Annual Report 2004

Underwriting

1．The Entry

2004 policy year witnessed a strong growth in number of the entered vessels and a great increase in the entered tonnage. During the policy year, 170 ships totaling 1.6 million GT entered the Association which leads to the entered tonnage exceeding 10 million since the Association’s foundation. On the other hand, 94 ships totaling 0.834 million GT ceased to be covered by this Association due to the sales or failure to pay the calls. As of February 20, 2005, the Association has 111 members with 774 entered ships amounting to 10.72 million GT.

	2004	2003	Increase %
Number of Member	111	106	4.7%
Number of entered ship	774	687	12.7%
Entered Tonnage(in million GT)	10.72	8.7	23.2%

2．Collection of Calls

In 2004 policy year the credit control improved dramatically with the booming of the shipping market. The Manager’s made a great effects in collecting calls and fees which achieved a great success. The ratio of the unpaid calls to the total funds of the Association reduced from last year’s 2.79% to this year’s 1.86%, descend 0.93 point.

3．International Co-insurance

In 2004 policy year, all international clubs set their general increase rate at level not less than 17.5%. With good claim record, the Managers concluded the renewal arrangement, with relevant clubs in the International Group, with a decrease in the cost by 8%, which is the best result within the previous 3 years.