ANNUAL REPORT AND FINANCIAL STATEMENTS 20 FEBRUARY 2025 STRATEGIC REPORT 2025 2THE BRITANNIA STEAM SHIP INSURANCE ASSOCIATION HOLDINGS LIMITED THE BRITANNIA GROUP’S MISSION STATEMENT IS TO BE THE FINEST PROVIDER OF P&I AND FD&D INSURANCE. OUR SPECIFIC AIMS ARE: • Support mutuality, whilst promoting the interests of the membership as a whole on issues affecting shipping • Maintain a stable S&P ‘AAA’ capital and target a policy year net combined operating ratio of between 95% and 105% • Meet the highest standards of governance, risk management and financial best practice; and • Promote good loss prevention practices within the Britannia Group’s membership. This strategic report outlines key information for the year ending 20 February 2025, whilst showing how we look to meet our mission statement. CONTENTS STRATEGIC REPORT Key performance indicators 3 Chairman’s Statement 4 CEO’s Opening Remarks 7 Developments within Britannia P&I 9 Members of the Board 10 Financial Review 12 IG Reinsurance 14 Our Membership and Renewal 16 Class 3 - Protection & Indemnity (P&I) 18 Class 6 - Freight, Demurrage and Defence (FD&D) 20 Loss Prevention 22 Sustainability 24 Corporate Governance 26 Statement of Compliance with Section 172(1) of the Companies Act 2006 29 STATUTORY DIRECTORS’ REPORT 30 FINANCIAL STATEMENTS Statement of directors’ responsibilities 33 Independent auditors’ report to the Members 35 Consolidated income and expenditure account 44 Consolidated statement of financial position 45 Consolidated statement of cash flows 46 Company statement of financial position 47 Notes to the financial statements 48 Class 3 - Protection and Indemnity policy year statement 70 3ANNUAL REPORT AND FINANCIAL STATEMENTS 2025 STRATEGIC REPORT 2025 OWNED TONNAGE 140.9m SHIPS BY TYPE (% OF TOTAL)AGE OF SHIPS (% OF TOTAL) CHARTERED TONNAGE 51.9m MEMBERS 249 COUNTRIES 33 SHIPS 4,089 KEY FACTS AND FIGURES ENTERED TONNAGE BY AREA OF MANAGEMENT- CLASS 3 3.4% Americas 43.2% Asia 0.3% Australasia 37.2% Rest of World 4.8% Middle East 11.1% Scandinavia USD(000)USD(000)USD(000) Calls and premiums* 288,216 288,815 258,140 Net claims incurred*(260,776)(181,261)(169,933) Investment income*76,65863,573(63,781) Net operating expenses*(54,714)(50,245)(46,490) Net (deficit)/surplus after taxation*(9,819)58,243(77,837) Free reserves*540,112549,931501,688 Combined ratio137.7%102.3%106.6% IG Average expense ratio14.44%13.58%15.39% Standard & Poor’s ratingA- (stable)A (negative)A (negative) * Theses balances consist of The Britannia Steam Ship Insurance Holdings Limited (Britannia Holdings), The Britannia Steam Ship Insurance Association Limited (Britannia(UK)), The Britannia Steam Ship Insurance Association Europe (Britannia Europe), Universal Shipowners Marine Insurance Association Limited (USMIA) and Hydra Insurance Company Limited -Britannia Cell, jointly known as The Britannia Group. 20 FEBRUARY 2025 (M GT) 20 FEBRUARY 2024 (M GT) 20 FEBRUARY 2023 (M GT) Entered tonnage (owned)140.9141.7142.0 Entered tonnage (chartered)51.955.251.0 Britannia Tonnage World Tonnage Britannia Tonnage World Tonnage 40 35 30 25 20 15 10 5 0 30 25 20 15 10 5 0 GENERAL CARGO CONTAINERSBULK CARRIER/OBO TANKER (CRUDE) TANKER OTHER OTHER0 to 45 to 910 to 1415 to 1920 and over 5 6 31 35 14 15 16 16 2 9 32 18 17 19 24 20 2828 21 17 10 15 4THE BRITANNIA STEAM SHIP INSURANCE ASSOCIATION HOLDINGS LIMITED STRATEGIC REPORT 2025 As I write my first statement as Chairman of the Britannia Group (Britannia P&I), I begin