Eagle Ocean Marine Grows Market Share

Maritime Activity Reports, Inc.

July 20, 2015

Joe Hughes, Chairman and CEO of Eagle Ocean Agencies, Inc. (Photo: EOM)

Joe Hughes, Chairman and CEO of Eagle Ocean Agencies, Inc. (Photo: EOM)

Robust development of recent years supported by strong operating results: Mutual club pedigree enhances Insurer’s stature in fixed premium sector
 
Eagle Ocean Marine (EOM), the specialist fixed premium P&I and FD&D (Freight, Demurrage and Defense) facility underwritten by the American Club, has reported a solid fourth year of operations, and a strong start to its fifth year of activity, following the successful renewal of its quota-share and excess of loss reinsurances with Lloyd’s underwriters as of July 1, 2015.
 
Over the past year, tonnage insured by Eagle Ocean Marine grew by nearly 20 percent over the figure for the previous twelve months, on a premium income of over $6 million. In addition, steadily rising levels of inquiries and orders indicate a promising outlook for EOM’s future development, despite strong competition in the sector.
 
At the operating level, EOM has continued to perform very well. Both the incidence and severity of claims has remained low, reflecting a prudent policy of risk selection and premium pricing. Results to date indicate a cumulative combined ratio of below 70 percent, connoting strong profitability for the Club and its reinsurers. This, together with confidence in EOM’s prospects generally, informed the recent renewal of the facility’s reinsurances which were completed on positive terms.
 
EOM supplies P&I and FD&D cover for the operators of smaller ships in local and regional trades. Providing P&I cover of up to $500 million per risk, it is aimed at owners who do not require, owing to the characteristics of their trade, the high limits of cover provided by the mutual system, and who prefer a fixed premium approach to their insurance needs. 
 
EOM insures ships from all over the world except the United States. More than 70 percent of its business is derived from Asia, with the remainder originating for the most part from Europe, Latin America and Africa. The facility’s tonnage by vessel type is broadly based, made up of tankers, general cargo vessels, bulk carriers and tug and barge business in approximately equal shares.
 
Speaking in New York recently, Joe Hughes, Chairman and CEO of Eagle Ocean Agencies, Inc. which operates the facility, was upbeat: “We are very pleased that Eagle Ocean Marine continues to do well. Its recent years’ results have been excellent: premium income, market share and operating results all continue to exhibit a positive trajectory, and augur well for the future. The recent increase in the limit of cover available under the facility to $500 million will continue to make it an attractive option to those who prefer a fixed premium solution to their P&I needs. We are determined to make EOM a growing success for all its stakeholders: its insureds, the Club, its reinsurers and its many other business associates.
 
Hughes added, “We continue to take the long view when it comes to developing market share. The EOM business model is based on careful risk selection, sensible pricing, effective loss prevention and unsurpassed claims service. It is inspired by the traditions of classic P&I mutuality. EOM seeks to occupy a special place in the fixed premium sector for those who desire a gold standard of service. We are confident that EOM will enjoy increasing success over the years ahead.”
 
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