Group Excess Reinsurance Rates 2011/2012

Please find below the overview of the Group Excess Reinsurance Rates 2011/2012. We are pleased to note the Estimated Total Cost (ETC) rates show reductions in all four categories this year. Clean Tankers will receive the largest percentage reduction (8.40%), while Dry Cargo rates are being reduced for the first time since 2007.

Those Clubs still charging an Advance Call will apply a proportion of the new rates to their Advance Call Rate, according to the level of their estimated Deferred Call.

2010/11
ETC Rate

2010/11
ETC Rate

Reduction

Adjustment in ETC Rate

USD

USD

%

USD

Tanker Dirty

0.7554

0.7038

6.83

0.0516

Tanker Clean

0.3335

0.3055

8.40

0.0280

Dry

0.3867

0.3709

4.09

0.0158

Passenger

1.5654

1.478

5.58

0.0874

For chartered tankers, reinsurance costs including $0.0037 per GT for excess war risks will be $0.1768, and for chartered dries $0.0861 (both rates reduced from 2010).

The Group has decided with effect from 20 February 2011 to increase the excess point on the GXL contract from US $50m to US $60m. The resultant additional US $10m of retained risk within the Group pool will be 100% reinsured by the Group captive, Hydra.

2011 Oil Pollution Surcharge US Voyages

For 2011, rates have been reduced by 12.5%. This results in the following voyage surcharges for 2011:

2011 Oil Pollution Surcharge US Voyages

Laid Up Rates

Laid Up Rates