It looks like things have been smooth sailing for the UK P&I Club, which called 2017 “a year of continued progress,” as the marine insurer reported its financial results for the year ended February 20.
“The combined ratio for the financial year was 90%, a very creditable result in the prevailing soft market conditions,” noted the UK P&I Club chair Alan Olivier. “This year’s ratio means that the Club will have delivered an underwriting result at, or close to, our target breakeven 100% combined ratio for the past five years.”
In fact, the marine insurer had an average combined ratio of 99% for the five-year period. Holding free reserves of $540 million, the Club said its combined mutual-owned and chartered tonnage now stands at around 239 million gross tons.
“2017 was a good year for the Club,” stated Olivier. “The underwriting surplus of $28 million was the largest in recent years. This, coupled with a strong investment return of over $43 million, delivered a total surplus of $72 million.”
As for claims, Olivier cited a sustained reduction in claims frequency, as well as a further slide in attritional claims cost to its lowest level in 10 years. The cost of the larger claims above $500,000, meanwhile, was broadly in line with recent trends.
“For the second year in a row, the board elected not to announce a general increase for all members in advance of the renewal,” added the chair. “We were able to do this because of the consistency of our underwriting results and the strength of our capital base.
“The board is very well aware of the state of the shipping market and the need for the Club to deliver the most cost-efficient P&I (protection and indemnity) insurance to the members.”
Thomas Miller P&I chief executive Hugo Wynn-Williams, for his part, highlighted the importance of underwriting discipline. The UK P&I Club is managed by Thomas Miller.
“In looking at our plan for the next five years, we were very conscious that many of the challenges since the financial crash of 2008 remain today,” said Wynn-Williams. “We need to maintain underwriting discipline and to enhance our already strong service offering to the Club’s members.”
