The Navios Group has parted ways with the London P&I Club in one of the biggest moves at this year’s 20 February protection and indemnity renewal.
TradeWinds understand that Navios, which divides its P&I cover among several clubs, has transferred its London P&I entry over to Norway’s Skuld.
Another major owner to part ways with the London club is its long-time shipowner committee board member International Andromeda Shipping, which has joined NorthStandard.
The departures follow a tough round of renewal negotiations at London P&I. It made a concerted effort to address its underwriting deficit by hiking premiums in line with risk, potentially putting it in an uncomfortable negotiating position with members.
Last year, the London club was forced into making a costly supplementary call on its members.
The biggest mover in terms of volume appears to have been MSC Mediterranean Shipping Company, which transferred around 3m gt of tonnage over to Britannia P&I from North P&I Club and Standard Club.
MSC moved tonnage to maintain its cover among a spread of P&I clubs following the merger of North P&I and Standard Club.
In a similar move, Maersk Line has shifted part of its entry in both North P&I and Standard over to Skuld.
Another container ship giant to move tonnage is CMA CGM, which has shifted its charterers’ cover from Britannia P&I to Skuld.
This year’s renewal was one of the most time-pressured, with negotiations for the International Group of P&I Clubs’ reinsurance policy and Chinese New Year delaying many talks until the last minute.
Gard said that despite the disruptions its P&I book had increased by 17m gt over the past year, with 11m of that increase added during the renewal.
“The late announcement of reinsurance rates from the International Group meant that this renewal went right to the wire as some owners waited to see the full picture before making their final decisions.
“We are delighted that Gard continues to be the preferred insurance partner for a growing part of the world fleet,” said chief executive Rolf Thore Roppestad.
Before the NorthStandard merger, Gard was undisputedly the largest of the P&I clubs.
Gard’s gains added to the emergence of NorthStandard are widening the gap between the mega-mutuals and smaller boutique clubs. Gard’s annual increase this year alone is just short of the size of the American Club’s total P&I book of 20m gt.
However, Gard also appears to have lost as well as gained some tonnage. Brokers suggest a substantial part of its Royal Caribbean Cruises entry has shifted over to compatriot Skuld.
The Japan P&I Club was also under considerable pressure during the renewal after making a supplementary call in the past two policy years on its members.
Brokers said that despite the unpopular move, Japan P&I members have remained typically loyal. However, Mitsui OSK Lines has moved some tonnage out of the club with Skuld benefiting again.
