The New York based club reports a surplus of just over $3m for 2013 compared to a loss of $6m the previous year, lifting the contingency fund to a record $87m as of the end of March.
Although the profit was modest the smallest of the International Group P&I clubs said it had made excellent progress in 2013 with many key indicators positive.
Premium was up 5% over the year although tonnage grew by 10% reflecting the impact of ‘churn’ the fact that competition for new vessels means they pay less than older ships.
Incurred claims were down 22% to just over $65m, the lowest figure for more than a decade.
At a GAAP level the American Club’s free reserve increased 6% in 2013 and by a further 9% in the first quarter of the current year.
The investment portfolio produced a 6.7% return last year with the return so far this year a further 3.8%
American Club chairman Arnold Witte of Donjon Marine said 2013 had been a year of achievement for the American Club although it had proved challenging for both the shipping industry and the P&I clubs.
“Despite an uncertain business climate, the American Club remains well placed to exploit opportunities in the future,” he told the club’s annual meeting.
“Claims exposures continued to develop favourably, premium levels remained firm despite a weak pricing environment, investments performed well, membership grew, free reserves increased, and the club’s service outreach gained further momentum, added Joe Hughes, chief executive of the club’s managers, Shipowners Claims Bureau.
Henry Djuhari of Jakarta based PT Meranti Shipping Jakarta and Craig Reinauer of Reinauer Transportation New York were elected as new directors of the club with the latter replacing Jonathan Wales from the same firm. Steven Scalzo formerly of Foss Maritime was elected as an independent director.
