The modest increase reflects tough times facing many shipowners and a continuing benign claims environment that helped the second biggest of the P&I clubs to an $11m first half surplus.
The rate rise is balanced by a 2.5% premium discount on the 2014 policy year.
The strategy agreed by the club’s shipowner directors is similar to that adopted by the Britannia Club which is also going for a 2.5% general increase but reducing the deferred call on an earlier year by 2.5%.
The smaller and financially needier London Club is however seeking a 5% general increase.
“The 2.5 per cent general increase highlights the board’s determination to maintain a highly disciplined approach to underwriting to secure the long term stability of the club,” said UK Club chairman Alan Olivier of South Africa’s Grindrod group.
“The Board is equally determined to support our members in challenging economic conditions,” he added, “we are pleased, given our strong capital position, to be able to reduce the premium on 2014, which was a good year for the club.”
The ‘A’ rated UK Club insuring a 225m gross ton fleet of owned and chartered vessels reports that its free reserve and a subordinated loan that qualifies as hybrid capital stood at $559m at the 20 August mid-year.
This compares to $548m at the 20 February start of the P&I year so it appears there has been a half year surplus of $11m.
“A benign claims environment in 2014 and 2015 has enabled the club to deliver another year of good results,” said Hugo Wynn-Williams the UK Club’s chief executive.
