The TT Club reviewed it's inancial performance in 2001, and the outlook for 2002 concentrated on areas such as underwriting results, reinsurance and Investment Return.Underwriting Results

The Club has experienced underwriting losses on the 1997 to 2000 policy years totalling approximately US$50 million, result which must be brought back into balance in 2002. These results reflect increasing levels of liability, litigation and claims within the transport industry, pressures in the global insurance market due over-capacity and price competition.

Reinsurance Costs

The cost of the Club's reinsurance programme had increased at the start of 2001 and rates are now expected to rise sharply in 2002. The Club was anticipating the possibility of a further moderate increase in rates for 2002. With this in mind, and in common with general insurance market practice, the Club will include a 30-day cessation clause in all policies in order to enable the Directors to terminate existing contracts if there were to be an unsustainable change in the cost or availability of reinsurance.

Investment Return

Club returns for 2001 are expected to be weak as interest rates have fallen sharply and equity markets have not yet recovered to their former levels. The outlook for 2002 is very uncertain and it is clear that the Club cannot rely upon investment returns to support underwriting results for the foreseeable future.

Having reviewed the financial results for 2001 and the outlook for 2002, the Board decided to introduce, with immediate effect and until further notice, a General Increase in premium rates of 20%.

The General Increase will be applied without exception, upon the renewal of current policy. The Club's rates for new business will be increased accordingly.

The Board consider that the General Increase is necessary to restore premium rates to a sustainable level, and to maintain the Club's current strong position in the transport insurance market in order to provide the following important benefits:

· High quality claims and advisory services

· Global service network

· Specialist customised cover

· Strong financial security

· Long-term commitment to the transport industry

· A stable insurance partner

Fixed premium

Separately from above measures, the Club is planning to offer fixed premium insurance to all Members in the future. The Members of TT Bermuda and TT EurAsia at a meeting held current month approved to eliminate the power of the Board to levy supplementary premiums. Board is now awaiting regulatory approval from the insurance authorities in the UK and elsewhere before implementing those changes.

Under the proposed arrangement, all new business and renewal premiums written by the Club will be on a fixed premium basiss.

Paul Neagle, Chief Executive of the Club, remarked they will be offering customers a fixed premium insurance package, backed by excellent levels of service and provided by a mutual insurer dedicated to the needs of its policyholder members. He believe this will prove to be a winning combination in tomorrow's transport and logistics market.

The TT Club board has evaluated the benefits of mutual ownership of the Club by the transport and logistics industry. It has reaffirmed that the TT Club will remain a mutual organization owned and controlled by its membership.

The key benefits of mutuality are:

- Comprehensive insurance cover at a competitive price.

- Specialist underwriting and claims handling capabilities.

- Global presence via owned and partner operations.

- Financial strength built up over 33 years.

- Expert risk management and loss prevention advice.

- A philosophy based upon settling claims quickly.

The TT Club provides liability and equipment insurance to ship operators, stevedores, terminal and depot operators, port authorities, logistics providers, freight forwarders and other transport operators in 150 countries. The Club insures 70% of the world's container fleet, over 2000 ports and terminals worldwide as well as 4000+ transport and logistics operations around the globe