London Club Confirms General Increase
Thursday, November 14, 2002
The London Club has announced a general increase of 25 percent in its advance call for the 2003/04 policy year. Meanwhile, the Club has also
confirmed that supplementary calls for all open underwriting years remain unchanged.
Paul Hinton, Chief Executive of the Club's managers, A Bilbrough & Co, says,
"The almost unprecedented failure in the last three years of the investment markets to produce budgeted returns means that a substantial upward
correction of premium levels has been required. Considerable progress has already been made but, in the context of continuing investment market
uncertainty, more needs to be done.
"Any increase in the cost of the Club's share of the International Group's excess loss reinsurance program, which has not yet been determined, will
also apply. Advance and supplementary calls will continue to be levied in installments on the same basis as applies in the current year."
While acknowledging that the decision to raise premiums would be unwelcome
news for members, Hinton said the Club Committee was nevertheless firmly of
the view that it was in both the Club's and the members' best interests to
ensure that the Club's financial position remained sound.