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 Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Shipping Turns From Banks to Equity Markets for Cash

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

Canaveral Tops State List for Sand Bypass Funding

The Canaveral Harbor Inlet Sand Bypass Project has earned the top state ranking for 2014/15 inlet management funding. As a result, Port Canaveral is expected to receive $100,

Rotterdam port's throughput almost stable

The Port of Rotterdam’s throughput in the first quarter of 2014, at 109 million tonnes, was 0.2% below the level for the corresponding period last year.Split up by goods type,

News

Crewman Claims Ferry Captain "Rushed Back To Bridge"

The captain of a South Korean ferry that capsized two days ago rushed back to the bridge after it started listing severely and tried in vain to right the vessel,

Canaveral Tops State List for Sand Bypass Funding

The Canaveral Harbor Inlet Sand Bypass Project has earned the top state ranking for 2014/15 inlet management funding. As a result, Port Canaveral is expected to receive $100,

Rotterdam port's throughput almost stable

The Port of Rotterdam’s throughput in the first quarter of 2014, at 109 million tonnes, was 0.2% below the level for the corresponding period last year.Split up by goods type,

Insurance

InterManager Welcomes New Protection for Seafarers

InterManager said it welcomes the adoption of new measures to protect seafarers against abandonment. Amendments to the Maritime Labour Convention 2006, agreed

S.Korean Ferry Master Faces Investigation

The captain of the South Korean ferry that capsized off the southwest coast was facing a criminal investigation on Thursday, an official said, amid unconfirmed

South Korean Ferry Incident Update

Almost 100 ships, 18 helicopters involved in rescue; as many as 340 people from one school thought to be on board. Accident may be South Korea's biggest in 20 years.

P&I Clubs

S.Korean Ferry Master Faces Investigation

The captain of the South Korean ferry that capsized off the southwest coast was facing a criminal investigation on Thursday, an official said, amid unconfirmed

South Korean Ferry Incident Update

Almost 100 ships, 18 helicopters involved in rescue; as many as 340 people from one school thought to be on board. Accident may be South Korea's biggest in 20 years.

Ultra Deepwater Rig Towed 11,500 Miles

Fairmount Marine towed Sevan Louisiana to Curaçao Tug Fairmount Sherpa towed rig Sevan Louisiana safely from Singapore to Curaçao. During the 11,500 miles voyage via Cape of Good Hope,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Pod Propulsion Port Authority Ship Repair Ship Simulators 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: 0.0976 sec (10 req/sec)