Steamship Mutual Affirmed

The “A” (Excellent) financial strength rating of Steamship Mutual Underwriting Association (Bermuda), Limited has been affirmed by A.M. Best Co.

The rating action reflects the maintenance of the club’s leading position within the International Group and the P&I industry, strong capital position and extensive reinsurance protection. Offsetting factors include the continuing competitive pressures in global insurance and reinsurance markets and the deterioration in the club’s operating performance for the year under review.

As of Feb. 20, 2000, Steamship Mutual had retained and built upon its leading successful position in the P&I market. Entered tonnage remained relatively unchanged at 64.1 million, compared with 64.5 million in 1999, and ranked Steamship fourth in the International Group of Clubs. Diversification on a geographic, vessel-type and business-class basis was maintained, and management continued to be active in establishing new business ventures and launching innovative products.

Free reserves increased to $113.7 million, a rise of 7% on the level reported at the end of the prior period. In A.M. Best’s opinion, the capital level remains secure and the Club continues to derive significant benefits from its mutual structure whereby it has access to additional funds through calls on members should the need arise.