The combined free reserves of the 12 International Group of P&I Clubs have hit an all-time high of $5.7bn after a bumper year of investment returns, according to a review of annual results by broker Gallagher.

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Free reserves are viewed as a key indicator of the financial strength of the 12 mutual insurers, which cover about 87% of oceangoing tonnage.

A strong year of results for most of the clubs saw free reserves increase by a combined $812.5m, with investment income responsible for about 80% of the total.

“The numbers very much speak for themselves here, as investment earnings recovered strongly from the $520m of negative income in the previous year,” said Gallagher’s 2024 review of protection and indemnity club results.

The market leader with the largest fleet, Gard, has the highest level of free reserves at $1.47bn while American has $59.9m, according to the report.

Free reserves
  • American: $6.9m (2023) / $59.9m (2024)
  • Britannia: $510m (2023) / $549.9m (2024)
  • Gard: $1.26m (2023) / $1.47m (2024)
  • Japan: $205.5m (2023) / $233.7m (2024)
  • London: $113.5m (2023) / $149.8m (2024)
  • NorthStandard: $685.9m (2023) / $799.8m (2024)
  • Shipowners: $337.4m (2023) / $406.8m (2024)
  • Skuld: $444.6m (2023) / $551.4m (2024)
  • Steamship: $454.4m / $540.3m (2024)
  • Swedish: $149.4m (2023) / $176.3m (2024)
  • UK: $430.4m (2023) / $483.4m (2024)
  • West: $231m (2023) / $276.3m (2024)

Market total: $4.9bn (2023) / $5.7bn (2024)

** In aggregate, free reserves have risen to a new historic high level of $5.7bn. The table sets out free reserves at the individual club level.

Gallagher said it expected the results to translate into a market expectation of a 4% to 5% general increase in premiums in 2025.

“The majority of P&I clubs will feel that premium increases can be justified, and some of the markets seem to be talking of closer to 5% to 7.5% at the time of writing,” said Gallagher.

Insurance broker Aon said last month that P&I clubs would struggle to justify increases in annual premiums at next February’s renewal after two years of profits and low claims.

Free Reserves


ClubFree reserve
2023 ($m)		Free reserve
2024 ($m)		Notes
($m)
American63.959.9
Britannia510549.9Capital distribution 10.0
Gard1,260.501,471.30
Japan205.5233.7
London113.5149.8
NorthStandard685.9799.8
Shipowners337.4406.8
Skuld444.6551.4
Steamship454.4540.3Capital distribution 24.2
Swedish149.4176.3
UK430.4483.4
West231276.3
Market4,886.405,698.90

** In aggregate, free reserves have risen to a new historic high level of $5.7bn. The table sets out free reserves at the individual club level.

The combined underwriting result of the 12 clubs was $150m to $160m, the Gallagher figures showed.

The combined ratio across the board was about 97.5%, reflecting an underwriting profit after a relatively benign year of claims.

Seven clubs reported combined ratios under 100% — reflecting an underwriting profit — while five, the American, Britannia, Japan, Swedish and UK clubs, were all above 100%, according to Gallagher’s analysis.

It said that 2024 looked like a busy year for larger pool claims where costs are shared between members of the International Group.

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The prospective impact of claims after the 9,962-teu container ship Dali (built 2015) brought down a bridge in Baltimore is dividing opinion but will not influence the renewal in 2025, said Gallagher. But it could lead to increased reinsurance rates in 2025, it said.

But it added that the overall results were positive and could give considerable price flexibility for the stronger clubs when it came to renewal time.

“We would expect to see a continuation of both capital returns and revenue returns in the forthcoming six months,” said the broker.

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