Underwriting

１.The Entry

　　China Shiponwers Mutual Assurance Association (The Association) has made significant progress in underwriting during the 2007 policy year. In the 2007 policy year, 174 ships totaling 3.58 million GT were newly entered in the Association, which is the largest increase in the history of the Association. Although 127 ships, accounting for 1.53 million GT, withdrew from the Association in the same policy year, these withdrawals were all due to sales of vessels, payment in arrears, and withdrawal of class, except that 3 ships suffered total loss, and the cover of 11 vessels from members Guangdong Sunfont Shipping Co., Ltd. and Tianjin Marine Shipping Co., Ltd. were ceased due to long outstanding calls.

　　As at February 20th 2008, the Association has 128 Members with 936 entered ships totaling 16,511,404 GT. The total entered tonnage increased by 2.05 million GT, rising by 14.18% in comparison with the previous policy year.

　　The following Members have made significant contributions to the increase in the entered tonnage: Hebei Ocean Shipping Co., Ltd., Cosco Container Lines Co., Ltd., Pacific King Shipping Holding Pte. Ltd., Dalian Ocean Shipping Co., Ltd., China Shipping Tanker Co., Ltd., Shandong Province Yantai Marine Shipping Co., Ltd., China Shipping Container Lines Co., Ltd..

2.Collection of Calls

　　In the 2007 policy year, the Association achieved excellent results in the collection of calls. The collection rate for advanced calls and premiums reached 99.74%. All members of the Board had paid their premium on time, which set a good example to other Members. The Association has declined to offer its renewal terms to Members with poor credit history or long outstanding premiums as to protect the interests of all members of the Association.

３.International Co-insurance

　　In the 2007 policy year, members of the International Group of P&I Clubs set their general increases between 2.5% to 10%, at an average at 6.5%. Due to the high loss ratio and the increase of major claims in the Clubs with which the Association has had co-insurance programmes, the Association was under pressure to accept a higher increase in the co- insurance premium. However, the Association was able to conclude a renewal arrangement with each Club for an average increase of 7.14% per GT.