Cyprus-based American Hellenic Hull has reported dramatic growth in premiums and profits over recent months with January proving particularly strong.

American Hellenic said it has recorded a 16% year-on-year growth of insured tonnage with 2,636 vessels now covered.

The insurer said that between November 2019 and January 2020 its underwriting income had jumped 45% and it had achieved a combined ratio of 88.6%, which illustrates it is making an underwriting profit.

American Hellenic chief executive Ilias Tsakiris said: “The new year begins with a record breaking January in terms of premium.

"As we charge full steam ahead into the new decade, we stand ready to face a wide range of challenges in the marine insurance industry. American Hellenic’s upward trend will continue and our vision is to turn the fastest growing hull and machinery insurance company into the market’s global leader.”

The company said its assets had also increased by 6% in January. It said its current assets are 4.85 times its liabilities and represent 3.4 times the total amount of open claims, including all technical reserves.

About half of American Hellenic’s total liabilities are covered by cash and short to medium-term investments in US Treasury bills.

American Hellenic is a subsidiary of US protection and indemnity insurer the American Club.

It set up in business by taking over the book of the former Hellenic Hull Mutual Association in 2016.

However, it has been hit by losses which Tsakiris put down to start-up costs associated with the strict Solvency II requirements.

In September last year, Tsakiris told TradeWinds he predicted this year would see the company turn back into profitability as marine hull rates improved.

He said: “We expect this year the company to be profitable as it was planned. We look to be spot on with our predictions,” he explained.

“We have seen that Lloyd’s [of London] has decided to cut down on losses and that has had a knock-on effect in terms of insurance rates in the world market.

“I see good signs. Insurance premiums are now more correct to the risk and should allow underwriters to return some profit.”