North P&I H1 financial performance “solid”; rise in small owned deductible

North of England P&I Club has reported a “solid” performance during the first six months of the year, although it noted that the number of claims, particularly those in excess of $1m, had reverted “to more typical levels”.

Investment returns at the half year point and a stabilization in the defined benefit pension schemes position helped the Club to a projected modest increase in free reserves for the financial year ending February 20th 2018.

North now anticipates a combined ratio at the end of the financial year in excess of 100%. In the light of this the Club has decided not to make a return of premium to Members at this particular time, with the position being kept under review.

The Directors said that they remained “acutely aware” of the economic pressures facing the maritime industry and emphasized that the Club was focused on the need to continue to support its Membership.

P&I CLASS

Mutual and Fixed Premiums – no general increase to Members’ rates at the forthcoming renewal. Rates and terms adjusted accordingly for members with adverse loss records, inadequate retained premium or enhanced exposures, etc. All Owned deductibles below $25,000 will be increased by a minimum of $1,000 per deductible.

Reinsurance – Members’ rates adjusted to incorporate any changes in IG General Excess of Loss Reinsurance Programme.

FD&D CLASS

Mutual and Fixed premiums – no general increase to Members’ rates, with the FD&D Rules deductible remaining unchanged.  Premiums adjusted to reflect individual Members’ claims performance and exposure.

PREMIUM COLLECTION

P&I premiums for Mutual Owned entries will be collected in four equal instalments of 25% during the Policy Year, on 2 April 2018, 1 June 2018, 3 September 2018 and 3 December 2018.

FD&D premiums will continue to be collected in two equal instalments on 2 April 2018 and 3 September 2018.

OPEN POLICY YEARS

P&I CLASS

2014/2015:   This Policy Year was closed and the final cost was on target at 100% of the originally estimated total premium.

2015/2016    This Policy Year will be reviewed in May 2018 with no additional calls currently anticipated. The final cost is expected to be on target at 100% of the originally estimated total premium. The Release Call is 0%.

2016/2017    This Policy Year will be reviewed in May 2018. No additional calls are anticipated and the final cost is expected to be on target at 100% of the originally estimated total premium. The Release Call is 5%.

2017/2018    This Policy Year will be reviewed in May 2018 with no additional calls currently anticipated. The final cost is expected to be on target at 100% of the originally estimated total premium. The Release Call is 15%

2018/2019    The manager’s current assessment of Release Calls is 15%.

FD&D CLASS

2014/2015    Policy Year was closed and the final cost was on target at 100% of the originally estimated total premium.

2015/2016    This Policy Year will be reviewed in May 2018, with no additional calls currently anticipated. The final cost is expected to be on target at 100% of the originally estimated total premium. The Release Call is 0%.

2016/2017    This Policy Year will be reviewed in May 2018. No additional calls are anticipated and the final cost is expected to be on target at 100% of the originally estimated total premium. The Release Call is 5%.

2017/2018    This Policy Year will be reviewed in May 2018. no additional calls are anticipated and the final cost is expected to be on target at 100% of the originally estimated total premium. The Release Call is 15%

2018/2019    The manager’s current assessment of Release Calls is 15%.

The mid-year review will be published later this week and will provide detailed information on the financial position and claims development during the current Policy Year.

http://www.nepia.com/news/circulars/financial-review-and-renewal-2018/