Broker Tysers noted that for policy year 2021-22 North of England Club reported an improvement in many financial performance indicators. Premiums rose by $23m to $429m, while claims were down by $20m to $282m. The combined ratio improved from 114% to 107%, with mutual P&I at 106% and the Sunderland Marine Fixed P&I at 90% for a third consecutive year. Meanwhile, owned tonnage rose by 4m to 160m gt, with chartered tonnage stable at 90m gt.
North stated in its annual report that performance across all business lines was “robust”, particularly Hull and Fixed premium, which delivered to plan in terms of income growth and underwriting performance.
The accounting position of the Club’s pension scheme, a long-running thorn in the Club’s side, improved by $26m.
However, Tysers noted that in contrast to last year when an investment return of $63m (6.67%) pushed the Club to an overall surplus, 2021 saw an investment loss of $20m (-1.75%). The underwriting loss was $23m, and the overall deficit of $17m saw free reserves fall back to $434m, their lowest since 2017 and the equivalent of $2.68 per owned gt – “better than Standard’s $2.39, but still not entirely comfortable”.
Tysers said that the other downside was an increase of $45m in retained claims for the 2021 policy year compared to 2020. This was mainly due to Covid-related claims, but there was also an increase in claims over $1m, from 32 to 37, with two hitting the Pool.
Tysers said that the forthcoming merger with Standard Club had the broker’s support and, if handled properly, would improve long-term financial stability for both.
| Year | 2022 | 2021 | 2020 | 2019 | 2018 |
| Calls/Premium | 429,025 | 406,159 | 346,567 | 345,019 | 387,599 |
| Reinsurance Cost | 82,161 | 79,822 | 65,512 | 61,701 | 81,326 |
| Net Claims (incurred) | 282,010 | 301,885 | 274,490 | 227,138 | 243,944 |
| Operating Expenses | 87,623 | 69.456 | 74,715 | 68,868 | 77,410 |
| Net Underwriting Result | (22,769) | (45,004) | (68,150) | (12,688) | (15,081) |
| Gross Outstanding Claims | 1,146,110 | 1,288,182 | 1,256,282 | 836,932 | 826,053 |
| Total Assets | 1,803,880 | 1,930,274 | 1,873,184 | 1,429,786 | 1,413,731 |
| Average Expense Ratio | 15.20% | 13.60% | 13.70% | 12.70% | 12.10% |
| Solvency Margin | 1.57 | 1.50 | 1.49 | 1.71 | 1.71 |
| Reserves/GT Ratio | $2.68 | $2.85 | $2.77 | $3.15 | $3.17 |
Gross Tonnage
| Owned | 162,000,000 |
| Chartered | 90,000,000 |
Standard & Poor’s Rating A
Self-managed
Free reserves
| 2022 | 433,700,000 |
| 2021 | 450,300,000 |
| 2020 | 443,810,000 |
| 2019 | 463,037,000 |
| 2018 | 341,726,000 |
Tonnage by vessel type
| Bulkers | 40% |
| Tankers | 21% |
| Containers | 23% |
| Other | 16% |
Tonnage By Geography
| Europe | 36% |
| Asia Pacific | 34% |
| Middle East | 11% |
| Americas | 4% |
| Scandinavia | 15% |