The 621st Meeting of the Association’s Board of Directors was held on 21 June 2024. The main decisions of the Meeting are as follows;

1. The 74th Ordinary General Meeting of the Members

The Board approved the convening of the 74th Ordinary General Meeting of the Members at the Kaiun Club, Tokyo at 16:00 on 24 July 2024.

2. Agenda of the 74th Ordinary General Meeting of the Members

The Board approved the following report and proposals for inclusion in the agenda of the Ordinary General Meeting.

Report:
The Business Report for the 74th business year (from 1 April 2023 to 31 March 2024);

Proposals:

1. To approve an Inventory, Balance Sheet, Income and Expenditure Account, and proposals for the disposition of the surplus for the 74th business year (from 1 April 2023 to 31 March 2024)
2. To amend Plan of Business Operations
3. To elect Members to the Board of Directors and to appoint the Auditors
4. To approve the payment of a retirement bonus to the retiring directors
5. To authorise the Board of Directors to handle decisions made at the General Meeting of the Members.

Details of the above items can be found in the “Notice of the 74th Ordinary General Meeting of the Members”, which will be sent by post to the Members, along with enclosures.

The outline of the financial results for the 2023 business year (the above Proposal 1) is as follows:

In the 74th business year, our focus continued on improving our equity capital and balance of income and expenditure. The balance of insurance income and expenditure has improved through various measures. However, it has not reached the desired level yet. Moreover, the business environment for our Club remained uncertain, with claims becoming more expensive, due to continued global inflation and war risks, notably the Russia-Ukraine war and the Israeli-Palestinian conflict. Because of these factors, we have applied a general increase of 7.5% for ocean-going owners’ entries, and 10% for charterers’ entries and Naiko Class entries for the policy year 2024.

The net premium income was JPY24.84 billion, although this decreased from the previous year when unbudgeted supplementary calls were collected. Investment income increased by JPY4.77 billion to JPY8 billion, due to the exchange rate impact of the weaker yen, as well as rises in stock prices and interest rates. Net insurance claims payments increased by JPY940 million to JPY16.28 billion, mainly because of large claims payments for cases that occurred in previous years. Provision for outstanding claims decreased by JPY 3.21 billion to JPY1.21 billion due to the relatively low claims numbers in the business year 2023. Provision for policy reserves decreased by JPY 3.7 billion to JPY 3.07 billion. Consequently, underwriting expenses decreased by JPY 5.99 billion to JPY 20.58 billion.

As a result of the above, we have recorded a net surplus of JPY 6.86 billion, and we have significantly increased the reserve by JPY 7.93 billion from the previous year to JPY 35.37 billion.

3. Election of Members to the Board of Directors

Regarding Proposal 3 for the 74th Ordinary General Meeting of Members, "To elect Members to the Board of Directors and to appoint the auditors" it was resolved to recommend the candidates in the attachment.

Yukio Toriyama is scheduled to be appointed as the Representing Director and the Director General of the Club if approved at the 74th Ordinary General Meeting of Members and the Board of Directors Meeting.

4. Finally

In the business year 2024, our focus continues to be on “creating a great Club” by a) providing high-quality services, b) maintaining a robust financial base c) conducting stable operations, and d) obtaining support from good Members.

We are committed to continuously enhancing our operations and services to remain your first choice of Club, and we sincerely appreciate your continued support and cooperation.

Finally, we extend our best wishes to our Members for ongoing development and safe operations.