Members of the Hellenic War Risks Club will be paying 50% less annual premium for their war risks insurance following a decision by Club Directors to waive the second instalment of the 2013 annual premium.
The Directors’ decision, advised to Members by circular on 31 May, has the effect of reducing 2013 annual rates by just over 50%. Annual premium is payable pro-rata daily, and the second instalment covers the period from July 1 - December 31, 2013.
The rate reduction reflects the Hellenic’s strong financial position. The Club’s Review of 2012 announces a surplus of $13.2 million for the year including investment income, with reserves increasing to $98.4 million. Although additional premium income fell, because of discounts given to Members for Gulf of Aden / Indian Ocean transits where security teams were deployed, reinsurance costs also fell. There was less claims activity and expenditure remained broadly the same as in 2011. By May 2013, reserves had increased to over $100 million.
Andrew Ward from the Hellenic Club Managers, Thomas Miller, commented, “The Directors have consistently emphasised the importance of maintaining financial stability and the Club’s results have strengthened its financial position. Just as important at a time when Members are facing difficult conditions across most sectors of the shipping market, they enable the Club to deliver a significant saving and benefit to Members.”
The Club’s Review of 2012 highlights the fall in pirate activity in the Gulf of Aden and the Indian Ocean. Hellenic Members declared over 3,200 transits of the area during 2012; only one entered ship was seized (compared to four in 2011). It also highlights pirate activity off West Africa. In contrast to the general increase of pirate activity in the area, the number of West Africa claims on the Hellenic in 2012 fell to three: one attack off Nigeria and two off Togo. Commenting on the lower level of claims, Ward stresses that “although the number of attacks and seizures has fallen, the need for vigilance remains as high as ever”