• The IG reinsurance structure was simplified in 2017 and 2018 and this pattern of simplication has been followed in 2019
• Individual club retention remains unchanged USD 10 million
• The pool structure remains unchanged
• Similarly the attachment point of the IG excess of loss reinsurance programme will remain at USD 100 million
• The most significant change with effect from 20 February 2019, is the introduction of a USD 100 million annual aggregate deductible (AAD) within the 80% market share in the first layer of the excess of loss programme. This AAD will be retained by Hydra, the IG captive. Hydra will no longer participate with a percentage share of the first layer (previously 30%).
• The upper limit of the first layer will be increased to USD 750 million (previously USD 600 million).

• In addition the second and third layer attachment points have been amended as follows:
• The second layer will cover from USD 750 million to USD 1.5 billion (previously USD 600 million to USD 1.1 billion)
• The third layer will cover from USD 1.5 billion to USD 2.1 billion (previously USD 1.1 billion to USD 2.1 billion)
• One of the three 5% multi-year placements of USD 1 billion excess of USD 100 million expires at 20 February 2019. This will be replaced by a new 10% private placement within the new first layer (USD 650 million excess of USD 100 million). This increases the private placement participation in the first layer from 15% to 20%.

The 2019/20 structure of the IG Reinsurance programme is displayed in the chart on the following page.

Cost changes

• Reduction of 1.7% in reinsurance rates (allocated almost evenly across all ship types)

The most significant change with effect from 20 February 2019, is the introduction of a USD 100 million annual aggregate deductible.”