Newcastle-based North P& I Group reported a “positive” 2016-2017 fiscal year, with free reserves soaring to US$431m.
As of February this year, the marine mutual liability insurer provides P&I, FD&D, war risks and ancillary insurance to 140 million GT of owned tonnage and 50 million GT of chartered tonnage.
The firm’s gross premium income stood at US$429m, according to its Annual Report released last week. Last January, ratings agency Standard and Poor’s increased the firm’s capital strength grade from “AA” (strong) to “AAA” (extremely strong). North’s “A” (stable) credit rating was also affirmed for the 13th consecutive year.
An investment return of 2.8% produced US$25m and an underwriting surplus resulting in a combined ratio of 96%. Following the 5% mutual premium return (approximately US$14m), a small surplus of US$2.4m was achieved.
“The 2016/17 year has been both productive and positive for the Club with significant achievement of strategic aims, combined with continued support from existing Members demonstrating their confidence in the Club’s improved financial stability and long standing reputation for personal service excellence,” said the firm last Thursday.
But North also reported a “negative factor,” to the year, as defined benefit pensions scheme deficits increased. “Members may recall an improvement of US$18 million in 2015, but due to the volatility in UK corporate bond yields, the position has deteriorated by approximately US$30 million, increasing the combined deficit to US$57 million for the North Group.”
Last November, the company opened a subsidiary office in Shanghai in November, working in tandem with the Hong Kong office to support not only the Asian based membership but also the international membership trading in the region.
“After a period of relative consolidation, North has agreed modest growth targets for the next few years,” said North chairman Pratap Shirke. “Controlled growth is a healthy operating strategy for business, but for North this will always be subject to meeting our financial and service targets.”
Related stories:
Global marine provider Skuld reveals “strong” financial results
BMS Group Limited appoints marine division managing director
