Circular No. 8/2000




October 2000



TO THE MEMBERS OF ASSURANCEFORENINGEN GARD � gjensidig





Dear Sirs,

GARD P&I HALF YEAR STATUS REPORT AS AT 20 AUGUST 2000
REVIEW OF POLICY YEARS
PREMIUM RATING FOR THE 2001 POLICY YEAR


Introduction
For a number of years Assuranceforeningen Gard has published a half year report. Following a review of our overall communications strategies, we have decided to enhance this service by providing more frequent reports on progress, but to do so generally only in electronic form.

This document highlights both the key features in the
fuller report that will be found at our website and the decisions taken at the Committee meeting held in Athens on 30 October 2000 as to open policy years and the premium rating for the 2001 policy year.

Committees
At the Annual General Meeting, which took place on 18 August in Arendal, the following new members were elected to the Committee:

Christian Cigrang, Cobelfret SA, Antwerp;
Richard J. C. Huang, Evergreen Marine Corp. (Taiwan) Ltd., Taipei;
Takeshi Matsui, The Sanko Steamship Co. Ltd., Tokyo;
Jamal A. Al-Rammah, Saudi Arabian Oil Company, Dhahran;
Lynn White, Royal Caribbean Cruises Limited, Miami.

Retirements
Richard Fain,
Royal Caribbean Cruises Limited, Miami;
Katsuyuki Totoki, The Sanko Steamship Co. Ltd., Tokyo
had notified the Association that they did not wish to stand for re-election.

Members of the Executive Committee were re-elected.

Tonnage
Owners entries rose 1.1 million gross tons to 56.1 million gross tons. Total tonnage rose 3 million gross tons to 92 million gross tons.

Policy years
Closed years up to and including the 1996 policy year continue to progress as projected.

The Committee decided to close1997 policy year without Supplementary Calls being ordered.

The 1998 and 1999 policy years are likely to close without further Supplementary Calls.

The 2000 policy year � some increase in claims, but within budget.

Release Calls
The Committee resolved that the Release Calls for open policy years be set as follows:

For the 1998 policy year:

5 per cent

For the 1999 policy year:

10 per cent

For the 2000 policy year:

50 per cent

For the 2001 policy year

50 per cent


Premium policy and forecast Supplementary Call for the 2001 policy year
The Committee resolved that there be a 10 per cent general increase in the advance premiums for both P&I and FD&D in respect of mutual entries and in the P&I and FD&D premiums for all Charterers� entries for the 2001 policy year. The forecast Supplementary Call for mutual entries is set at 25 per cent of the advance premium.

Funds
Funds rise USD 2 million to USD 694 million.

General contingency reserve
General contingency reserve stands at USD 241 million.

Investment returns
Difficult conditions, including the strong US Dollar, result in an annualised return of only 2.2 per cent.

We urge you to view the full report on www.gard.no. We do, of course, welcome your comments on our new communications approach.

Yours faithfully

GARD SERVICES AS
As agent only for Assuranceforeningen Gard � gjensidig


John G. Bernander
Chief Executive Officer