Marine mutual NorthStandard and other major insurers anticipate increased premium income this year following a rise in large claims across the global marine insurance sector.
NorthStandard reported an increase in poolable tonnage, closing what it described as a challenging year. The insurer noted a rise in large claims for the year ending Feb. 20, alongside shifts in Asia-Europe shipping routes and an increasing number of tankers operating outside the International Group of P&I Clubs system.
The UK P&I Club stated it attracted new tonnage in 2024, which is expected to result in a slight market share increase. The club cited industry-wide losses as having a significant impact on profitability across the International Group.
UK P&I projected its combined ratio to exceed breakeven by year-end due to the elevated loss activity in 2024. However, the club also forecasted a strong investment return for the year.
Over the past year, the marine mutual insurance sector has faced significant challenges, including major loss events and inflationary pressures, leading to adjustments in renewal rates and premiums.
March last year saw the container ship M/V Dali collide with the Francis Scott Key Bridge in Baltimore, resulting in the bridge's collapse. This incident led to six fatalities and is projected to be one of the largest marine-related insurance losses globally, with total costs exceeding $5 billion.
While Lloyd's of London is on the hook for a loss of approximately £500 million from the event, marine mutuals have faced the brunt of the damage.
Other major loss events for the industry include the superyacht Bayesian sinking off the coast of northern Sicily during a severe storm, a tragedy which resulted in the deaths of seven individuals, including then-chair of Hiscox Jonathan Bloomer.
NorthStandard expects premium income to increase to more than $870 million from $836 million in the 2023-2024 fiscal year. The company anticipates full-year investment returns exceeding 5% despite market volatility early in 2025. The insurer entered four claims into the International Group pool during the policy year.
NorthStandard also applied a 5% general increase for its blue water membership due to changing risks, inflation, and investment market uncertainties.
Gard, another marine mutual, reported an addition of 13.2 million gross tons to its insured tonnage, bringing total mutual tonnage to 298 million gross tons. The Norway-based P&I club said its retention rate reached 99.5%, the highest in its history.
Steamship Mutual reported that owned tonnage increased by 7.8% to 134 million gross tons by the end of the 2024 policy year. The club expanded existing member fleets with tonnage from other International Group P&I clubs and secured commitments for new vessel deliveries.
New members contributed two million gross tons as of Feb. 20, though some tonnage exited due to renewal agreements not being reached.
West of England P&I Club reported premium increases surpassing board targets, with member retention exceeding 99.5% and continued growth at renewals. Mutual tonnage is expected to rise to approximately 110 million gross tons from 100 million.
West of England noted expansion in its fixed and charterers’ books, along with controlled growth in its hull, loss of hire, and delay insurance lines. The club also highlighted the acquisition of Nordic Marine Insurance in January as part of its diversification strategy.
What are your thoughts on this story? Please feel free to share your comments below.
