Disciplined Underwriting Increases UK P&I Club Free Reserves

MarineLink.com
Tuesday, May 14, 2013

The UK P&I Club, one of the largest and oldest providers of mutual liability insurance to ship owners, announced its financial results for the year ended February 20, 2013.

Highlights
•    Surplus of $9.5 million increases free reserves and hybrid capital to new high of $494 million
•    S&P rating upgraded to: A- (Positive outlook)
•    $4.11 free reserves per gross ton
•    Strongest renewal season in recent years, increasing gross tonnage to 120 million
•    Combined ratio of 104%, with a four year average of 100%
•    3.7% investment return of $39.6 million (1.5% in 2012)
•    Total assets of $1.56 billion
•    Club has maintained focus on disciplined underwriting and a balanced book
•    Average cost of claims continues to rise, despite continued low total volume of claims

Dino Caroussis, Chairman of the UK P&I Club, said, “In the year under review, the Club has strengthened financially, increasing its free reserves and capital to $494 million, a new high. Further, in evidence that the Club's strategy of disciplined underwriting is being recognized as achieving results, S&P has upgraded the Club to A- (positive outlook). “This last renewal season was one of our strongest in recent years, with mutual owned tonnage growing to 120 million gross tons, maintaining our position at the top of the P&I market. This increase reflects the Club’s aim to grow with quality tonnage at the right premium rating. “However, the Board is very conscious of the need to strike a sensible balance between the financial requirements of the Club and the needs of Members, in what is a very weak market for most shipping sectors.”

Hugo Wynn-Williams, Chairman of Thomas Miller P&I, the Club’s managers said:, “This is a strong set of results but it does not allow for complacency. The combined ratio for the financial year of 104% is within the Club’s tolerances in the short term, taking into account the current elevated claims environment.  “The increased claims on the 2012 policy year are a warning that, despite weak global economic growth, claims inflation, particularly in the higher value claims, will continue. It is, therefore, essential to maintain a disciplined approach to underwriting in the coming years to achieve the target of a balanced underwriting result over the claims cycle.  “We recognize the economic reality facing ship owners and in addition to our financial strategy, we will continue to help Members reduce their claims exposure through our extensive loss prevention activity.”

Maritime Today


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

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

People & Company News

UASC Shareholding States Vote to Back Hapag-Lloyd Merger

United Arab Shipping Company (UASC) said its six shareholding states backed a merger deal with German container shipping line Hapag-Lloyd AG at a meeting on Wednesday.

List: Top Five UK Ship Owners

Following last week's landmark referendum results, VesselsValue has compiled a list of the top five U.K.-based shipowners and their total fleet value in USD billions.

FMC's Doyle Addresses VGM Rules

U.S. Federal Maritime Commission (FMC) Commissioner William P. Doyle issued a statement on the upcoming implementation of the SOLAS Convention’s verified gross mass (VGM) requirements:   On Friday,

Finance

Oil Up on US Crude Draw; Brent Back Above $50

Oil prices surged 4 percent on Wednesday, with Brent settling above the psychological $50 a barrel mark, after a larger-than-expected drawdown in U.S. crude inventories.

Baltic Index Rises on Greater Vessel Demand

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Wednesday, boosted by demand that is driving rates up across vessel segments.

CMA CGM Crosses 91.05% Ownership Threshold of NOL

CMA CGM S.A has crossed the compulsory acquisition ownership threshold in Neptune Orient Lines Limited (NOL).    Following its all-cash voluntary conditional

Vessels

VLCC Delivered to Gener8 Maritime

Gener8 Maritime, Inc., a U.S.-based provider of international seaborne crude oil transportation services, has taken delivery of the ECO VLCC the Gener8 Constantine on June 27,

Future LCS Charleston’s Keel Authenticated

A ceremony was hosted to celebrate the keel authentication of the U.S. Navy's future USS Charleston (LCS 18), the ninth Independence variant littoral combat ship, June 28.

Hybrid RoPax Ferry Delivered to Royal TESO

Hybrid RoPax ferry Texelstroom has been delivered to Koninklijke N.V. Texels Eigen Stoomboot Onderneming (Royal TESO).   This latest generation symmetrical ferry is powered by efficient,

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pipelines Port Authority Ship Repair 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: 0.2219 sec (5 req/sec)