The West of England protection and indemnity mutual has said it will raise premiums by 2.5% at the upcoming February 2020 renewal.

Explaining the increase in a note to members, chief executive Tom Bowsher said that the London-based club is heading for an underwriting loss this year after several years of soft rates and higher-than-expected pool claims from the International Group of P&I Clubs.

Free reserves

However, he also cited an investment return of 3.9% for the year to August and said he expected the club’s free reserves to increase.

He described the club’s capital position as “strong”. West of England has been able to keep its general increase low compared with many of its competitors which have opted to increase rates by 7.5%.

This week, the Japan P&I Club said it would increase rates by 7.5%. The UK P&I Club, the Standard Club, North P&I Club, Steamship Mutual and the London P&I Club also plan to increase rates by the same amount.

For some clubs, the level of premium increase is less clearly defined. Britannia P&I, the American Club and Skuld said they will assess premiums based on individual members’ claims and risk profile. Gard is the only P&I club so far to say it will not increase rates.

Last week, the Shipowner’s Club said it would increase rates by 5%.