Published 14 October 2004
Circular no. 5/2004 October 2004
Composition of the CommitteesReview of policy years
Premium rating for the 2005 policy year
Gard P&I half year status report as at 20th August 2004
To the Members of
Assuranceforeningen Gard gjensidig-
Dear Sirs
Introduction
This document highlights the decisions taken at the meeting of the Committee of Assuranceforeningen Gard -gjensidig- (the Association) held in Barcelona on 23 and 25 October 2004. As to the developments of closed and open policy years a fuller report will be found on our website www.gard.no.
Composition of the Committees
The Committee
At the Association's Annual General Meeting, which took place on 20 August 2004 in Arendal, the following new members were elected to the Committee:
Nicolar Frangistas, Franco Compania Naviera, PiraeusSjur Galtung, Wilh. Wilhelmsen ASA, OsloMorten Hegh, Leif Hegh & Co., AS, OsloJan Lissow, Interorient Navigation Co. Ltd, CyprusOscar Spieler, Frontline Management AS, OsloHans Ivar Vigen, The JJ Ugland Companies, Grimstad
The Executive Committee
The Annual General Meeting held on 20 August 2004 elected
Trond Eilertsen, Oslo
as a new member of the Association's Executive Committee.
At the meeting held on 30 September 2004, the Executive Committee re-elected John Hatleskog of Havinvest A/S, Oslo , as its Chairman. Bengt Hermelin of Saudi Maritime Holding Co., London was elected as the new Vice Chairman of the Executive Committee.
Review of policy years
Closed years
Closed years up to and including the 2000 policy year progress as projected.
2001 policy year closed
The Committee decided to close the 2001 policy year without ordering a further Supplementary Call.
Open policy years
The 2002 and 2003 policy years are likely to be closed in October 2005 and 2006 respectively without Supplementary Calls being levied.
The 2004 policy year - the first six months of the year have seen an increase in reported claims compared with previous years both in volume and in number. The increase must be seen against the increase in tonnage, the number of ships entered and a shift in the composition of the entered tonnage.
Members should continue to budget with the full Deferred Call of 25 per cent being levied.
Release Calls
The Committee resolved that the Release Calls for open policy years be set as follows:
For the 2002 policy year: nilFor the 2003 policy year: 10 per cent
For the 2004 policy year: 50 per centFor the 2005 policy year: 50 per cent
Premium policy for the 2005 policy year
Mutual entries
In light of the Association's financial strength, the Committee decided that the general increase for 2005 should be set no higher than necessary. Accordingly, the Committee resolved that there be a 5 per cent general increase in the Advance Calls for both P&I and FD&D in respect of mutual entries and in the fixed premiums for FD&D entries for Charterers. The Deferred Call for mutual entries is set at 25 per cent of the Advance Call.
In addition, separate adjustment will be made in each Member's premium rating to reflect any changes in the cost of the International Group's reinsurance arrangements for the 2005 policy year. As is customary, in addition to the general increase, Member's premium rating will be reviewed in the light of their individual loss records and other relevant factors. Further details about the International Group and the Association's reinsurances for the 2005 policy year will be published later.
Fixed premium entries
The level of premium for these fixed premium products will depend on the individual Member's loss record and market conditions, including the requirements of the Association's reinsurers.
Individual premium rating
Each Member's premium will, as usual, be assessed individually in the light of his loss record and the cost of reinsurance. All Members will receive shortly the loss record for their respective fleets.
Members who have not heard from the Association by 20 January 2005 may assume that there will be no changes in the premium rating for next year, save for adjustments based on the general increase and variations in the reinsurance costs.
Gard P&I - half year status report as at 20 august 2004
Tonnage
Total tonnage entered as at 20 August 2004 was 122 million GT of which Owners' mutual entries represented 72.5 million GT. Comparable figures as at 20 February 2004 were 118 million GT and 69 million GT respectively.
Balance available for outstanding and unreported claims - general contingency reserve
As at 20 August 2004 the balance available to meet outstanding and unreported claims amounted to USD 883 million, of which the general contingency reserve represented USD 344 million. Comparable figures as at 20 February 2004 were USD 809 million and USD 328 million respectively. The increase in the contingency reserve is mainly a result of the surplus for the 2003 policy year.
Investment income
The net loss on the non-technical account (investment income) amounts to a deficit of USD 3 million in the six-months period to 20 August 2004.
We urge you to view the full report on www.gard.no. If you have any questions, please contact Senior Vice President Sven-Henrik Svensen.
Yours faithfully, GARD AS As agent only for Assuranceforeningen Gard -gjensidig-
Claes Isacson Chief Executive Officer
Gard is a member of
