The London P&I Club is the trading name of The London Steam-Ship Owners' Mutual Insurance Association Limited and its subsidiary The London P&I Insurance Company (Europe) Limited. The London Steam-Ship Owners' Mutual Insurance Association Limited. Registered in England No 10341. Registered Office: 50 Leman Street, London, E1 8HQ. The London P&I Insurance Company (Europe) Limited, a private limited liability company registered in Cyprus, No HE410091. Registered Office: Esperidon 5, 4th Floor, Strovolos, 2001, Nicosia. 8 November 2021 TO ALL MEMBERS Dear Sir or Madam Class 5 (P&I) and Class 8 (FD&D) – 2022/23 Renewal This Circular is to provide background to and detail of the Club’s approach to the 2022/23 Renewal, as follows: Class 5 (P&I) • The cost of Mutual P&I claims in the current year is at an elevated level. A high frequency of claims involving Covid-19 is a particular factor. The average severity of claims on the IG Pool is also unusually high and includes one claim brought by the Club. • The Club’s defensively positioned portfolio of invested assets has recorded a small positive return year-to-date. Planning for the 2022/23 renewal assumes a similar modest full-year return. • The Club’s Circular 5:598 of 13 October 2021 advised Members of the setting of Supplementary Calls on the three most recent open P&I Policy Years and the Board’s determination to take measures, including at the 2022/23 Renewal, in order that the Club delivers sustainable technical performance and financial resilience going forward. • The Club’s Renewal strategy for 2022/23 will take a tailored approach to individual Members. • No general increase is set and whilst the Board is targeting an increase in rates of 12.5%, this is subject to a focus on individual Member loss records and risk profiles. Rates and deductibles will be adjusted accordingly and in light of the Board’s overarching objective for the Club to deliver sustainable underwriting results and maintain financial strength. • Any adjustment to the cost of the Club’s share of the International Group’s excess loss reinsurance programme, which has not yet been determined, will also be applied. The Release Call rate for the 2022/23 Policy Year is set at 15% of the Annual Call. • The Managers will be in further contact with Members and Brokers with regard to the 2022/23 Renewal, in due course. - 2 The London P&I Club is the trading name of The London Steam-Ship Owners' Mutual Insurance Association Limited and its subsidiary The London P&I Insurance Company (Europe) Limited. The London Steam-Ship Owners' Mutual Insurance Association Limited. Registered in England No 10341. Registered Office: 50 Leman Street, London, E1 8HQ. The London P&I Insurance Company (Europe) Limited, a private limited liability company registered in Cyprus, No HE410091. Registered Office: Esperidon 5, 4th Floor, Strovolos, 2001, Nicosia. Class 8 (FD&D) • The incurred cost of claims after six months of the current year is one of the higher cost H1 periods in recent years, but not necessarily an outlier. There has also been an upward trend in FD&D claims costs over recent years, during which time premium levels have been under pressure. In the circumstances, the Board determined that as with the P&I Class no general increase is set and whilst it is targeting an increase in rates of 12.5%, this is subject to a focus on individual Member loss records and risk profiles. Ratings and deductibles will be adjusted accordingly and in light