Norwegian protection and indemnity insurer Gard claims to have made substantial tonnage gains at this year’s policy renewal.
The Arendal-based mutual appears to be reaping the benefit of its policy to return cash to members and is attracting business from other P&I clubs.
Gard said it had won an additional 17m gt in the last policy year, with the majority coming during the 20 February renewal.
Gard’s total mutual P&I tonnage amounts to 246m gt. It said 99.4% of its existing members were retained at renewal.
Bjornar Andresen, Gard's chief underwriting officer, said: "The key theme of this renewal was consolidation. We saw many owners shifting more, or all, of their fleet to Gard to benefit from the financial strength and predictability that we offer.
"We have achieved a record amount of new business at renewal at prices that achieve a good balance between owners’ needs and underwriting profitability. We are delighted that the consistency we deliver in terms of our product, pricing and service is appreciated both by existing and new members.”
In the last policy year, Gard said it would return $18m in total to members and a further $18m to renewing members this year.
It has a policy to return cash to members if it exceeds its financial targets for the year.
Chief executive Rolf Thore Roppestad recently said: “If the performance is better than expected, then it is an opportunity to return money."
Gard has a policy of running its P&I mutual business at a small underwriting loss, which is subsidised by investment income and alternative income streams, such as its hull and machinery insurance business.
The mutual is one of a few clubs in a financial position to return cash to members during a difficult time for P&I rivals, which have been hit by a high level of claims and declining premiums. Other clubs to return cash to members include Steamship Mutual and Britannia P&I.
Gard is the largest of the 13 members of the International Group of P&I Clubs. It generates a gross written premium of $900m per year, with 500 staff operating from 13 offices around the world.
