The American Club has reported an increase in incurred losses to $45.9m for its latest financial year after it was hit by a high level of claims from the International Group.
Commenting on the 2018 figures, the American Club said its own claim’s record was the best since 2002 but 70% of the increased claims were attributable to other International Group pool claims.
It said the International Group had seen significantly more claims than normal, which had a material impact on results.
The American Club said its earnings had also been affected by a slump in investment earnings toward the end of the year.
However, there were some positives. It saw new entries to its P&I cover increase by 10%.
The investment market has rebounded and chief executive Joe Hughes said he was pleased with the performance of fixed premium company Eagle Ocean Marine and hull and machinery subsidiary American Hellenic Hull.
Hughes said: “2018 was a challenging year for the P&I world as it confronted a changing landscape of risk.
"Nevertheless, the American Club made progress in several areas. Tonnage grew respectably. Claims for member’s own account were the best since 2002.
"Eagle Ocean Marine continued to prosper. The profitability outlook for American Hellenic Hull showed significant improvement, as market rates moved upward.”
This story has been amended since publication to clarify that the American Club's stated losses are claims related incurred losses rather than bottom line losses
