The Japan P&I Club has confirmed two unbudgeted supplementary calls for its mutual shipowner members related to losses from prior policy years.

Following its board meeting in November last year the club appointed a managerial committee to decide on supplementary calls for the 2020 and 2021 policy years.

The committee has now set a 25% supplementary call for each of the two years which will be billed on 31 March.

“The managerial committee reviewed the expected ultimate loss for the year and found it is worse than their expectation in November 2022,” the Japan Club said in a statement.

The insurer said no further supplementary calls are expected.

The insurer's finances have been hit hard by losses related to its coastal trade business.

The loss of the 11,454-gt ro-ro Byakko (built 2020), which sank after colliding with the 3,497-dwt tanker Ulsan Pioneer (built 2016) near Imabari City in 2021, was a costly one for the club.

Last year S&P Global Ratings downgraded the Japan Club to BBB with a stable outlook after its free reserves dropped following a difficult claims year.

The International Group of P&I Clubs requires a minimum BBB- rating for membership.

The Japan Club has been taking action to make sure its S&P rating improves and does not drop any further.