Published 10 October 2001
Circular No. 6/2001 October 2001
TO THE MEMBERS OF ASSURANCEFORENINGEN GARD -gjensidig-
Dear Sirs,
GARD P&I HALF YEAR STATUS REPORT AS AT 20 AUGUST 2001 REVIEW OF POLICY YEARS PREMIUM RATING FOR THE 2002 POLICY YEAR
Introduction
This document highlights the decisions taken at the meeting of the Committee of Assuranceforeningen Gard (the Association) held in Venice on 29 October 2001. As to the developments of closed and open policy years a fuller report will be found at our website www.gard.no.
Composition of the Committees New members
At the Association's Annual General Meeting, which took place on 17 August 2001 in Arendal, the following new members were elected to the Committee:
K C Chang, *Evergreen Marine Corp (Taiwan) Ltd, Taiwan
Mauro Orofino Campos, *Petrolero Brasileiro SA - Petrobras, Rio de Janeiro
Herbjörn Hansson, *Ugland Nordic Shipping AS, Sandefjord
Hans Peter Jebsen, *Kristian Gerhard Jebsen Skipsrederi AS, Bergen
Paul O'Brian, *Stolt-Nielsen Transportation Group Ltd, Houston
Retirements
Otto Fritzner, Stolt-Nielsen Transportation Group Ltd., Houston
Richard J C Huang, *Evergreen Marine Corp (Taiwan) Ltd, Taiwan
James Stove Lorentzen, *Belships ASA, Oslo
Einar Rasmussen*, Rasmussen Group, Kristiansand
had notified the Association that they did not wish to stand for re-election. The members of the Executive Committee were re-elected.
Tonnage
Total tonnage entered as at 20 August 2001 was 94.8 million GT of which owners' entries represented 57.3 million GT. Comparable figures as at 20 February 2001 were 94.4 million GT and 57.2 million GT respectively.
Policy years
Closed years up to and including the 1997 policy year progress somewhat better than projected. The Committee decided to close the 1998 policy year without Supplementary Calls being ordered. The 1999 and 2000 policy years are likely to be closed without further Supplementary Calls being levied. The 2001 policy year - a slight increase in claims compared to the 2000 policy year, but within budget.
Release Calls
The Committee resolved that the Release Calls for open policy years be set as follows:
For the 1999 policy year: nil
For the 2000 policy year: 25 per cent
For the 2001 policy year: 50 per cent
For the 2002 policy year: 50 per cent
Premium policy and forecast Supplementary Call for the 2002 policy year
The Committee resolved that there be a 25 per cent general increase in the advance premiums for both P&I and FD&D in respect of mutual entries. The forecast Supplementary Call for mutual entries is set at 25 per cent of the advance premium. In addition separate adjustments in the premium rating will be made reflecting likely increases in the costs of the International Group and the Association's own reinsurance programs for the 2002 policy year. As is customary, in addition to the general increase, Members' premium rating will be reviewed in the light of individual loss record and other relevant factors. Further details about the International Group and the Association's reinsurances for the 2002 policy year will be published later.
Balance available for outstanding and unreported claims - general contingency reserve
The balance available to meet outstanding and unreported claims amounts to USD 633 million, of which the general contingency reserve represents USD 176 million. Comparable figures as at 20 February 2001 were USD 650 million and USD 204 million. The reduction is a result of the continued high level of claims and a negative investment income.
Investment income
Difficult conditions in the finance markets resulted in a negative result with regard to investment income in the six-months period to 20 August 2001 of some USD 14 million. We urge you to view the full report on Gard Services website. If you have any questions, please contact Senior Vice President Sven-Henrik Svensen. Yours faithfully GARD SERVICES AS As agent only for Assuranceforeningen Gard -gjensidig-
Claes Isacson Chief Executive Officer
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