guarantors have faced a year of declines in premium rating that has affected the market.

And even though they are increasing the number of ships under their umbrella, one company conceded this week that they could face less revenue in the end.

Bermuda-based Shoreline Mutual Management (Bermuda) Ltd. president, Simon Scupham, said that the industry has seen premium ratings decline by as much as 30 percent and more over the last year.

He said, "That's the whole insurance and reinsurance world right now. Rates have come down tremendously over the last two years. We're seeing the same thing in the COFR guaranty market, because there have been no heavy losses. We haven't had to pay out a lot of money yet.'' Meanwhile, local competitor, Shipowners Insurance and Guaranty Co. Ltd.

(SIGCo), said this week they have emerged as the market leader in all relevant COFR guaranty categories, halfway through the year.

Based on the same July 1 figures released by the US Coast Guard, Shoreline said the statistics confirm the strength of its membership and the loyalty of its members.

SIGCo's Neil Clemens said, "SIGCo has already become the leading provider of COFR guaranties for both tankers and dry cargo vessels ahead of our original target of the end of the summer.

"As a further demonstration of this success, in the first six months of business, SIGCo has issued more guaranties for tankers than was issued in the two years of the preceding First Line programme, and I anticipate a similar result for dry cargo business within the next few weeks.

"SIGCo will consolidate this position in the second half of the year as other business comes up for renewal, including the remaining First Line clients.'' Operated by the same group as First Line, with a view to transferring First Line's business over, SIGCo has been taking over the contracts, as they have come up for renewal.

Mr. Clemens advised clients and potential clients who are shipowners and operators: "Particularly noteworthy is the increase in tanker tonnage which now stands just short of 60 percent of the total for the insurance market as a whole, the increase being earned in a period of increasing competition.

"Tanker owners should be aware that SIGCo was recently welcomed as an associate member of Intertanko, a role which we believe will enable SIGCo to benefit the wider shipping community as well as an opportunity to represent our clients' interests.'' According to the US Coast Guard figures, the combined SIGCo/First Line operation has provided evidence of financial responsibility for more vessels than others in support of OPA/CERCLA COFRs issued by the USCG.

But Mr. Scupham from Shoreline said, "Shoreline continues to attract new quality ship owners to its membership, now reaching 2,250 COFR guaranties. Our focus continues to be servicing our existing membership and maintaining quality standards established by our ship-owning board of directors. Our ship-owner board of directors are committed to differentiating Shoreline from other COFR facilities by continuing to look for ways to improve our product and add value.

"Shoreline offers real coverage and does not ask a member to give it a power of attorney or letter of indemnity. In 1997, Shoreline has been able to improve its product to enable the no claims bonus and profit commissions to be retained for the benefit of members.

"Collectively, the enhancements enable Shoreline Mutual to deliver a fixed cost COFR guaranty in 1997 without compromising the benefits of a shipowner's mutual and should permit further cost savings to be delivered in the future.''