Broker Gallagher has released its 2020 pre-renewal review, covering past results and the situation for the policy year to date, with individual sections on the Group Clubs. Today: UK Club
Full Name: The United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Ltd.
Web Address: www.ukpandi.com
Address: 90 Fenchurch Street, London, EC3M 4ST, UK.
Tel: +207 283 4646
Fax: +207 549 4243
S&P Rating (last change: increase to A from A- in 2014) ‘A’ (Outlook Negative)
Types of vessel entered
Gallagher asked CEO Andrew Taylor what was the most valuable lesson learnt from 2020. Taylor said that “Covid-19 has underlined the importance of a resilient mutual system. The Club’s strength makes it well placed to deal with such challenges while focusing on our key aim of providing top level service for all members. Covid-19 has required greater flexibility than ever before to maintain the Club’s high standards.” On being asked whether, with the benefit of hindsight, he would have done anything differently, Taylor said that “this crisis is far from over and there may be more challenges to come. We continue to learn and adapt to the situation as it evolves and have remained focused on ensuring the safety of our people and providing support and excellent service for our members.”
Gallagher commented that from February 21st 2019 the Group renewed all of its EEA members into the Group’s new subsidiary undertaking in Rotterdam known as UK P&I NV. In the year to February 20th 2020 the Club began fronting professional indemnity business on behalf of The International Transport Intermediaries Club, a mutual insurance company for transport intermediaries managed within the wider Thomas Miller group. This business is 100% reinsured back to ITIC, so that the Club does not retain any of the risk.
Following the year-end, on February 27th 2020, an arrangement was reached with an external insurer, Randall & Quilter, in respect of the Club’s occupational disease claims which, it was hoped, should eliminate the Club’s future exposure to long tail volatile exposures, particularly related to asbestos. This would have the added benefit of improving the Club’s solvency position.
|On Advance Call||n/a||0.0%||0.0%||0.0%||2.5%|
|On ETC n/a||0.0%||0.0%||0.0%||2.5%|
|POLICY YEAR DATA||2019-20||2018-19||2017-18||2016-17||2015-16|
|Total Free Reserve||559.2||504.8||540.0||458.4||447.8|
|Tier 1 Capital||549.7||478.4||656.2||597.9||–|
|Tier 2 Capital||164.7||151.5||38.2||39.2||–|
|Solvency Capital Required||329.4||303,0||343.7||375.0||–|
|Return on Total Assets||7.66%||1.71%||2.78%||3.42%||-1.29%|