At the meeting on December 6th 2005 the Board of Directors decided upon its policy with regard to premium for the policy year February 20th 2006 to February 20th 2007.

The Board of Directors

noted	that the open policy years have developed according to predictions but that claims over years continue to increase in costs. The current policy year is showing a balanced development through its first nine months.
decided	that calls have to be levied to reflect the Association’s exposure. A general increase of 10% shall be levied and the Association shall aim to maintain a 0% supplementary call for 2006/2007 and preceding open years. The release call for 2006/2007 policy year is set to 25%.
instructed	the management to contact each Member individually to discuss renewals for 2006/2007. After levying the mandatory general increase, the new call shall include reinsurance cost and any change thereof as well as the exposure for claims pooled in excess of the Association’s retention. The call shall furthermore reflect the exposure of the Association’s retention as well as an assessment of the Member’s records and risk exposure.

Premiums
All premiums are debited as advance and supplementary calls. It is anticipated that this policy year will be closed in the year 2009. The Board decided that the premium shall be debited in four instalments: at inception on February 20th, May 20th, August 20th and November 20th. For 2006/2007 the premium will be based on Gross Tons (GT) as per the International Convention on Tonnage Measurements of Ships 1969.

Release Call
The release call for 2006/2007 is preliminarily set at 25%. Members should be aware that even if a release call has been paid, the Association retains the right to make overspill calls as per the P&I Rules (Rule 23).

Renewals
The premium for 2006/2007 will be based on the Member’s record for the five year period 2000-2004, including current year if adverse. Records and claims summaries are now available through the Swedish Club extranet, SCOL. The information is updated overnight.

Members will be informed on cost of reinsurance and other issues when same has been agreed upon.
Yours sincerely,The Swedish ClubFrans Malmros