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 Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Ship Management Says Concerned for Crew After Iran Fires Shots

Rickmers Shipmanagement, the Singapore-based company that has chartered the Maersk Tigris, said Iranian officials fired warning shots at the container ship and boarded it on Tuesday.

Videotel Training Film Wins Media Award

Videotel, the international provider of e-Learning maritime training solutions and a company of KVH Industries, Inc., has received a Golden Reel Award from the

EBDG Remembers James A. Cole

Fishing vessel expert and award-winning author, leaves legacy of excellence   EBDG announced the passing of Jim Cole. Over the span of a half century, Jim distinguished

Finance

Committee to Consider Coast Guard Authorization Bill

The U.S. Committee on Transportation and Infrastructure, chaired by U.S. Rep. Bill Shuster (R-Pa.), will mark up legislation this week that authorizes United States

Med Crude-Urals Stronger in Baltic as Surgut Sells Cargoes

Russian Urals crude price differentials strengthened in the Baltic in a spot tender on Tuesday after loading schedules confirmed scarce export volumes for May.   There

Canada Invests In Port Lambton Rescue Station

Inshore Rescue Boat Station upgraded as part of federal infrastructure commitment   On behalf of the Honorable Gail Shea, Minister of Fisheries and Oceans, Pat Davidson,

Vessels

Tank Coating for Navig8 Chem Carriers

Shipowner Navig8 is progressing the application of Interline9001, a advanced cargo tank coating from AkzoNobel’s International marine product range, on a series

Iran Detains US Cargo Ship in Gulf -Al Arabiya

Saudi-owned Al Arabiya television said an Iranian "force" seized a U.S. cargo ship after opening fire on it in the Gulf on Tuesday and directed it to the Iranian port of Bandar Abbas.

Damen Launches First of Two Ro-Pax Ferries

Eighty-meter ice class Ro-Pax ferry MV Veteran was recently launched by Damen Shipyards Galaţi in Romania, the builder announced today.   The vessel represents the first of a two-vessel contract,

Insurance

London P&I Club Issues Recommendations on Bauxite Cargoes

The London P&I Club has issued a list of recommendations to owners contemplating the carriage of bauxite cargoes in the wake of renewed concerns about the dangers

Shipoweners Warned to be Prepared for Migrant Rescues

The North P&I club has warned its shipowner members of the need to be properly prepared to meet their moral and legal obligations to rescue migrants at sea. In

Lagos Port Drags on Africa's Top Economy

Ruling party reforms improved Apapa port; shippers still face delays and corruption. The road leading to the Lagos port, which handles nearly everything that Africa's biggest economy imports,

 
 
Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.1656 sec (6 req/sec)