No L 4/26 Official Journal of the European Communities 8.1. 93 COMMISSION DECISION of 4 December 1992 relating to a proceeding pursuant to Articles 85 of the EEC Treaty IV/32.797 and 32.798 — Lloyd’s Underwriters’ Association and The Institute of London Underwriters (Only the English text is authentic) (93/3/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation No 17 of 6 February 1962, First Regulation implementing Articles 85 and 86 of the Treaty (), as last amended by the Act of Accession of Spain and Portugal, and in particular Article 2 thereof, Having regard to the notification and application for exemption and/or negative clearance of 7 June 1989 submitted to the Commission by Lloyd’s Underwriters’ Association and the Institute of London Underwriters of two agreements, namely the Joint Hull Understandings (JHU) and the Respect of Lead Agreement (RLA), Having regard to the Commission Decision of 1 October 1990 to initiate proceedings in this case, Having regard to the summary of the application and notification published () pursuant to Article 19 (3) of Regulation No 17, After consulting the Advisory Committee on Restrictive Practices and Dominant Positions, HAS DECIDED AS FOLLOWS: I. THE FACTS A. The notification (1)  On 7 June 1989 the Institute of London Underwri- ters (ILU) and Lloyd’s Underwriters’ Association (LUA) formally notified to the Commission for negative clearance or exemption two Agreements referred to as the Joint Hull Understandings (JHU) and the Respect of Lead Agreement (RLA). This formal notification was preceded by an informal notification and submission in relation to both Agreements by letters dated 7 July 1988. The noti- ( OJ No 13, 21. 2. 1962, p. 204/62. O] No C 87, 8. 4. 1992, p. 4. @ B©) @ ® (6) fied Agreements relate to marine hull and machi- nery insurance. B. The associations of undertakings The ILU is an association of insurers (underwriters) offering marine and aviation insurance in London. Founded in 1884, it provides the usual functions of a trade association including various administrative support services for members. It has approximately 112 members of which 50 % are British-owned companies. The other half comprises subsidiaries or branches of companies from around the developed world. Lloyd’s of London is an incorporated society of private underwriters who provide an international market for almost any type of insurance. It has a premium income of approximately £ 6 000 million per year. Three-quarters of this business comes from outside the United Kingdom. Policies are subscribed by private individuals whose liability is unlimited. There are currently some 31 000 members who are grouped into some 400 syndi- cates. A specialist underwriter agent accepts busi- ness on behalf of each syndicate. Members may join more than one syndicate. LUA was founded in 1909 and represents all Lloyd’s syndicates which handle marine business, of -which there are approximately 230. The two Associations operate a number of joint committees whose purpose is to monitor topics of interest in particular fields and which brings together specialists in each field. One of these committees is the Joint Hull Committee (JHC) referred to below. The JHC comprises 16 people drawn in equal numbers from the LUA and ILU. The JHC'’s raison d’étre is to consider matters of market interest and to develop and administer the two notified Agreements — the JHU and RLA. ILU and LUA represent the vast majority of underwriters active in marine insurance in London. Together, they account for approximately 90 % of the United Kingdom’s total marine insurance capa- city, the remainder being provided by a few compa- nies outside the two Associations.