Presentation Club Message from the Chairman As a Mutual, the - PDF document

Presentation Club

Message from the Chairman “As a Mutual, the interests of the Members are paramount. The Board is determined to maintain financial strength and stability whilst at the same time ensuring that the Members derive real benefits from their membership in and contribution to the Club. Aside from the return of premium to the Membership; the Board agreed to greater risk retention within the Club Armand Pohan thereby reducing the spend on external reinsurance, the Chairman cost of which is inevitably passed on to Members; and a continuation of the policy of keeping rates steady.” October 2016

2016 Highlights Free reserves increase by Total assets US$64.1m to US$440.3m US$1.4bn Free reserves per owned GT Investments US$5.89 Conservative investment policy maintained Combined owned and chartered tonnage of 129.0m GT Solvency ratio 64.8% 2016 financial year combined ratio of 76.2% S&P revised the Club’s rating to A stable 3 year combined ratio 85.2% Capital comfortably in excess of the S&P AAA level of target capital

Corporate Principles & Values • Steamship Mutual are supporters of the principle of mutuality and the benefits of these principles for shipowners in a range of their insurance needs • We believe in the benefits of a diverse Membership by geographical area and vessel type “Steamship Mutual's Board is determined to use the financial strength of the Club for the • We follow a prudent approach to investment policy resulting benefit of the Members” in financial security and stability Gary Rynsard • The Club is supported by technical expertise and a dedication Executive Chairman to problem solving • We aim to be leaders in P&I loss prevention initiatives

Class 1 P&I Tonnage History 140 120 51 100 46 45 Million Gross Tonnage 37 80 30 34 60 40 78 74 69 65 63 58 20 0 2011 2012 2013 2014 2015 2016 Owned Chartered

2016 Gross Tonnage by Vessel Type As at 20 February 2016 Bulk Carriers Tankers 3% 7% Containers Cruise and 11% Ferry General Cargo 39% Others 16% 24% 29 December 2016

Underwriting & Reinsurance

Combined Ratio Record Group Average Steamship 2011 92.1% 2012 114.7% 2013 112.5% 2014 96.7% 2015 82.7% 2016 76.2% 0% 20% 40% 60% 80% 100% 120% 140%

2016 Gross Tonnage by Region Far East Europe 6% North America 6% Latin America Middle East and Indian Sub-Continent 39% 15% 34%

Free Reserves Financial Year Ending 20 February 500 450 $440.32 400 $376.18 350 300 $303.31 $301.20 $295.84 US$ Millions $286.20 250 200 150 100 50 0 2011 2012 2013 2014 2015 2016

Financial Strength

Total Net Outstanding Claims Financial Year ending February Net IBNR Net Outstanding IBNR As % Of Projected Outstanding 800 45% 40% 700 US$ Millions 35% 600 IBNR 30% 500 25% 400 20% 300 15% 200 10% 100 5% 0 0% 2011 2012 2013 2014 2015 2016

Free Reserves Per Owned Ton Financial Year ending 20 February 7 6 5 4 US$ 3 2 1 0 2011 2012 2013 2014 2015 2016 Steamship Group Average

Gross Owned Claims 2011 2012 $ 895m $ 895m 2013 2014 2015 2016 0 50 100 150 200 250 300 350 400 US$ Millions Under $250k $250k - $1.0m $1.0m - $1.8m $1.8m - $9.0m Over $9.0m

Claims

2016 Asset Allocation As at 20 February 2016 1% 5% Corporate bonds 8% Government bonds 26% Cash 14% Absolute return funds Hedge funds of funds Equities Property 23% 23%

Gross Owned Claims 2011 $ 895m 2012 2013 2014 $713m 2015 2016 0 50 100 150 200 250 300 350 400 US$ Millions Cargo Collision Crew FFO Injury Others Passenger Pollution Wreck

Steamship Mutual Offices London Aquatical House Piraeus 39 Bell Lane London 7th Floor E1 7LU Livanos Building UK 47-49 Akti Miaouli 185 36 Piraeus Greece Hong Kong Room 1901-02 Bermuda Jubilee Centre Washington Mall II 18 Fenwick Street Unit 41622 Wanchai Church Street Hong Kong PO Box HM 601 Hamilton HM CX Bermuda Rio de Janeiro Avenida Rio Branco 151/1305/1307 Centro Rio de Janeiro-RJ 20040-006 Brazil

Underwriting Contacts Jonathan Andrews Director Head of Eastern Underwriting Direct Tel: +44 20 7650 6427 Mobile: +44 7785 280233 E-mail: Jonathan.Andrews@simsl.com Gary Field Director Head of Americas Underwriting Direct Tel: +44 20 7650 6498 Mobile: +44 7968 971510 E-mail: Gary.Field@simsl.com Rupert Harris Director - Head of Reinsurance and European Underwriting Direct Tel: +44 20 7650 6644 Mobile: +44 7979 240916 E-mail: Rupert.Harris@simsl.com

The Steamship Mutual Underwriting Association Limited Managers Steamship P&I Management LLP Aquatical House 39 Bell Lane London E1 7LU T: +44 20 7247 5490 @SteamshipMutual