UK P&I Club announces restructure in advance of Solvency II
News Release
U.K. P&I Club Thomas Miller(Americas)Inc.
September 3, 2012
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<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">Thursday, 30 August, 2012 - The UK
P&I Club (the UK Club),<SPAN style="BACKGROUND: white; COLOR: #383838">
</SPAN>one of the oldest shipping protection and indemnity insurance mutuals,
formally announces a reorganisation of its structure to establish the UK Europe
as the sole provider of direct insurance business to UK Club Members. The new
structure will take effect from February 2013 and does not impact members in the
2012 policy year. </SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">The change will reduce the number of
separately regulated entities, strengthen governance, reduce compliance costs
and efficiently manage the Club’s solvency capital requirements. There will be
no change to terms of entry, cover or premium for members and the overall amount
of free reserves held by the UK Club before and after will remain the same.
</SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">The current UK Club structure utilises
three companies: UK Bermuda, UK Europe and a captive reinsurer, IPIR. While many
members are insured directly by UK Bermuda (through its respective branches in
the UK, Hong Kong, Singapore, and Japan) a substantial number of members are
already insured by the wholly owned subsidiary, UK Europe. In the new structure,
UK Bermuda will cease to write direct insurance business, responsibility for
which will transfer to UK Europe. UK Bermuda will continue to be the holding
company, controlled by its Members, and will also become the reinsurer of UK
Europe. </SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">All members will shortly be receiving
a letter with further details and an invitation to approve the change by voting
in proxy or in person at a meeting to be held in Paris on Monday 29 October
2012. </SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">The transfer of UK Bermuda’s insurance
business has involved a number of regulatory and legal filings, including an
application submitted in June 2012, to the High Court of Justice.
</SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">Hugo Wynn-Williams, Chairman of the UK
P&I Club managers Thomas Miller says:</SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">“The restructure of the UK P&I
Club’s business has been planned for a long time and is good news for all
members. By reducing the number of separately regulated shipowner insurers from
two to one, we are able to reduce costs and ensure we are ready for the new
requirements of Solvency II.”</SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">Further information about the
restructure can be found at the Club’s website: <A
href="redir.aspx?C=608f86f0f38f4dcfadca820a641da949&URL=http%3a%2f%2fwww.ukpandi.com%2fabout-the-club%2fclub-restructure%2f"
target=_blank>http://www.ukpandi.com/about-the-club/club-restructure/</A></SPAN></P></DIV></BODY></HTML>
<HTML><HEAD><TITLE></TITLE>
<META content="text/html; charset=unicode" http-equiv=Content-Type>
<META name=GENERATOR content="MSHTML 8.00.6001.19298"></HEAD>
<BODY>
<DIV>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">Thursday, 30 August, 2012 - The UK
P&I Club (the UK Club),<SPAN style="BACKGROUND: white; COLOR: #383838">
</SPAN>one of the oldest shipping protection and indemnity insurance mutuals,
formally announces a reorganisation of its structure to establish the UK Europe
as the sole provider of direct insurance business to UK Club Members. The new
structure will take effect from February 2013 and does not impact members in the
2012 policy year. </SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">The change will reduce the number of
separately regulated entities, strengthen governance, reduce compliance costs
and efficiently manage the Club’s solvency capital requirements. There will be
no change to terms of entry, cover or premium for members and the overall amount
of free reserves held by the UK Club before and after will remain the same.
</SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">The current UK Club structure utilises
three companies: UK Bermuda, UK Europe and a captive reinsurer, IPIR. While many
members are insured directly by UK Bermuda (through its respective branches in
the UK, Hong Kong, Singapore, and Japan) a substantial number of members are
already insured by the wholly owned subsidiary, UK Europe. In the new structure,
UK Bermuda will cease to write direct insurance business, responsibility for
which will transfer to UK Europe. UK Bermuda will continue to be the holding
company, controlled by its Members, and will also become the reinsurer of UK
Europe. </SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">All members will shortly be receiving
a letter with further details and an invitation to approve the change by voting
in proxy or in person at a meeting to be held in Paris on Monday 29 October
2012. </SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">The transfer of UK Bermuda’s insurance
business has involved a number of regulatory and legal filings, including an
application submitted in June 2012, to the High Court of Justice.
</SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">Hugo Wynn-Williams, Chairman of the UK
P&I Club managers Thomas Miller says:</SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">“The restructure of the UK P&I
Club’s business has been planned for a long time and is good news for all
members. By reducing the number of separately regulated shipowner insurers from
two to one, we are able to reduce costs and ensure we are ready for the new
requirements of Solvency II.”</SPAN></P>
<P style="TEXT-ALIGN: justify; LINE-HEIGHT: 130%" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'"></SPAN> </P>
<P style="TEXT-ALIGN: justify" class=MsoNormal><SPAN
style="FONT-FAMILY: 'Arial','sans-serif'">Further information about the
restructure can be found at the Club’s website: <A
href="redir.aspx?C=608f86f0f38f4dcfadca820a641da949&URL=http%3a%2f%2fwww.ukpandi.com%2fabout-the-club%2fclub-restructure%2f"
target=_blank>http://www.ukpandi.com/about-the-club/club-restructure/</A></SPAN></P></DIV></BODY></HTML>