Protection and indemnity insurer Britannia P&I has reported a net loss for the 2021 financial year after a significant rise in claims and costs.

The London-based club reported a $25m net loss for the year running from 20 February 2021, compared with a net surplus of $36.9m in the previous year.

The losses came after net claims increased to $142.8m, compared with $118.2m in the 2020 financial year.

The P&I club’s operating expenses also increased to $38.8m from $32.5m.

Britannia’s investment income reduced to $13.4m from $58.9m.

As a result of the deficit, Britannia’s free reserves fell by $50m to $398.8m. But assets in its Bermuda-based reinsurance arm Boudicca increased from $177.8m to $189m.

In a more positive development, Britannia’s mutual entered tonnage increased from 125.2m gt to 134.7m gt, and ships under charterers’ cover increased from 53.5m gt to 73.5m gt. The club’s entered tonnage now stands at a record high.

Commenting on the results Britannia chief executive Andrew Cutler said: “Britannia is also enjoying continued growth, thanks predominantly to the loyalty of members, with entered tonnage at a record high. Reflecting this growth, the managers continue to invest across all functions and in all of its regional hubs.”

In a separate development, Cutler is set to take over the chair of the International Group of P&I Clubs from North P&I Club chief executive Paul Jennings later this year.