ANNUAL REPORT ANd FiNANCiAL STATEMENTS 20 February 2020 1 Key statistics 2 chairman’s statement 5 strategic report 5 Financial review 6 Investment strategy and performance 8 Class 3 – Protection and Indemnity (P&I) 8Claims 9Tonnage/Membership 10 International Group reinsurance 12 Loss prevention 13 Policy year development 14 Class 6 – Freight, Demurrage and Defence (FD&D) 14 Claims 15 Policy year development 16 Developments within britannia 17 Members of the board 18 Corporate governance 23 Statement of Compliance with Section 172(1) of the Companies act 2006 24 statutory directors’ report 25 Financial statements 26 Statement of directors’ responsibilities 27 Independent auditors’ report to the Members 30 Consolidated income and expenditure account 31 Consolidated statement of financial position 32 Consolidated statement of cash flows 33 Consolidated statement of changes in equity 34 Company statement of financial position 35 Notes to the financial statements 52 Class 3 – Protection and Indemnity policy year statement CONTENTS THE BRiTANNiA STEAM SHiP iNSURANCE ASSOCiATiON HOLdiNGS LiMiTEd 3,465 45m 117.5m CHARTEREd TONNAGE SHiPS OWNEd TONNAGE 20 FEB 2020 20 FEB 2019 20 FEB 2018 (m gt) (m gt) (m gt) ENTEREd TONNAGE (OWNEd) 117.5 111.9 107.0 ENTEREd TONNAGE (CHARTEREd) 45.0 19.0 20.0 USd(000) USd(000) USd(000) CALLS ANd PREMiUMS 201,185 204,415 208,147 NET CLAiMS iNCURREd (111,667) (119,599) (93,552) iNVESTMENT iNCOME 61,868 (2,643) 48,626 NET OPERATiNG EXPENSES (31,891) (28,649) (25,666) NET iNCOME AFTER TAXATiON 56,427 (9,296) 80,615 FREE RESERVES* 422,088 390,661 429,957 NET LOSS RATiO 79.9% 83.8% 61.4% AVERAGE EXPENSE RATiO 11.50% 10.90% 9.73% STANdARd & POOR’S RATiNG A (stable) A (stable) A (stable) *The Group also retains the benefit of its reinsurance contract with Boudicca insurance Company Limited (see note 4 to the financial statements) . USd(000) USd(000) USd(000) SURPLUS ASSETS iN BOUdiCCA 172,300 196,900 211,600 Surplus investment assets in Boudicca available to meet future claims by the Group. 29 KEy FiNANCiAL dATA 241 MEMBERS COUNTRiES ENTEREd TONNAGE By AREA OF MANAGEMENT CLASS 3 (% OF TOTAL) A S i A S C A N d i N A V i A R E S T O F E U R O P E A M E R i C A S M i d d L E E A S T A U S T R A L A S i A 45.7 15.2 32.6 3.9 2.2 0.4 SHiPS By TyPE (% OF TOTAL) B ULK CARRiER/ O BO T ANKERS ( CRUdE) T ANKERS (OTHERS) CONTAiNERS GENERAL CARGO OTHERS 34 34 18 18 14 14 27 18 6 4 1 12 ANNUAL REPORT ANd FiNANCiAL STATEMENTS 2020 Key statistics 1 KEy STATiSTiCS AGE OF SHiPS (% OF TOTAL) 0-4 yEARS 5-9 yEARS 10-14 yEARS 15-19 yEARS 20 yEARS + 21 19 32 29 27 25 12 13 8 14 ENTEREd TONNAGE (OWNEd) WORLd TONNAGE In the meantime, COVID-19 is an immediate risk to seafarers as well as Members’ and the Managers’ onshore staff and families. The adverse impact on global trade will inevitably affect shipping. However, some comfort may be taken from britannia remaining robust and, as far as possible, business as usual continuing in the running of your Club. This includes assisting, through our global network, our Members by providing updates on local regulations and requirements as well as advice on charterparty/bill of lading obligations. The maritime industry remains fundamental to world economic activity, moving the vast majority of world trade and being a primary enabler of globalisation. However, even before the current challenges, all sectors of the industry were finding it difficult to achieve sustainable freight rate levels, with a constant