North P&I Club and the Standard Club have defended their proposed merger in response to stinging criticism from broker Wilson Europe’s managing director, Julian South.
The protection and indemnity insurers said they are happy for shipowner members to “come to their own conclusions” about the merger in a vote in late May.
But they pointed out that the deal has been worked through with shipowners from both clubs’ member boards.
Countering South’s claim that the deal represents an acquisition by North P&I, the pair insisted it would be a “merger of equals”, pointing out that they had “different strengths but similar approaches” to the P&I business.
North P&I chief executive Paul Jennings said: “Early engagement from both clubs with their respective memberships around the merger proposal has been really positive, with members overwhelmingly supportive.
“Both clubs are strong and committed advocates of mutuality, and as such the interests of North and Standard Club members are our primary concern in our merger discussions.”
South said the deal does not appear to offer shipowner members anything in terms of economies of scale from the merged entity, and could set a trend that would endanger the International Group of P&I Clubs.
North P&I and the Standard Club said they are committed to the International Group and the merged entity would offer better service and provide more financial strength and influence.
Exceptional service
In a statement to TradeWinds, the clubs said: “The merged club would be founded on exceptional service, innovation and even stronger financial resilience, offering true global reach and diversified products, creating unparalleled career opportunities and providing a powerful industry voice for shipowners as a committed and supportive member of the International Group.”
Standard Club chief executive Jeremy Grose said: “The shipowner members of both boards have been heavily involved in the process to date and were unanimously convinced that a merger between our two organisations will benefit members when they agreed to proceed with the merger discussions.
“This has been echoed in the many face-to-face meetings I have had with members and brokers over the last few weeks.”
