The Shipowners' Club Pegs Premium Rise

Press Release
Friday, October 12, 2012

A developing trend in the number and quantum of higher value claims has led the smaller tonnage specialist the Shipowners’ Club to announce a general increase in premiums of 5% from 20th February 2013.

In its half-yearly report published today, Shipowners highlights the continuing growth in the Club.  This is a reflection of fleet growth and the purchase of extended cover by existing Members, and the addition of new Members throughout the six month period. Despite there being no general increase for the current year, earned premiums for the period are up by 4.4% compared with 2011 and entered tonnage is up by a similar percentage (4.3%).  

This growth has been carefully controlled and the performance for the period has remained strong with an underwriting surplus of USD 9.8 million representing a combined ratio of 90%.  

The Club’s investment strategy is providing satisfactory results with both bond and equity portfolio returns ahead of expectations and a total return on investments of USD 6.1 million.  This has contributed to an overall surplus for the six months of USD 15.6 million, increasing free reserves to USD 250.4 million.  

However, a trend which began in 2011 is evolving more strongly in 2012.  Once fully developed, it is anticipated that the 2011 claims position will show a 10% increase in the cost of claims per ton as compared to 2010. This trend has continued through the first half of the current year with claims in the higher value range (USD 1 million to USD 5 million) increasing significantly in frequency against  the same period in 2011.

This pattern of claims makes it necessary to impose a general increase of 5% on premiums at the next renewal to ensure that the Club’s strong operating performance continues in 2013.

Commenting on these results, Shipowners’ Chief Executive, Charles Hume said, “While we are happy to see the continued growth in the Club as indicated by increases in both earned income and tonnage, we must also react to the trend of rising claims.  In addition to our own retained claims we must anticipate an increase in the cost of our reinsurance programme and the Directors have therefore decided that there should be a 5% increase in premiums, which will include any additional reinsurance cost.

“We appreciate that operating conditions remain difficult for many of our Members but we must ensure that the Club’s premium income and claims remain in balance.  We are confident that our Members will recognise the importance of maintaining the Club’s financial security into the future,” concluded Hume.

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter February 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

Paragon Offshore to File for Bankruptcy

Paragon Offshore Plc said it will file for Chapter 11 bankruptcy on or before Feb. 14, becoming the first U.S. energy-related company to seek court protection from

Philippines Mulls Bilateral Sea Talks with China

The Philippines may consider two-way talks with China to resolve a territorial dispute in the South China Sea but only if it wins its case with Beijing at an arbitration tribunal in The Hague,

News

Nordana Sea Delivered to Symphony Shipping

After successful sea trials, M.V. Nordana Sea was delivered to Symphony Shipping on February 11, 2016. Constructed by builder Ferus-Smit in the Netherlands (yard number 419),

NATO Ships Arrive in Batumi

This morning, four NATO ships assigned to Standing NATO Mine Counter-Measures Group TWO (SNMCMG2) arrived in Batumi, Georgia for a scheduled visit in an effort

US Oil Drillers Cut Rigs to Least in 6 Years

U.S. energy firms this week cut oil rigs for an eighth week in a row to the lowest levels since January 2010, data showed on Friday, as energy firms continue to

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pipelines Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | 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: 0.0794 sec (13 req/sec)