It’s a ‘yes’ for the merger of North P&I and Standard Club, with their respective members giving the go-ahead to the creation of a single mutual insurer to be known as NorthStandard.
“I am pleased to confirm that North and Standard Club members overwhelmingly approved the merger to create NorthStandard at separate general meetings,” stated North chief executive Paul Jennings in a circular.
Meanwhile, in a joint release, North and Standard Club said their consolidated annual premiums amount to around US$750 million, positioning NorthStandard among the biggest providers of mutual maritime cover.
“This is an excellent outcome and a huge moment for our industry,” declared Standard Club CEO Jeremy Grose. “NorthStandard will be a major new force in marine insurance, delivering the resilience members need from their P&I (protection and indemnity) partners to meet the challenges and competitive landscape of a changing shipping world.
“We are delighted that our proposal has received such strong backing from the members of both clubs. For the merger to proceed, it was critical that we secured their recognition of the proposal’s positive outcomes for continued service excellence, as well as the opportunities brought by diversified product lines, scale economies, and global reach.”
The transaction, which is still subject to the required regulatory approvals, is aimed at bringing the unified club to life in time for next year’s renewal date of February 20. NorthStandard will be jointly led by Grose and Jennings.
The latter commented: “North members expressed overwhelming support for the merger based on the tangible benefits for shipowners that the consolidation will bring. Members welcomed the proposal on the grounds that it would reinforce stability and strengthen competition in the P&I sector and encourage innovation and drive further product diversification.
“A larger organization will also attract and retain even more of the best talent to ensure that NorthStandard delivers the highest levels of service and support for members.”
Both part of the International Group of P&I Clubs, North and Standard Club have been providing marine insurance since 1860 and 1884, respectively.
