17 March 2026 To all Members War Risks: Explanatory Note The Iran – US/Israel conflict that started on 28 February 2026 and the resulting fallout across the Middle East region seriously impacts the maritime industry and the major shipping routes through the Gulf of Oman, Strait of Hormuz and into the Arabian/Persian Gulf. Inevitably, shipowners are concerned about the safety of their vessels and crew with resulting considerations about the insurance implications. This note examines the impact on P&I insurance, which includes Members covered under Britannia’s Mutual (Class 3) P&I Rules, as well as Members / Assureds covered under Britannia’s ‘Charterers’ Insurances’ (CI) and ‘Additional Insurances’ (AI) Terms & Conditions. Mutual Class 3 P&I Cover Britannia’s Class 3 P&I Rules exclude liabilities for war risks under Section IV, Rule 25 – Exclusion of War Risks. The effect of this Rule is to exclude liabilities where “...the loss or damage, injury, illness or death...” was caused by the result of “war, civil war, revolution, rebellion, insurrection or civil strife arising therefrom, or any hostile act by or against a belligerent power”. The current conflict gives rise to the possibility of various types of P&I loss being caused by a War Risk event, for example the use of military ordnance (mines, torpedoes, missiles, drones, etc.) against a vessel resulting in death of or injury to crew, pollution, environmental damage and the ship becoming a wreck. Acts of war could also include the use of biological and / or chemical weapons, with frightening consequences for the ship’s crew, as well as cyber warfare which could affect the vessel’s electronic navigation and communication systems. Since the start of the conflict a number of merchant ships are reported to have been struck by missiles and drones, resulting in significant damage to vessels, as well as crew injuries and fatalities. Some media outlets have speculated that Iran could release mines into the Strait of Hormuz as part of its policy to restrict shipping, so acts of war are clearly already happening and are likely to continue. Excess War Risks Cover Under Class 3 While the effect of Rule 25 is to exclude War Risks, Britannia together with the other International Group P&I Clubs, arranges War Risks insurance for its Members alongside the International Group’s main reinsurance contract. The terms of this insurance were communicated to the Club’s Members (see Circular Class 3 - Protection and Indemnity Endorsements to 2026/27 policy year Certificates of Entry dated 8 January 2026). This insurance is an excess insurance and is designed to pay war risk claims in excess of the amounts that are recoverable under the ship’s primary War P&I policies, which are usually placed in the War Hull & Machinery market. Cover is provided up to a limit of USD500,000,000 but is sub-limited to USD125,000,000 for vessels transiting and/or calling within Russian waters as defined (see Circular above for the defined sub-limited areas). These arrangements have been in place for many years and demonstrate that a mature and sophisticated insurance solution for P&I War Risks is already available within the International Group system. Members and their brokers should note that where primary War P&I cover has not been arranged, this excess placement does not ‘drop down’ and provide cover from the ground up. In the absence of a primary War P&I Cover this excess placement will attach excess of the relevant vessel’s