Protection and indemnity insurers are expecting their underwriting performance to improve after a second year of rate increases at the recent February policy renewal.
The Standard Club forecasts its combined ratio, which reflects its underwriting performance, will improve to 105%, for the year to 20 February 2022, based on rate rises achieved in its 2021 renewal.
The club said at the latest 2022 renewal its insured fleet had grown by 11m gt to 158m gt as it pushed through a 10% general increase in rates.
Jeremy Grose Chief Executive said: “We are pleased to have such a strong endorsement from our members in a very competitive market. Our strategy of attracting carefully selected tonnage across all areas of the business continues to pay off. We are an extremely diversified club and I am particularly pleased to see growth in our offshore, European, Asia and International divisions.”
P&I club earnings have been hit by two years of high International Group of P&I Club pooled claims added to the emergence of Covid-19 related claims.
Norway’s Skuld did not release figures, but chief executive Stale Hansen said he was happy with the increase in premium at renewal, and its impact on the club’s financial strength. “Our necessary market adjustment has been achieved, catering for significant increases in the severity of pool and large claims, further securing Skuld’s strong financial position,” he said.
The UK Club described its renewal as “outstanding”, with its mutual P&I fleet now standing at 150m gt, and the combined mutual and chartered fleet at 250m gt.
Financial stability
“We are pleased that our financial stability, claims management and service continue to be attractive to our members and it has been an outstanding renewal for the UK Club as we continue to focus on disciplined underwriting and quality risk selection,” said chief executive Andrew Taylor.
Steamship Mutual said it had achieved a 4.8m gt increase in tonnage following the renewal and its mutual P&I business has grown to 110m gt.
Chief executive Stephen Martin said the club had managed to expand despite limiting additions to low risk tonnage. “The club’s entered tonnage has increased notably in Japan, China, Norway and Greece, whilst at the same time the managers remained very selective when considering new business,” he said.
