12 October 2006

Transport insurance provider TT Club has announced that it is strengthening its capital base through the issue of "floating" subordinated loan notes worth a total of US$30 million. The loan notes have been issued by parent company Through Transport Mutual Insurance Association Limited and have a duration of 30 years, though they can be repaid at any time after five years at the Club's option and subject to regulatory approval.

The Club commented that this type of financing is increasingly used by insurance and reinsurance companies, including some mutuals, as a cost-effective method of raising capital to support growth or to mitigate business risks alongside equity-raising and reinsurance protection.

Explaining the decision to raise further capital Paul Neagle, TT Club's chief executive, said: "Since regaining our AM Best A- (Excellent) rating in May this year we have been considering our options to ensure that the Club has sufficient capital to underwrite the increasing volumes of business presented by the membership over the next five years, while maintaining a prudent margin of solvency above both current and future regulatory requirements."

"We are also conscious of the increasing catastrophe exposures faced by many members, and the potential impact of those exposures on the cost and availability of reinsurance in the future," he continued. "The net annual cost to the Club of this option is both predictable and highly competitive when compared with alternative solutions involving additional reinsurance purchase."

The interest payable under the loan notes is expressed as a fixed margin above US$ three month LIBOR, and the proceeds will be invested in low-risk instruments matched as closely as possible to LIBOR. . The notes qualify as Lower Tier 2 Capital under UK FSA regulations and count towards the Club's capital adequacy in the AM Best model.

ENDSNote to Editors:

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 benefits that include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice.

For further information please contact:

Ian Lush, Marketing Director, TT Club

Tel: +44 (0) 20 7204 2642

E-mail:

ian.lush@thomasmiller.comwww.ttclub.comMedia contact:

Peter Owen, ISIS Communications

Tel: +44 (0) 1737 248300

E-mail:

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