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

People & Company News

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

News

Port Workers in Argentine Grain Hub End Strike

Port workers in part of the Argentine grains hub of Rosario lifted a work stoppage on Friday, only a day after they went on strike over demands for higher year-end bonuses, a union official said.

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

Insurance

DSG Marine Asks Shipowners to Consider Fixed Premium P&I Cover

P&I Insurance Seminar for Owners and Charterers held in Mumbai DGS Marine, a global P&I management provider and exclusive manager for the British European and Overseas (BE&O) P&I Facility,

US Obamacare Impacts the Global Marine Industry

The Affordable Care Act (ACA), otherwise known as Obamacare, the recent healthcare plan in the United States, is affecting the international superyacht industry,

Even 'Small' Vessels are Getting Bigger

The Shipowners’ Club is a mutual provider of P&I insurance that has throughout its 160 year history been dedicated to serving owners of small and specialist ships.

P&I Clubs

DSG Marine Asks Shipowners to Consider Fixed Premium P&I Cover

P&I Insurance Seminar for Owners and Charterers held in Mumbai DGS Marine, a global P&I management provider and exclusive manager for the British European and Overseas (BE&O) P&I Facility,

Even 'Small' Vessels are Getting Bigger

The Shipowners’ Club is a mutual provider of P&I insurance that has throughout its 160 year history been dedicated to serving owners of small and specialist ships.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Port Authority Salvage Ship Electronics Ship Repair Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2793 sec (4 req/sec)