The UK P&I Club achieved $500m in annual income for the first time last year after it took on underwriting for its manager Thomas Miller’s fixed premium businesses.
As earlier reported, from the start of 2022 the UK Club took on Thomas Miller Specialty’s fixed premium companies which include Hanseatic Underwriters, Lodestar Marine, Osprey Underwriting Agency and Navigators.
The club also improved its underwriting performance with a combined ratio of 104% — for the year ending 20 February 2023 — compared with 115% in the previous year.
A combined ratio over 100% represents an underwriting deficit.
UK Club chairman Nicholas Inglessis said: “The improvement in the combined ratio reflects both the improving pricing environment and the club’s disciplined underwriting approach.”
In common with most P&I mutual insurers the UK Club suffered an investment loss last year with its portfolio reducing by 3.8%.
Investment and underwriting losses contributed to a reduction of its free reserves to $430m at the end of the 2022 policy year, compared with $488m in the previous year.
However, the UK Club said it still “comfortably” meets the regulatory requirements and maintains a AAA capital adequacy rating from S&P Global Ratings.
“The club is underpinned by its financial strength and during the year, our regulatory capital ratio increased from 195% to 200%, demonstrating the ongoing resilience of the club’s capital base,” said chief executive Andrew Taylor.
