Protection and indemnity mutual Britannia P&I will reward members with a $10m dividend despite falling into the red in the latest financial year.
The London based insurer said it recorded a loss of $9.3m in the 2018/19 year which ran to 20 February 2019. The loss included an investment deficit of $2.6m.
Britannia also had a large number of high cost claims, with 18 claims over $1m compared to 13 in the previous year.
It also had to consider a “significantly higher number” of International Group of Protection and Indemnity Clubs pool claims, which are shared among the members of the group.
Despite the loss Britannia said it would continue to return $10m in cash to members.
It has already paid back members $70m in dividends over the past two years.
The club can afford to continue to return cash to members because its financial position remains in a healthy state with reserves of $391m and a further $197m held in its other investment arm Boudicca.
Britannia chairman Nigel Palmer said the club maintained an A grade S&P rating with a AAA rating for capital and exceptional liquidity.
Palmer said: “That strength allowed for robust decisions by the board, including declaring a nil general increase for both P&I and FD&D calls for 2019/20 - for the third and sixth consecutive year respectively -, a further $10m capital distribution and improved Freight Defense & Demurrage (FD&D) terms.”
