Group Club Britannia announced yesterday that, while there would be no declared general increase, it would be targeting an improvement in premium adequacy “equal to a 7.5% increase on the expiring P&I ETC (Estimated Total Call)”.
It added that it intended to “undertake a technical based renewal of our membership to promote sustainable premiums and restore underwriting balance by achieving pricing adequacy”.
There will be no changes to minimum deductibles, which will remain at the levels set for 2023/24. However, the Club said that deductibles would be considered individually with reference to record and risk profile and as part of a suite of measures to achieve pricing adequacy on each Member’s entry.
Britannia said that progress had been made in addressing the underwriting deficit. It felt that the measures outlined in its renewal announcement “should further enhance pricing adequacy and move towards a sustainable return to break even underwriting”.
The Board agreed a capital distribution of $10m to mutual (Class 3) P&I Members with ships on risk at midnight (BST) on October 24th 2023. Each Member’s proportion of the distribution will reflect their share of owned net Class 3 premium in relation to the owned net Class 3 premium for all ships on risk at the designated time.
Owned net Class 3 premium is defined as gross ETC less the cost of the International Group reinsurance. The Club will credit funds to individual Member’s account to be offset against any future payments due from the Member to the Britannia Group. The distribution will be made from December 13th 2023.
Reporting on the policy year 2023/24 to date the Club said that it had a strong 2023/24 renewal, with owned tonnage increasing year-on-year. It said that there was also a continued improvement in the underwriting result. While progress had been made in addressing the underwriting deficit, the Club felt that work was “not yet complete” and that more needed to be done.
Retained claims for the current Policy Year were said to be “high but within projections”. However the Pool had seen further deterioration in prior policy years. “However, the current year is encouraging and below the peak experienced in 2021/22”, the Club said.
While the Britannia Group remained financially strong, the Club said that rate increases were still required for the 2024/25 renewal “to maintain the progress made so far in addressing the underwriting deficit”.
2020/21 year will be closed with no further call being made.
2021/22 year’s final ETC instalment fell payable in October 2023. The Boards will review the 2021/22 policy year again in 12 months’ time. The expectation is that it will then be closed with no further call.
2022/23 year’s final ETC instalment will fall due in October 2024. The Boards will review the position in November 2024.
2023/24 year’s final ETC instalment will fall due in October 2025. The Boards will review the position in November 2024.