. Selection of New Members When assessing potential new Members, the Managers will ensure that those accepted for entry bring benefits to the existing membership and are broadly compatible with Britannia's existing risk exposure. To this end a knowledge of a new Member's standards of operation and attitude to risk avoidance will have been built up over a period of time. Approach to Underwriting For both new and existing Members, the Managers seek a contribution by way of calls with the aim of achieving equity between all Members. In calculating individual call requirements, underwriters analyse the existing loss record and future risk exposure of each Member. As Members wish to avoid unnecessary volatility in their call contributions, the underwriters review loss records over a ten year period to identify any claim patterns and where necessary make adjustments to individual Members' rates in an endeavour to achieve long-term stability. Cost of Cover A combination of good quality membership and equitable underwriting has ensured Members have achieved stable and competitive calls over a long period. Low average annual ‘standard' adjustments to the Association's calls have been of consistent benefit to Britannia's Members. Any unexpected volatility in the Association's underwriting result is protected by the reinsurance arrangement with the Bermuda based reinsurer, Boudicca (this reinsurance provides equivalent protection to that formerly offered by the Association's General Reserve). Otherwise, Britannia avoids whole account reinsurance, preferring to retain funds within the Association rather than dissipating them to conventional reinsurers. The administration and management costs of running Britannia are kept under constant control and are vetted by the Committee of the Association. Service All underwriting and related services are undertaken from the Association's office in London. An understanding of the operations and needs of each Member is achieved by frequent contact. Prompt service on such matters as mortgage undertakings, oil pollution certification and related insurance issues is the underwriters' target. Access to a variety of specialised insurance and reinsurance programmes enables the Managers to provide cover to suit the needs of each Member. Financial Security Britannia has consistently been rated as one of the most financially secure Clubs. A conservative investment policy, coupled with a selective and prudent underwriting philosophy, has enabled the Club to achieve its unique advance and deferred call records. The continuation of this historical pre-eminence is founded on the Club's dedicated reinsurance arrangement with Boudicca. Additional Insurances Whilst the cover provided by the Association is broad, situations may arise that require extra commercial insurance to be arranged. The Managers are able to assist in this and currently have the following facilities available for Members :- Breach of contract of carriage (deviations) - for liability to cargo, for example arising out of geographical deviations, transshipments, drydocking etc. Members liabilities - for liabilities arising under contracts which fall outside the scope of Club cover for example towage, indemnities etc. P&I risks prior to delivery of a new ship. Extended cargo liability - for liabilities greater than those under Hague or Hague Visby Rules. Floating production storage and offloading system vessels (FPSOs) Container cover - for liabilities normally outside the scope of Club cover. Extended through transit cover - cover for liabilities to third parties arising from the containerised cargo itself even though the cargo was not on the entered ship at the time of the incident. It should be noted that the additional insurances are not provided by the Association but are, instead, placed by the Managers on the Member's behalf in the commercial insurance market.

Underwriting