London P&I Club has booked a post-tax $6.6m surplus for the 2017/18 financial year, lifting the free reserve to $194.6m. However, there was a $14.4m rise in net incurred claims, the drivers of which included an increase in claims activity involving the International Group Pool, as well as an increase in the cost of higher severity Fixed and Floating Object claims within the Club’s retained layer.
This coincided with a period of continued pressure on P&I premium levels; the combination of these factors contributed to an increased combined ratio of 118.7%, London Club said.
In the year to February 20th the Association’s portfolio generated a gain of 5.5% ($18.9m), net of associated management expenses.
London Club said that it had continued to receive additional entries from new as well as existing Members. Following the February 2018 renewal there was a year on year increase of 5.8% in the mutual membership. In addition, the Club noted further volume growth in the Association’s bespoke covers for Charterers and for the Owners of smaller vessels.