Steamship Mutual October update

In its October update, issued on October 25th Steamship Mutual reported a 3m tons growth in entry between February 20th and October 20th 2016, increasing the combined owned and chartered entry to 130m tons.

For 2016/17 policy year, the value of estimated claims was significantly lower than at the same point in recent years, both in severity and in number.

The incurred experience on the International Group Pool is also lower than last year, with six claims notified to date.

For 2015/16 and prior years, development reviews for the first two quarters of the year have been mixed, with a favourable trend across some claim categories and deterioration in others. The total projected release from prior years “is somewhat less than in recent years”, Steamship said.

Investment returns to end-September were 2.4% excluding currency movements.

In August 2016 S&P upgraded the financial strength rating of the Club from A- to A. The Board has considered how best to use the Club’s increased financial strength for the benefit of its Members, and decided as follows:

1. to return 10% of premium paid on Class 1 P&I mutual entries in the 2014/15 policy year, credits to be issued on 20 November 2016;

2. to retain more risk in the 2017/18 policy year and thus to reduce the cost of reinsurance charged to the Members.

For 2017/18 Premium Ratings. For a third successive year, no standard increase will be applied on any class of business for the 2017/18 policy year.

The Directors decided to review release calls on the open years after renewal, and Class 1 P&I and Class 2 FD&D release calls remain as follows:

2014/15: 0%

2015/16: 2.5%

2016/17: 12.5%