Release calls are a percentage of the estimated total call for the relevant policy years.
In determining those release calls, and in accordance with Clause 8 of the 2013 International Group Agreement, an actuarial assessment was undertaken of (i) premium risk, (ii) reserve risk, (iii) catastrophe risk, (iv) market risk, (v) counterparty risk and (vi) operational risk.
Release calls are usually levied in the following circumstances:
- When a ship is sold and the Managers are concerned about the Member’s ability to pay future deferred calls;
- At the request of a Member when a ship is sold. This is typical when a single-ship Member wishes to wind up its affairs;
- When a Member withdraws or sells all ships that have been entered in the Association;
- When part of a fleet is withdrawn by a Member at renewal owing to an adverse claims record.
At its meeting on 24 October 2023, Britannia’s Board set the following P&I release call percentages for the Association’s open years:
- 2021/22 NIL
- 2022/23 5%
- 2023/24 7.5%
- 2024/25 15%
These percentages will be reviewed further in 12 months’ time.