Leading marine insurer Gard has said it will increase its annual refund to members who renew their protection and indemnity policy next February.
Renewing shipowner members will get a 10% owners’ general discount on their annual premium, compared to 5% at the previous renewal.
The decision comes following a recent improvement in the financial performance of Gard’s mutual P&I business and a further strengthening of its free reserves which already exceed $1bn.
The decision reflects the recently improved performance of P&I clubs, which have recently experienced lower high-cost claims.
Gard chief executive Rolf Thore Roppestad said he is proud that Gard’s continued financial strength has allowed it to return capital to members for 15 consecutive years, despite a turbulent P&I market.
“The group has performed well for more than a decade, and although there will always be volatility within the different lines of business, our overall result on a group level has been stable relative to our peers,” Roppestad said.
The downside for Gard’s members is that it will also target a 5% general increase in premiums from members next February, primarily driven by the effect of inflation on claims.
Gard said, as usual, it will assess its members on their individual claims performance but added that a general increase is prudent given the cost pressures.
Focus on fundamentals
“We always focus on the fundamentals, and with this adjustment, we continue to offer mutual P&I at competitive prices. As always, our team of underwriters will make individual assessments based on price levels and loss records,” said Gard’s chief underwriting officer Bjornar Andresen.
Earlier, the Shipowners’ Club said it would be targeting a 5% general increase.
Like Gard, Steamship Mutual said it would target a 5% general increase but return 7.5% of annual premium to renewing members.
