Standard Club says it achieved a 95% retention rate of existing members at the 20 February protection-and-indemnity policy renewal, despite hiking rates.
The London-headquartered insurer said many existing members had expanded their entries and it had also welcomed new members.
In common with all other members of the International Group of P&I Clubs, it was forced to increase rates at renewal to address increased claims and an underwriting deficit.
There is also an expectation among clubs that investment income, on which they have relied to balance their books in recent years, could be set to fall.
Standard Club expects its financial performance will improve in the current policy year, although it is still forecasting an underwriting loss. But it said the rate adjustment would ensure that it returns to profit in the coming years.
Director of underwriting Mark Collins said: “2020 was a challenging year for all and we have continued to support our members through these difficult times. We, like all clubs, have seen a greater frequency of expensive market losses than predicted, which has had an impact on underwriting.”
He rated this year’s renewal a success after achieving budgetary targets.
“We have successfully completed our renewal in line with the budget set by the board, with a view to returning to break-even underwriting, so we can continue to support our members in the long term,” he said.
