Steamship to boost capital Press Release, London, 29 January 2009 The Club has issued the following Press Release Steamship Mutual, a leading P&I Club providing marine liability insurance worldwide, today announces it is boosting its capital reserves to compensate for investment losses. Despite Steamship Mutual’s market leading underwriting results, the lack of a sustained recovery in the global financial markets has had a significant impact on the Club’s investment results and the Steamship Board has decided that additional capital must be raised. This is to be done by levying additional premium (Class 1 Protection and Indemnity) for the policy years 2006, 2007 and 2008, payable over the next 18 months, as follows: 2006 12.5% additional premium 2007 14% additional premium 2008 20% additional premium Otto Fritzner, Club Chairman, said: “We are acutely aware of the unwelcome nature of this announcement, particularly in view of the current difficulties in the freight market. But one of the Board’s primary obligations to its members is to ensure that Steamship maintains its position as top class security for members’ claims, acceptable throughout the world, and meets the capital requirements of all the Club’s regulators. With this in mind, despite the Club’s recent strong underwriting performance, we have decided that it is necessary to put the Club in a position to raise US$80 million of additional capital to restore its reserves to the level applying at the beginning of this financial year.” James Stockdale, Steamship’s CEO, said, “Unfortunately the Club has been unable to escape the unprecedented severity of the global economic downturn and the volatility in the financial markets. The Club has incurred significant investment losses, amounting to about US$95 million as at 23rd January 2009, and this action was essential to restore the Club’s reserves to their proper level to safeguard the Club’s long term security. In recent years, the Club has devoted very considerable effort to achieving a high quality membership and delivering strong underwriting results. The additional capital is designed to restore the Club’s reserves to the levels necessary to sustain the business for the foreseeable future and to ensure it is in a position to meet all known regulatory requirements. With the benefit of the restored reserves, current and prospective Members can be confident in both Steamship Mutual’s first class service and its financial security.” With shipping markets under great stress, Steamship says it is too early to predict what effect these pressures will have on the level of P&I claims in the immediate future. In this very uncertain climate, the Club does not feel that it would be prudent to place any reliance on claims levels falling significantly, or at all, during 2009 and account has to be taken of the possibility that market stresses could cause claims to rise rather than fall in the short-term. About Steamship Mutual Steamship Mutual (managed by Steamship Insurance Management Services Limited) is a leading provider of Protection & Indemnity (P&I) insurance. As one of the largest P&I Clubs in the International Group, Steamship Mutual insures a diverse range of shipping around the world, for shipowners, managers and charterers. Steamship Mutual provides a comprehensive and adaptable range of P&I and ancillary insurance covers backed by a stable financial position, strong free reserves and a carefully constructed reinsurance programme. The Club consistently delivers exceptional service to its Members, providing high quality professional claims management and services. With offices in London, Bermuda, Hong Kong, Brazil and correspondents in every major shipping port worldwide, Steamship Mutual employs highly professional and experienced staff including qualified lawyers, ex-senior mariners, and specialist insurance and claims experts. Steamship Mutual