Shipowners’ Club Keeps Premium Rise to a Minimum

MarineLink.com
Thursday, October 31, 2013

Despite a continued upward trend in the cost of claims and additional reinsurance costs, The Shipowners’ Club, P&I insurance provider to the smaller and specialist vessel sector, is to raise premiums by just 5% for the 2014/15 renewal.

Announcing its half year (2013/14) financial results Shipowners, which minimized its premium rise at the last renewal to a market low of 5%, will keep next year’s increase to a similar small rise. In the P&I Club’s Half-year Report, issued yesterday, Chief Executive Charles Hume stated, “We appreciate that any increase is unwelcome and we recognize that it is necessary to achieve a balance between ensuring the long-term financial security of the Club and recognizing the financial challenges faced by many Members in the current economic climate. As Members and brokers will be aware, our track record of general increases is the most competitive in the market and we intend to keep it that way.”

Highlighted in the half-year report is the continued growth in both premium and tonnage entered in the Club. In the first six months of the trading year earned premiums are up some 11.5% at $120.3 million, of which $5 million represents new business over the same period, when compared to the previous year. Vessel tonnage entered stands at 24.47 million GT, an increase of 18.6%.

As indicated, though, claims are also trending upwards both in frequency and value, net of reinsurance. There was particular volatility in the second quarter with the impact from claims within the $1-5 million band having the most effect.

Charles Hume noted that these trends were consistent with reports from the market in general. “We will be monitoring the claims position for the third quarter very closely,” he commented.

The report shows that the Club remains in a strong financial position with a surplus of $1.1 million for the first six months and an increase in capital and free reserves to $276.7 million. The combined ratio for the period is 98.4% against 95.5% for the full 2012/13 year; excluding some small improvements in back years the pure year combined ratio is 100.6%.

Hume continued, “The 5% general increase continues to include the increased costs of reinsurance. It is inevitable that these costs will rise again and, uniquely within the International Group, the Club is absorbing them within the general increase. We intend to utilize the Club’s very strong capital position for the benefit of the membership to ensure that the likely increase in reinsurance costs is mitigated.”

“We place the utmost value on the long-term relationships that we develop with our Members whose financial interests, we believe, are ultimately best served by the stability and continuity of entry with the Club,” concluded Charles Hume. “In turn we thank both our Members and their brokers for their long-standing support.”
 

Maritime Today


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

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

People & Company News

Shipping Must Disclose or Risk Being Exposed - Moore Stephens

International accountant and shipping adviser Moore Stephens says the shipping industry must adopt a transparent, proactive approach to corporate governance or

No Clues on Hanjin's Financial Health

Cash-strapped Hanjin Shipping Co. sources say that the negotiations with tonnage providers for lower rates are undergoing, but wouldn't say much else.   According to Korea Herald, the country's No.

DP World's H1 Volumes Rise

Ports operator DP World reported on Tuesday first-half 2016 gross container volumes up 1.2 percent on a like-for-like basis and up 2.5 percent on a reported basis.

News

Oil Spills from VLOC in Strait of Malacca

Berge Bulk Maritime confirms that an its VLOC (Very Large Ore Carrier)  “BERGE BUREYA” – (IMO/LR # 9297539) operated vessel was involved in an oil spill incident

Damen Presents Decommissioning Vessels Concept

Damen Shipyards Group has announced its latest concept design: the Damen Decommissioning Series. The vessel will specialize in three core areas of the oil and gas

Shipping Must Disclose or Risk Being Exposed - Moore Stephens

International accountant and shipping adviser Moore Stephens says the shipping industry must adopt a transparent, proactive approach to corporate governance or

Insurance

Panama Canal: Assessing the Risk & Reward

The Panama Canal’s impact on shipping routes and vessel sizes since it opened in 1914 is undisputed. This will continue with the opening of a third channel for larger vessels in 2016.

How to Avoid Claims for Self-cooking Cargo

North P&I Club has advised its members to be extra vigilant during loading and transport of soya beans to ensure they do not get blamed for cargoes that start ‘cooking’ at sea.

ABS Advisory Solutions Integrate ERM

ABS Group anticipated the update to Circular A-123 from the United States (US) Office of Management and Budget (OMB) requiring US executive departments and agencies

P&I Clubs

How to Avoid Claims for Self-cooking Cargo

North P&I Club has advised its members to be extra vigilant during loading and transport of soya beans to ensure they do not get blamed for cargoes that start ‘cooking’ at sea.

 
 
Maritime Contracts Maritime Standards Pipelines Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction 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: 0.1132 sec (9 req/sec)