The decision by the Gothenburg based mutual means a quartet of clubs are seeking 2.5% increases making it the most popular choice for the 2015 renewals.
Following a board meeting yesterday the Swedish Club reported a slight rise in claims frequency but this was counterbalanced by a reduction in severity. The club reported a first half surplus of $10.3m and is forecasting an underwriting surplus and a bottom line profit for the full year.
The 2.5% increase is less than market expectations but reflected “a genuine boardroom debate” about the need to support members in a difficult freight market and the increase that would otherwise have been sought.
The cost of freight, demurrage and defence (FD&D) from the Swedish Club is to go up by 5% as a result of what the club says is “accelerating inflationary pressure on legal costs.”
A “policy of diversification and responsiveness to the needs of the market is continuing to pay dividends to the club and its members,” he added.
The Swedish Club was the last of the 13 International Group mutuals to decide its renewal strategy.
The average increase across the 12 clubs who set general increases is 3.31% for P&I and across the 11 clubs writing FD&D 2.75%.
Skuld has not set general increases in recent years although members still face rate rises while the UK Club does not write FD&D as there is a sister UK Defence Club.
