2010 Chairman's Statement

Dear Members

Despite the ongoing turbulent economic climate, ITIC's membership, premium income and free reserves have increased to record levels over the last financial year.

As anticipated in my report last year, claims from the Club reached a peak for the year to May 2009. The current year just ended is showing a continued high level of claims but is also showing some evidence of tailing off. Current claims still include some losses relating back to events occurring during the sharp downturn in the economy experienced in 2008.

Investments have bounced back with returns of 7.1% this year after significant losses the previous year. The Club's reserves have grown to a record US$ 65.5m which is, once again, significantly higher than the current regulatory requirements.

The Board's underwriting strategy allows your Club to grow and to continue paying the continuity credit at renewal whilst, yet again, not making any general increase in premium. This year, the Club has returned to the members a continuity credit of US$ 6.3m down on the previous year's US$ 9.4m. The reduction recognised the need to be prudent during difficult times. In the current year, the Board agreed to return between 5.0% and 17.5% of the expiring premium to renewing members and, once again, the Board and the Managers expect to be able to pay continuity credits for many years to come. A total of over US$ 61.0m has been returned to members since the credit payments began over 10 years ago.

You will be pleased to know that the Board has decided to close the 2008 policy year, thereby leaving only the 2009 policy year open.

ITIC maintains its competitive advantage in the professional indemnity insurance market by virtue of the range and breadth of the cover that the Club provides in addition to the service and value offered to the Members. It has now proved that it can cope with the toughest of economies and this will serve it well as the insurance industry moves towards the increased capital requirements that will be demanded by the new risk management framework encompassed in Solvency II.

After a successful year, I would like to extend my thanks, on behalf of you as the Members of the Club and your Board of Directors, to the management team at Thomas Miller for their continued excellent stewardship of your Club.

Harry Gilbert

Chairman

International Transport Intermediaries Club Ltd

September 2010

Report and Financial Statements

The audited Report and Financial Statements for the year ended 31st May, 2010 for both ITIC and TIM (Transport Intermediaries Mutual) are below.

ITIC Directors' Report and Financial Statements for year ended 31st May 2010

TIMIA Directors' Report and Financial Statements for year ended 31st May 2010

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 here - Combined Highlights of ITIC and TIM.