Steamship holds board meeting in Singapore; cost of claims up in 2017

Steamship Mutual’s Board Meeting in Singapore on January 23rd noted the continued growth in the Club’s owned entry, up by 4.5m tons, increasing the combined owned and chartered entry to a total of 156m tons.

Steamship noted that the overall cost of claims for the current P&I year was significantly higher than “the very low level at the same point last year”, but that it was similar to the average experience of the last several years. Pool claims also showed an increase.

On the investment side, in the eleven months ending January the Club recorded a return of 3.2% (excluding currency movements, which are allocated to the underwriting result).

As announced in October 2017, 10% of premium paid on mutual entries in the 2015/16 policy year US$25.6m) was returned to Members in November. Projected year-end Free Reserves are expected to remain broadly unchanged. A new Steamship insurance company will be established in Netherlands to insure risks within the European Economic Area, following the UK’s decision to leave the EU. Club Chairman Armand Pohan said that “in December the Club received its licence to operate in Singapore and it was fitting that the Board meeting was held in this important shipping centre immediately thereafter”. Pohan added that the service that the Club now provided from its regional offices was central to its future development, “as we are better able to respond to the needs of the Members particularly in the Far East. Indeed the new Steamship Mutual office that will be established in Rotterdam will also enhance service to our European Members.”

The Manager’s Executive Chairman Gary Rynsard said that “in an environment where claims are higher than last year and premium remains under pressure from the effects of ‘churn’, it is encouraging that free reserves are likely to remain at the same high level as reported last year. This is particularly the case when one considers the substantial return of premium provided to the Members in November.”