25 March 2004

The TT Club, the leading provider of insurance and risk management services to the international transport and logistics industry, has reported another successful year for its financial year 2003. In its annual report to its Members, the Board highlighted improvements in the strength and quality of the balance sheet as well as the policy year combined ratio - the underlying operating performance.

On the balance sheet, the Club reported a 14% increase in the total surplus and reserves to US$57.3 million, while total assets at US$386.5 million (up 18% from US$326.3 million) were at their highest for five years. Net worth increased 10% from US$62.8 million to US$69.3 million.

The Club's gross premium income declined marginally to US$149 million (down 2% from US$152 million) as it focused on positive underwriting results but investment income including foreign exchange gains increased from US$8.3 million to US$17.1 million. The overall surplus after tax for the year was US$7.1 million from last year's US$10.7 million, but excluding extraordinary items totalling US$5.9 million the operating result showed a healthy 21% improvement of US$2.3 million.

"I am pleased to report a successful year of consolidation during 2003," commented Sir David Thomson, Chairman of the TT Club. "Our underwriting performance has improved, we have achieved another positive investment return and our free reserves have grown."

Under extraordinary items the Club has reflected the termination of its five-year finite reinsurance agreement with Swiss Re and replacement with a three-year quota share reinsurance with the same Group. Additionally, the TT Club's Board has written down the book value of its joint venture investments at Bolero.net and TT Neptunus Services Ltd, the latter company transferring its business to the joint venture partner, BV-Unicon.

Looking forward to 2004-2005, Mr Paul Neagle, Chief Executive, forecast that business volumes would increase in line with world trade - driven by US imports and Chinese exports - and that insurance rates would remain hard and results positive.

"We are maintaining our drive for capital growth in order to regain our A minus rating as quickly as possible," he said. "We are on target to achieve this by maintaining underwriting discipline, continuing to reduce attritional claims, investing conservatively and focusing on service quality for members and brokers."

Financial Highlights

• Strength and quality of the balance sheet improved
• Underlying operating performance - policy year combined ratio - improved
• Total assets - increased by 18% to $ 386.5m ($ 326.3m)
• Total surplus and reserves - increased by 14% to $ 57.3m ($ 50.2m)
• Net worth - increased by 10% to $ 69.3m ($ 62.8m)
• Gross earned premiums - down slightly $ 148.8m ($ 152.0m) due to focus on positive underwriting results & termination of loss-making and marginal business
• Investment income including foreign exchange gains increased to $ 17.1m ($8.3m)
• Overall surplus for the year $ 7.1m ($ 10.7m)

About TT Club:

The TT Club is the international transport and logistics industry's leading provider of insurance and related risk management services. Established in 1968, the Club's membership comprises ship operators, ports and terminals, road, rail and airfreight operators, logistics companies and container lessors. As a mutual insurer, the Club exists to provide its policyholders with industry-leading benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services and first class risk management and loss prevention advice.

The full Annual Report can be reviewed or downloaded and printed from the web-site www.ttclub.com by accessing the annual report icon on the home page.

For further information please contact:

Ian Lush

Marketing Director

TT Club

Tel + 44 (0)20 7204 2642

E-mail: ian.lush@thomasmiller.com

Media contacts:

Peter Owen or Michael Haig

ISIS Communications

Tel +44 (0)1737 248300

E-mail: info@isiscomms.com

A full archive of all TT Club news releases and photographs is available from the ISIS Communications Press Room at www.isiscomms.com