Japan P&I Club’s 2021 year earnings have been hit by a historic high in claims in its domestic coastal insurance business, known as Naiko Class.
The Tokyo-based mutual said claims in its coastal line of business were the “highest in the history”.
The club also saw an increase in claims for its ocean-going international business, partly due to Covid-19.
Net claims increased by ¥4.39bn to ¥17.64bn ($130m) in 2021.
After a 10% general increase, the Japan P&I Club achieved a ¥1.84bn increase in premium on the previous year to ¥16.81bn.
The claims increase was partly offset by an increase in investment income of ¥70m, to ¥3.39bn.
Almost all other P&I clubs have reported an investment loss in 2021.
The net result was that the Japan P&I Clubs reported a deficit of ¥410m, and the club’s free reserves fell by ¥4.87bn.
The Japan P&I Club is modernising its business by adopting a more flexible investment strategy and a more diverse client base outside Japan.
The Japan P&I Club said: “We have developed a new management plan consisting of long-term, medium-term and short-term plans for the current year, and set a long-term mission to protect the interests of the members and to promote the sound development of the association.
“We keep working on current priorities and urgent issues to achieve stable profitability.”
