Publications
Report and Financial Statements
2007 Chairman's Statement
Dear
Members
I am pleased to report that the financial year ending 31st May 2007 has been the most successful year in the Club’s history with gross premiums increasing from USD 36m in 2006 to USD 39.25m and free reserves increasing from USD 50.7m to USD 64.74m. Your Board's strategy is to maintain reserves at a level that is healthily in excess of regulatory requirements. The 2007 results have ensured that this strategy was achieved and that the Club is in a robust financial position. The increase in free reserves was, in the large part, due to exceptional investment returns yet, given the current financial market turmoil, it is unlikely that such returns will be repeated in the financial year ending 31st May 2008.
Growth in premium income has been maintained steadily and is based upon an increasing need for professional indemnity insurance in Europe, the Far East and Australasia. We are a global insurer: not only is our cover worldwide but we also insure in 106 countries throughout the world.
One of the unique points about ITIC is the mutual dividend that the Club pays to its members, otherwise known as the continuity credit. In the past year, the Club has returned USD 7.6m (2006: USD 6.1m) to you the members. In the current year, the board of directors has decided to return between 12.5% and 30% of expiring premium, by way of continuity credit, to those members who renew their policies of insurance and it is hoped that the Club will be able to maintain the continuity credit for years to come.
Members will also be pleased to know that your board of directors has decided to close the 2005 policy year, thereby leaving only the 2006 policy year open.
Of further note, I would like to draw your attention to the fact that, in the past year, the Club has developed a Directors’ and Officers’ (D & O) insurance policy which will complement the other insurances, such as cash in transit, loss of commission and debt collection that the Club already provides.
One event that I would like to draw to your attention is the ITIC Forum, which will take place on 1st and 2nd October 2008 at the Dorchester Hotel in London. All members of the Club will receive an invitation to this event which has both an educational and a social purpose to it. The previous events, held in 2000 and 2004, were extremely successful and I am sure that Forum 2008 will be a worthwhile event for you to attend.
Finally, I would like to extend my thanks, on behalf of you the members of the Club and your board of directors to the management team at Thomas Miller, under whose stewardship ITIC continues to prosper.
Harry Gilbert
Chairman
International Transport Intermediaries Club Ltd
November 2007
Report and Financial Statements
The audited Reports and Financial Statements for the year ended 31st May, 2007 for both ITIC and TIM (Transport Intermediaries Mutual) are below.
The Directors and Managers of ITIC and TIM are mindful of the difficulties you may have in appreciating the financial strength of ITIC and its quota share reinsurer TIM, merely by reading their respective Accounts in isolation.
Accordingly, in order to assist you in reaching a practical understanding of the combined financial strength of ITIC and TIM, we have prepared unaudited Financial Highlights of the combined Accounts of the two Clubs, which can also be found below.
2007
International Transport Intermediaries Club Limited
Directors’ Report & Financial Statements for the year ended 31st May, 2007
Transport Intermediaries Mutual Insurance Association Limited
Directors’ Report & Financial Statements for the year ended May 31, 2007 together with report of Independent Public Accountants
ITIC/TIM - YEAR ENDED 31ST MAY, 2007
Financial Highlights
| 2007 | 2006 | ||
|---|---|---|---|
| US$ | US$ | ||
| 000s | 000s | ||
| Gross Premiums Written | 39,260 | 36,001 | |
| Investment Income (Realised and Unrealised) | 8,169 | 4,879 | |
| Claims Paid Less Reinsurance Recoveries | (10,419) | (9,380) | |
| Reinsurance Premiums (Excess Loss) | (5,403) | (4,962) | |
| Operating Expenses and Taxation | (10,798) | (9,539) | |
| Exchange Gain | 417 | 704 | |
| Continuity Credit | (7,594) | (6,124) | |
 |
|
||
| Surplus for the Year | A | 13,632 | 11,579 |
| Funds Brought Forward @ 1st June, 2006 | B | 78,494 | 66,915 |
|
|
||
| Funds Available for Outstanding Claims and IBNER @ 31st May, 2007 | A+B=C | 92,126 | 78,494 |
 |
|
||
| Represented by: | |||
| Funds Available for Outstanding Claims and IBNER : | |||
| General Reserve (Closed Policy Years) | 64,328 | 37,902 | |
| ITIC/TIM Open Policy Years | 27,548 | 40,342 | |
| TIM Statutory Reserve | 250 | 250 | |
|
|
||
| 92,126 | 78,494 | ||
|
|
||
| Free Reserves: | |||
| Funds Available for Outstanding Claims and IBNER as above | 92,126 | 78,494 | |
| Estimate of Outstanding Claims (Known and Incurred But Not Enough Reserved) | 27,384 | 27,791 | |
|
|
||
| Estimated Free Reserves @ 31st May, 2007 | 64,742 | 50,703 | |
|
|
||
Free Reserves Development
US$ 000s
(Click graph to enlarge)
2006
International Transport Intermediaries Club Limited
Directors’ Report & Financial Statements for the year ended 31st May, 2006
Transport Intermediaries Mutual Insurance Association Limited
Directors’ Report & Financial Statements for the year ended May 31, 2006 together with report of Independent Public Accountants