The American Club, the only mutual protection and indemnity insurer domiciled in the Americas, has revealed very positive overall results for the February 20 renewal season.
Tonnage entered for owners’ P&I risks increased by over 11% year-on-year as at February 20, while that entered for defence risks grew by over 30%. There was an overall premium increase of slightly under 8% for P&I on renewing tonnage, and nearly 6% for the club’s defence class. However, when the monetary value of deductible increases and other adjustments to insurance conditions are taken into account, the target of a 10% increase in premium set by the club’s board for 2014 was very broadly achieved, notwithstanding a continuation of the difficult commercial environment.
In respect of new business as at February 20, tonnage gained exceeded tonnage lost by just under a million tons. Taking this into account, as well as the increases on renewing tonnage described above, year-on-year annualised premium for the P&I class grew by just over 5% as at February 20. This is a very respectable figure given the effect of tonnage “churn” during the 2013 policy year which caused rates per ton to continue a downward trend across the market as a whole.
Speaking in New York earlier today, Joe Hughes, chairman and ceo of SCB, Inc., managers of the American Club, said: “Against a background of only a faltering recovery for global shipping, the 2014 renewal was conducted under difficult business conditions. Nevertheless, it is pleasing to note that the club has made good progress in developing its tonnage and premium base across all its constituencies, welcoming several new members in doing so. The club remains committed to prudent underwriting, careful claims control and effective risk management for the benefit of all its members. It looks to the coming year with optimism, and is dedicated to providing the highest levels of service to its growing membership across the world.”