STEAMSHIP MUTUAL UNDERWRITING ASSOCIATION LIMITED Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (Registered in England and Wales – Registration number 105461. PRA and FCA registration number 202548) MANAGERS: STEAMSHIP P&I MANAGEMENT LLP SPIM is an appointed representative of Steamship Insurance Management Services Limited which is authorised and regulated by the Financial Conduct Authority (Registered in England and Wales – Registration Number OC376859. FCA registration number 597046) Aquatical House, 39 Bell Lane, London, E1 7LU Tel + 44 20 7247 5490 Financial Update February 2024 Dear Members, At the Board meeting, held in Manila on 30 January, the following developments were reported in respect of the Steamship Mutual group of companies. Highlights • The Club’s own incurred claims and the cost of International Group (IG) Pool claims for the 2023/24 policy year remain less than budgeted • Claims development for prior years is also better than budget expectations • The Club’s financial year-end combined ratio is expected to be less than 100%. • After 11 months the Club recorded an investment return of US$87 million • Owned tonnage has increased by 6.6% in the 11 months to 20 January Underwriting Results 2023/24 Policy Year After 10 months the Club’s own incurred claims are less than expected notwithstanding tonnage growth and inflationary pressures. The Club has not incurred any claims which have exceeded its US$10 million retention and gone into the IG Pool. Seven pool claims have been notified by other IG Clubs that exceed Club retention. Incurred costs in the pooling layers compare favourably to the average of recent policy years. 2022/23 and Prior Years The overall development of the Club’s own claims for prior years has been favourable. The development of IG Pool claims has also been better than expected, notably for the 2022 policy year which remains at low levels in contrast to earlier years. Investments In the 11 months ending January 2024 the Club’s investments, excluding currency movements, recorded returns of US$87 million or 7.0% with bonds, equities and cash all ahead of budget. Renewal 2024/25 At the Board meeting in October 2023, it was decided that there should be a general increase of 5% in premium ratings. The Directors received a report on renewal progress and thanked the Members for their continued support. Board Meeting STEAMSHIP MUTUAL UNDERWRITING ASSOCIATION LIMITED Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (Registered in England and Wales – Registration number 105461. PRA and FCA registration number 202548) MANAGERS: STEAMSHIP P&I MANAGEMENT LLP is an appointed representative of Steamship Insurance Management Services Limited which is authorised and regulated by the Financial Conduct Authority (Registered in England and Wales – Registration Number OC376859. FCA registration number 597046) Aquatical House, 39 Bell Lane, London, E1 7LU Tel + 44 20 7247 5490 2 Reinsurance Changes in the cost of the International Group Excess of Loss reinsurance contract and the Hydra reinsurance programme for 2024/25 were reported in the Club’s December Circular L.434. Tonnage The Directors were pleased to note the continued growth in the Club’s owned entry by 6.6% in the period 20 February 2023 to 20 January 2024, increasing the total owned entry to