News

26 August 2010

European Commission investigation announced on 26 August 2010

The European Commission has today announced that following the expiry of the second 10 year exemption for the International Group Agreement, it is carrying out a review and making inquiries into certain aspects of the Group's claims-sharing and reinsurance arrangements. It is not open to the Group to seek a further individual exemption for the IGA following procedural reforms to the competition law rules in 2004. An exemption now applies "automatically" to any agreement that meets the criteria of Article 101(3) of the Treaty on the Functioning of the European Union, without the need for notification to, or decision by, the Commission. The Commission has informed the International Group that this review is not prompted by a complaint about the Group's arrangements. It is normal practice for the European Commission to review the position on expiry of an individual exemption. In relation to the aspects of the International Group's arrangements which the European Commission is reviewing, there have been no relevant or material changes to the arrangements or in the market for P&I cover since those arrangements were approved in the Commission's 1999 decision, with which the Group has continued to comply. The International Group therefore takes the view that the Commission's careful analysis of the Group's arrangements as set out in the 1999 decision remains valid. Pending the outcome of the Commission's review, the Group's arrangements remain unaffected. The Group provides the Commission with reports on its arrangements and the market each year and is working closely with DG Competition in its review. 26 August 2010

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