American Club Reports Progress During 2011

(Press Release)
Friday, June 22, 2012

The American Club reported positive developments during 2011, and into the first half of 2012, at yesterday’s annual meeting of its members in New York. Its business had made steady progress, notwithstanding the challenges which continued to confront the global economy in general, and the shipping industry in particular.

Entered tonnage grew during 2011 but premium levels had been reduced to some extent by the replacement of older, higher-rated vessels with newer ships which typically attracted lower rates in what was a very competitive climate, especially for newbuildings.

Retained claims emergence had been subdued during the early part of 2011, much in line with the benign results recorded for the previous year, but had showed an upward trend in the second half. However, it was noted that 2012 was developing favourably, early results being even better than those of 2010 at the same stage, although the year remained immature.

The level of claims on the International Group’s pool during 2011 was a source of concern. Whether the exposure for the year emerged as an exceptionally adverse singularity, or as part of an inexorably rising longer-term trend, remained to be seen.

The club’s funds under investment generated a return of 3.5% overall during the 12 months to December 31, 2011, a respectable result given the extreme volatility of the capital markets over the period. A measured derisking of the portfolio was undertaken during the second half of the year. 

A modest unrealised loss on investments recorded at year-end of $5.8m had reversed itself during the first quarter of 2012, but had nonetheless eliminated a small operating profit for the 2011 financial year, resulting in a small reduction in members’ equity compared with the figure of 12 months earlier. This stood at $60.2m at December 31, 2011 ($63.6m at December 31, 2010). However, at March 31, 2012, only three months later, the figure had increased to $66.2m, some 10% greater than at year-end.

Moreover, free reserves per ton at the end of the first quarter, being approximately $4.10, were higher than 12 months earlier, and at a level bearing favourable comparison with those of other IG clubs at a similar stage of development.

Speaking at the annual meeting, Arnold Witte, president of Donjon Marine Co., Inc. and chairman of the board of the American Club, said: “2011 was a challenging year for the American Club – as it was for its members who continue to feel the effects of a lethargic global economy and desperately anaemic freight markets. Nonetheless, and with its characteristic energy, the club continued to make progress across a wide variety of areas, operationally, financially and, most importantly, in the provision of service to its members. The club remains optimistic as to its future which continues to hold many exciting prospects.”

Speaking in conjunction with Mr. Witte, Joe Hughes, chairman and ceo of managers Shipowners Claims Bureau, Inc., said: “The American Club did well in all its core constituencies during 2011 despite an extraordinarily difficult economic climate, especially for the shipping industry itself. The club’s business remained steady throughout the period: tonnage and membership grew modestly, pricing remained solid despite some reduction in overall revenue because of the “churn effect”, and retained claims developed in line with expectations. Pool exposures for 2011 were high, but whether this year proves the exception rather than the rule remains to be seen. 

“One of the highlights of the year was a steady growth of the club’s fixed-premium facility, Eagle Ocean Marine. The initiative has got off to a good start, and its early success augurs well for the further development of the club – and in particular its product diversification – over the years ahead. Overall, the progress made during the year, and within the first half of 2012, has provided a firm foundation for future success. We look forward with optimism to the club’s centennial, now less than five years away. And we remain dedicated to the service of our members”. 

 

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Warships Shell Houthis Outside Yemeni City of Aden

Warships shelled a column of Houthi fighters and troops loyal to former president Ali Abdullah Saleh as they tried to advance on the southern port city of Aden on Monday,

Keppel FELS Delivers 11th Jackup to Mexico

Keppel FELS Limited (Keppel FELS), a wholly owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has delivered a KFELS B Class jackup rig to Mexican national oil company,

IMCA DP Proposal to be Basis for Updating IMO Guidelines

The International Maritime Organization (IMO) has agreed to use the International Marine Contractors Association (IMCA) proposals as the basis for the review of

Finance

Keppel FELS Delivers 11th Jackup to Mexico

Keppel FELS Limited (Keppel FELS), a wholly owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has delivered a KFELS B Class jackup rig to Mexican national oil company,

CMA CGM to Add Ships, Pursue More Economies

CMA CGM, the world's third-largest container shipper, announced on Monday plans to order three giant vessels and said higher volumes and profit last year showed

Reopening Date of Libya Oil Ports Uncertain

It is too early to say when Libyan oil ports Es Sider and Ras Lanuf can reopen after a force loyal to a self-declared Tripoli government pulled out troops from frontlines near to the terminals,

Casualties

Amid Yemen Chaos, China Lifts More Oil

China has managed to export a large shipment of crude oil from Yemen over the weekend, ship-tracking data showed on Monday, despite mounting chaos in the country

Scandlines Ferry Back in Service by End June

The damaged Scandlines ferry M/V Prinsesse Benedikte is being repaired at the Polish shipyard Remontowa and is expected to be ready before the end of June 2015.

USCG Flush Ice down River Systems to Facilitate Shipping

The Coast Guard cutter fleet is flushing ice through the Great Lakes river systems to prevent ice jams and facilitate commercial shipping as the shipping season

Insurance

Reopening Date of Libya Oil Ports Uncertain

It is too early to say when Libyan oil ports Es Sider and Ras Lanuf can reopen after a force loyal to a self-declared Tripoli government pulled out troops from frontlines near to the terminals,

Lack of Ship Definition is a Threat to Investors

AKD says the lack of an unambiguous term to describe a ‘ship’ in several jurisdictions represents a potential threat to asset security for financiers, particularly

Swedish Club Reports 'Healthy Growth'

The Swedish Club reported a solid operating result to its board today, continuing a record of building on steady growth. 2014 was seen as a stable year, where the

P&I Clubs

Reopening Date of Libya Oil Ports Uncertain

It is too early to say when Libyan oil ports Es Sider and Ras Lanuf can reopen after a force loyal to a self-declared Tripoli government pulled out troops from frontlines near to the terminals,

Swedish Club Reports 'Healthy Growth'

The Swedish Club reported a solid operating result to its board today, continuing a record of building on steady growth. 2014 was seen as a stable year, where the

Steady Growth Reported by the Swedish Club

The Swedish Club reported a solid operating result to its board today, continuing a record of building on steady growth. 2014 was seen as a stable year, where

 
 
Maritime Careers / Shipboard Positions Naval Architecture Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2240 sec (4 req/sec)