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 Financial Update and 2024 Renewal October 2023 Dear Member, At the Board Meeting held in Houston on 24 October 2023, the following developments were reported: Highlights  The Club’s own claims for the 2023/24 policy year at six months are less than budgeted  There were four International Group (IG) Pool claims which were reported by other Clubs for the 2023/24 policy year and which exceeded Club retention in the period to 20 September  2022/23 IG Pool claims remain at low levels relative to recent years  Prior year claims are developing satisfactorily with reserve releases  As a result of favourable claims projections, the 2023/24 financial year combined ratio is better than expected at six months  An investment return of US$33 million achieved for the first seven months  The Club’s S&P Global (S&P) rating is ‘A’ with a stable outlook  In the year to 20 October, owned tonnage has increased by 3.6% to 120.6 million GT  At the 2024/25 renewal there will be a 5% general increase applied to premium on all classes of business  Subject to regulatory approval, there will be a capital distribution to Members equivalent to 7.5% of the 2023/24 mutual P&I premium for renewing vessels. This amounts to approximately US$25 million Underwriting Results 2023/24 Policy Year The Club’s own incurred claims of US$47.5 million at seven months compare favourably with recent years at the same time and are less than budget. In the period to 20 September there have been four reported claims on the IG Pool that exceed Club retention. Three other claims have been reported, including one from the Club, on a precautionary basis, which may develop into claims on the pool. 2022/23 and Prior Years At six months the overall development of the Club’s prior year claims was favourable with a reserve release of US$13.3 million. Board Meeting 2 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 Investments Total assets amount to approximately US$1.3 billion. In the seven months ending September 2023, the Club recorded a return of 2.6%, excluding currency movements, amounting to US$33 million. 2024/25 Premium Ratings Whilst underwriting performance for the first six months in 2023/24 has been satisfactory, the Board recognised the need for caution w