Shipowners’ Club has “nothing to fear” from fixed commercial market: Tysers

Broker Tysers has now released its annual assessment of the P&I Market and, in particular, the International Group Clubs. IMN will be summarizing the individual clubs over the coming days, concluding with a combined summary of the club’s financial performances, conditions, rankings, ratings etc.

Today: Shipowners’ Club

Managers     The Shipowners’ Protection Ltd

Gross Tonnage

Owned 27,830,000
Chartered N/A

Free reserves

2021 379,065,000
2020 339,974,000
2019 303,825,000
2018 341,726,000
2017 294,041,000

S&P Rating  ‘A’

Tonnage by geography

SE Asia & Far East 51%
Europe 19%
Americas 14%
Aust/NZ & Pacific 4%
Middle East & India 10%
Africa/ROW 2%

Tysers said that Shipowners’ Club chairman Philip Orme had rightly been proud of an excellent performance by the Club during such a difficult year. A 98% membership retention saw tonnage rise by 3% to almost 28m GT, “again confirming the Club has nothing to fear from the dwindling fixed commercial market and that owners of small vessels appreciate just as much as the big fleets the value of quality service, as well as an excellent offering of additional coverages”, said Tysers.

At 101% and virtually breaking even on the underwriting side. the Club achieved the best combined ratio in the International Group. The average ratio over five years has been 101.6%’ over 10 years it has been 98%.

An investment return of 8% produced $48m. After a one-off pension charge of $7m, free reserves grew by $39m to $379m.

Orme noted that, 2020 was a very challenging year but “the Club has risen to the challenge and delivered what it set out to do in terms of both Member support and indeed financial stability”.

The suffered additional claims resulting from Covid-19 outbreaks on some of its entered vessels, but these were offset by lower levels of other claims. which the Club accepted was due to reduced operations in various areas, particularly the passenger excursion vessel sector.

There were no claims over $5m. For the financial year ending 31st December 2020, gross premium rose by nearly $4m to $234m, while net incurred claims remained stable at around $157m.

All figures $’000

Year 2021 2020 2019 2018 2017
Calls/Premium 232,081 224,902 224,267 216,341 228,580
Reinsurance Cost 24,864 24,943 29,270 29,706 27,527
Net Claims (incurred) 157,091 156,491 151,038 136,165 149,087
Operating Expenses 59,159 53,741 52,156 48,709 49,164
Net Underwriting Result (9,033) (10,273) (8,197) 1,761 2,802
Gross Outstanding Claims 516,216 464,442 440,348 425,420 433,441
Total Assets 1,002,390 905,789 843,216 859,393 823,121
Average Expense Ratio 22% 23% 24% 22% 22%
Solvency Margin 1.94 1.95 1.91 2.02 1.90
Reserves/GT Ratio $13.62 $12.56 $11.15 $13.41 $11.56