The London Club has announced a general increase of 15% in its advance call for the 2004/5 policy year. It also confirmed that supplementary calls for all open underwriting years remained unchanged.
It said the move to raise rates followed an increase in free reserves to US$82.7m at the end of the 2002/3 financial year.
Paul Hinton, chief executive of the Club's managers, A Bilbrough & Co, said the increase was a precautionary measure to ensure the continued financial security of the Club.
"Despite the modest increase in the Club's reserves which has been achieved, it is important to reduce the risk of erosion in the future," he said. "Various claims forecasts were considered, and together with the uncertainty of future investment returns, this has resulted in the committee authorising a general increase in the advance call."
The Club said an increase in the cost of the Club's share of the International group's excess loss reinsurance programme, which had not yet been determined, would also apply.
