Bill Milligan News

The Strike Club reported a strong start to its new policy year that commenced on February 1, with continuing demand for its mutual entries and fixed-premium products covering war risks, loss of earnings and profit protection for time-charterers. When the club’s directors met recently in Hong Kong they noted an encouraging renewal rate of 99% among mutual members (by premium) for the 2014/15 year. Further, despite the challenging trading environment, the club continues to maintain its reserves, on a combined basis, at $35m. And the club retains its S&P rating of BBB+ with stable outlook. In Hong Kong, the directors reviewed the future structure of the club in view of the increasing EU insurance regulatory climate under Solvency ll (now delayed until 2016).

The news this week that a longshoremen’s strike had effectively stopped cargo operations at the port of Baltimore, a major hub for foreign car imports into the U.S., underlines a new warning by The Strike Club. Strikes by stevedores continue to dominate the list of perils causing delays, reports the mutual insurer after a recent analysis of its claims files. In the 2012-2013 policy year, they accounted for 16.8%, followed by collision (14.4%), closure of port or sealane (13.6%), and strikes by port workers (also 13.6%). Total net claims for the year were $16.8m, with mutual claims accounting for $12.0m net. A somewhat similar picture emerges from a review of the five-year period 2008-2013: closure of port or sealane (17.2%)…

The Strike Club, an insurer of shipowners and charterers seeking insurance protection against delays in the marine trades, is experiencing a stronger uptake of its covers, whether for mutual entries or for the fixed-premium covers for war risks, loss of earnings (LoE) and bespoke delay risks. LoE business is particularly strong, and the club now offers an increased limit of $4 million each incident (up from $3.375 million). The club, now in its 56th year of trading, has an S&P rating of BBB+ with stable outlook. This was reconfirmed by the rating agency after it announced new criteria for the rating of insurance companies, including 14 marine mutual insurers.

The early months of 2013 have been marked by damaging labor strike action in several countries which has punished shipowners and charterers even though they are innocent parties, says The Strike Club, the market leader for delay insurance for the marine trades. Some of the worst trouble spots in recent weeks have been in South America, particularly Chile where a three-week strike crippled the country’s key ports, blocking exports of copper (Chile is the world’s largest producer of this metal), fruit and wood products. Chile’s business leaders estimated the country lost more than $200 million a day due to the conflict. There has been a miners’ strike in Colombia…

General Increases of 10% and 5% are Maintained for 2013/14 Mutual Entries. The Strike Club, the market leader in the niche area of delay insurance for the marine trades, reports continuing strong demand for its mutual and fixed-premium covers. Shipowners and charterers are boosting the club’s mutual entries as shipping operations are stamped by uncertainty resulting from the widening economic crisis and growing civil unrest, such as the protests by millions against government austerity measures seen in some of Europe’s largest countries last week. All this is fomenting industrial action which can and often does disrupt the maritime supply chain. Bill Milligan, chairman and chief executive of S.C.

The Strike Club has warned that if the looming threat of a stevedores’ strike at 14 ports along the US east and Gulf coasts becomes a reality, it could be the precursor of further labour unrest, not only in the US but elsewhere, with extremely damaging repercussions for shipowners and charterers and, indeed, for the world economy. US seafarers have now joined forces with the stevedores under a new partnership, the Maritime Labour Alliance, which has received a message of support from the International Transport Workers’ Federation, according to media reports. The imminent resumption of critical negotiations between employers and unions will involve a number of questions and demands which must be resolved before the end of this month when the current agreement expires.

Managers of The Strike Club were able to give an upbeat report to the club’s directors when they met in Istanbul. Ongoing increased demand for the club’s various insurance covers has resulted in strong growth and a very positive renewal in February for the 2012/13 year. Further, free reserves rose by $2.5m. during the latest financial year, and the club has maintained its S&P rating at BBB+ with a stable outlook. The mutual renewal was stamped by a 92% retention rate despite the…

General Increases of 10% & 5% are Maintained for 2012/13 Year Mutual Entries. The Strike Club, the market leader in the niche area of delay insurance for the marine trades, reports continuing strong demand from both owners and charterers for its fixed-premium war risks insurance that offers cover to a limit of $200m. This is partly because the club is able to offer a ‘one stop shop’ war risks insurance to cover traditional hull & machinery risks, with tailored extensions as required; for example, loss of hire due to piracy even in the absence of a hull & machinery incident, or charterers’ loss of bunkers resulting from a hijacking etc.