November 22, 1996

To: MEMBERS OF THE ASSOCIATIONCircular No. 9/96

Dear Member;

THE SHIPOWNERS INSURANCE AND GUARANTY COMPANY LTD. (SIGCO)

We are attaching a copy of a press release issued on November 20 by Stockton Reinsurance regarding the formation of a new vehicle to provide COFR guaranties under OPA 90. SIGCO will replace the First Line program after December 28, 1996.

We are not aware of the rating structure of SIGCO. The managers will be pleased to assist members with any aspect of replacing existing COFRs in this new facility.

Yours faithfully,

Shipowners Claims Bureau, Inc., Manager

for THE AMERICAN CLUB

Thomas J. McGowan

President & COO

Attachment

VAPS CIRCULR9.96