Report on Marine Insurance Premium 1999 and 2000 Tore Forsmo The Central Union of Marine Underwriters Oslo, Norway Thanks also to Fédération Française des Sociétés d’Assurances (FFSA) – Direction des Assurances Transports (DMAT)

Key Indicators World Seaborne Trade (2000 : estimates)

Key Indicators World Tonnage on Order (as at 1 january 2000, in thousands of dwt)

Key Indicators The Most Important Maritime Countries (total dwt tonnage > 20 Mio) (in percentage of world total dwt tonnage, as at 1 january 2000)

Key Indicators Maritime Engagement of 10 Major Trading Nations (as at the end of 1999)

Report on marine insurance premiums 1999 and 2000 By end of August 2001, 45 of 55 members reported their country’s marine premium figures for accounting year 1999 and 41 in addition for accounting year 2000. Reported figures represent approx. 95% of the total marine premium written by all IUMI members for 1999 and approx. 93% for 2000 Total premiums for 1999 is estimated to reach approx. USD 11.63 billion and for 2000 approx. USD 11.59 billion You will notice that we this year are presenting last year’s premium figures (although we only have a 78% reporting) in addition to the 1998 premium (95 %) As I mentioned to you last year, reporting of P&I premiums written by mutual clubs seems still to be a difficulty for some member associations to report To try to fill in the picture, we have added P&I premiums from mutual clubs in to separate slides

Global premiums reported 1999 and 2000 Before we look at the finer details, just a graphic presentation of the lines and totals The 1999 premiums are not as bad as they look due to shortcomings in the reporting

Report on marine insurance premiums (USD billions) Global premiums 1998-2000 (as rep. per end of August 2001) Global Hull Transport/Cargo Marine Liability Offshore/Energy Total 2000 2.605 6.487 1.016 0.719 10.835 1999 2.770 6.805 0.763 0.611 11.045 1998 3.073 7.347 0.879 0.706 12.112 Index 98-99* 89% 92% 87% 91% Index 99-00* 97% 96% 133% 119% 100% This table is another representation of the previous graphics I just showed you We see here premiums from the last three years in addition to indexes Note that 1999 is incomplete, the total premium volume will be higher than what is shown here Inexes is however based on those reporting in both years and should fairly accurate describe the situation Note that Energy is experiencing a tightening, whereas cargo insurance is has gone in the opposite direction *Index based on figures from Associations who have reported in both years

Report on marine insurance premiums - Breakdown by economic areas (USD million) New this year is the geographical split The problem with the 1999 figures is that Japan hasn’t been able to provide any figures, which seriously affect the Asia/Pacific region Fom 1997 to 1998 we see that Europe and North America is slightly increasing their share of the global marine business

Global Marine Premium 1992 - 2000 (USD Million) This is just the historical development over the years CEFOR has collected premium figures on behalf of IUMI From a peak volume in 1994, there as been an overall drop in four years of approx. 25 %, with global hull being the line with the worst deterioration

Global Hull Premium - Major Markets 1992 - 2000 (USD Million) In this slide we have looked at those markets with a premium volume higher than USD 100 mil in 1998, over the past 7-8 years Not surprisingly, we see ”the rise and fall of markets”, with some perhaps rising more and falling harder than others ?

Global Cargo Premium - Major Markets 1992 - 2000 (USD Million) The same picture with markets of more than USD 100 million in 1998 over the past 7-8 years The picture is indeed historically less dramatic than what I just presented for global hull business

MARINE MUTUAL MARKET SECTOR STATISTICS Gross Calls (Premium) - Fiscal Domicile Per accounting year - USD 1000 Fiscal 2000 1999 1998 1997 1996 Difference 00-96 Average Annual variation over period 96-00 Bermuda 537,110 584,507 625,503 697,642 778,990 -241,880 -6.21% 1 Japan 103,048 122,224 114,511 122,047 123,428 -20,380 -3.30% 5 Luxembourg 271,508 286,455 299,947 322,618 334,863 -63,355 -3.78% 4 Norway 352,988 362,656 375,778 422,450 427,816 -74,828 -3.50% 3 Sweden 57,424 61,717 77,932 96,092 108,655 -51,231 -9.43% 6 UK 532,040 586,720 591,537 635,415 617,792 -85,752 -2.78% 2 US 30,004 29,221 24,822 30,427 34,618 -4,614 -2.67% 7 Total 1,884,122 2,033,500 2,110,030 2,326,691 2,426,162 -542,040 -4.47% Ranking Also new this year is a presentation of premiums from P&I mutuals belonging to the International Group When IUMI member associations are asked to provide figures for our annual premium statistics, we are also asking for P&I premium from mutual clubs. Norway is reporting non-member, mutual P&I premiums but what others are doing we don’t know ! Thus this slide ! Note the total premium! Source: Standard & Poors Marine Mutual Report 2001

MARINE MUTUAL MARKET SECTOR STATISTICS Gross Calls (Premium) - Operational location Per accounting year - USD 1000 Operational 2000 1999 1998 1997 1996 Difference 00-96 Average Annual variation over period 96-00 Japan 103,048 122,224 114,511 122,047 123,428 -20,380 -3.30% 3 Norway 352,988 362,656 375,778 422,450 427,816 -74,828 -3.50% 2 Sweden 57,424 61,717 77,932 96,092 108,655 -51,231 -9.43% 4 UK 1,340,658 1,457,682 1,516,987 1,655,675 1,731,645 -390,987 -4.52% 1 US 30,004 29,221 24,822 30,427 34,618 -4,614 -2.67% 5 Total 1,884,122 2,033,500 2,110,030 2,326,691 2,426,162 -542,040 -4.47% Ranking The same preiums, only classified according to operational location rather than fiscal reporting; The difference is actually between Bermuda and the UK Source: Standard & Poors Marine Mutual Report 2001

Report on marine insurance premiums - Accounting year 1999 (in USD 1000)

Report on marine insurance premiums - Accounting year 1999 (in USD 1000)

Report on marine insurance premiums - Accounting year 1999 (in USD 1000)

Report on marine insurance premiums - Accounting year 2000 (in USD 1000)

Report on marine insurance premiums - Accounting year 2000 (in USD 1000)

Report on marine insurance premiums - Accounting year 2000 (in USD 1000)