Tom Bowsher is plotting a new West of England diversification strategy just two years after he was appointed as the protection and indemnity sector’s youngest chief executive.
The 40-year-old has already made his mark by going against the tide and making the West of England the only P&I club to go through with a general increase ahead of this year’s renewal talks.
He was seen as someone ready to make hard decisions, even at the risk of losing tonnage, if it is for the longer-term benefit of the club.
As things turned out, figures suggest the decision was the right one. Despite the premium hike, the West of England increased its mutual fleet to 90 million gt after the 20 February renewal, even though it had to release Iranian tonnage from its roster last year in response to international sanctions.
Bowsher said he was even complimented on the move by some rival clubs, which were cautious about pushing on with a general increase even though underwriting performance indicated that rates should be rising.
“Premiums in the industry are at unsustainable levels, so this was not a year for rapid tonnage growth,” he reflected on this year’s renewal.
Moving headquarters
The next move Bowsher has in store is to relocate the club from its current headquarters at the southern end of Tower Bridge to the heart of the City of London.
He also revealed that the West of England, which is one of the P&I world’s more traditional and mono-lined clubs, is exploring ideas for diversification.
He said it is critical that such changes are intended to benefit members. One criticism levelled at P&I diversification moves is that they are often aimed at benefiting third-party managers rather than a club’s members.
But Bowsher emphasised that the West of England’s management company is owned in-house.
He is not ready to reveal the nature of the diversification under consideration, but is keen to find something that complements the club’s internal expertise.
That would hint at perhaps a move into other areas of marine insurance, although Bowsher said it is not a certainty. “We won’t be opening a hull syndicate next week,” he told TradeWinds, indicating that not all marine insurance markets are attractive to the club at the moment.
Bowsher said the West of England is in good financial health, with the last reported free reserves of $308.5m earning it a AAA credit agency rating for another year. It has also recorded positive investment returns for the past five years.
He pointed out a conservative investment strategy, in which no more than 15% is invested in equities, means the club is unlikely to suffer significant losses from the downturn in global stock markets.
