JUNE 17, 1998

CIRCULAR NO. 12/98

TO MEMBERS OF THE ASSOCIATION

Dear Member:

CLOSING OF THE 1994 POLICY YEAR

At its meeting in New York City on Thursday, June 11, 1998, your Board of Directors resolved to close the 1994 policy year without further call in excess of the 65% of advance call originally forecast at inception and debited in two installments in December 1994 and December 1995.

The year's surplus has been transferred into the closed years' balance and will continue to form part of the Club's overall contingency fund.

Yours faithfully,

Joseph E.M. Hughes
Chairman & CEO 
Shipowners Claims Bureau, Inc., Manager
for THE AMERICAN CLUB