NorthStandard has announced the completion of arrangements for the International Group’s general excess of loss reinsurance (GXL) contract for the 2025/26 policy year.
The reinsurance structure remains largely consistent with the 2024/25 program, with individual club retentions set at US$10 million and the GXL attachment point maintained at US$100 million.
The 2024/25 policy year saw an increase in pool claims activity, including the Baltimore Bridge incident, following two quieter years. Combined with an active hurricane season, this has resulted in higher reinsurance premiums.
NorthStandard provided details of rate adjustments for the 2025/26 policy year. Rates for persistent oil tankers have been set at US$0.625 per gross tonnage, reflecting a 1.5% increase. Clean tankers will see rates of US$0.433 per gross tonnage, up 8.9%, while dry cargo vessels will pay US$0.605 per gross tonnage, representing a 3.3% rise.
FCC vessels will experience a 23.6% increase, with rates at US$0.890 per gross tonnage. Passenger vessels will see rates set at US$3.439 per gross tonnage, an increase of 1.6%. Members carrying persistent oil to or from US ports or the US Exclusive Economic Zone will continue to benefit from zero additional premiums.
NorthStandard also confirmed that the group’s Bermuda-based reinsurance vehicle, Hydra, has been instrumental in mitigating the full impact of these market increases.
NorthStandard’s reinsurance program includes three layers of GXL cover providing a total of US$2 billion in excess of US$100 million, along with a US$1 billion collective overspill cover. The placement of 25% of Layer 1 continues through private market arrangements, while the remaining 75% of Layer 1 and all of Layers 2 and 3 are placed in the open market.
Cover for malicious cyber, COVID-19, and pandemic risks is limited to US$1.35 billion in annual aggregated cover for each risk category, while other risks remain covered on a free and unlimited basis.
Hydra will retain an annual aggregate deductible of US$107.1 million in Layer 1, the same as last year. Other placements, including the oOverspill cover, have been renewed with premiums factored into the overall rate per gross tonnage.
NorthStandard confirmed that the 2025/26 program will harmonize premium instalment dates for mutual P&I and FD&D classes. For mutual P&I, payments will be due in three instalments on April 1, Aug. 1, and Nov. 1, 2025.
FD&D premiums will be due in a single instalment on June 1, 2025. Release calls for the 2025/26 policy year remain at 12.5%, consistent with the previous year.
The group has also renewed its Maritime Labour Convention (MLC) reinsurance cover and excess war P&I cover for 2025/26. Due to the ongoing conflict in Russia and Ukraine, territorial exclusions for vessels trading in those waters remain in effect.
To address these exclusions, the group has purchased aggregated sub-limited cover of US$100 million for risks related to Russia, Ukraine, and Belarus.
Following the merger that created NorthStandard, the Standard Club Ireland DAC remains in run-off. Members insured by this entity will transition to NorthStandard EU DAC from Feb. 20, 2025, as part of the group’s ongoing reorganization.
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